All registered NPOs must comply with the requirements of sections 16-23 of the Act. The main requirements are to submit reports and inform the Directorate of any changes within the NPO. The specifics are set out below.
The Documentation of the NPO (section 16 & 17 Obligations)
- The registered status and registration number of the NPO must be reflected on all its documents.
- The NPO must comply with the provisions of its founding document.
Finances of the NPO (section 17 Obligations)
Every registered NPO must:-
- Keep accounting records of its income, expenditure, assets and liabilities accordingly to the standards of generally accepted accounting practice (GAAP).
- Draw up financial statements, within six months after the end of its financial year, which must include as least:
- a statement of income and expenditure for that financial year; and
- a balance sheet showing its assets, liabilities and financial position as at the end of that financial year.
- Within two months after drawing up its financial statements, the organisation must arrange for a written report to be compiled by an accounting officer. The Accounting Officer report must state whether or not:
- the financial statements of the organisation are consistent with its accounting records;
- the accounting policies of the organisation are appropriate and have been appropriately applied in the preparation of the financial statements; and
- the organisation has complied with the provisions of this Act and of its constitution which relate to financial matters.
- Preserve each of its books of account, supporting vouchers, records of subscriptions or levies paid by its members, income and expenditure statements, balance sheets and accounting officer’s reports, in an original or reproduced form, for at least five years.
Required Information to be submitted to the NPO Directorate
Every registered Nonprofit Organisations must, in writing, provide the Directorate with:-
- Within nine (9) months after its financial year, a narrative report of its activities in the prescribed form together with its financial statements and the accounting officer’s report accordingly to its obligation of keep records.
- the names and physical, business and residential addresses of its office-bearers within one month after any appointment or election of its office-bearers even if their appointment or election did not result in any changes to its office-bearers;
- a physical address in the Republic of South Africa for the service of documents to be received from the Directorate.
- notice of any change of address within one month before a new address for service of documents will take effect; and
- such other information as may be prescribed.
Changes to the Founding Document (section 19)
When the NPO changes its constitution or name, it must send the NPO Directorate with:-
- A copy of the resolution and a certificate signed by a duly authorised office-bearer confirming that the resolution complies with its constitutions and all relevant laws;
- Where the NPO has resolved to change its name, the original of its current certificate of registration.
Winding-up or Dissolution of the NPO (section 23)
When the organisation resolves to wind-up or dissolve it must, within one month after completing of the dissolution process, send to the Directorate a written notice that the organisation dissolved with:-
- Certified copies of all relevant documents confirming the winding up or dissolution; and a copy of the narrative report, financial statements and the accounting officer’s report for the period from its previous financial year end of the written notice.