Question 856
M H Lamoela (DA) to ask the Minister of Social Development:
(1) What are the main reasons for 54 000 Non-Profit Organisations (NPOs) being registered with her department;
(2) Whether any mechanisms are in place to monitor and evaluate NPOs; if not, why not; if so, what are the relevant details?
Reply:
Honourable member
(1) Organisations apply voluntary for non-profit status in terms of section 12 of the not for Profit Organisations Act, Act No. 71 of 1997 to gain body corporate status in terms of section 16 of the NPO Act. Government departments and other funding agencies have made the NPO registration a requirement for funding organisations. Furthermore, for NPOs to open a banking account, they need to produce a NPO registration certificate as proof of their legal entity status. Therefore registering as an NPO gives an organisation legal status.
(2) Yes, Department of Social Development (DSD) is responsible for the administration of the NPO Act and mechanisms are in place to monitor and evaluate NPOs by scrutinising all submitted annual reports of registered NPOs as required in terms of section 18 of the NPO Act. Monitoring measures further require that all registered NPOs must, in terms of section 17 of the NPO Act;
* Keep accounting records of all its financial transactions according to the standards of general accepted accounting practices {section 17(1)(a)} and preserve the organisation’s books of account, supporting vouchers, membership records, financial and other documents {section17(3)}.
* Draw up financial statements {section 17(1) (b)} and arrange for an accounting officer to prepare a written report {section17 (2)}.
* In terms of section 18 of the Act, all registered organisations have a duty to provide reports and information to DSD. These reports and information include;
* An annual report i.e. a narrative of the activities, financial statements and the accounting report as contemplated in section 17 of the act must be submitted within nine months after the end of the organisation’s financial year.
* Details of any changes of the organisation’s address at which the organisation should receive documents {section 18(1) (c)}.
* Details of any changes in the organisation’s constitution or name (section 19).
* The mechanism to monitor the submission of reports by registered NPOs is based on the above mentioned provisions of the Act and reports are scrutinised accordingly on a yearly basis.
Issued by: Department of Social Development
21 September 2009
