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IN A CRACKDOWN on non-compliance, the Department of Social Development has deregistered 6,221 non-profit organisations (NPOs) across South Africa for failing to submit annual reports as required by law.
This move comes after the department issued 41,787 notices of non-compliance, warning NPOs to meet their obligations under the Non-Profit Organisations Act.
The deregistered NPOs will lose crucial privileges, including tax exemption, letters of support, and funding from government, donors, and private institutions that prioritise accountability. This decision affects organisations providing essential services to vulnerable populations, such as children, youth, persons with disabilities, and older persons.
The provinces with the highest number of non-compliant NPOs are:
Gauteng: 64,221
KwaZulu-Natal: 36,605
Western Cape: 20,371
Limpopo: 19,982
Eastern Cape: 19,202
Mpumalanga: 15,102
North West: 12,363
Free State: 10,661
Northern Cape: 4,770
The Department of Social Development said it has been working to assist struggling NPOs, processing over 18,000 e-mail enquiries, 3,000 telephone queries, and 4,000 walk-in consultations.
The deregistration process aligns with the Financial Action Task Force (FATF) Recommendation 8, which aims to prevent money laundering and terrorist financing in the non-profit sector.
The department has urged all NPOs to comply with regulatory requirements to maintain transparency and accountability and to protect beneficiary communities.
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