SUNConferences, Southern African Institute for Industrial Engineering 2014

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A REVIEW OF THE PROCEDURES AND PROCESSES TO START-UP A NON-PROFIT ORGANISATION (NPO) UNDER SOUTH AFRICAN LAW WITH SPECIAL REFERENCE TO THE NPO ACT 71 OF 1997 (THE NPO ACT)
Dieter Hartmann, Satya Bhat

Last modified: 2014-06-26

Abstract


Most research on non-profit organisations (NPOs) concentrate  on operational issues such as organisational sustainability, governance, business plans, marketing and funding.  Little research has been done on the experience of NPOs during the registration process.  This study  investigates  the familiarity of NPOs of the  rules and procedures involved in the registration process and the influence of the Department of Social Development (DSD) in executing the requirements of the NPO Act. The paper considers background information on NPOs, their role in society and the governance procedures instigated as per the  NPO  Act. The results of the research are expected to assist to prepare start-up NPOs, before the registration process, such that registration can run smoothly and that the organisation can effectively execute their objectives. Documents archived in the DSD online database  [27] and email communications with a Director of the NPOs, was used to analyse the influence the NPO Directorate has on the  NPO Act and registration. Multiple case studies of a number of registered NPOs, through an online survey, found out that many NPOs that are registered are ignorant of the rules and regulations and unable to perform efficiently. In addition, most organisations are unaware of the government grants that are accessible to registered NPOs. Therefore, significant prior knowledge before registration can supplement NPOs to prepare for the registration process as well as establishing their organisations with great success. The checklist created shall also provide a guideline for NPOs to establish their organizations efficiently. Organisations should thus take an effort to increase their understanding through networking with other NPOs and DSD.


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