Harnessing the Power of Community: How NPOs Can Make a Difference

What Is a Community?

A community is a formal or informal association of people gathered around a shared interest. The interest could be location-based (eg. the community of a town), interest-based (eg. an artist community or a community of ABCD practitioners), identity-based (eg. a religious community), organization-based (eg. SACSSP) or intentional communities (eg. eco-villages).

The Power of Community in Non-Profit Organizations (NPOs)

In today’s society, non-profit organizations (NPOs) play a crucial role in addressing various social, environmental, and humanitarian challenges. These organizations rely heavily on the support and involvement of communities to drive their missions forward. The power of community in NPOs cannot be underestimated, as the community is often the reason for the NPO existing. It is the driving force behind their success and impact. This article explores the significance of community engagement in NPOs and provides insights into how they can effectively harness this power.

Understanding the Role of Community in NPOs

Communities are the backbone of NPOs. They provide the necessary resources, whether it be financial contributions, volunteerism, or advocacy, to propel the organization’s efforts. Community involvement goes beyond monetary support; it fosters a sense of belonging and ownership among individuals, creating a collective responsibility towards social change. When communities come together, they bring diverse perspectives, skills, and expertise that can be utilized to address complex issues effectively.

Benefits of Harnessing the Power of Community

Harnessing the power of community brings numerous benefits to NPOs. Firstly, community involvement strengthens the organization’s credibility and legitimacy. When the community actively participates in an NPO‘s initiatives, it sends a powerful message that the organization’s cause is meaningful and worthy of support. This, in turn, attracts more individuals and resources to join the cause. Additionally, community engagement helps NPOs build long-lasting relationships with their supporters, leading to increased loyalty and sustained commitment over time.

Furthermore, involving the community in decision-making processes ensures that the NPO‘s efforts are aligned with the needs and aspirations of the people it serves. Community input brings fresh perspectives, innovative ideas, and local knowledge, enhancing the effectiveness and relevance of the organization’s programs and projects. By actively involving the community, NPOs can create a sense of ownership and pride among individuals, fostering a sustainable movement for change.

More information is available in the Compendium of Methods and Tools for ABCD Facilitation.

Examples of Successful NPOs Leveraging Community Support

Several NPOs have successfully harnessed the power of community to achieve significant impact. One notable example is Habitat for Humanity, an organization that builds homes for those in need. Habitat for Humanity engages the community by involving volunteers in the construction process, creating a sense of shared responsibility. This approach not only reduces costs but also fosters a strong bond between the organization and the community it serves.

Another inspiring example is the Make-A-Wish Foundation, which grants wishes to children with life-threatening illnesses. By involving the community in fulfilling these wishes, the organization creates a network of support that extends beyond the immediate family. This community-driven approach not only brings joy to the children but also raises awareness and funds for the foundation’s mission.

Strategies for Engaging and Mobilizing the Community

Engaging and mobilizing the community requires a strategic and intentional approach. NPOs can start by clearly communicating their mission, values, and goals to the community. This transparency helps build trust and understanding, encouraging individuals to get involved. Regular communication through newsletters, social media, and community events keeps supporters informed and engaged.

Moreover, NPOs can create opportunities for community members to actively participate in their initiatives. This can include volunteer programs, advocacy campaigns, or fundraising events. By involving the community in hands-on activities, NPOs create a sense of ownership and commitment towards achieving the organization’s goals. Additionally, recognizing and celebrating the contributions of community members further strengthens the bond between the organization and its supporters.

Building Strong Partnerships with Community Stakeholders

Building strong partnerships with community stakeholders is essential for NPOs aiming to make a difference. These partnerships can be formed with local businesses, educational institutions, government agencies, and other community-based organizations. Collaborating with these stakeholders allows NPOs to tap into additional resources, expertise, and networks that can amplify their impact.

By establishing partnerships, NPOs can leverage the strengths and resources of each stakeholder, creating a collective effort towards social change. For example, an NPO focused on environmental conservation can collaborate with local businesses to implement sustainability practices, educational institutions to conduct research, and government agencies to advocate for policy changes. These partnerships not only enhance the organization’s capacity but also create a shared responsibility for the community’s well-being.

Empowering and Educating the Community through Education and Awareness

Empowering and educating the community is a vital aspect of harnessing its power. NPOs can organize workshops, training programs, and awareness campaigns to equip individuals with the necessary knowledge and skills to address social challenges. By providing educational opportunities, NPOs empower community members to take action and become agents of change.

Furthermore, raising awareness about the issues at hand is crucial for mobilizing the community. NPOs can utilize various communication channels, such as social media, websites, and community events, to educate the public about the organization’s mission, the impact it seeks to achieve, and how individuals can contribute. By creating a shared understanding of the issues, NPOs can inspire collective action and drive meaningful change.

Utilizing Social Media and Online Platforms to Connect with the Community

In today’s digital age, social media and online platforms offer powerful tools for NPOs to connect with the community. These platforms provide a space for dialogue, engagement, and information sharing, allowing NPOs to reach a wider audience and build a virtual community of supporters. By utilizing social media effectively, NPOs can amplify their message, attract new supporters, and facilitate ongoing engagement.

NPOs can use social media to share success stories, provide updates on ongoing projects, and showcase the impact of their work. They can also create interactive campaigns, such as online challenges or crowdfunding initiatives, to involve the community in fundraising efforts. Additionally, social media platforms provide opportunities for community members to share their own experiences, ideas, and suggestions, fostering a sense of belonging and active participation.

NPOs Making a Difference through Community Involvement

Several case studies demonstrate the transformative impact of community-driven NPOs. The Red Cross Society, for instance, relies heavily on community volunteers to provide emergency relief and support during times of crisis. The organization’s ability to mobilize and coordinate these volunteers quickly and effectively has saved countless lives and provided essential aid to those in need.

Another inspiring example is the Global Fund for Women, which supports women’s rights organizations worldwide. The organization actively involves local women’s groups and activists in decision-making processes, ensuring that their voices are heard and their needs are addressed. By empowering these communities, the Global Fund for Women has sparked transformative change and advanced gender equality on a global scale.

The Transformative Impact of Community-Driven NPOs

Harnessing the power of community is vital for NPOs aiming to make a difference. By actively involving the community, NPOs can tap into diverse perspectives, resources, and expertise, enhancing the effectiveness and relevance of their work. Engaging and mobilizing the community requires a strategic approach, including effective communication, hands-on involvement, and building strong partnerships. Through education, empowerment, and utilization of social media platforms, NPOs can create a shared sense of responsibility and inspire collective action. Ultimately, community-driven NPOs have the potential to drive transformative change and create a better future for all.

Maximizing Efficiency: A Comprehensive Guide to Facilitation Methods and Tools in NPOs

Facilitation in non-profit organizations

Facilitation plays a vital role in the success of non-profit organizations (NPOs). It involves guiding groups through processes that enable effective communication, collaboration, and decision-making. In this comprehensive guide, we will explore the importance of effective facilitation in NPOs and provide insights into various facilitation methods and tools that can maximize efficiency.

Facilitators in NPOs create an environment that encourages open dialogue, active participation, and mutual understanding. They help teams navigate through complex issues, manage conflicts, and reach consensus. By facilitating group processes, NPOs can enhance their effectiveness in achieving their mission and goals.

Why effective facilitation is crucial for NPOs

Effective facilitation is crucial for NPOs because it promotes collaboration, enhances decision-making, and increases overall efficiency. In the context of NPOs, where resources are often limited, facilitation can help organizations make the most of their available assets.

One of the key benefits of effective facilitation is improved collaboration. By bringing together diverse stakeholders, facilitators create an inclusive environment that encourages participation and engagement. This collaborative approach fosters creativity, allows for different perspectives to be heard, and ensures that decisions are made collectively.

Another important aspect of facilitation is its impact on decision-making. Facilitators guide groups through structured processes that enable them to analyze problems, explore potential solutions, and make informed decisions. This not only enhances the quality of decisions but also increases the likelihood of buy-in and commitment from participants.

Lastly, effective facilitation enhances overall efficiency in NPOs. By streamlining processes, eliminating unnecessary steps, and maximizing the use of available resources, facilitators help organizations achieve their goals in a more efficient manner. This is particularly crucial for NPOs, as they often operate with limited budgets and rely heavily on volunteers and donations.

Key principles and techniques of facilitation

To be an effective facilitator, it is important to understand and apply key principles and techniques. These principles provide a foundation for successful facilitation, while techniques offer practical tools to guide group processes.

One key principle of facilitation is neutrality. Facilitators must remain impartial and avoid taking sides in discussions or decision-making processes. This ensures that all participants feel heard and respected, creating an environment of trust and collaboration.

Active listening is another important principle of facilitation. Facilitators must actively listen to participants, seeking to understand their perspectives and concerns. This helps to build rapport and encourages open communication within the group.

In terms of techniques, there are several commonly used approaches in facilitation. One technique is the use of icebreakers, which are activities designed to warm up the group and create a positive atmosphere. Icebreakers can include games, group exercises, or simple introductions, and are particularly useful when working with new or diverse groups.

Another technique is the use of brainstorming. This involves generating ideas without judgment or evaluation, encouraging participants to think creatively and freely. Facilitators can use various brainstorming techniques, such as mind mapping or round-robin brainstorming, to maximize idea generation.

Facilitation methods for brainstorming and problem-solving

Brainstorming is a valuable method for generating ideas and solving problems in NPOs. Facilitators can employ various methods to facilitate effective brainstorming sessions.

One method is the “6-3-5 method,” where participants individually write down six ideas related to the problem or topic at hand within a given timeframe. After each round, participants pass their ideas to the next person, who builds upon them. This process is repeated for multiple rounds, allowing ideas to evolve and generate new insights.

Another method is the “nominal group technique.” In this method, participants individually generate ideas, which are then shared and recorded without discussion. Each idea is then discussed and evaluated as a group, with the facilitator guiding the conversation and ensuring equal participation.

In addition to these methods, facilitators can also use visual tools such as whiteboards or sticky notes to visualize ideas and facilitate group discussions. These visual aids help participants see connections between ideas, identify patterns, and make sense of complex information.

Facilitation tools for decision-making and consensus-building

Effective decision-making and consensus-building are essential for NPOs to align their actions with their mission and goals. Facilitators can use various tools to support these processes and ensure that decisions are made collectively and with the best interests of the organization in mind.

One commonly used tool is the decision matrix. This tool helps participants evaluate and compare different options based on predetermined criteria. By assigning weights to each criterion and scoring each option accordingly, facilitators can guide the group towards a well-informed decision.

Another tool is the consensus-building technique known as “multi-voting.” In this technique, participants individually vote for their preferred option from a list of alternatives. The facilitator then identifies the top choices and facilitates a discussion to reach a consensus. This method ensures that decisions are made based on the preferences of the majority while involving everyone in the process.

In addition to these tools, facilitators can also use online survey platforms or collaborative software to gather input from participants, manage discussions, and track decisions. These technology-enabled tools provide a convenient and efficient way to facilitate decision-making and consensus-building, especially when working with geographically dispersed teams.

The role of technology in facilitating NPO activities

Technology has revolutionized the way NPOs operate, enabling them to reach wider audiences, streamline processes, and enhance their impact. In the context of facilitation, technology plays a crucial role in supporting NPO activities and maximizing efficiency.

One way technology facilitates NPO activities is through virtual meetings and collaborative platforms. These tools allow geographically dispersed teams to connect, collaborate, and make decisions in real-time, regardless of their physical location. Virtual meetings save time and resources, eliminating the need for travel and enabling more frequent and efficient communication.

Another role of technology in facilitation is data collection and analysis. NPOs can use online surveys, feedback forms, and data management systems to collect and analyze data, enabling evidence-based decision-making and continuous improvement. Technology streamlines data collection, reduces human error, and provides valuable insights into the effectiveness of NPO activities.

Furthermore, technology enables NPOs to leverage social media and online platforms to engage with their stakeholders, share information, and mobilize support. Facilitators can use social media platforms to create online communities, facilitate discussions, and gather input from a wider audience. This enhances participation and collaboration, ultimately increasing the impact of NPO activities.

Case studies: Successful facilitation in NPOs

To illustrate the effectiveness of facilitation in NPOs, let’s explore a few case studies:

  1. Case Study 1: Environmental Conservation NPO – This NPO focused on environmental conservation and faced challenges in engaging diverse stakeholders, including government agencies, local communities, and corporate partners. By employing facilitation techniques such as active listening, brainstorming, and consensus-building, the NPO successfully brought together stakeholders with different interests and perspectives. This facilitated the development of collaborative solutions and long-term partnerships, resulting in significant progress in environmental conservation efforts.
  2. Case Study 2: Youth Empowerment NPO – This NPO aimed to empower disadvantaged youth through education and skills development programs. The facilitators in this organization used visual tools, such as whiteboards and mind maps, to engage participants and facilitate discussions. By visualizing ideas and creating a shared understanding, the NPO was able to identify common goals, develop effective strategies, and empower youth to become active contributors to their communities.
  3. Case Study 3: Healthcare Access NPO – This NPO focused on improving healthcare access for underserved populations. The facilitators in this organization used technology-enabled tools, such as online surveys and collaborative software, to gather input from stakeholders, manage discussions, and track progress. This facilitated efficient decision-making, increased stakeholder engagement, and enabled the NPO to adapt its programs based on real-time feedback and data analysis.

These case studies highlight the diverse ways in which facilitation methods and tools can be applied in NPOs to maximize efficiency, foster collaboration, and achieve meaningful impact.

Training and resources for facilitation in NPOs

To ensure effective facilitation in NPOs, facilitators should continuously develop their skills and knowledge. There are various training programs and resources available to support facilitators in their professional development.

One option is to attend facilitation workshops or courses offered by reputable organizations or professional associations. These workshops provide hands-on training, practical tools, and opportunities to network with other facilitators. They cover topics such as group dynamics, conflict resolution, and decision-making techniques specific to the NPO context.

Another valuable resource is books and publications on facilitation. There are several well-regarded books that offer insights into facilitation principles, techniques, and case studies. These resources provide a foundation for facilitators to expand their knowledge and apply best practices in their work.

Additionally, online platforms and communities can be valuable resources for facilitators. There are online forums, discussion groups, and social media communities dedicated to facilitation, where facilitators can connect, share experiences, and seek advice from peers. These platforms provide a supportive environment for continuous learning and professional growth.

Evaluating the effectiveness of facilitation methods and tools

Evaluating the effectiveness of facilitation methods and tools is essential to ensure continuous improvement and maximize their impact in NPOs. There are several ways to evaluate facilitation effectiveness:

  1. Participant feedback – Collecting feedback from participants allows facilitators to gain insights into their experiences, identify areas for improvement, and measure the impact of facilitation on group dynamics and outcomes. This can be done through surveys, interviews, or focus groups.
  2. Observation and reflection – Facilitators can evaluate their own performance by reflecting on their facilitation sessions, identifying strengths and areas for development. They can also seek feedback from colleagues or supervisors to gain a different perspective.
  3. Outcome measurement – Evaluating the outcomes of facilitated processes, such as the quality of decisions made or the level of collaboration achieved, provides tangible evidence of the effectiveness of facilitation methods and tools. This can be done through pre- and post-assessments or by comparing outcomes with established benchmarks.

By regularly evaluating the effectiveness of facilitation methods and tools, NPOs can identify areas for improvement, adapt their approaches, and maximize the impact of their facilitation efforts.

Empowering NPOs through effective facilitation

Effective facilitation is a crucial component of success for non-profit organizations. By creating an environment that promotes collaboration, enhances decision-making, and maximizes efficiency, facilitators empower NPOs to achieve their mission and goals.

Through this comprehensive guide, we have explored the importance of effective facilitation in NPOs and provided insights into various facilitation methods and tools. From brainstorming and problem-solving to decision-making and consensus-building, facilitation techniques and tools play a vital role in enhancing group processes and achieving meaningful outcomes.

By embracing technology, leveraging training and resources, and continuously evaluating their practices, NPOs can further enhance the effectiveness of their facilitation efforts. With effective facilitation, NPOs can maximize their efficiency, mobilize stakeholders, and make a lasting impact in their communities.

NPC vs NPO

The Difference Between NPC And NPO In South Africa

The difference between an NPC and NPO is not immediately apparent, even in my post where I compare NPO types. Let’s make an attempt to delve a little deeper into the meaning of each, and then compare the differences.

What is an NPC?

The Companies Act, 2008 (Act No. 71 of 2008) replaced the previous Companies Act (Act No. 61 of 1973) and came into operation on 1 May 2011. With the act, previous “Associations Incorporated Under Section 21” were automatically deemed to have amended their Memorandum of Incorporation (MOI) to reflect that they were now Section 10 NPCs, compliant with the new law and required to append NPC to their names. NPCs are regulated by the Companies and Intellectual Properties Commission (CIPC)

NPCs are subject to the Companies Regulations, 2011, which can compel them to subject to auditing of financial statements if they meet certain criteria, instead of an independent review. Most NPCs conduct annual audits, despite the provision to only submit an independent review of financial statements.

An NPC has limited choices in how it structures itself and functions, since much of it is regulated by law.

What is an NPO?

The Nonprofit Organisations Act, 1997 (Act No. 71 of 1997) replaced the previous Fundraising Act (Act No. 107 of 1978) and came into operation on 1 September 1998 and was amended by the Nonprofit Organisations Amendment Act, 2000 (Act No. 17 of 2000). Since 2012, there has been a draft NPO Policy Framework in the making, aimed in part at increasing regulation of the nonprofit sector. NPOs are administered by the Nonprofit Directorate of the Department of Social Development (DSD).

Most NPOs are Voluntary Associations (VAs), but an NPC or Trust may register as an NPO in addition to their registration with CIPC (NPCs) or the Master of the High Court (Trusts) if they choose to.

While some choices of NPOs are limited by law, they are generally free to choose how they structure themselves and function.

What is the Difference Between an NPC and an NPO?

CriteriaNPCNPO
RegistrationCIPCDSD
Minimum Unrelated Founders33
OwnershipBelongs to the publicBelongs to the public
Annual ReturnsAnnual – CIPCAnnual – DSD
Institution RecordsKept for at least 7 years at public officeUnspecified. Kept for at least 5 Years if registered with SARS.
Accounting RecordsKept for at least 7 years at public officeUnspecified. Kept for at least 5 Years if registered with SARS.
AuditorsRegulated by LawDependent on Constitution
Financial StatementsDependent on MOI and PISDependent on Constitution and PIS
Solvency and Reckless TradingDirectors may be personally liableNo members liable
Obligations to Notify of ChangesRegulated by LawRegulated by Law

Summary

The main differences between an NPC and an NPO are the laws they are guided by, the organisations they report to, how long records are kept, whether audits are mandatory and the personal liability of board members.

Disclaimer: Information provided here is for information only and is not intended to be, nor does it constitute, legal advice.

Sources

  1. Companies Act, 2008 (Act No. 71 of 2008)
  2. Companies Regulations, 2011
  3. Nonprofit Organisations Act, 1997 (Act 71 of 1997)
  4. Nonprofit Organisations Amendment Act, 2000 (Act No. 17 of 2000)
  5. CIPC NPC Compliance Obligations Page
  6. SAICA Guide on the Retention of Documents
  7. Ricardo Wyngaard Attorneys: A Basic Guide to the NPO Act
  8. Inyathelo Information Page on the NPO Policy Framework
  9. Online MOI Article on NPCs
Registering an NPO in South Africa

How to Register an NPO Online in South Africa

NPO registration in South Africa is free and easy to do yourself, whether online or at a DSD office. The provisions of the Nonprofit Organisations Act, 1997 (Act 71 of 1997) are simple to follow while drafting the constitution.

Skip to How to Register an NPO in South Africa

What To Consider Before Registering

  1. Will you be the only organisation in your area doing the work that you want to do? If not, find out who the other organisations are and approach them to see if you could rather add your ideas to what they’re already doing. Why? In the 2015-2016 reporting year, the DSD received an average of 124 applications per day. Of the 32452 applications received during the year, 46% did not meet the requirements to be registered. During the year, 241 NPOs were deregistered for non-compliance.1
  2. What is your single focus area? If you have more than one focus area, rethink it. Why? When you apply for tax exemption, you will have to choose a sole or principal public benefit activity. Spreading your activities too wide will complicate your application.Apart from that, we all set out to save the world, and very often realise somewhere along the line that we do not have the time or resources to actually do that in a meaningful way across too many activities or focus areas. Why set yourself up to fail? Start small – you can always add things to do later.
  3. How will you fund your organisation? Why? If you think you’ll just send some letters to donors and get funding, think again! Has some government official / public servant told you to start a NPO because “government has funds available for it?” Be wary! Government funding objectives change – what will you do when they change?
  4. What legal form will your organisation take? Why? Depending on your answer in 3, you will want to consider whether you want to start a social enterprise2, which could take various for-profit or not-for-profit forms. If you don’t want to start a social enterprise but a pure NPO, your choices are between a Voluntary Association (VA), Non-Profit Company (NPC) or Trust. Read our post about the different types of organisations for more.

Once you’re satisfied with your answers, you can start your NPO registration with the DSD, or your NPC registration with the Companies and Intellectual Property Commission (CIPC), or your Trust registration with the Master of the High Court.

How to Register an NPO in South Africa

In the following 6 easy steps, you will submit an online application to register as an NPO in South Africa.

What You Need to Register an NPO in South Africa

  • A laptop or computer with internet (for online NPO registrations)
  • Your organisation’s constitution or founding document, signed and in .pdf, .doc or .docx format.
  • Certified IDs of office bearers in .pdf, .doc or .docx format and contact details, including residential and postal address, phone numbers and e-mail addresses

Steps for Online NPO Registration in South Africa

Step 1: Open the online NPO Registration page.

Step 2: Complete the required information:

  • Organisation Name
  • Organisation Type
  • Financial Period
  • Contact Person Name in the format Title, Initials, Surname (eg. Mr S Smith)
  • Contact Person Cellphone Number
  • Organisation’s Physical Address
  • Organisation’s Postal Address

When complete, click on next.
NPO Registration Page on DSD Website

Step 3: In the section for office bearers, click on “Add a Office Bearer.” A form to complete details for each office bearer will appear. After adding all the office bearers, be sure to type in the number of office bearers above the office bearer names. There has to be a minimum of 3 office bearers, with a maximum set by your constitution. When complete, click on next.

Section to add office bearers for registration of NPO

Step 4: This section requires uploading the Founding Document (Constitution, Trust Deed or MOI) and Supporting Documents (ID Copies or any other documents relevant to the registration) in .pdf, .doc or .docx format. When complete, click on next.

Section to upload documents during registration of NPO

Step 5: The last section of the application is a declaration of authorisation to apply and correctness of the information provided in the application. Tick the box next to “I Agree,” and click on the “Submit” button.

Section to make declaration of correctness and authority during NPO registration

Step 6: A reference number for the application will be provided. Keep this for any future enquiries on the status of your application. The reference number will also be sent to the Contact Person’s e-mail address or cellphone.

If you’re not comfortable completing the process on your own, HGG NPO Sustainability Solutions, Ricardo Wyngaard Attorneys and others can assist at a fee, or you can visit your closest DSD office for free assistance.


1State of the South African Non-Profit Register 2015-2016 from the Department of Social Development. Back to reference.
2Guide to Legal Forms for Social Enterprises in South Africa from the Bertha Centre for Social Innovation & Entrepreneurship. Back to reference.

Comparing NPO Types

Comparing NPO Types

One of the questions that is often asked is the difference between various types of NPOs. What is an NGO? What is a CBO? How does an NPO and an NPC differ? What is the difference between an NGO and an NPO?

Community Based Organisations (CBOs)

CBOs work on ABCD principles, particularly that of Community-Driven Development (CDD). Instead of “experts” from outside of the community coming into the community and deciding what the community should have to solve their problems, in a CBO, the community sets its own objectives and works toward those objectives with or without outside help.

These organisations are usually informal structures, but in South Africa may decide to take on a legal structure and register as a voluntary association, non-profit company or trust if they want to (or are forced to do so by outside agencies), unless they decide to embark on a Social Enterprise, in which case for-profit legal structures are also available to them.

If the CBO is faith-based, it may also be called a Faith Based Organisation (FBO).

Non-Profit Organisations (NPOs / NPCs)

NPOs are different from CBOs in that their solutions are not necessarily driven by the members of the community in which they work. 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. NPOs generally don’t have programmes, or if they do, there are not a wide range of them, with most work performed routinely or through projects.

NPOs in South Africa are registered as either an NPO (Department of Social Development), NPC (Companies and Intellectual Property Commission) or Trust (Master of the High Court).

The main difference between these legal entities is in their compliance requirements.

In South Africa, the vast majority of NPOs are Voluntary Associations.

Comparison Chart

CriteriaCBONPONPCTrust
Required Members3+3+3+1+
Registration with Master of the High Court RequiredNNNY
Registration with CIPC RequiredNNYN
Registration with DSD RequiredNYNN
Registration with DSD EncouragedYYYY
SARS Income Tax Registration RequiredYYYY
SARS PBO Registration RequiredNNNN
SARS PBO Registration EncouragedYYYY
SARS S18A Exemption Application RequiredNNNN
SARS S18A Exemption Application EncouragedYYYY
Annual Financial Audit RequiredNNNN
Annual Financial Audit EncouragedYYYY
Annual Returns to SARSYYYY
Annual Report to DSD if RegisteredYYYY
Annual Report to CIPCNNYN
Annual Report to Master of the High CourtNNNY
Governance RequirementsLowLowHighLow

Non-Governmental Organisations (NGOs)

NGOs are different from NPOs in that their objectives are aligned to international objectives on a national scale, rather than regional or local requirements, even though they often overlap.

Another large difference is that NGOs are more structured and institutional than NPOs, in that they often have various programmes with projects that span a large geographical area.

NGOs often fund NPOs who implement projects aligned to their programmes, and have easier access to IAOs than NPOs or CBOs due to their capacity.

In South Africa, NPO and NGO are often used interchangeably, with the reasoning that all NPOs are by nature non-governmental (not of or initiated by government).

International Aid Organisations (IAOs)

IAOs differ from NGOs in that they are exclusively driven by international objectives on a global scale. They could be government instituted (e.g. SIDA, GIZ, USAID) or private (e.g. Greenpeace, Michael & Susan Dell Foundation, Rockefeller Foundation, Aga Khan Development Network). Their objectives could be broad-singular (health, in the case of the Bill & Melinda Gates Foundation) or very broad (Aga Khan Development Network).

IAOs work with all entities, but due to their large budgets, often rather work with NGOs than NPOs and CBOs, who may have a capacity shortage to implement high-value programmes and projects efficiently.

So What’s Special About Foundations?

Foundations are usually organisations that are set up by wealthy families with their own funding and own objectives. In South Africa, there is no legal entity for a foundation, so a foundation may register as any of the entitities available, and any entity can call itself a foundation. If an organisation did call itself a foundation and did not actively raise and distribute funds, it would seem hypocritical to call itself a foundation.

Summary

Organisational TypeDescription
International Aid Organisations (IAOs)IAOs are government instituted or private foundations and make funding available to governments and NGOs. Their programmes are usually global in nature. The Bill & Melinda Gates Foundation and Oxfam are examples of IAOs.
Non-Governmental Organisations (NGOs)NGOs are professional-driven organisations that receive funding from IAOs and governments, either using it themselves in their broad spectrum of programmes, or redistributing it to NPOs and CBOs. Their programmes are usually country-specific in nature, with a global view. loveLife Trust and Childline are examples of NGOs. In South Africa, their legal form can take that of a Voluntary Association, Non-Profit Company or Trust.
Non-Profit Organisations (NPOs)NPOs are professional-driven organisations that receive funding from NGOs and governments for specific programmes. Their programmes are usually regional to local in nature. Ikhala Trust is an example of an NPO. In South Africa, their legal form can take that of a Voluntary Association, Non-Profit Company or Trust.
Community-Based Organisations (CBOs)CBOs are community-driven organisations that receive funding from any source for specific programmes. Their programmes are usually local in nature. In South Africa, their legal form can take that of a Voluntary Association, Non-Profit Company or Trust, if they choose to formalise their relationship.