Official Requirements as a Registered NPO PDF Print E-mail

Official requirements for all registered NPOs

  • All your organisation’s documents must display your NPO registration status and number.
  • Up-to-date records of every financial transaction made

     

    Keeping aids records
    Photo: Statesman

    by your organisation must be kept. These should be entered daily into an accounting book and all receipts and invoices must be kept.
  • At the end of your financial year, statements must be drawn up within six months showing your income and expenditure for the whole year, as well as a balance sheet listing your assets and debts. These statements summarise the financial position of your organisation. They must be submitted to the Directorate with a report written by an accounting officer. The accounting officer must be able to confirm that the financial statements are correct and that your organisation has followed the financial reporting requirements laid down by the NPO Act. An accounting officer (or auditor) is a person who is registered at a professional institution in terms of section 60 of the Closed Corporations Act.
  • A report of your activities throughout the year must be sent with the financial statements and the accounting officer’s report. The Directorate provides guidelines on how to write this progress report. These guidelines can also be downloaded from the website www.welfare.gov.za (go to NPO, then NPO Documents, then Narrative Report).
  • These documents must be submitted not later than nine months after the end of your financial year. It is advisable to send these documents as soon as possible, and not wait until the last possible moment.
  • You must also submit the following details to the Directorate (even if they do not change from year to year): your organisation’s physical and postal address, and the names, ID numbers and residential and postal addresses of all the committee members.
  • The annual reports that you send to the Directorate will be publicly available to anyone who wants to see them. This helps to promote transparency and good governance, and makes the NPO sector more accountable to its funders and the public.

What happens if these requirements are not met?

  • If the above requirements are not met, written notification will be sent to the organisation requesting compliance within a certain time. If the organisation fails to respond then registration can be cancelled.
  • A police investigation can also be ordered if the NPO Directorate believes any financial wrongdoing has taken place.

What happens if the Directorate deregisters an organisation?

Your organisation can send a letter of appeal and you will be given a tribunal hearing. It is possible to reapply for registration after being deregistered, providing your organisation then fulfils all the requirements.


Good Governance Guidelines for NPOs

  • The Directorate has produced a 52-page booklet entitled ‘Codes of Good Practice for South African NPOs’, which is available on request. It can also be downloaded from the website www.socdev.gov.za (go to NPO, then NPO Documents). This booklet gives extensive advice on how to run a good organisation.
  • Remember that any income or property belonging to an NPO cannot be distributed to its members, except as reasonable payment or compensation for work they have done. This can take the form of monthly salaries or stipends, or help with expenses such as travelling costs.

What happens if changes are made within an organisation after registration?

  • If your organisation changes its physical address you must inform the Directorate one month before it changes.
  • If your office bearers change you must submit the names, ID numbers, and residential and postal addresses of the new ones within one month of their appointment.
  • If you want to change your name or constitution you have to fill in new forms and be issued with a new certificate of registration.

What happens if an organisation wants to deregister or close down?

Written notice with reasons for wanting to deregister or close down must be submitted to the Directorate. If your organisation is closing down, any remaining money or assets must not be shared among members but distributed to other NPOs doing similar work. You must notify the Directorate within one month of closing down. Reporting documents to the date of closure or deregistration must also be submitted to the Directorate.

Remember it is a punishable offence in terms of the NPO Act to:

  • Claim to be a registered NPO when you are not
  • Use another organisation’s registration number
  • Submit false information about your organisation’s affairs