How do I form a Non Profit Organisation?
Actually, you don’t. A Non-Profit Organisation is an organisation that has been registered with the Department of Social Development as an NPO. It can take various forms from an NGO, a trust, or a Not for Profit Company (NPC). In all cases the Department requires that there shall be at least three unrelated members of the Governing Body. Also, it must have an altruistic motive.
Also, your organisation can be registered with SARS as an Exempt (from tax) Institution and a Public Benefit Organisation. If anyone or company then makes a donation to your organisation, they can deduct the donation from their taxable income.
Each case needs to be governed by a constitution appropriate to its form.
Let’s take a look at these constitutions.
For an NGO. There must be a written or verbal constitution governing the objectives, management and control of the NGO. This entity would typically be a church or a sports club. Clearly, a verbal constitution, although allowed in law, would not be much use when dealing with the Department or with SARS. So, if you want to go this route, Google some samples and get down to work!
A trust must be governed by a Trust Deed which has been registered with the Master of the High Court. There’s no way that you should attempt to write the trust deed yourself as this is a specialised task which even most attorneys make a mess of. Community trusts are typical of this kind of entity.
A NPC is the simplest of all, because the Companies Act includes the wording of the Memorandum of Incorporation which represents the constitution for the Department’s and SARS’ purposes. Our Gallagher Combined School is a NPC.
So, here’s the “How to” –
NGO. Draw up your constitution then get an expert to register it as a NPO at Department of Social Development and/or SARS.
Trust. Speak to us first.