npo in south africa

In its Annual Report for the period ending March 31, 2018, the Department of Social Development states that: “The draft [NPO] Bill will be submitted to Cabinet for approval in 2018/19.” (page 29). Non Profit Organizations - NPO in Cape Town, Non Profit Organizations - NPO in Johannesburg, Non Profit Organizations - NPO in Pretoria, Non Profit Organizations - NPO in Eastern Cape, Non Profit Organizations - NPO in Sandton, Non Profit Organizations - NPO in Port Elizabeth. “In South Africa a Nonprofit Organisation (NPO) is defined as: a Voluntary Association, Company or Trust.” This means they are established for a public purpose, and income and property are not distributable to its members or office bearers except as reasonable compensation for services rendered. 60 of 2008, Income Tax Act Schedule Nine Sections 2(1)-2(5), Report on the Public Benefit Organisation and the Tax System, Longer country reports analyzing various aspects of local legislation; and. Steps for Online NPO Registration in South Africa. Pre-existing non-profit companies incorporated under the old Companies Act of 1973 (known as Section 21 companies), are governed by the new Companies Act. The non-profit company is subject to the non-distribution constraint requirement. It is integral and directly related to the sole objective of the public benefit organisation; Substantially the whole of its revenues are directed toward the recovery of its costs; and. It states that "[t]he department [of Social Development] has set a target to facilitate the implementation of the DSD Sector Funding Policy and the DSD-NPO Partnership Model as well as submitting the NPO Bill to Cabinet. See full address and map. If you believe any information in this NGO law resource is incorrect, please inform Lily Liu at the International Center for Not-for-Profit Law of any necessary corrections. The Constitution of the Republic of South Africa (1997) provides that neither the State nor any person may unfairly discriminate against anyone on the basis of race (among other grounds) (Constitution Sections 9(3) and (4)). Among other requirements, the organisation’s sole purpose must be to undertake one or more public benefit activities, carried out in a not-for-profit manner and with an altruistic or philanthropic intent. © 2020 Council on Foundations. Trusts in South Africa are governed under the Trust Properties Control Act and common law. The Promotion of Equality and Prevention of Unfair Discrimination, Act No. A VAT exemption applies to the sale of any donated goods or services, and to the sale of manufactured goods where donated goods and services constitute at least 80 percent of the value thereof. South Africa and the United States have entered into a double taxation treaty. The person who administers the trust property is called a trustee (TPCA Section 1). Step 1: Open the online NPO Registration page. The trust deed, however, must address the issue if the trust is a registered non-profit organisation or an approved PBO. [6] Sections 66(8) and (9) of the Companies Act, dealing with the payment of remuneration to directors for their service as directors, do not apply to non-profit companies (Companies Act Section 10(2)(c)). Address: 251 Rifle Range Rd, Haddon, Gauteng, 2190, South Africa, Johannesburg. See full address and map. [7], To be eligible for exemption from income tax and certain other taxes, an organisation operating for the public benefit first must qualify as a Public Benefit Organisation under Section 30 of the Income Tax Act, as summarized in Section IV. If a voluntary association prohibits its members, directors, or employees from having a proprietary interest in the organisation's assets, the prohibition will appear in the organisation's founding documents. A trust does not have separate legal personality, but trustees still enjoy limited liability. This can be confusing because the common law is not easily accessible and sometimes is contradictory. Before you can successfully register any NPO in South Africa, according to the NPO Act, you need to have the Memorandum and articles of association/trust deed on the ground. Forming a voluntary association requires only that three or more people agree to achieve a common objective that is primarily not-for-profit. The Bill introduced no significant changes to the regulation and governance of non-profit companies. NGO/NPO Braamfontein, Johannesburg, Gauteng. The Trust Property Control Act requires trustees to “act with the care, diligence and skill which can reasonably be expected of a person who manages the affairs of another” (TPCA Section 9(1)). The researchers concluded that the NPO regulatory framework dealing with establishment, registration, tax exemption, and social welfare legislation, is complicated by inadequate alignment among the different laws. Categories: Non Profit Organizations - NPO, Address: Donald Gordon Med Ctr, Eton Rd, Parktown, Gauteng, 2193, South Africa, Johannesburg. Specific prohibitions against private inurement would be included in a voluntary association's founding documents. Conservation, Environment and Animal Welfare; Providing of Funds, Assets or Other Resources; and. The Trust Property Control Act allows for the trust instrument to designate the objective or beneficiaries, but it does not specify limitations to such objectives or beneficiaries (TPCA Section 1). The organisation’s governing structure sets the objectives for the organisation, usually in response to a perceived need in the community, with or without community consultation. Qualifying organisations can claim the VAT they incur as input tax and, generally speaking, must pay output tax only when they charge for goods or services. Tax Filing, Audits, & Public Disclosure Requirements, Country Notes: Resources for Global Grantmakers, Mastering Foundation Law: Compendium of Legal Resources, National Standards for U.S. Community Foundations®, Ask Me Anything with Kathleen Enright and Council Leaders, Corporate Philanthropy Programs & Services, HUD Secretary's Award for Public-Philanthropic Partnerships, International Center for Not-for-Profit Law, Constitution of the Republic of South Africa, Financial Intelligence Centre Amendment Act, 2017, Tax Exemption Guide for Public Benefit Organisations in South Africa, Income Tax Act Schedule Nine Sections 1-11, Revenue Laws Amendment Act, No. Address: 205 Acacia Rd, Northcliff, Gauteng, 2195, South Africa, Johannesburg. In order to obtain approval from the Commissioner as a PBO under the Income Tax Act, Section 30, an organisation must provide in its founding document that any assets remaining upon dissolution or winding up must be transferred to: (1) a similar public benefit organisation approved under Section 30; (2) an institution, board, or body which is exempt from tax under the provisions of Section 10(1)(cA)(i) of the ITA, which has as its principal objective any public benefit activity; or (3) a department of the state (Income Tax Act Section (30)(3)(b)(iii)). South Africa NPO abbreviation meaning defined here. As of April 2019, the Bill has not yet been introduced to the South African Parliament. The Tax Act defines public benefit activity by listing over 60 permissible activities (see Section IV on Public Benefit Status for further discussion). NPO – which stands for non-profit organisation – is a generic term for a non-profit or non-governmental entity in South Africa. They can enter into contracts and sue and be sued in their own name. The Trust Property Control Act provides that trust property may not form part of the personal estate of a trustee, unless the trustee is also a beneficiary entitled to the property under the trust instrument (TPCA Section 12). To obtain approval from the Commissioner as a PBO under Section 30 of the Income Tax Act, an organisation cannot conduct any activity intended directly or indirectly to promote the economic self-interest of any fiduciary or employee of the organisation, other than through reasonable remuneration. See full address and map. If the organisation qualifies, the Directorate issues a certificate and registration number. Carry on activities in the following categories: Conservation, environment, and animal welfare. No office of registry exists for voluntary associations. NPOs include trusts, companies or other associations of persons established for a public purpose. Association Of Corporate Treasurers Of Sa. To retain this status, the organisation must submit narrative and financial reports to the Directorate annually. Additional PBO requirements are discussed below. 2745. Learner's Movement of South Africa - Non-Profit Organisation. The receipts and accruals from such undertakings or activities shall be exempt from normal tax only if one of the following criteria applies: A) The undertaking or activity meets all of the following requirements: B) The undertaking or activity is of an occasional nature and substantially performed by uncompensated volunteers. A Registered NPO This article gives a quick overview of Non Profit It must be a non-profit company formed and incorporated under the Companies Act, a trust established in the Republic and registered with the Master of the High Court whose founding document is a trust deed, a voluntary association, or “any agency or branch within the Republic of any company, association, or trust incorporated, formed, or established in terms of the laws of any country other than the Republic that is exempt from tax on income in that other country” (i.e., the definition of PBO under Income Tax Act Section 30(1)). See full address and map. They fall under the following headings: To apply for PBO status, organisations must submit their completed application forms with supporting documentation at the local South African Revenue Service (SARS) branch office as part of the tax registration process. See full address and map. Categories: Non Profit Organizations - NPO, Address: Braamfontein Ctr, 23 Jorrisen St, Braamfontein, Gauteng, 2001, South Africa, Johannesburg. A variety of activities are approved, and they fall under the following headings: The Value Added Tax Act imposes a 15 percent tax on the value of goods or services supplied by a vendor, imported goods, or services provided by a resident supplier or one carrying out business outside of South Africa to a resident of South Africa who uses the services in South Africa (VAT Act Section 7(1)). This has significantly reduced the processing times of applications to register in terms of the Non-Profit Organisations Act. A voluntary association can engage in any lawful activities in pursuit of a legitimate objective, if those activities are not for gain and are in line with its founding document. This section describes the legal framework governing of nonprofit organizations (also known as non-governmental organizations or NGOs) in South Africa, and includes translations of legislative provisions relevant for a foundation or advisor undertaking an equivalency determination of a foreign grantee under IRS Revenue Procedure 92-94. The transferee(s) can be identified in the non-profit company’s Memorandum of Incorporation, by its members, if any, its directors, or a court of law if the members or directors fail to make such a determination. [2] The Davis Tax Committee (DTC) published its Report on the Public Benefit Organisation and the Tax System in April 2018. No past or present member or director is entitled to any part of the net value of the company after its obligations and liabilities have been satisfied (Companies Act Schedule 1 para 4). See full address and map. Categories: Non Profit Organizations - NPO, Address: 2 A 10th St, La Rochelle, Gauteng, 2190, South Africa, Johannesburg. See full address and map. If yours is a non-profit organisation and is not part of government, you can apply for registration. Southern Africa Youth Project is a leading NPO in South Africa working with the underprivileged youth. Categories: Non Profit Organizations - NPO. The South African Companies Act of 2008, which came into force on May 1, 2011, provides for the incorporation of a non-profit company, which is recognized as a separate category of company. They are entitled to a broad range of fiscal benefits, including a partial income tax exemption, an exemption on donations tax, and, for some, an exemption on transfer duty on immovable property. See full address and map. It does not result in unfair competition in relation to taxable entities. Non-Profit Organisation (NPO)Year Registered: 2013. Voluntary associations, established under common law; Non-profit trusts, established under statutory law; and. Forming a voluntary association requires only that three or more people agree to achieve a common objective that is primarily not-for-profit. LEMOSA is a Youth Development and Community based nonprofit organisation that empowers and transforms the Youth through education. In addition, the organisation must not distribute any of its funds to any person, other than in the course of undertaking a public benefit activity; and it must use its funds solely for the objective for which it has been established (Income Tax Act Section (30)(3)(b)(ii)). These situations include: where the terms of the trust hamper the achievement of the founder’s objective, prejudice the interests of trust beneficiaries, or are against the public interest (TPCA Section 13). As of November 2019, according to the website of the Directorate for Non-Profit Organisations, there are 222,476 registered organisations. Each of the organisation's activities must be for the benefit of, or widely accessible to, the general public at large, including any sector thereof (other than small and exclusive groups). See full address and map. Finally, certain organisations are eligible for Value Added Tax preferences. Non-profit companies incorporated for a public benefit objective or an objective relating to one or more cultural or social activities, or communal or group interests, established under statutory law. Southern Africa Youth Project currently works with over 500 non-profit organisations NPO in South Africa. In addition, the law limits the extent to which the business activities of the organisation are tax exempt (see Section V(D)(2) on Economic Activities) (Income Tax Act Section 10(1)(cN)). The Master holds the trust instruments, oversees the appointment of trustees, and polices the trustees' performance with respect to the trust property (TPCA Sections 4, 6-7, 16-20). The Companies Act establishes two categories of companies: 1) non-profit companies, and 2) profit companies. This will carry the name of the organisation, the mission and objectives as well as the details of the officeholders among other information. The right to receive a public education in the language of one’s choice, where reasonably practicable, is also guaranteed (Constitution Section 29(2)). An organisation generally must meet three requirements to qualify as a universitas: If all of these requirements are met, a court will deem an organisation to be a universitas with legal personality. 71 of 2008) changed the way in which non-profit companies are incorporated and regulated. We've taken all that data (85248 NPOs!) Categories: Non Profit Organizations - NPO, Address: 5 Hammond Rd, West Turffontein, Gauteng, 2190, South Africa, Johannesburg. [4] Registration under the NPO Act is voluntary, but is often required in order to access funding from government departments and some corporate donors. The non-profit company can be established with or without members, but it must have at least three directors (Companies Act Section 3(1)). Daily Maverick (Johannesburg) opinion By Shelagh Gastrow. In the event of a dispute, the Master (a court official appointed under Section 2 of the Administration of Estates Act) will set the amount. 17 Langford Road, Dawncliffe Dawncliffe, Westville 3629, KZN, South Africa A PARK CARE CENTRE 24/7 FRAIL NURSING RESIDENTIAL FACILITY 36 Escombe Avenue, Parktown West, Johannesburg, GAUTENG 2193, South Africa B See full address and map. With reference to clubs, sports, and associations, it provides that refusing to consider a person’s application for membership of the association or club on any of the prohibited grounds, including race, constitutes an unfair practice. The Taxation Laws Amendment Act, 2017 introduced additional changes pertaining to certain specialized agencies, as defined in the Diplomatic Immunities and Privileges Act of 2001, that qualify for tax deductible donations. Failure to do so may result in bank accounts of non-profit organisations becoming inaccessible. Find every business listed for Non Profit Organizations - NPO. Address: 4 Coram Office Park, 86 Ferero Street, Randpark Ridge, 2156, Johannesburg. PBOs may not use their resources to directly or indirectly support, advance, or oppose any political party, but are not restricted from lobbying. Other not-for-profit legal forms, which are outside the scope of this Note due to their limited interaction with U.S. grantmakers, include trade unions, employers' organisations, political parties, and friendly societies established for the benefit of their members. Failure to transfer the assets to such an organisation may result in a fine, imprisonment, or both for the person responsible (NPO Act/1997 Section 30). Médecins Sans Frontières (Doctors without Borders) - Johannesburg NGO/NPO Marshalltown, Johannesburg, Gauteng. The property can be transferred by written agreement, testamentary writing, or court order. Registration as an external non-profit company is required for the foreign company to enter into employment contracts. [5] In 2013, the Directorate for Non-Profit Organisations introduced an online registration and reporting facility. See full address and map. 28490 Carnation Way, Broom Court, N2 Gateway, Delft South. A non-profit company is a company incorporated for one or more objects, either a public benefit or … Other not-for-profit organisations (that are not approved PBOs or are not exempted from paying tax elsewhere under Section 10 of the Income Tax Act) are liable for income tax and other taxes and duties on the same basis as ordinary taxpayers. Please direct corrections and comments to Lily Liu. These organisations are sometimes referred to as “Public Benefit Organisations with Donor-Deductible Status.” The donation must be supported by a receipt issued by the PBO and the donation cannot, for any given fiscal year, exceed 10 percent of the taxable income of the taxpayer in order to qualify for this deduction. Texts of local laws that affect the decision whether or not to qualify a grantee (generally in translation, although ICNL and the Council cannot warrant the accuracy of any translation; in addition, legislative excerpts were selected by in-country contacts, and ICNL and the Council cannot warrant that all relevant provisions have been translated). For example, the organisation’s founding document must provide that at least three unrelated persons have fiduciary responsibility for the organisation, and that no single person can directly or indirectly control the decisions relating to the organisation (Income Tax Act Section 30(3)(b)(i)). The Income Tax Act restricts PBOs from using their resources to directly or indirectly support, advance, or oppose any political party (Income Tax Act Section 30(3)(h)). A dividend tax was introduced by the Revenue Laws Amendment Act, No. See full address and map. A trustee's improper accounting in administering the trust violates this fiduciary duty and constitutes grounds for removal (TPCA Section 20(2)(e)). A parliamentary report from May 2018 indicated that the NPO Amendment Bill drafted and completed from 2015 to 2016 will be introduced to the South African Cabinet. [3]. Popularly known as Department of Social Development. A court official, called a Master of the High Court, has jurisdiction over a trust if the majority of the trust property is situated in his or her jurisdiction (TPCA Section 3). The Council on Foundations fosters an environment where philanthropy can thrive and cultivates a community of diverse and skilled philanthropic professionals and organizations who lead with integrity, serve as ethical stewards and advocate for progress. See full address and map. An association not for gain is treated much like any other business if it makes taxable supplies, but the following special provisions apply: Some associations not for gain also qualify as "welfare organisations," which entitles them to the benefits listed above plus additional ones. 25.63887 4 of 2000 provides that no person may unfairly discriminate against any person on the ground of race, including a number of activities defined thereunder, such as the engagement in any activity which is intended to promote, or has the effect of promoting exclusivity based upon race. NPO’s SAASP (South African Antibiotic Stewardship Program) is a major pharmacist-led antimicrobial stewardship programme working with the National Department of … [1] The Companies Act (No. PBOs with donor-deductible status must, however, carry out at least one of their public benefit activities in South Africa. A universitas or an informal voluntary association may include provisions governing the transfer of assets upon dissolution in its founding documents. Step 2: Complete the required information: Organisation Name; Organisation Type; Financial Period; Contact Person Name in the format Title, Initials, Surname (eg. Non-profit companies may carry on any business, trade, or undertaking consistent with or ancillary to its stated objectives, i.e., the promotion of the public benefit or one or more cultural or social activities, or communal or group interests (Companies Act Schedule 1 para 2(a)). A non-profit company must, upon winding-up or dissolution, distribute the entire net value of the company to one or more non-profit companies, “registered external non-profit companies” carrying on activities in South Africa, non-profit trusts, or voluntary associations having objectives similar to its main objective. The trust concluded a contract with the provincial Government to provide, amongst other specialized intensive care, air ambulance services and training and support to health workers. Current as of October 2019 | Download print version (in PDF). The non-profit company is incorporated with the Companies Commission; it can be incorporated for a public benefit objective, or an objective relating to one or more cultural or social activities or communal or group interests (Companies Act Schedule 1 para 1). All rights and responsibilities vest collectively in the trustees in their capacity as trustees. Please be advised that the Council on Foundations and ICNL are not liable for inaccuracies in these resources or accompanying translations. The entity may be a trust, company or other association where income and property are not distributed to its members or office bearers, except as reasonable compensation for services rendered. Once the NPO is registered, the organisation would have to submit an annual report nine months after its financial year-end. A voluntary association's founding documents will specify its activities. At present, more than 60 activities qualify (Income Tax Act Schedule Nine Sections 1-11). See full address and map. See full address and map. An "association not for gain" is defined as a religious institution or other society, association, or organisation (including an educational institution of a public character), which is not established for profit and which is required to use any property or income solely to further its aims and objectives. 5 percent of the public benefit organisation's total receipts and accruals during the relevant year of assessment; or, Conservation, Environment and Animal Welfare. Southern Africa Youth Project partners with NPO in South Africa servicing over 1 Million youth in Youth Employment Programmes. 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