Tips & Articles

Non profit organisations in South Africa

Tips on launching an NPO in South Africa

  NPOs in South Africa

Here are a few tips and rules about launching an NPO

Charities and non-profit organisations

There are hundreds of charities and non-profit organisations operating in South Africa. These include sports groups, faith-based organizations, clubs and other civil society groups. They all work within the social fabric of society.

Differences between NPOs and NGOs

NGOs are non-governmental organisations.  These entities usually oversee large projects. They can be national or international organisations.
Non-profit organisations are usually local or regional, community or faith-based charities. NPOs are not allowed to make money.
The entities can be trust companies or associations. Foundations are usually funded by a corporate entity or set up with family money.
These organisations serve the community with education projects, services or other charity services.

Registration

Applications can be made for registration of an organisation that is not affiliated with the government. If you have a charity group, you should register an NPO. The certificate enables you to have various benefits. Such as,

  • It will improve your credibility and
  • It will increase funding opportunities.
  • It will also enable you to open a bank account.                                                                                                                                                                      In order to register you need to submit certain documents. These depend on the form of organisation you are looking to set up. Such as,
    • Deeds of trust and letter of authorisation from the court for a trust.
    • Section 21 certificate of incorporation.
    • Constitution/founding document.
    • Articles of association/mission statement.
    The completed NPO application forms can be dropped off at the nearest social development office. Copies of the founding documents of the organisation must be attached.

Funding

Funding for an NPO can come from donations and sponsorships. NPOs are eligible for government funding, for example, lottery funding. A non-profit organisation can hold fundraisers, sell raffle tickets and have other functions to raise money.

Tax

The activities an NPO can undertake are defined in the Income Tax Act. Tax exemption is not granted automatically. Organisations need to apply to SARS where the application will be reviewed.

Funds donated in terms of CSR “Corporate social responsibility” are not currently eligible for a deduction in tax in South Africa. Companies pay as a connection with the common good.

There are many different NPOs in South Africa that you can donate to. You can choose from those that are affiliated with your own particular interests.

https://www.colourdots.co.za/listing-category/charities-and-non-profit-organisations/

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