Question NW4174 to the Minister of Social Development

Reply:

a) Registration as a non-profit organisation is voluntary therefore any organisation that seek registration do so voluntarily. NPOs are registered in terms of the NPO Act 71 of 1997. The NPO Act does not require the organization to provide the reason why they apply for registration. Voluntary Associations are regulated under the NPO Act 71 of 1997. The NPO status provides organisations with a legal status which in turn makes them credible and accountable and gives them public confidence and easier to access funding.

b) The total number of registered voluntary associations (NPOs) in the Republic of South Africa in each province are listed below:

	Number registered	Voluntary Associations	Trusts	NPCs
EC	25 900	23 328	269	2 303
FS	13 572	12 266	87	1 219
GP	84 399	73 936	936	9 527
KZN	47 431	43 357	728	3 346
LP	26 434	24 618	95	1 721
MP	19 742	18 405	59	1 278
NW	15 389	13 668	60	1 661
NC	6 030	5 679	30	321
WC	28 162	24 085	969	3 108
	267 059	239 342	3 233	24 484

c) Section 12 of the NPO Act (Act 71 of 1997), provides for the requirements for registration. For a Voluntary Association to be registered they must submit a fully completed application form as regulated and the organization founding document, which in this instance it’s a constitution. Section 12(2) further provides, unless the laws in terms of which a nonprofit organisation is established or incorporated, the constitution of a nonprofit organisation that intends to register must comply with requirements (a) to (o) as set out. Further, Section 13 of the NPO Act stipulates that organisation may apply for registration by submitting the completed application form and copies of the constitution which met the requirements in terms of section 12 as mentioned above.

d) Section 18 (1)(a) of the NPO Act requires registered non-profit organisations to submit annual reports in the form of a narrative report in the prescribed manner and financial statements that has income and expenditure, balance sheet and accounting officer’s report. The department scrutinizes the submitted annual reports and check if the organisation carries out its activities or programmes as per its founding document and looks at the nature of expenditure incurred by the organisation.

e) Section 21 of the NPO Act provides for cancellation of registration of an organisation if it has failed to comply with the NPO Act. This means the obligation of NPOs to submit annual reports or makes material false representations in any document or a narrative, financial or other report submitted to the department. This decision is taken after an organisation would have been issued with a notice of non-compliance that would have provided the organisation with reasons for noncompliance and the steps that the organisation needs to take to address the noncompliance.

f) The Department has not undertaken any scientific study or review regarding the impact of voluntary associations in society and the lives of vulnerable groups as these organisations are funded by different government departments and independent doors.