17 December 2020. In limited situations, the trustee, or a person the court finds to have a sufficient interest in the trust property, can petition the court to alter trust provisions or to terminate the trust altogether. Trusts are generally flexible structures that can be used for a variety of purposes. 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)). © 2020 Council on Foundations. Upon termination of operations in South Africa, they must transfer the assets of the South Africa branch to a local PBO, organ of state, or designated institution if more than 15 percent of the branch's receipts and accruals (earned during the three years preceding the termination) were derived from a source within the Republic (Income Tax Act Section 30(3)(b)(iiiA)). A foreign company carrying on not-for-profit activities in South Africa, as specified, for six months or more must register as an “external non-profit company” with the Companies Commission (Companies Act Section 23). 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. Association Of Corporate Treasurers Of Sa. NPOs are different from CBOs in that their solutions are not necessarily driven by the members of the community in which they work. The VAT Act confers certain benefits on organisations that qualify as "associations not for gain," "welfare organisations," or both (VAT Act Section 1). The transferee(s) can be identified in the non-profit company’s Memorandum of Incorporation, by its members, if any, its directors, or a court of law if the members or directors fail to make such a determination. Voluntary associations are a product of the common law and are not regulated by statute. [1] The Companies Act (No. Address: 205 Acacia Rd, Northcliff, Gauteng, 2195, South Africa, Johannesburg. 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. A Registered NPO This article gives a quick overview of Non Profit A non-profit company must apply all of its assets and income to advance its stated objectives as set forth in its Memorandum of Incorporation (Companies Act Schedule 1 para 2). See full address and map. PBOs may also access benefits related to donations tax, estate duty, transfer duty, and the skills development levy. The Companies Act of 2008 does not provide for the registration of branches of foreign not-for-profits as separate legal entities. Address: 5 Eton Rd, Parktown, Gauteng, 2193, South Africa, Johannesburg. On 25 April 2018, in Marshall vs. Commission for the South Africa Revenue Service, the South African Constitutional Court upheld a decision of the Supreme Court of Appeal determining whether the business activities of a non-profit public benefit trust constituted a “deemed supply” of services and thus qualified to be zero rated under section 8(5) and 11(2) of the VAT Act. They are entitled to a broad range of fiscal benefits, including a partial income tax exemption, an exemption on donations tax, and, for some, an exemption on transfer duty on immovable property. Learner's Movement of South Africa - Non-Profit Organisation. Steps for Online NPO Registration in South Africa. 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. A subsidy or grant received from the Government (or local authorities) related to welfare activities will be zero-rated, meaning that the recipient can claim a credit from the South African Revenue Service for the VAT raised on those grants. Médecins Sans Frontières (Doctors without Borders) - Johannesburg NGO/NPO Marshalltown, Johannesburg, Gauteng. [8]. If the organisation qualifies, the Directorate issues a certificate and registration number. 4 of 2000 provides that no person may unfairly discriminate against any person on the ground of race, including a number of activities defined thereunder, such as the engagement in any activity which is intended to promote, or has the effect of promoting exclusivity based upon race. Non-profit companies may carry on any business, trade, or undertaking consistent with or ancillary to its stated objectives, i.e., the promotion of the public benefit or one or more cultural or social activities, or communal or group interests (Companies Act Schedule 1 para 2(a)). The trust documents identify the beneficiaries of the trust. Get the top NPO abbreviation related to South Africa. Address: 2 A 10th St, La Rochelle, Gauteng, 2190, South Africa, Johannesburg. This section describes the legal framework governing of nonprofit organizations (also known as non-governmental organizations or NGOs) in South Africa, and includes translations of legislative provisions relevant for a foundation or advisor undertaking an equivalency determination of a foreign grantee under IRS Revenue Procedure 92-94. See full address and map. Categories: Non Profit Organizations - NPO. [6] Sections 66(8) and (9) of the Companies Act, dealing with the payment of remuneration to directors for their service as directors, do not apply to non-profit companies (Companies Act Section 10(2)(c)). See full address and map. Address: Gauteng, 2001, South Africa, Johannesburg. In its Annual Report for the period ending March 31, 2018, the Department of Social Development states that: “The draft [NPO] Bill will be submitted to Cabinet for approval in 2018/19.” (page 29). The Revenue Laws Amendment Act, No. LEMOSA is a Youth Development and Community based nonprofit organisation that empowers and transforms the Youth through education. Address: 251 Rifle Range Rd, Haddon, Gauteng, 2190, South Africa, Johannesburg. Categories: Non Profit Organizations - NPO, Address: Jan Smuts Ave, Craighall, Gauteng, 2196, South Africa, Johannesburg. Address: Braamfontein Ctr, 23 Jorrisen St, Braamfontein, Gauteng, 2001, South Africa, Johannesburg. Registration as an external non-profit company is required for the foreign company to enter into employment contracts. The specialized agencies must comply with the conditions contained in the Income Tax Act to access such benefits. The Companies Act establishes two categories of companies: 1) non-profit companies, and 2) profit companies. See full address and map. Eligibility for tax exemption further requires the PBO to satisfy additional conditions on its governance and operations. A court official, called a Master of the High Court, has jurisdiction over a trust if the majority of the trust property is situated in his or her jurisdiction (TPCA Section 3). [3]. See full address and map. Please direct corrections and comments to Lily Liu. See full address and map. Mafikeng. At present, more than 60 activities qualify (Income Tax Act Schedule Nine Sections 1-11). The NPO Directorate has reported that voluntary associations represent 95 percent of the organisations … It must be a non-profit company formed and incorporated under the Companies Act, a trust established in the Republic and registered with the Master of the High Court whose founding document is a trust deed, a voluntary association, or “any agency or branch within the Republic of any company, association, or trust incorporated, formed, or established in terms of the laws of any country other than the Republic that is exempt from tax on income in that other country” (i.e., the definition of PBO under Income Tax Act Section 30(1)). Step 2: Complete the required information: Organisation Name; Organisation Type; Financial Period; Contact Person Name in the format Title, Initials, Surname (eg. Address: Jan Smuts Ave, Craighall, Gauteng, 2196, South Africa, Johannesburg. 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. 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). The Framework has now been amended several times. We aim, in this way, to empower the NPO’s by offering them a platform where their compliance can be viewed by Donors. NPO – which stands for non-profit organisation – is a generic term for a non-profit or non-governmental entity in South Africa. The Tax Act defines public benefit activity by listing over 60 permissible activities (see Section IV on Public Benefit Status for further discussion). Paragraph 3 of Schedule 1 to the Companies Act prohibits a non-profit company from directly or indirectly paying any portion of its income or transferring any of its assets, regardless of how the income or asset was derived, to any incorporator, director or member of the company. Even where no charge is made for supplies, the organisation can register for VAT and obtain input tax relief on its purchases. All rights and responsibilities vest collectively in the trustees in their capacity as trustees. A trust can be established for private benefit or for a charitable purpose. A trust does not have separate legal personality, but trustees still enjoy limited liability. Mr S Smith) Contact Person Cellphone Number; Organisation’s Physical Address Address: Donald Gordon Med Ctr, Eton Rd, Parktown, Gauteng, 2193, South Africa, Johannesburg. The voluntary association is the most popular legal entity being used for setting up a NPO in South Africa because it is fairly quick, inexpensive and easy. Corporate bodies under the common law, known as ", Bodies that remain unincorporated at common law, known as "non-corporate associations.". NPO’s SAASP (South African Antibiotic Stewardship Program) is a major pharmacist-led antimicrobial stewardship programme working with the National Department of … Please be advised that the Council on Foundations and ICNL are not liable for inaccuracies in these resources or accompanying translations. 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)). Address: 4 Coram Office Park, 86 Ferero Street, Randpark Ridge, 2156, Johannesburg. It is, subject to this limitation, possible for a South African NPO to be controlled by an American grantor charity. The activities must be carried out in a non-profit manner and with altruistic or philanthropic intent. Categories: Non Profit Organizations - NPO, Address: 205 Acacia Rd, Northcliff, Gauteng, 2195, South Africa, Johannesburg. As of November 2019, according to the website of the Directorate for Non-Profit Organisations, there are 222,476 registered organisations. 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)). M C Kharbai School for the Deaf NGO/NPO Lenasia Ext 9, Lenasia, Gauteng. The Income Tax Act provides two major benefits to non-profit organisations operating for the public benefit, namely: partial tax exemption for organisations that qualify as PBOs, and donor deductibility for contributions to those PBOs that carry out certain specified public benefit activities (“Public Benefit Organisations with Donor-Deductible Status”). In order to register under the NPO Act, a non-profit organisation must state in its founding document (or the legislation under which it has been established must specify) that its income and property are not distributable to its members, officers, or trustees, except as reasonable compensation for services rendered (NPO Act/1997 Section 12(2)(c)). NPO funding in South Africa At every start of a financial year, which begins from 1st April to 31st March, there is a publication of areas that need priority funding. The Trust Property Control Act provides that trust property may not form part of the personal estate of a trustee, unless the trustee is also a beneficiary entitled to the property under the trust instrument (TPCA Section 12). [3] In September 2018, the Minister of Trade and Industry published the Draft Companies Amendment Bill (the Bill), 2018 for public comment. “In South Africa a Nonprofit Organisation (NPO) is defined as: a Voluntary Association, Company or Trust.” This means they are established for a public purpose, and income and property are not distributable to its members or office bearers except as reasonable compensation for services rendered. South African law does not restrict the political activities of organisations that are not approved as PBOs, however. C) The undertaking or activity is approved by the Minister of Finance by notice in the Gazette, taking into account the following factors: D) The undertaking or activity does not qualify under any of the above criteria, and the revenues it generates do not exceed the greater of the following: PBOs are allowed to invest their funds, subject only to restrictions that may exist in the common law. Categories: Non Profit Organizations - NPO, Address: Donald Gordon Med Ctr, Eton Rd, Parktown, Gauteng, 2193, South Africa, Johannesburg. 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. See full address and map. Categories: Non Profit Organizations - NPO, Address: Khotso Hse, 62 Marshall St, Marshalltown, Gauteng, 2001, South Africa, Johannesburg. Magen David Adom South Africa NGO/NPO Raedene, Johannesburg, Gauteng. The Bill introduced no significant changes to the regulation and governance of non-profit companies. The Department of Social Development keeps a publicly accessible record of all registered non profit organisations (NPOs) in South Africa. Address: 4 Coram Office Park, 86 Ferero Street, Randpark Ridge, 2156, Johannesburg. All Rights Reserved. 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)). Additional PBO requirements are discussed below. The Constitution further provides that everyone has the right to establish and maintain independent educational institutions, so long as those institutions do not discriminate on the basis of race (Constitution Section 29(3)(a)). 5 percent of the public benefit organisation's total receipts and accruals during the relevant year of assessment; or, Conservation, Environment and Animal Welfare. See full address and map. It has, however, become increasingly difficult for new NPOs with foreign trustees, directors, or governing board members to open a bank account in South Africa, due to the requirements implemented pursuant to the Financial Intelligence Centre Act. The qualifying public benefit activities for partial tax exemption appear in Part I of the Ninth Schedule to the Income Tax Act, and those for donor deductible status appear in Part II. 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