The process of registering as a Non-Profit Organisation (“NPO”) can prove challenging. The purpose of this article is to create awareness regarding the frustrations and challenges faced when registering a Non-Profit Organisation in South Africa.
The most prevalent challenges are the slow turnaround time and applications being misplaced or even lost. There are however, I am sorry to say, many additional challenges.
In South Africa, all non-profit organisations are governed by the the Non-Profit Organisations Act, No 71 of 1997 as amended from time to time (hereinafter “the Act”). The Act makes provision for either a trust, company, or other organisation or association of people established to serve a public purpose, to register as a non-profit organisation (“NPO”). Although the Act is designed to provide an environment in which NPOs in South Africa could flourish, the reality is unfortunately quite different. In order to discuss the various issues, one will have to look at the various structures which may be used to set up an NPO. In essence they are, a voluntary association, non-profit trust, and non-profit companies.
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