1. CSOs are seen to be a relatively cost effective way of delivering social and economic services, which relieves the financial burden from the state,
2. CSOs are seen to promote important values in society including volunteerism, self-responsibility, participative democracy, accountability and transparency; and
3. In societies such as South Africa with great disparities of income and wealth, CSOs represent an important mechanism for encouraging philanthropy, promoting gender equality and redistributive policies.
In order for CSOs to be effective, an enabling environment must support them. In South Africa, despite impressive progress over the last ten years, large numbers of its citizens live in poverty, without adequate education, health care, housing, or employment opportunities. Crime, the HIV/AIDS epidemic, illiteracy, and inadequate social service delivery jeopardise progress towards stable democratic institutions.
Although, South Africa has recently engaged in major legislative reform and boasts a progressive Constitution that safeguards the right to freedom of association, much of the legal framework put in place in recent years has not had the intended effect. The current legislative framework is complex and cumbersome especially for the smaller, less resourced NPOs. This coupled with poor implementation has resulted in administrative backlogs and complex compliance requirements, which in turn frustrates the efforts of NPOs. To address this NPC has two programmes that work towards a legal and regulatory framework that contributes to a strong and vibrant civil society sector.
NPO Law Programme
This programme examines the impact that the current legal and regulatory framework has on the sustainability of the non-profit sector. It not only engages in law reform but also focuses on streamlining the administration and implementation of these laws. The programme seeks to mobilise the sector's response to issues arising from legislative reform thereby maximising the benefits flowing to the all NPOs.
We also aim to strengthen governance and enhance the financial sustainability of the NPO sector. Information on the legal and regulatory framework in which civil society operates is comprehensively researched in consultation with the sector and other stakeholders. Ongoing research in the field of non-profit law enables us respond to emerging needs in the sector and measure the impact our programmes.
Programme Objectives:
A legal framework that promotes the mobilisation of resources for NPOs
Legal entities for non-profit organisations, which are simple, cost effective and accessible
Improved governance, accountability and self-regulation of the sector
Promote Research and Development around and enabling environment for NPOs.
NPO Law Programme Questionaire
Our Advocacy Campaigns:
1. Tax Campaign
The Tax Campaign aims to refine the provisions of the Income Tax Act, to provide greater benefits to a larger group of NPOs and simplify the processes for obtaining tax-exempt status. The provisions of the Income Tax Act are still too complex and therefore beyond the reach of many smaller, under-resourced organisations. The difficult process of applying for tax exemption coupled with the slow rate of registration by the South African Revenue Services (SARS) further detracts from the benefits of the amended legislation.
2. Revamping the Companies Act
The legal structures available for establishing NPOs are complicated, cumbersome and even costly. From 2003, we have been engaging with the Department of Trade and Industry (dti) for Section 21 Companies (Associations Not for Gain), to be incorporated into government's company law review process. We have successfully achieved this and continue to conduct comparative research, draw up proposals and consult with stakeholders across civil society, government and legal professionals for a simpler and more accessible form of incorporation for NPOs. We believe that a simpler and more accessible form of incorporation will promote a vibrant civil society, increase good governance, accountability and transparency.
3. NPO Directorate - Improved services to Non-Profits
Through our extensive networks with NPOs, we are continuously made aware of the problems encountered with the NPO Directorate such as delayed responses to applications for registration. An impact assessment of the NPO Act was recently conducted. No further progress has been made. Meanwhile, NPC strives to assist organisations by providing support services to expedite the registration process where feasible. We are working on recommendations to improve their services to NPOs.
4. Government Funding Bodies
Many NPOs are experiencing difficulties with accessing funding from government funding bodies such as The National Development Agency (NDA) and the National Lottery. We are continuously monitoring this and feedback received from NPOs is used to advocate for the improved administration and distribution of these funds. Have you applied to any of the above funding bodies and not received a response? Has your application been rejected with no reason? Provide us with your input, by filling in our questionnaire. (Please provide link to PDF downloadable survey)
Join our advocacy Campaigns:
1. Attend our consultation meeting where we bring you up to date with critical issues that you can contribute to.
2. Write to us at addyourvoice@npc.org.za to show your support to our campaigns
3. Share your experiences
4. Tell a friend
Your voice can make a difference to legislation that will contribute towards a strong, vibrant and independent non-profit sector that advances poverty alleviation and our democracy.
We look forward to hearing from you and seeing how we at NPC could assist.
NPO Support Services Programme
This programme focuses on strengthening the organisational capacity and institutional linkages of NPO's, in particular community based organisations (CBOs), through an enabling legal and regulatory environment and the facilitation of a support network to enable them to optimally achieve their objectives and achieve sustainability.
While laws may be written to address the needs of the sector, the lack of effective implementation can substantially impact the sustainability of NPOs and ultimately hamper the creation of an enabling environment for civil society. Ongoing developments in the legal environment also create the need to raise awareness that will promote compliance and improve access to these benefits for NPOs. Therefore, this programme seeks to make non-profit law more easily accessible to a wide range of NPOs, and in so doing, monitor its implementation and effectiveness and where necessary, develop further interventions for improvement.
Programme Objectives:
Build awareness amongst NPOs in respect of NPO law and practice
Improve effectiveness and implementation of legislation by organs of state and statutory bodies dealing with the non-profit sector
Develop the capacity of a range of organisations to enable them to provide assistance to NPOs to comply with and access the benefits in NPO legislation and practice Facilitate the development together with the Department of Social Development of a capacity building and resource unit as a pilot programme to assist CBOs to deliver on their development objectives
In achieving these objectives, we offer a range of services (link to Services page