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NPO Registrations

NPO Registrations – What You Need to Know

Do you want to start a non-profit organisation to assist disadvantaged groups? If so, you will appreciate our expertise when it comes to NPO registrations. Entities that qualify for non-profit organisation registrations include associations, companies, or trusts specifically focused on assisting disadvantaged groups or offering social services.

NPO registrations make it possible for such entities to get government funding and serve to give credibility for fund raising. Such organisations or entities can also register with the National Department of Social Development.

Types of Non-Profit Organisations

From faith-based organisations to community based organisations, Section 21 Companies, registered trusts, voluntary non-profit organisations, and non-governmental organisations qualify for NPO registrations.

The focus of the entities must be to provide products, services, and programmes for public benefit, including religious, educational, research, charity, social welfare, or economic development. Stakeholders may not commercially benefit from the non-profit organisations.

In essence, non-profit organisations are entities that are not focused on financial benefit, but rather human, animal, or environmental welfare. Though the employees and administrators of such organisations can earn salaries, the profits of the organisations must be used towards one of the causes or areas of public interest mentioned.

A voluntary association only needs three or more persons to have consent over a common goal, other than profit generation. The agreement between the parties can be written or verbal. This type of association is not regulated by a specific statute. A trust as non-profit organisation must register with the Master of the Supreme Court, and can register under the Non-Profit Organisation’s Act. A non-profit company must register with the CIPC, and must have a Memorandum of Incorporation (MOI).

Are NPO Registrations Compulsory?

No. All registrations under the NPO Act are voluntary. Only organisations that want to benefit from government funding have to register under the NPO Act. The registration takes about 60 days to complete. Once a registration application is submitted, the applicant gets an acknowledgement notice. The registration certificate is issued once all the requirements of the NPO Act are met.

To register with CIPC, you need at least three directors, all of them being Incorporators. Their identity numbers must be validated. Note that a full director must first be appointed before an alternate director can be appointed.

Notice Regarding Reporting

The non-profit organisation must comply with all requirements regarding reporting according to the stipulations of the Companies Act. It includes reporting to the Registrar of Companies if there are auditor or address changes. The director names must appear on all documentation of the non-profit organisation, and the company must keep register of the directors and members. Several other ongoing reporting requirements must be met, with which our tax and accounting consultants can help.

Give us a call for more information and assistance with NPO registrations in South Africa.

Note: this article is for informational purposes only and does not constitute legal, financial, or tax advice. Call us for tax or financial advice rather than relying on the information in this article. Information is relevant to the date of publishing.