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THE GOOD, THE SCARY & THE UNCLEAR Proposed amendments to the NPO Act

THE GOOD, THE SCARY & THE UNCLEAR Proposed amendments to the NPO Act. Sophie Hobbs | MARCH 2013. Change is coming…. THE FEAR!. THE NPO ACT. Non Profit Organisations Act of 1997 replaced the Fundraising Act of 1978.

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THE GOOD, THE SCARY & THE UNCLEAR Proposed amendments to the NPO Act

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  1. THE GOOD, THE SCARY & THE UNCLEARProposed amendments to the NPO Act Sophie Hobbs | MARCH 2013

  2. Change is coming… THE FEAR!

  3. THE NPO ACT • Non Profit Organisations Act of 1997 replaced the Fundraising Act of 1978. • Registration facility managed by the DSD’s Directorate of Non-Profit Organisations. • Legal framework for regulating non profits. • It is voluntary – no longer required by SARS BUT

  4. Enabling environment “Within the limits prescribed by law, every organ of state must determine and coordinate the implementation of its policies and measures in a manner designed to promote, support and enhance the capacity of NPOs to perform their functions.”

  5. Why now? • Resource, compliance and capacity challenges • Ministerial Provincial Dialogues June-July 2012 • National Summit 15-17 August 2012 • Funding resolution at Mangaung • Policy Framework issued by DSD on 31 July 2012: PROPOSED AMENDMENTS TO THE NONPROFIT ORGANISATIONS ACT, ACT 71 OF 1997 A DISCUSSSION DOCUMENT

  6. According to the Policy Framework: Over 80% are voluntary associations

  7. THE GOOD • Transparency, accountability, good governance -“without onerous requirements” • Recognises vital role of NPOs • Not a “one size fits all” solution • Acknowledges challenges of Directorate • Proposes an efficient, automated and integrated registration facility. • “Fundamental freedoms”

  8. TECHNICAL ADVISORY COMMITTEE SANPORA South African Nonprofit Organisations Regulatory Authority Investigation & Enforcement Access to Information Awareness & Education Registration SANPOTRI South African Nonprofit Organisations Tribunal Mediation NON-PROFIT ORGANISATIONS VOLUNTARY ASSOCIATIONS NON PROFIT COMPANIES TRUSTS Mediation? Arbitration

  9. THE SCARY • Investigation, enforcement and “blacklisting” • No mention of integration with SARS or relationship with other departments • Providing organisational data to the public • Serious capacity issues but still recommends turning the NPO Directorate into SANPORA • Remains within public service • Consultation – what consultation?

  10. THE UNCLEAR • “Risk-based” approach based on size and income. • Standards of good governance – whose standards? • Self-regulation – is it enough or isn’t it? • International benchmarks – what are these? • Funding and reporting – Section 10 of the PSA? • Tribunal, Advisory Committee – “constantly review legislation”

  11. WHAT NEXT? Regulatory Reform on Nonprofit Organisations: • Consultation and finalisation of policy framework • Drafting a memorandum based on the policy document • Drafting, publication and consultation on new legislation • National Summit of nonprofit organisations • Interim review of legislation and feasibility study • Transformation of NPO Directorate BUT ALSO…

  12. WHAT CAN WE DO? • Get onto the tribunal • Attend national summit and any consultation events • Stay on top of developments • Write to the Minister • When the draft legislation is published….

  13. Watch developments • SANGONet - ngopulse.org • New NPO Directorate - npo.gov.za • Inyathelo - inyathelo.org.za • CAF Southern Africa - cafsouthernafrica.org • GreaterGood SA – myggsa.co.za

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