#NPOregistration #NPCregistration #SouthAfrica #NonProfitAdmin
This is something I get asked a lot, as I work with many prospective NPO’s in the rural areas. Registering an NPO or an NPC is not rocket science, anyone can actually do it. While this may be so, it does take time for applications to be processed and you will need to know the type of documentation required.
In addition to these administrative procedures, some of you will struggle with the choice of which one to register. Which will benefit my cause optimally? NPO’s and NPC’s are both NGO’s (non-governmental organizations), but there is a slight difference between the two. You can also apply to have your organization registered as a PBO (Public Benefit Organization). Let’s find out what all these abbreviations actually mean.
- Nonprofit Organization (NPO) – an organization founded with the sole purpose of benefiting the public. All funds raised must be utilized to feed the cause and may under no circumstances be distributed among the members, however the members may receive a small percentage The registration thereof is voluntary, but it will add credibility to your organization if you can present a donor with a proper certificate of registration. As registered NPO you will be required to report to the department of social development annually. Find more info here.
- Nonprofit Company (NPC) – a business entity that is not driven by profit. Such a company is also granted tax-exemption status and all donations to the company are tax deductible for all donors. Read more about NPC’s here.
- Public Benefit Organization (PBO) – an organisation that does not work for profit and does not pay tax in or out of South Africa. The organisation is most likely involved with charitable work. For more info on PBO’s, click here.
Here are a few suggestions that you may consider if you want to register your own NonProfit:
- Decide what type of nonprofit organization will suit your cause best. This is the first step. Make sure you do enough research, so that your decision is sound and the cause itself doable. Choose between a NPO, NPC or a PBO and put together all the necessary documentation required to register your specific type of nonprofit.
- Having decided on a type of organization, you can continue with, what is in my opinion, the most important part of the process. A proper business plan. Yes, you will need a business plan if you want your nonprofit to be successful. A proper business plan will describe your nonprofit’s mission, its history, unique strengths, and assets. You will be able to discuss your products, services or programs and describe your marketing plans. Furthermore you will be able to show how you plan to finance your organization both in the short and long term. Click here for a business plan template.
- Now you can select your members or board of directors. Don’t just choose your best friends, find individuals who share your passion for this specific cause. Try to involve people with skills that you can use effectively in the management of your nonprofit. E.g. somebody with marketing skills, a communications and technology expert, etc. The usual requirement is at least 3 members or directors. I suggest getting certified copies of their identity documents, as well as certified copies of proof of address for all these individuals.
- Finally, proceed with registration, which can be done online in some cases. Find registration information about a Non Profit Organization here, click here for more info about Non Profit Company registrations (remember, you need to first register as company AND THEN as nonprofit, once you’ve received your documents) and here for information and forms to register your NPO/NPC as a Public Benefit Organization.
Nonprofit and Fundraising resources. Article: What is a Nonprofit Organization? Web: http://www.nonprofit.pro/nonprofit_organization.htm Short link: bit.ly/2Hk6fc8
Tax Tim. Article: Public Benefit Organization. Web: https://www.taxtim.com/za/tax-guides/definitions/public-benefit-organisation Short link: bit.ly/2oVeIM6
NGO Pulse. 2012. Article: Starting an NPO in South Africa. Web: http://www.ngopulse.org/article/starting-npo-south-africa Short link: bit.ly/28W99qw Image URL: bit.ly/2p1xzV0