A non-profit company must have at least three incorporators and three directors and may be registered with or without members. A non-profit company is not required to have members.
The members of a non-profit company are persons who participate in the activities of the non-profit company, such as members of a church or a pension fund. Non-profit companies registered without members, may be registered with a standard or a customized Memorandum of Incorporation MOI. A non-profit company is a company incorporated for public benefit or other object relating to one or more cultural or social activities, or communal or group interest. The income and property of a non-profit company is not distributable to its incorporators, members, directors, officers or persons relating to any of them and must be used to advance the purpose for which it was created, as set out in its MOI.
A non-profit company must have at least three incorporators and three directors and may be registered with or without members. A non-profit company is not required to have members. The members of a non-profit company are persons who participate in the activities of the non-profit company, such as members of a church or a pension fund. Non-profit companies registered without members, may be registered with a standard or a customized Memorandum of Incorporation MOI. If you wish to receive grants or donor-funding, you are required to register with the Department of Social Development.
Non-profit companies registered with the Department of Social Development can apply for funding at the National Lottery Board. An NPO is defined in Section 1 of the NPO Act as a trust, company or other association of persons established for a public purpose and of which its income and property are not distributable to its members or office bearers except as reasonable compensation for services rendered.
Since , there has been a draft NPO Policy Framework in the making, aimed in part at increasing regulation of the nonprofit sector.
While some choices of NPOs are limited by law, they are generally free to choose how they structure themselves and function. To register as a NPO, organisations are required to complete a prescribed application form and submit same to the Directorate for NPOs, which forms part of the Department of Social Development:. A deed of trust with the trustees authorisation letter for a trust etc.
This founding document of the organisation must meet the requirements of Section 12 of the NPO Act, which shortly, includes the following:.
The status of registering the organisation as an NPO is furthermore a funding requirement for most donor and funding agencies.
The Companies Act, Act No. NPCs are subject to the Companies Regulations, , 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. It must have at least three directors.
A non-profit company is recognised as a legal entity separately from its members. Incorporation as a non-profit company does not necessarily qualify the non-profit company for any particular treatment in terms of the Income Tax Act , or any other legislation, unless that legislation provides otherwise.
This will allow the company to take advantage of tax benefits to reduce their tax burden and obtain other benefits.
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