Cape Town: The Department of Social Development has issued 41,787 notices of non-compliance to non-profit organisations (NPOs), with a total of 6,221 NPOs deregistered for failing to meet obligations under the NPO Act.
According to South African Government News Agency, the department has identified 203,279 organisations, including non-profit organisations, voluntary associations, and trusts across South Africa, at risk of deregistration for not submitting annual reports as required by section 18 (1) of the Non-Profit Organisations Act (Act No. 71 of 1997, as amended through the General Laws Amendment Act 22 of 2022).
Non-compliant NPOs face severe consequences, losing access to privileges such as tax exemption, government support, and funding from donors and private institutions. The majority of these organisations are located in Gauteng with 64,221 cases, followed by KwaZulu-Natal, Western Cape, Limpopo, Eastern Cape, Mpumalanga, North West, Free State, and Northern Cape.
These organisations provide essential services to various vulnerable groups, including children, youth, persons with disabilities, older individuals, and those in need of humanitarian relief. While acknowledging the important role of NPOs, the department emphasizes that deregistration is necessary for fostering accountability and transparency within the sector.
The deregistration process began after a formal notice was issued in August 2023, followed by workshops and outreach programmes to assist NPOs in addressing compliance issues. The department remains committed to working with compliant NPOs to maintain integrity within South Africa’s regulatory framework.
In line with the Financial Action Task Force (FATF) guidelines, the deregistration aligns with Recommendation 8, addressing the vulnerability of South Africa’s NPO sector to money laundering and terrorist financing. After being grey-listed by FATF in February 2023, South Africa has made notable progress in addressing compliance deficiencies.
As South Africa prepares to report back to FATF on remaining deficiencies, the department urges all registered NPOs to comply with legal requirements. The department has processed over 18,000 requests for assistance and updated details for 3,450 NPOs on the register.
The Department of Social Development, as the registrar and custodian of the NPO Act, stresses the importance of compliance to ensure transparency, accountability, and protection for communities served by registered NPOs.