A total of 203 279 non-profit organisations (NPOs), voluntary associations, and trusts across South Africa face the risk of deregistration for failing to submit annual reports as required by Section 18(1) of the Non-Profit Organisations Act (Act No. 71 of 1997, as amended through the General Laws Amendment Act 22 of 2022).
To date, the Department of Social Development has issued 41 787 notices of non-compliance. Of these, 6 221 NPOs have been deregistered for failing to meet their obligations under the NPO Act.
Non-compliant NPOs will lose privileges such as tax exemption, letters of support, and funding from government, donors, and private institutions that prioritise accountability. The provinces with the highest number of non-compliant NPOs are:
- Gauteng: 64 221
- KwaZulu-Natal: 36 605
- Western Cape: 20 371
- Limpopo: 19 982
- Eastern Cape: 19 202
- Mpumalanga: 15 102
- North West: 12 363
- Free State: 10 661
- Northern Cape: 4 770
These organisations provide essential services to children, youth, persons with disabilities, older persons, and humanitarian relief.
While acknowledging the vital role of NPOs, the Department is enforcing compliance to foster transparency and accountability in the sector. The deregistration process follows a formal notice issued in August 2023, which was accompanied by targeted workshops and outreach programmes to assist organisations in meeting compliance requirements.
The enforcement of the NPO Act aligns with the Financial Action Task Force (FATF) Recommendation 8, which addresses risks related to money laundering and terrorist financing in the sector. The FATF Plenary in November 2023 recognised South Africa’s progress in addressing compliance deficiencies, and the country is set to report back on outstanding issues in its 5th round of mutual evaluation this year.
The Department remains committed to assisting struggling NPOs. To date, it has processed:
- 18 000 email enquiries
- 3 000 telephone queries
- 4 000 walk-in consultations
- 3 450 NPO updates on the register
As the registrar of the NPO Act, the Department urges all NPOs to comply with regulatory requirements to maintain transparency, accountability, and protect beneficiary communities.
For Enquiries:
Bathembu Futshane
Department of Social Development
Cell: 071 162 1154
E-mail: bathembuf@dsd.gov.za
