Social Development embarks on a campaign to help non-profit organisations to comply
The Department of Social Development has embarked on a nationwide roadshow campaign targeted at all organisations registered in terms of the Non-Profit Organisations (NPO) Act (Act No 71 of 1997). The #KnowYourNPOStatus campaign, targets Non-Governmental Organisations, Community-Based Organisations and Faith Based organisations registered as NPOs to comply with the provisions of the Act.
Section 18 (1) (a) of the NPO Act prescribes that every registered organisation must, in writing provide a narrative report of its activities in the prescribed manner together with its financial statements and the accounting officer’s report within 9 months after the end of its financial year.
Section 21 (1) of the Act makes provision for the cancelation/de-registration of registered NPOs that fail to comply with Section 18 (1) (a). While the Department is empowered by the Act to de-register NPOs that fail to comply with the Act, it has adopted a developmental approach that fosters good relations with the sector towards the attainment of its strategic goals.
The campaign, which will run for a period of two years forms part of the Department’s initiative to improve transparency, good governance and accountability amongst organisations that render services to the most vulnerable groups in the country. For this reason, it is important that registered NPOs comply with laws governing their operations in the country. This in turn will ensure that NPOs are legitimate and viewed as such by government, donors and other stakeholders in the sector.
Over the past 25 years, the Department has witnessed the growth of the NPO sector with more organisations registering under the Act. To date, there are over 200 000 organisations registered as NPOs. Of this number, 56 000 NPOs have failed to submit annual reports as required by the Act, with some of the organisations not submitting a single report since registration for years.
The Department is the custodian of the Non-Profit Organisations (NPO) Act (Act No 71 of 1997), which provides for voluntary registration, establishes administrative and regulatory framework within which NPOs can conduct their affairs. The objective of the NPO Act is to encourage and support NPOs in their contribution to advancing South Africa’s developmental agenda as articulated in the NDP (Vision 2030). This is premised on the understanding that a strong and capable civil society can play a collaborative and developmental role in a democratic society.
To make compliance less burdensome on NPOs, the department encourages all registered NPOs to visit the nearest Social Development offices throughout the country to update their details, verify their NPO status and submit annual reports. NPOs who wish to de-register can also do so voluntarily.
A number of officials have been trained in each of the 9 provinces to provide administrative assistance to NPOs that wish to comply with the Act or de-register their organisations. The campaign is implemented in partnership with Companies and Intellectual Property Commission (CIPC), National Lotteries Commission, Financial Intelligence Centre (FIC),
South African Institute of Business Practitioners and South African Institute of Tax Practitioners and SANGONET.
Enquiries:
Lumka Oliphant
Cell: 083 484 8067
E-mail: lumkao@dsd.gov.za
