Q&A with Gloria Kambedha, Managing Director, Greenthos Capital Limited.
What are beneficiary schemes?
Beneficiary schemes are initiatives designed to serve and protect the interests of a certain group of person(s). For example, a community may set up a fund to provide financial aid to families facing medical emergencies, or a company might offer share schemes and additional health benefits to motivate and retain employees or a SACCO may set up a benevolent fund to ensure that its members have access to crucial support in the event of bereavement.
Why have beneficiary schemes become increasingly important within the Ugandan landscape?
Beneficiary schemes have become crucial in Uganda due to inadequate formal social security systems and the economic vulnerability faced by many. Communities are stepping up to fill the gap through leveraging traditional values of mutual aid and solidarity. These schemes, often community-driven, align with cultural emphasis on collective support and shared responsibility, offering essential safety nets. The low uptake of insurance makes formal insurance coverage inaccessible by many hence driving many to the option of beneficiary schemes.
Also, employers are increasingly open to providing benefits beyond traditional offerings. Employee benefit schemes such as share schemes, wellness programs, and others promote overall job satisfaction and engagement. These additional benefits help to motivate staff and align their interests with the company’s objectives, fostering a more engaged and committed workforce.
Why can beneficiary schemes be burdensome and complex to administer?
It is crucial for beneficiary schemes to establish their own unique identity separate from the company or entity that is setting them up. This separation is important because it ensures that the governance and decision-making processes of the scheme is independent and impartial, rather than being influenced by the interests of the company or organization that created it. By doing so, the scheme can maintain a clear focus on serving the needs and interests of its intended beneficiaries, which builds trust and transparency.
However, this separation can introduce complexities in administration. Managing an independent beneficiary scheme requires careful coordination to ensure that it operates effectively while adhering to its own rules and regulations. This may involve setting up distinct governance structures, implementing separate accounting systems, and ensuring that decision-making processes are transparent and accountable. While these additional steps can make administration more challenging, they are essential for maintaining the scheme’s credibility and ensuring that it genuinely serves the interests of its members.
Why use Greenthos Capital Limited to establish and manage beneficiary schemes?
We recognize the significance of beneficiary schemes and offer specialized support to entities setting up and managing their funds independently. Our services are designed to ensure these schemes operate with integrity and effectiveness. We provide independent directors and trustees to guarantee impartial governance. Additionally, we provide comprehensive training for these directors and trustees to enhance their skills and effectiveness in their roles, equipping them with the knowledge to make informed decisions. Our support extends to ongoing advisory services to address any challenges that arise, helping to maintain the scheme’s compliance, transparency, and overall effectiveness in serving its intended purpose.
We also handle accounting and tax compliance, meticulously ensuring that all financial operations are conducted in accordance with best practice. This includes maintaining accurate financial records, preparing and filing necessary tax documents, and conducting regular audits to confirm adherence to relevant laws and regulations. By managing these aspects, we help safeguard the integrity of the beneficiary scheme’s financial practices and ensure transparency and accountability in all transactions.
We facilitate communication with beneficiaries and shareholders and manage meetings to keep all parties informed and engaged. Our comprehensive approach helps ensure that beneficiary schemes are administered effectively and transparently, aligning with their objectives and serving their members’ best interests.
Find out more about Greenthos Capital’s fund administration services.
