This page covers what a registered non-profit organisation must keep doing after registration — the annual reporting, governance and financial obligations that determine whether it keeps its status. Registration is the easy part; staying compliant is where most organisations fail.
Deregistration is common and it is almost always discovered at the worst possible moment: when a funder runs a check, or when a government department requires proof of registration for a contract.
Business Requirements at a Glance
The ongoing obligations of a registered NPO.
- Submit annual narrative and financial reports to the Department of Social Development within the prescribed period after financial year end
- Keep accounting records and prepare annual financial statements
- Notify the department of changes to office bearers, address or the founding document
- Hold governing body meetings as the founding document requires, and keep minutes
- Apply income and property to the organisation’s stated object, and not distribute to members
- For an NPC: file CIPC annual returns and maintain the beneficial ownership register
- For a PBO: file annual income tax returns with SARS, even though exempt
- Comply with the conditions attaching to any section 18A approval
Registration and Legal Requirements
The annual report to the Department of Social Development is the obligation most often missed. It comprises a narrative report on activities and financial statements, and it must be submitted within the prescribed period after the financial year end. Failure leads to deregistration.
Organisations frequently believe they are compliant because they submitted once, or because nobody contacted them. Neither is the test. Check your status on the department’s register periodically rather than assuming.
Governance is a legal obligation, not good practice. The founding document sets out how the governing body is constituted, how often it meets and what it decides. Organisations run informally by one or two people, without meetings or minutes, are non-compliant with their own constitution — and funders ask for minutes.
Conflict of interest handling matters particularly. Where office bearers or their families benefit from the organisation, that must be managed and disclosed. It is a recurring source of difficulty and of funder withdrawal.
Financial controls matter disproportionately in small NPOs, where one person often handles everything. Dual signatories, separation of duties, and a governing body that actually reviews financials are what prevent the losses that destroy small organisations.
Documents and Ownership Information Required
The records an NPO must be able to produce at any time.
- The founding document, in its current form, with any amendments
- Certificate of NPO registration
- Register of office bearers with their details and dates of appointment
- Minutes of all governing body and general meetings
- Annual financial statements for each year
- Copies of annual reports submitted to the Department of Social Development
- Accounting records, supporting documents and bank statements
- SARS PBO approval letter and section 18A approval, where held
- Copies of section 18A receipts issued, and the register of them
- Funder agreements and reports submitted under them
- For an NPC: CIPC registration documents, annual returns and the beneficial ownership register
Tax, Licence and Compliance Requirements
PBO status carries its own obligations. An organisation approved as a Public Benefit Organisation must continue to carry on the approved public benefit activities, must comply with the conditions in section 30 of the Income Tax Act, and must file annual income tax returns despite being exempt. SARS can withdraw approval.
Section 18A receipts must meet the prescribed requirements and may only be issued for donations applied to qualifying activities. Issuing them improperly has consequences for the organisation and for the donor. SARS has introduced additional reporting on 18A receipts issued — confirm the current requirements, as they have changed.
Employment obligations apply as they do to any employer. An NPO with staff must register for UIF and the Compensation Fund, comply with the Basic Conditions of Employment Act and the National Minimum Wage Act, and meet occupational health and safety duties. Volunteers are a different category, and the distinction should be documented properly.
Funder requirements are contractual and sit on top of the statutory ones. Reporting deadlines, audit requirements and restrictions on how funds may be used are enforceable, and breaching them can require repayment.
The Protection of Personal Information Act applies to beneficiary and donor data, which in the non-profit sector is frequently sensitive. Handle it accordingly.
Process, Deadlines and Ongoing Obligations
Check your registration status on the department’s register now, before a funder does. If reports are outstanding, submit them — the process for regularising is far easier before deregistration than after.
Build the calendar: financial year end, annual report deadline, CIPC annual return date where applicable, SARS return date, and each funder’s reporting deadlines. Assign responsibility for it to a named person, because in small organisations the work that belongs to everyone belongs to nobody.
- Check your NPO registration status on the department’s register periodically
- Submit annual narrative and financial reports within the prescribed period
- Hold governing body meetings and keep minutes — funders ask for them
- Notify changes of office bearers, address or founding document
- File CIPC annual returns if the organisation is an NPC
- File SARS returns even though the organisation is exempt
- Issue section 18A receipts only for qualifying donations, and keep the register
- Put basic financial controls in place — dual signatories and separation of duties
- Assign the compliance calendar to a named person
Frequently Asked Questions
What happens if annual reports are not submitted?
The organisation faces deregistration, usually discovered when a funder or government department checks. Regularising before deregistration is far easier than after.
Do we still file tax returns if we are exempt?
Yes. An approved Public Benefit Organisation files annual income tax returns with SARS despite being exempt, and must continue to meet the section 30 conditions.
Are minutes really necessary?
Yes. The founding document requires governing body meetings, and funders routinely ask for minutes. An organisation run informally without them is non-compliant with its own constitution.
Can office bearers be paid?
Reasonable remuneration for actual services is generally permissible, but income and property may not be distributed to members, and conflicts of interest must be managed and disclosed.
Reporting deadlines, prescribed periods, tax exemption conditions and section 18A requirements are set by the Department of Social Development, SARS and the CIPC and are revised. Confirm current requirements with each.