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1

THE STATE OF NPO REGISTRATION IN SA

“A REPORT FROM THE NATIONAL NPO DATABASE”

JULLY 2009

2
Table of Contents

Foreword ……………………………………. ………………………………………………………………………3
Editorial note ………………………………. ………………………………………………………………………4
1. Introduction……………………………… ………………………………………………………………………5
2. NPO Registration………………………….. ………………………………………………………………….6
3. Mandate of the Department of social development . ……………………………………………….6
4. Requirements for NPO registration…………… …………………………………………………………7
5. Description of the process of the NPO registrati on in the Department ………………………7
6. Reporting requirements ……………………………………………………………………………………..9
7. State of the NPO registration………………. ……………………………………………………………..9
7.1. Distribution according to the type of registra tion ………………………………………………….9
7.2. Distribution per Province …………………….. …………………………………………………….10
7.3. Distribution per District …………………….. ……………………………………………………….11
7.4. Distribution per Objective ……………….. …………………………………………………………….13
7.5 Cancelled NPOs (De-Registrations)……………… …………………………………………….14
7.7. Appeals against cancellation of registration.. …………………………………………………….15
7.7.1. List of Appeals received per Province ……. …………………………………………………….15
7.7.2. Reinstatements………………………… ……………………………………………………………….15
8. Report on NPO Registration for 2008/09 Financial year………………………………………..16
8.1 2008/09 Received and registered NPOs per Province .. ………………………………….16
8.2 2008/09 Received and registered NPOs per District ……………………………………..17
8.3 08/09 Registered NPOs per Objective ………………………………………………………..19
8.4 Cancelled NPOs (De-Registrations) per province ….. ……………………………………..20
8.5. Reinstatements…………………………………………………………………………………………….21
8.5.1. Distribution of reinstatements per province. ……………………………………………………21
8.6 Appeals per Province …………………………. …………………………………………………….21
9. Challenges in the administration of the NPO Act . …………………………………………………21
10. Conclusion………………………………. …………………………………………………………………..22

3

Foreword

As we enter into our second decade of our democracy and busy reorganizing ourselves as
government this report reiterate our mandate to est ablish a people’s contract, restore dignity,
fight poverty, create work and provide skills to th e communities by increasing access to
information on registered NPOs in the country.
In our endeavour to serve the Nation the department and the branch has a role to register and
strengthen civil society organisations to support c ommunities in development.

NPOs are, first and foremost, civil society organiz ations that are in diverse forms that exist
outside of the state and the business market, in 19 97 we passed an Act of parliament to
regulate the sector.
Recently international and national studies recogni zed that South African Laws on NPOs are
the most progressive in the continent and are in ac cordance with international trends, thus
matching the standards of international good practi ce in this regard.
Although registration is voluntary, a large number of organizations choose to be registered. For
the community based organizations, registration not only adds to their credibility in the eyes of
donors and community, but also sets a basis for the way in which they are run. The NPO
registration therefore sets a much-needed basis for organizations to run their affairs effectively
and accountably. This report therefore present to p ublic, information on all NPOs registered in
the system per province and per districts. This is our efforts to inform the public on the NPO
registration system in the country.

4
Editorial note
This is the first of the many reports that the department of social development will publish as a
way of informing the public on the status of NPO re gistration in the country. The NPO Act
requires the Department to create an environment wi thin which the public may have access to
information concerning all registered NPO, and this report is our first effort to provide
information to Government Departments, stakeholders , donors and communities. This first
report on NPO registration outlines the requirement s for registration, the process of registering
an NPO, registration types and the NPO distribution across provinces and Districts. One area
that is of concern is the compliance of NPOs to the Act where NPOs get cancelled or de-
registered from the database, thereby rendering the m illegal. The NPO database can be
accessed on
www.dsd.gov.za/npo . Civil society organizations and communities are free to
access information via the phone.
By the DDG and other by the CD

5
1. Introduction
NPO sector has been in existent for a long time and have contributed immensely in the
development of communities. Even before 1994, NPO w ere the key in the struggle against
apartheid where international donors support the st ruggle through these NPOs to ensure
sustainability and community development. Post apar theid NPOs are still key in the delivery of
community based social services. NPOs are, first an d foremost, civil society organisations.
They are one of the diverse organizational forms th at exist outside of the state and the market.
NPOs are, by definition, ‘organizations’’ that are ‘not for profit’ and are ‘service oriented’

Nonprofit organizations are very good due to their passionate commitment to mission and
inventive approaches in addressing urgent social pr oblems. Across the country and around the
world, nonprofits are implementing programs that ar e improving the quality of life for people,
and they are often doing so against heavy odds and with very limited resources if any at all.
The success that nonprofits have demonstrated in ad dressing social issues has generated
increased demand for their services world-wide.
After democracy government kept the promise and pas sed an NPO Act to regulate the NPO
sector.
On the 26 of November 1997 an NPO Act was passed an d signed by the President of
the Republic of South Africa as Nonprofit Organizat ions Act No. 71 of 1997. On the 1
st of
December 1998 the Department of Social Development, which is entrusted with the
responsibility to administer the NPO Act, registere d the first NPO under the newly enacted
legislation.
The primary purpose of the NPO Act is to provide fo r an environment in which nonprofit
organizations can flourish. Specifically the Act ai ms at encouraging NPOs to maintain adequate
standards of governance, transparency and accountab ility. On the other hand the department
is expected to create an environment within which t he public may have access to information
on registered organizations.
This report is meant to give an overview of the sta tus of the NPO register since the inception of
the NPO Act to date. It also outlines the registra tion process and requirements for registration,
outlined some challenges in the administration of t he NPO Act.

6
2. NPO Registration
Since inception in 1998 the registration and reporting of NPOs has increased substantially.
Over the years, the Department of Social Developmen t has witnessed an increasing demand
on the NPO registration facility. The Register of N on-profit organisations (NPO Database) has
increased from 44222 registered organizations in Ma rch 2007, 49826 registered organizations
in March 2008 and to 56234 registered organizations in March 20009. At the end of June 2009,
the total numbers of registered organizations were 57636.”
It is evident that as much as registration is volun tary, a large number of NPOs choose to
register and be accountable to a public office. The fact that other provision such as Tax and
skills levy exceptions makes the NPO registration a condition for benefiting may contribute to
the interest in registration. The NPO registration therefore sets a much-needed basis for
registration to run their affairs effectively and a ccountably.
The NPO act also mandated government to provide app ropriate legislative framework for NPO
to thrive. These have seen the financial banking in stitutions now lately insisting on
organizations to be registered before opening an ac count in the name of the organization. Most
funding agencies have also made the registration a condition for funding an organization.
The aim of this report is to provide information to the public on all NPO that are registered
according to the NPO act in accordance with the obj ective of the act. The NPO information is
extracted from the National NPO database that is ho sted by the Department of Social
Development. These include distribution per provinc e and district municipalities for Registered
and Deregistered NPOs, Appeals and Reinstatements.
3. Mandate of the Department of social development
The NPO Act has mandated the Department with the fo llowing responsibilities:
> Creating an environment in which NPO can flourish ;
> Establishing an administrative and regulatory fra mework within which NPO can conduct their
affairs;
> Encouraging NPO to maintain adequate standards of governance, transparency and
accountability and to improve those standards;
> Creating an environment within which the public m ay have access to information concerning
registered NPO, and
> Promoting a spirit of co-operation and shared respo nsibility within Government, donors and
amongst other interested persons in their dealings with NPO

7
4. Requirements for NPO registration
All NPOs that required to be registered should comp ly with section 12 and 13 of the NPO Act.
Section 12 (2) (d) of the Act provides that the fou nding document must make provision for the
organization to be a body corporate and have identi ty and existing distinct from its members or
office-bearers.
Civil society organizations can pursue three differ ent options to become a legal entity within the
current legal framework, namely: – Voluntary Associ ations; Trusts and incorporating a Section
21 Company. Different pieces of legislation govern each of these options and there is therefore
a small difference in their governance structures.
Section 13 of NPO Act state that…. (1) A non profit organisation may apply for registr ation by
submitting to the Director:
(a) Prescribed form, properly completed
(b) Two copies of founding document
(c) Any information to assist in determining wheth er the non profit meets the requirements.

Requirements for each of the options :
a)
Voluntary Associations should submit:
·
··
·
A completed NPO application form and
·
··
·
Two signed copies of its Constitution.
b)
Section 21: Companies Act of 1973)
· A completed NPO application form and
· Memorandum and Articles of Association.
c)
Trust: Trust Property Control–Act of 1988)
·
··
·
A completed NPO application form and
·
··
·
Deed of Trust/ Trust Deed.
5. Description of the process of the NPO registrati on in the Department
The following are the process that the Department g o through to register an NPO
All received application goes through levels of pro cessing before being included in the register
of NPOs as follows:
Level 1:
At this level all received documentations are captu red in the NPO system on the day received
for record keeping purpose.

8
Level 2
This level it’s all about capturing the compliance of an application. Two types of documents are
being scrutinized fro compliance, the application f orm and founding documents.
An application form is checked for:

the name of the organisation

the physical address of the organisation

the financial year end on the application form

the particulars of the office bearers

the details of the contact person including his/he r signature and
The founding document for:

Consistency with objects

Composition of office bearers

Dissolution undertakings

Amendment Clause

Legal Persona

Property and Income Clause

Financial Year End

Decision making process

Other relate conditions as stipulate in section 12 of the Act
Level 3: Data Capturing
The information of organisations is captured on the database. This includes the list of the office
bearers, the physical address of the organisation, the financial year end and the contact details
of the contact person.

Level 4: Quality Control, number allocation and pri nting of the NPO certificate
Once all the information of the organisation has be en captured on the database, the
information is checked and the organisations status is changed to approved and send for the
issuing of a certificate of registration. The organ isation is registered by issuing of the certificate
of registration. The name of the organisation is ad ded to the register of registered
organisations. A certified copy of the founding doc ument is also returned to the organisation.

9
6. Reporting requirements
All registered organizations are obligated to submi t to the NPO CD financial statements and an
annual report within 9 months after the end of thei r financial year. All organizations are
expected to submit:
·
··
·
Narrative report which stipulate:
·
··
·
List of office bearers
·
··
·
List of meetings held
·
··
·
Changes to contact details
·
··
·
Income and source
·
··
·
Amendments to the constitution
·
··
·
Financial Statement
·
··
·
Accounting Officers Report
There are cases whereby an organization has not rec eived funding for that particular year and
they have to submit:
·
··
·
Narrative report which stipulate:
·
··
·
List of office bearers
·
··
·
List of meetings held
·
··
·
Changes to contact details
·
··
·
Income and source
·
··
·
Amendments to the constitution
·
··
·
A bank Statement for that Financial year
·
··
·
A sworn avidavit
7. State of the NPO registration
7.1. Distribution according to the type of registra tion
A registered NPO can either be a voluntary associat ion, section 21 companies or a trust
Type of Organisation Number of Registered NPOs
Section21 1667
Trust 1526
Voluntary 53051
Total 56244

10
Type of Organisations
94.33.0
2.7
Section21
Trust
V oluntary

The NPO database has 56244 Registered NPOs since th e NPO Act was enacted until March
2009. Registered Organisations are organizations th at are listed on the register of NPO as
indicated in the NPO Act 71 of 1997.
7.2. Distribution per Province
Province Number of Registered NPOs
Eastern Cape 4820
Free State 3262
Gauteng 17996
KwaZulu Natal 11372
Limpopo 5895
Mpumalanga 3423
North West 2854
Northern Cape 1299
Western Cape 5323
Total 56244

11
% of Registered NPOs per Province
8.6
5.832.0
20.2 10.5 6.15.1
2.3 9.5
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
E
aste
rn Cape
Fre e Stat e
Ga u
te n
g K w
aZ u
lu N
at a
l
Limpopo
Mpu malang
a
N o
rth W
es
t
N o
rth e
rn C
ape Western Ca pe

Gauteng province has the highest percentage of regi stered NPOs 32%, KZN with 20 %and
Limpopo with 10.5 % respectively.
7.3. Distribution per District
Province District Municipality Number of Registered NPOs
Eastern Cape Alfred Nzo District Municipality 562
Eastern Cape Amatole District Municipality 4440
Eastern Cape Cacadu District Municipality 435
Eastern Cape Chris Hani District Municipality 729
Eastern Cape Nelson Mandela Bay Metropolitan 807
Eastern Cape O.R.Tambo District Municipality 1475
Eastern Cape Ukhahlamba District Municipality 1210
Free State Fezile Dabi District Municipality 674
Free State Lejweleputswa District Municipality 590
Free State Motheo District Municipality 967
Free State Thabo Mofutsanyane District Municipality 960
Free State Xhariep District Municipality 161
Gauteng City of Johannesburg Metropolitan 5426
Gauteng City of Tshwane Metropolitan 3281
Gauteng Ekurhuleni Municipality Metropolitan 3596
Gauteng Metsweding District Municipality 251
Gauteng Sedibeng District Municipality 1191

12
Gauteng West Rand District Municipality 476
KwaZulu-Natal Amajuba District Municipality 439
KwaZulu-Natal eThekwini Municipality Metropolitan 2578
KwaZulu-Natal iLembe District Municipality 290
KwaZulu-Natal Sisonke District Municipality 510
KwaZulu-Natal Ugu District District Municipality 63 3
KwaZulu-Natal Umgungundlovu District Municipality 1136
KwaZulu-Natal Umkhanyakude District Municipality 54 4
KwaZulu-Natal Umzinyathi District Municipality 478
KwaZulu-Natal Uthukela District Municipality 402
KwaZulu-Natal uThungulu District Municipality 1154
KwaZulu-Natal Zululand District Municipality 761
Limpopo Capricorn District Municipality 1013
Limpopo Greater Sekhukhune District Municipality 995
Limpopo Mopani District Municipality 1241
Limpopo Vhembe District Municipality 1285
Limpopo Waterberg District Municipality 374
Mpumalanga Ehlanzeni District Municipality 1107
Mpumalanga Gert Sibande District Municipality 584
Mpumalanga Nkangala District Municipality 1112
North West Bojanala Platinum District Municipality 949
North West Bophirima District Municipality 559
North West Ngaka Modiri Molema District Municipality 726
North West Southern District Municipality 853
Northern Cape Frances Baard District Municipality 4 59
Northern Cape Kgalagadi District Municipality 197
Northern Cape Namakwa District Municipality 377
Northern Cape Pixley Ka Seme District Municipality 235
Northern Cape Siyanda District Municipality 105
Western Cape Cape Winelands District Municipality 6 12
Western Cape Central Karoo District Municipality 25 4
Province District Municipality # Registered NPOs

13
Western Cape City of Cape Town Metropolitan 3126
Western Cape Eden District Municipality 532
Western Cape Overberg District Municipality 250
Western Cape West Coast District Municipality 338
Linked NPOs Total 53439
Actual 56244
Unlinked NPOs Total 2805

7.4. Distribution per Objective
Objective Number of Registered NPOs
Culture and Recreation 2925
Education and Research 7610
Health 6794
Social Services 17389
Environment 692
Development and housing 12348
Law, Advocacy and Politics 1247
Philanthropic intermediaries and voluntarism promot ion 759
Business and Professional Associations, Unions 272
International Activities 39
Religion 6166
Not else where classified 3
Total 56244

14
Chart per Objective
5%
14%
12%
32%
1%
22% 2%
1%
0%0%
11% 0%
Culture and Recreation
Education and Researc h
Health
Social Services
Environment
Development and housing
Law, Advocacy and Politics
Philanthropic intermediaries and
voluntaris m promotion
Business and Professional
Assoc iations, Unions
International Activities
Religion
Not else where classified

7.5 Cancelled NPOs (De-Registrations)
NPO Act Sections 17 & 18 prescribes that all regist ered organisations must supply the NPO
Directorate with an annual report within 9 months o f the end of its financial year. If reports are
not submitted within the prescribed period then sec tion 20 of the Act will apply. An organization
will be send a non-compliance notice and If the rep orts are not submitted within the 30 days the
organization is deregistered and a de-registration letter is sent to the organisation.
There are three types of de-registrations:
· Voluntary de-registration: is when an organization voluntarily request to be deregistration
and gives reasons thereof plus effective date.
· Dissolution/wound up: reasons and effective date ne eds to be provided.
· Non-compliant de-registration: All non-compliant or ganization are deregistered by being
removed from the registered of NPOs.

15
7.6. Distribution of De-Registrations per Province
Province Number of De-Registered NPOs
Eastern Cape 364
Free State 282
Gauteng 1602
KwaZulu Natal 688
Limpopo 398
Mpumalanga 217
North West 261
Northern Cape 72
Western Cape 391
Total 4275

7.7. Appeals against cancellation of registration
An organization may refer the decision of the direc tor to cancel it’s registration for consideration
by the Arbitration Tribunal .The Tribunal must cons ider the arbitration within 3 months and send
a written notice of its decision to the appellant a nd the director.
7.7.1. List of Appeals received per Province
Province Number of Appeals
Free State 3
Gauteng 12
Kwazulu Natal 4
Limpopo 1
North West 1
Total 21

7.7.2. Reinstatements
If the Arbitration Tribunal upholds the appeal the organisation will be reinstated by:
· Reissuing of an NPO certificate and
· Amending the NPO register according

16

Distribution of Reinstatements per Province
Province Number of Reinstated NPOs
Eastern Cape 26
Free State 14
Gauteng 151
Kwazulu Natal 54
Limpopo 25
Mpumalanga 16
North West 14
Northern Cape 5
Western Cape 43
Total 348

8. Report on NPO Registration for 2008/09 Financial year
8.1 2008/09 Received and registered NPOs per Provin ce
Province Received 08/09 Registered 08/09 % Registered
Eastern Cape 3187 588 4.1
Free State 798 294 2.1
Gauteng 2969 2004 14.1
KwaZulu-Natal 3054 1929 13.6
Limpopo 1074 545 3.8
Mpumalanga 712 276 1.9
North West 671 296 2.1
Northern Cape 328 156 1.1
Western Cape 1396 644 4.5
TOTALS 14189 6732 47.4
Actual 14205 6732

For the 2008/09 financial year the NPO CD was able to register 47% of the applications
received.

17
Received vs Registered
0
500
1000
1500
2000
2500
3000
3500
E
aste
rn C ap
e Free S
tate
G aut eng KwaZulu-Nata
l
Limp opo
Mpumalanga North W
est Northe rn Cape Weste
rn Cape
Received 08/09
Registered 08/09

8.2 2008/09 Received and registered NPOs per Distr ict
Province New Municipal Name Received 08/09 Registered 08/09
Eastern Cape Alfred Nzo District Municipality 182 9 6
Eastern Cape Amatole District Municipality 1264 565
Eastern Cape Cacadu District Municipality 137 38
Eastern Cape Chris Hani District Municipality 402 102
Eastern Cape Nelson Mandela Bay Metropolitan 204 73
Eastern Cape O.R.Tambo District Municipality 650 170
Eastern Cape Ukhahlamba District Municipality 348 120
Free State Fezile Dabi District Municipality 172 59
Free State Lejweleputswa District Municipality 133 58
Free State Motheo District Municipality 284 90
Free State Thabo Mofutsanyane District Municipality 176 80
Free State Xhariep District Municipality 33 8
Gauteng City of Johannesburg Metropolitan 1129 580
Gauteng City of Tshwane Metropolitan 727 353
Gauteng Ekurhuleni Municipality Metropolitan 632 35 1
Gauteng Metsweding District Municipality 80 39
Gauteng Sedibeng District Municipality 257 167
Gauteng West Rand District Municipality 144 57
KwaZulu-Natal Amajuba District Municipality 151 72
KwaZulu-Natal eThekwini Municipality Metropolitan 674 336

18
Province New Municipal Name Received 08/09 Registered 08/09
KwaZulu-Natal iLembe District Municipality 109 39
KwaZulu-Natal Sisonke District Municipality 110 79
KwaZulu-Natal Ugu District District Municipality 222 179
KwaZulu-Natal Umgungundlovu District Municipality 396 193
KwaZulu-Natal Umkhanyakude District Municipality 25 3 143
KwaZulu-Natal Umzinyathi District Municipality 203 134
KwaZulu-Natal Uthukela District Municipality 182 10 5
KwaZulu-Natal uThungulu District Municipality 455 225
KwaZulu-Natal Zululand District Municipality 299 16 6
Limpopo Capricorn District Municipality 250 119
Limpopo Greater Sekhukhune District Municipality 200 85
Limpopo Mopani District Municipality 306 139
Limpopo Vhembe District Municipality 205 123
Limpopo Waterberg District Municipality 113 44
Mpumalanga Ehlanzeni District Municipality 301 119
Mpumalanga Gert Sibande District Municipality 179 5 8
Mpumalanga Nkangala District Municipality 232 101
North West Bojanala Platinum District Municipality 239 114
North West Bophirima District Municipality 95 79
North West Ngaka Modiri Molema District Municipality 160 65
North West Southern District Municipality 177 60
Northern Cape Frances Baard District Municipality 9 0 47
Northern Cape Kgalagadi District Municipality 62 34
Northern Cape Namakwa District Municipality 92 44
Northern Cape Pixley Ka Seme District Municipality 62 36
Northern Cape Siyanda District Municipality 22 10
Western Cape Cape Winelands District Municipality 1 32 71
Western Cape Central Karoo District Municipality 79 37
Western Cape City of Cape Town Metropolitan 849 364
Western Cape Eden District Municipality 185 67
Western Cape Overberg District Municipality 74 25

19
Province New Municipal Name Received 08/09 Registered 08/09
Western Cape West Coast District Municipality 77 43
Linked NPOs Total 14189 6561
Actual Total 14205 6732
Unlinked NPOs Total 16 171

8.3 08/09 Registered NPOs per Objective
Objective Number of Registered NPOs
Culture and Recreation 329
Education and Research 408
Health 768
Social Services 3163
Environment 64
Development and Housing 1041
Law, Advocacy and Politics 81
Philanthropic intermediaries and voluntarism promotion 98
International 3
Business and Professional Associations, Unions 37
Religion 740
Total 6732

20
2008/09 Objective Clasification
5%
6%
11%
48%
1%
15%
1%
1%0%1%
11%
Culture and Recreation
Education and Research
Health
Social Services
Environment
Development and Housing
Law, Advocacy and Politics
Philanthropic intermediaries and
voluntarism promotion
International
Business and Professional
Associations, Unions
Religion

8.4 Cancelled NPOs (De-Registrations) per province
Province Number
Eastern Cape 37
Free State 36
Gauteng 180
KwaZulu Natal 109
Limpopo 37
Mpumalanga 21
North West 24
Northern Cape 13
Western Cape 48
Total 505

21
8.5. Reinstatements
8.5.1. Distribution of reinstatements per province
Province Number of Reinstatements
Eastern Cape 1
Gauteng 23
Kwazulu Natal 4
Limpopo 3
Mpumalanga 2
North West 1
Western Cape 5
Total 39

8.6 Appeals per Province
Province Number of appeals
Limpopo 1
North West 1
Gauteng 3
Total 5

9. Challenges in the administration of the NPO Act
Administering the NPO Act brought a lot of challeng es due to demand that overweigh supply
due to improved awareness on NPO system, poverty, u nemployment and developmental
issues. Some of the challenges relate to
· Capacity as related to number and levels of the sta ff to deal with NPOs matters in the
department
· Lack of institutional arrangements that devolves do wn to the Provinces and Districts to deal
with NPO registration and support.
· Limited access to information on registered NPO by Departments, communities and civil
society organizations

22
· Poor compliance to the NPO act by registered NPOs i n the country
10. Conclusion
This report is an icebreaker as the department will be publishing similar reports each year to
inform all stakeholders within and outside the depa rtment. The report will also be backed by an
NPO online registration and management that will en able communities and donors to access
NPO registration information through the website. A ll stakeholders are welcome to advice and
comment on the published reports.