NPOS URGED TO STRENGTHEN COMPLIANCE AS AMENDED LEGISLATION TAKES EFFECT

By Staff Reporter

• Non-profit organisations are urged to strengthen their compliance systems as amendments to the Non-Profit Organisations Act take effect.
• Deputy Minister of Social Development, Ganief Hendricks, made the call during an outreach programme in Inanda, KwaZulu-Natal, in September 2026.
• The amendments to the Non-Profit Organisations Act are intended to address any exploitation by criminal and terrorist networks while protecting the credibility and sustainability of the NPO sector.

The Department of Social Development has urged non-profit organisations (NPOs) to familiarise themselves with recent legislative changes and strengthen their compliance systems to protect the sector from abuse and maintain public confidence.

Deputy Minister of Social Development Ganief Hendricks made the call during an NPO awareness outreach programme in Inanda, KwaZulu-Natal, on Sunday, 27 September 2026, focused on amendments to the Non-Profit Organisations Act introduced through the General Laws Amendment Act 22 of 2022.

The outreach brought together representatives of the Department of Social Development at national and provincial levels, NPO leaders and other stakeholders to discuss the implications of the amendments and the department’s regulatory responsibilities.

Hendricks said the department had a responsibility to ensure that NPOs were kept informed about legislative developments affecting their operations.

“As the regulator, our responsibility is to ensure that NPOs are well informed and kept abreast of the legislative developments that directly affect them and the implications thereof,” he said.

He acknowledged the significant contribution made by NPOs in providing social, humanitarian, developmental, educational, religious and charitable services, particularly in communities where government services may not reach.

However, he said international evidence indicated that some NPOs could be vulnerable to exploitation by criminal and terrorist networks, including for money laundering and the financing of illegal activities.

According to Hendricks, criminals can exploit the credibility and community standing of NPOs to raise, move or divert funds and provide logistical support for illegal activities. He stressed, however, that this did not mean that all NPOs were vulnerable to such abuse.

Risk-based regulation

The amendments to the Non-Profit Organisations Act are intended to address these risks while protecting the credibility and sustainability of the NPO sector.

Hendricks said the amended legislation enables the department to regulate NPOs through a risk-based approach, recognising that organisations face different levels of exposure depending on their activities.

Among the changes are compulsory registration requirements for specific categories of NPOs considered to face a higher risk of exploitation. These include organisations providing certain services as well as some that send or receive donations outside South Africa.

Certain categories of NPOs are also required to provide additional information aimed at strengthening governance and accountability.

Departmental officials were expected to provide further details of the amendments during the outreach programme, allowing NPO representatives to better understand their obligations.

Hendricks said compliance was important not only because it was a legal requirement, but also because organisations needed to maintain the confidence of donors, partners and the communities they serve.

“No institution would like to associate itself with an NPO that is non-compliant,” he said, urging organisations to comply with the relevant legislative framework, including the NPO Act, SARS income tax requirements and applicable licensing legislation.

Protecting public confidence

The Deputy Minister identified three key objectives of compliance under the amended legislation: protecting NPOs from exploitation, strengthening South Africa’s anti-money-laundering and counter-terrorist-financing system, and reinforcing donor and public confidence in the transparency and integrity of NPO operations.

He encouraged NPO representatives to use the outreach programme not only to learn about the legislative changes, but also to raise practical administrative challenges affecting their organisations.

The department’s team was available to assist NPOs with issues relating to registration, compliance and organisational changes, he said.

“The department has come to the Inanda community to deliver NPO services,” Hendricks said, encouraging organisations to use the opportunity to engage directly with officials and seek assistance with their administrative challenges.