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Non-Profit Organisations Act, 1997 (Act No. 71 of 1997)

Chapter 3 Registration of Non-Profit Organisations

12. Requirements for Registration

 

(1)
(a) A non-profit organisation referred to in paragraph (b) must apply, and any other nonprofit organisation that is not an organ of state may apply, to the director for registration, subject to paragraph (c), and in accordance with the requirements and procedure contemplated in sections 13, 14 and 15.
(b) A nonprofit organisation must be registered under this Act if it—
(i) makes donations to individuals or organisations outside of the Republic’s borders; or
(ii) provides humanitarian, charitable, religious, educational or cultural services outside of the Republic’s borders.
(c) A nonprofit organisation referred to in paragraph (b) that is operating but is not registered in terms of this Act on the date of commencement of this provision, must apply to register within the period determined by the Minister by notice in the Gazette.
(d) A registered nonprofit organisation, and nonprofit organisation referred to in paragraph (b) whether it is in fact registered in terms of the Act or not, must comply with the requirements of this Act.

[Section 12(1) substituted by section 11(a) of the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act, 2022 (Act No. 22 of 2022), GG47802, dated 29 December 2022 - effective 1 April 2023 per Proclamation Notice 109(b)(i), GG47805, dated 31 December 2022]

 

(2) Unless the laws in terms of which a non-profit organisation is established or incorporated make provision for the matters in this subsection, the constitution of a non-profit organisation that is required in terms of subsection (1)(b) or intends to register must—

[Words preceding section 12(2)(a) substituted by section 11(b) of the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act, 2022 (Act No. 22 of 2022), GG47802, dated 29 December 2022 - effective 1 April 2023 per Proclamation Notice 109(b)(i), GG47805, dated 31 December 2022]

(a) state the organisation’s name;
(b) state the organisation’s main and ancillary objectives;
(c) state that the organisation’s income and property are not distributable to its members or office-bearers, except as reasonable compensation for services rendered;
(d) make provision for the organisation to be a body corporate and have an identity and existence distinct from its members or office-bearers;
(e) make provision for the organisation’s continued existence notwithstanding changes in the composition of its membership or office-bearers;
(f) ensure that the members or office-bearers have no rights in the property or other assets of the organisation solely by virtue of their being members or office-bearers;
(g) specify the powers of the organisation;
(h) specify the organisational structures and mechanisms for its governance;
(i) set out the rules for convening and conducting meetings, including quorums required for and the minutes to be kept of those meetings;
(j) determine the manner in which decisions are to be made;
(k) provide that the organisation’s financial transactions must be conducted by means of a banking account;
(l) determine a date for the end of the organisation’s financial year;
(m) set out a procedure for changing the constitution;
(n) set out a procedure by which the organisation may be wound up or dissolved; and
(o) provide that, when the organisation is being wound up or dissolved, any asset remaining after all its liabilities have been met, must be transferred to another non-profit organisation having similar objectives.

 

(3) The constitution of a non-profit organisation that is required in terms of subsection (1)(b) or that intends to register, may make provision for matters relevant to conducting its affairs, including matters that—

[Words preceding section 12(3)(a) substituted by section 11(c) of the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act, 2022 (Act No. 22 of 2022), GG47802, dated 29 December 2022 - effective 1 April 2023 per Proclamation Notice 109(b)(i), GG47805, dated 31 December 2022]

(a) specify qualifications for and admission to membership of the organisation;
(b) determine the circumstances in which a member will no longer be entitled to the benefits of membership;
(c) provide for termination of membership;
(d) provide for appeals against loss of the benefits of membership or against termination of membership and specify the procedure for those appeals and determine the body to which those appeals may be made;
(e) provide for membership fees and matters determining membership fees and other payments by members;
(f) provide that members or office-bearers do not become liable for any of the obligations and liabilities of the organisation solely by virtue of their status as members or office-bearers of the organisation;
(g) provide for the appointment of office-bearers and define their respective functions;
(h) set out a procedure for nominating, electing or appointing office-bearers;
(i) determine the circumstances and manner in which office-bearers may be removed from office and provide for appeals against such removal and specify procedures for those appeals and determine a body to which those appeals can be made;
(j) provide that its office-bearers are not personally liable for any loss suffered by any person as a result of an act or omission which occurs in good faith while the office-bearer is performing functions for or on behalf of the organisation;
(k) provide for making investments;
(l) determine the purposes for which the funds of the organisation may be used; and
(m) provide for acquiring and controlling assets.

 

(4) The director when considering an application for registration in terms of section 13, after having received amendments to the constitution in terms of section 19, or at any other time, may only require a nonprofit organisation to make an alteration to its constitution to ensure that the constitution addresses the matters referred to in subsection (2).

[Section 12(4) inserted by section 11(d) of the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act, 2022 (Act No. 22 of 2022), GG47802, dated 29 December 2022 - effective 1 April 2023 per Proclamation Notice 109(b)(i), GG47805, dated 31 December 2022]

 

 


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