Below is How To Establish A Foundation In South Africa
If yours is a non-profit organization and is not part of the government, you can apply for registration. You can submit your non-profit organization (NPO) application at your nearest provincial social development office.
NPOs include trusts, companies or other associations of persons established for a public purpose.
Registering your NPO is beneficial because its certificate:
improves your credibility and funding opportunities
allows your organization to open a bank account
helps your organization with tax incentives.
To register, you must be one of the following:
a non-governmental organization (NGO)
community-based organization (CBO)
faith-based organization (FBO).
What you should do
Submit the completed NPO application form at your nearest provincial social development office together with two copies of the organization’s founding documents:
Trust – Deeds of trust and letter of authorization from the courts
Section 21 – Certificate of incorporation and memorandum and articles of association
Voluntary Association – Constitution
The founding documents of the NPO must meet the provisions of Section 12 (A-O) of the Nonprofit Organisations Act, 1997 (Act 71 of 1997). If you fail to do that, your application will be rejected.
You can submit your application at your nearest provincial Social Development office, post it to The Directorate, Non-profit organizations, Department of Social Development, Private Bag X901, Pretoria, 0001 or deliver it by hand to the Department of Social Development, 134 Pretorius Street, HSRC Building, Pretoria.
If you are dissatisfied with the rejection or cancellation of your organization’s certificate, you may launch an appeal to the panel arbitrators.
Once it is registered, you must submit the organization’s annual report nine months after its financial year-end. The annual report should consist of a narrative report and a financial report.
Note:
It is a criminal offense for an organization to operate under the pretense of a registered NPO. Various government departments offer to fund various services.
What are the Benefits of Foundation In South Africa
Here are a few of the unique benefits of this powerful, flexible giving vehicle:
Get a current-year tax deduction, but give when you feel like it
Retain full legal control over foundation governance, assets, and spending
Create a lasting legacy that links the family name with good works
Hire family members and reimburse foundation-related expenses
Pass on values and skills to younger generations
Make tax-deductible grants directly to individuals in need
Run charitable programs without setting up a separate nonprofit
How much does it cost to start a foundation in South Africa?
Start-up costs
Initial set-up costs of a foundation are between R10 000 and R20 000.