SOCIAL DEVELOPMENT CONDUCTS NON-PROFIT ORGANISATIONS (NPO) COMPLIANCE OUTREACH PROGRAMME IN THE EASTERN CAPE

• The Department of Social Development is hosting a week-long NPO compliance outreach programme in the Eastern Cape to help non-profits align with the Non-Profit Organisations Act and ensure adherence to updated regulations.
• This initiative is part of a broader effort to tackle risks of money laundering and terror financing within the NPO sector, in response to FATF’s recommendations, as South Africa prepares for its progress review.
• Highlighting the critical role of NPOs in providing essential services and creating jobs, especially for women and youth, the programme aims to support NPOs in maintaining their vital contributions to society.

In alignment with its developmental mandate, the Department of Social Development will conduct a week-long NPO compliance outreach programme in the Eastern Cape Province. Designed specifically for the non-profit sector, the initiative aims to bring the Department’s support services directly to local NPOs, enabling them to comply with the requirements of the Non-Profit Organisations Act (Act No. 71 of 1997, as amended by the General Laws Amendment Act).

The Department recently announced the phased implementation of a de-registration process for non-compliant NPOs. This measure aligns with the Financial Action Task Force’s (FATF) findings, which identified a medium risk of terror financing and money laundering within the NPO sector. As the registrar and custodian of the NPO Act, the Department has been tasked with developing and implementing the NPO Terror Funding Risk Assessment to address these concerns.

The outreach programme is part of the Department’s broader national efforts to enhance compliance within the NPO sector and implement FATF recommendations ahead of South Africa’s progress review early next year.

NPOs play a vital role in supporting the social and economic well-being of communities across South Africa. Beyond delivering essential services to vulnerable populations, the latest Quarterly Labour Force Survey highlights that, while private sector employment is declining, the NPO sector continues to generate jobs, particularly for women and young people.

During the outreach programme, participating NPOs will receive guidance on the NPO Act, including registration and compliance requirements. They will also be briefed on ongoing measures to strengthen legislative and institutional frameworks to combat money laundering and terrorism financing using a risk-based approach. The programme will also cover FATF’s Recommendation 8, which pertains to the NPO sector. Additionally, organisations will have the opportunity to verify and update their compliance status or request voluntary de-registration.