The Department of Social Development (DSD) plans to de-register non-compliant NPOs. The de-registration process started on 1 April, following a phased-in approach.
In 2022 out of the 256,212 registered NPOs, over 58% were found to be non-compliant. The vast majority of these NPOs are voluntary associations. Most registered NPOs are in Gauteng and Western Cape, with the highest number of non-compliant NPOs falling in the social services, and the development and housing sectors.
What entities are affected?
NPOs registered with DSD need to observe reporting requirements as per par 12 of the Nonprofit Organisations Act. NPOs that failed to provide narrative and financial reports and other required information within the required timeframes will form part of the scrutiny.
The phased-in approach
Phase 1. Implemented from 1 April 2023 for NPOs registered from 1998-2012
Phase 2. Implemented from 1 July 2023 for NPOs registered from 2013-2015
Phase 3. Implemented from 1 October 2023 for NPOs registered from 2016-2019
What can non-compliant NPOs expect?
The director will send out a notice of non-compliance to all relevant NPOs in writing. The notice will state the reasons for non-compliance provide a period of 30 days for the NPO to submit necessary documents.
After the 30-day lapses the director will cancel the NPO’s certificate of registration and notify the organisation in writing.
What should registered NPOs do?
- Registered NPOs should confirm that their reports are duly submitted and up to date.
- When there are outstanding reports, NPOs may request an extension to submit reports and avoid de-registration.
- Contact details should be confirmed with DSD and updated if necessary. This is important as DSD will send out notices of non-compliance to those affected.
- Dormant or non-operating NPOs may opt for voluntary deregistration. In this case, the assets of the NPO need to be handed over or donated to another NPO with similar objectives in line with the requirements of the NPO Act.
- NPOs have recourse against the de-registration in line with Par. 22 of the NPO Act. The NPO may appeal the decision to the Minister of Social Development within 30 days of receiving notice of the deregistration. If the Minister upholds the decision, the NPO may further appeal to an independent arbitration tribunal within 30 days of receiving notice of the Minister’s decision. If the tribunal upholds the deregistration, the NPO may seek legal recourse in a court of law.
Reports can be submitted to: firstname.lastname@example.org
Telephone (012) 312 7555
To check compliance status, NPOs can also go to the nearest Social Development office.
You can find more information on registering an NPO, updating details of office holders, and more on the NPO.gov website here.