NGO/NPO Braamfontein, Johannesburg, Gauteng. See full address and map. To qualify as a public benefit organisation (PBO), an organisation must comply with all of the following requirements of Section 30 of the Income Tax Act: Public benefit organisations without donor-deductible status may carry out public benefit activities beyond the borders of South Africa without restriction. LEMOSA is a Youth Development and Community based nonprofit organisation that empowers and transforms the Youth through education. As of April 2019, the Bill has not yet been introduced to the South African Parliament. Because a registered non-profit organisation will ordinarily be a trust or a non-profit company, the laws governing those legal forms and the tax laws provide guidance on permissible activities. The initial funds are raised by the members or trustees of the NPO. What does NPO stand for in South Africa? Southern Africa Youth Project currently works with over 500 non-profit organisations NPO in South Africa. Get the top NPO abbreviation related to South Africa. The VAT Act confers certain benefits on organisations that qualify as "associations not for gain," "welfare organisations," or both (VAT Act Section 1). Finally, the fourth legislative tier (donor deductibility status) allows public benefit organisations to apply for the right to receive tax-deductible donations. NPOs include trusts, companies or other associations of persons established for a public purpose. [2] The Davis Tax Committee (DTC) published its Report on the Public Benefit Organisation and the Tax System in April 2018. Learner's Movement of South Africa - Non-Profit Organisation. The trust documents identify the beneficiaries of the trust. It is a trust, company, or other association of persons established for a “public purpose” (a term that is not further defined) (, It does not distribute income or property to members or officers except for "reasonable compensation for services rendered" (, It includes certain internal governance provisions in its founding document (. Moreover, the donor may not impose conditions that could enable the donor or any person related to the donor to benefit, directly or indirectly, from the application of such donation (Income Tax Act Section (30)(3)(b)(v)). Address: Gauteng, 2001, South Africa, Johannesburg. The activities must be carried out in a non-profit manner and with altruistic or philanthropic intent. Address: 21 Rock Ridge Rd, Parktown, Gauteng, 2193, South Africa, Johannesburg. As stated earlier, a non-profit company must, upon winding-up or dissolution, distribute the entire net value of the company to one or more non-profit companies, “external non-profit companies” carrying on activities in South Africa, non-profit trusts, or voluntary associations having objectives similar to its main objective. Address: Jan Smuts Ave, Craighall, Gauteng, 2196, South Africa, Johannesburg. Categories: Non Profit Organizations - NPO, Address: Donald Gordon Med Ctr, Eton Rd, Parktown, Gauteng, 2193, South Africa, Johannesburg. This can be confusing because the common law is not easily accessible and sometimes is contradictory. Address: Donald Gordon Med Ctr, Eton Rd, Parktown, Gauteng, 2193, South Africa, Johannesburg. South African law does not restrict the political activities of organisations that are not approved as PBOs, however. Address: 5 Eton Rd, Parktown, Gauteng, 2193, South Africa, Johannesburg. The trust deed, however, must address the issue if the trust is a registered non-profit organisation or an approved PBO. The voluntary association is the most common legal form of NPO in South Africa. The law explicitly limits the extent to which the economic activities of organisations approved as a PBO under Section 10(1)(cN) of the Income Tax Act will be tax exempt. Trustees can engage in any lawful activities if they remain within the bounds of their fiduciary duty to the trust beneficiaries and within the confines of the trust deed. [8]. [5] In 2013, the Directorate for Non-Profit Organisations introduced an online registration and reporting facility. The Companies Act establishes two categories of companies: 1) non-profit companies, and 2) profit companies. The non-profit company can be established with or without members, but it must have at least three directors (Companies Act Section 3(1)). Step 1: Open the online NPO Registration page. 60 of 2008; it entered into force on April 1, 2012. Even where no charge is made for supplies, the organisation can register for VAT and obtain input tax relief on its purchases. A trust is created when property is transferred by a trust deed. We include hyperlinks to the following information, to the extent available: The legal framework for not-for-profit, non-governmental organisations ("NPOs") in South Africa consists of four primary tiers. Categories: Non Profit Organizations - NPO, Address: Gauteng, 2001, South Africa, Johannesburg. NPO – which stands for non-profit organisation – is a generic term for a non-profit or non-governmental entity in South Africa. The Framework has now been amended several times. See full address and map. Steps for Online NPO Registration in South Africa. A dividend tax was introduced by the Revenue Laws Amendment Act, No. A VAT exemption applies to the sale of any donated goods or services, and to the sale of manufactured goods where donated goods and services constitute at least 80 percent of the value thereof. [7], To be eligible for exemption from income tax and certain other taxes, an organisation operating for the public benefit first must qualify as a Public Benefit Organisation under Section 30 of the Income Tax Act, as summarized in Section IV. Please direct corrections and comments to Lily Liu. [2]. No member can have any rights, based on membership, to the property of the association. Other not-for-profit organisations (that are not approved PBOs or are not exempted from paying tax elsewhere under Section 10 of the Income Tax Act) are liable for income tax and other taxes and duties on the same basis as ordinary taxpayers. Categories: Non Profit Organizations - NPO, Address: 251 Rifle Range Rd, Haddon, Gauteng, 2190, South Africa, Johannesburg. Trusts are generally flexible structures that can be used for a variety of purposes. The Act lays out fundamental principles applicable to non-profit companies, and also clearly notes where its provisions do not apply to non-profit companies. [9] Certain activities carried out by a welfare organization may still be taxed at the standard VAT rate. The receipts and accruals from such undertakings or activities shall be exempt from normal tax only if one of the following criteria applies: A) The undertaking or activity meets all of the following requirements: B) The undertaking or activity is of an occasional nature and substantially performed by uncompensated volunteers. A trust does not have separate legal personality, but trustees still enjoy limited liability. Forming a voluntary association requires only that three or more people agree to achieve a common objective that is primarily not-for-profit. Southern Africa Youth Project partners with NPO in South Africa servicing over 1 Million youth in Youth Employment Programmes. The Report will be considered by the Minister of Finance and could potentially result in further amendments to the Income Tax Act as it relates to public benefit organisations. NPO’s (Non Profit Organisations) As the name suggests, an NPO is an organisation which operates in a non-profit manner. The Constitutional Court found that the trust rendered “actual” rather than “deemed” services, and therefore that such services were subject to the standard rate of value added tax. It must be structured to continue as an entity notwithstanding a change in membership; It must be able to hold property distinct from its members; and. [3]. NPO REGISTRATIONS IN SOUTH AFRICA - 2016 There are two ways of registering Non Profit Organisations in South Africa You can register in any of the following: NPO - NON-PROFIT ORGANISATION NPC – NON PROFIT COMPANY The Directors for Non Profit Organisation. The Companies Act of 2008 does not provide for the registration of branches of foreign not-for-profits as separate legal entities. See full address and map. In order to obtain approval from the Commissioner as a PBO under the Income Tax Act, Section 30, an organisation must provide in its founding document that any assets remaining upon dissolution or winding up must be transferred to: (1) a similar public benefit organisation approved under Section 30; (2) an institution, board, or body which is exempt from tax under the provisions of Section 10(1)(cA)(i) of the ITA, which has as its principal objective any public benefit activity; or (3) a department of the state (Income Tax Act Section (30)(3)(b)(iii)). Pre-existing non-profit companies incorporated under the old Companies Act of 1973 (known as Section 21 companies), are governed by the new Companies Act. See full address and map. See full address and map. Categories: Non Profit Organizations - NPO, Address: 5 Hammond Rd, West Turffontein, Gauteng, 2190, South Africa, Johannesburg. NGO Advisor aims to respond to the needs of the NPO sector, but also the DONOR sector. This has significantly reduced the processing times of applications to register in terms of the Non-Profit Organisations Act. Before you can successfully register any NPO in South Africa, according to the NPO Act, you need to have the Memorandum and articles of association/trust deed on the ground. See full address and map. South Africa-25.85331. A parliamentary report from May 2018 indicated that the NPO Amendment Bill drafted and completed from 2015 to 2016 will be introduced to the South African Cabinet. No office of registry exists for voluntary associations. Find every business listed for Non Profit Organizations - NPO. See full address and map. An auditor or accounting officer of the trust's accounts must report any apparent material irregularities in the accounts to the trustee (TPCA Section 15). See full address and map. 17 December 2020. For example, the organisation’s founding document must provide that at least three unrelated persons have fiduciary responsibility for the organisation, and that no single person can directly or indirectly control the decisions relating to the organisation (Income Tax Act Section 30(3)(b)(i)). If these and other conditions are not contained in the organisation’s founding document, three fiduciaries of the organisation must sign a written undertaking confirming that the organisation will comply with the relevant provisions of Section 30 of the Income Tax Act (Income Tax Act Section (30)(4)). To register under the NPO Act, the organisation must stipulate in its founding document that any assets remaining upon dissolution or winding up will be transferred to another non-profit organisation with similar objectives (NPO Act/1997 Section 12(2)(o)). See full address and map. Voluntary associations are a product of the common law and are not regulated by statute. Section 29 of the Constitution establishes an individual’s right to receive a basic education and to further his/her education (Constitution Section 29(1)). Address: 251 Rifle Range Rd, Haddon, Gauteng, 2190, South Africa, Johannesburg. Eligibility for tax exemption further requires the PBO to satisfy additional conditions on its governance and operations. If a voluntary association prohibits its members, directors, or employees from having a proprietary interest in the organisation's assets, the prohibition will appear in the organisation's founding documents. See full address and map. Categories: Non Profit Organizations - NPO The agreement may be oral or written, although it is customary for the agreement to take the form of a written constitution. In general, governing board members of voluntary associations are bound by the common law fiduciary duty to act in good faith and avoid conflicts of interest in their dealings with the organisation. The trust then manages the property for the benefit of others or for the achievement of a particular goal. The organisation’s governing structure sets the objectives for the organisation, usually in response to a perceived need in the community, with or without community consultation. See full address and map. The South African Companies Act of 2008, which came into force on May 1, 2011, provides for the incorporation of a non-profit company, which is recognized as a separate category of company. Voluntary associations, established under common law; Non-profit trusts, established under statutory law; and. To determine whether a trust qualifies as a charitable trust under South African law, a grantmaker must look to the trust deed. These are in line with the department’s achievement of the NDP targets." See full address and map. The first tier (establishment) allows for the establishment under statutory and common law of the following three forms of NPOs: The second tier of legislation (voluntary registration) allows any of these organisational forms to apply for the status of a “registered non-profit organisation.” Among other requirements, registered non-profit organisations cannot distribute profits, and must meet certain governance criteria. The trust in question was a registered VAT vendor that provided aero-medical services to provincial health departments in South Africa. Categories: Non Profit Organizations - NPO, Address: 21 Rock Ridge Rd, Parktown, Gauteng, 2193, South Africa, Johannesburg. A trustee’s remuneration may be regulated by the instrument establishing the trust. Be exempt from tax in terms of Section 10(1)(cN) of the Income Tax Act; and. Categories: Non Profit Organizations - NPO, Address: 5 Eton Rd, Parktown, Gauteng, 2193, South Africa, Johannesburg. See full address and map. See full address and map. A universitas or an informal voluntary association may include provisions governing the transfer of assets upon dissolution in its founding documents. Address: Braamfontein Ctr, 23 Jorrisen St, Braamfontein, Gauteng, 2001, South Africa, Johannesburg. Moreover, the law does not clearly restrict lobbying by any organisations. NPO Policy Framework South Africa is currently undergoing a process to overhaul its principal NPO legislation, the NPO Act 71 of 1997. Address: 5 Hammond Rd, West Turffontein, Gauteng, 2190, South Africa, Johannesburg. PBOs may also access benefits related to donations tax, estate duty, transfer duty, and the skills development levy. 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