The Department of Social Development has issued more than 41 000 notices of non-compliance, resulting in the deregistration of over 6 000 NPOs.  

The department has long exercised leniency, acknowledging that some organisations lacked the capacity or knowledge to meet compliance requirements. However, Acting Chief Director for Community Development at the Department of Social Development, Luyanda Ngonyama, says the time for inaction has passed.  

“It has reached a time now that we can't keep this non-compliance continuing forever. Hence, the department has started to deregister non-compliant organisations,” Ngonyama stated.  

The deregistration process involves removing the organisation from the national register, stripping it of its registration certificate, and preventing it from using its NPO registration number to solicit funds. The department has also indicated that it will share the list of deregistered organisations with the South African Revenue Service (SARS), potentially revoking any tax benefits previously granted.  

“Once an organisation is deregistered, it may not mislead the public or use its registration number to raise funds,” Ngonyama explained. “SARS will reconsider any tax benefits, and other government-related benefits may also be lost.”  

Funders are also unlikely to continue supporting non-compliant NPOs, as the department stresses the importance of public confidence, accountability, and good governance.  

Despite the deregistrations, NPOs still have an opportunity to rectify their status. Organisations that receive a notice of non-compliance have 30 days to submit outstanding reports. If deregistered, they have another 30-day window to appeal and provide the necessary documentation.  

“We do not want to make this a long and complicated administrative process,” Ngonyama assured. “We just request organisations that intend to be compliant to submit the required reports, and we will reinstate them back into the system.”  

--ChannelAfrica--