About NPOs

Formation of the Legal Entity

For a Non-Profit Organisation (NPO) to be established, it must constitute itself within a legal structure, i.e. either:

1. A Non-Profit Company (NPC), or
2. A Non-Profit Trust, or
3. A Voluntary Association

Drafting the founding document (Memorandum of Incorporation (MOI), Trust Deed or Constitution) that is in compliance with the SARS and the Dept. of Social Development (DSD) requirements so that the NPO can easily obtain a tax-exempt PBO and obtain an NPO number from DSD.

Tax Benefits for NPOs & Charity Trusts

A PBO status provides significant tax benefits that effectively reduce the operational costs of your organisation, enabling more resources to go directly towards your mission.

Exemptions available to a registered PBO include:

• Donations Tax
• Income Tax
• Capital Gains Tax
• Municipal Rates
• Value Added Tax (VAT)
• Transfer Duty

These exemptions give donors the assurance that funds are being utilised effectively, with proper regulatory oversight ensuring no individual benefits improperly from the organisation's resources.

NPO Registration & Credibility

Obtaining an NPO number demonstrates compliance with the NPO Act, reflecting transparency and adding credibility to your organisation — making it more attractive to donors and funders.

Funding your NPO

The lifeblood of any NPO is its source of funds. Unlike profit-making entities, an NPO cannot raise funds through loans or share capital — it depends on donations from individuals, corporates, charitable foundations, and government grants. A registered NPO with an NPO number gives donors and funders the assurance of credibility, thereby attracting greater support.

Governance & Accountability

While a Charity Trust is not required to have its books audited unless specified in its Trust Deed or requested by the Master of the High Court, it must maintain accurate and complete accounting records of all income, expenditure, assets, and liabilities. Sound governance — including clear procedures for dispute resolution, amendment of founding documents, and distribution of remaining assets to another registered NPO upon dissolution — builds long-term trust with stakeholders.

We can apply for PBO status on your behalf and register your NPO with the Department of Social Development — handling the process from start to finish so you can focus on your mission.