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Objective

Objective. The key purpose of the day is that the NPO Sector ensures that the legislation that governs it is enabling rather than disenabling and policy plays a critical role.

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Objective

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  1. Objective The key purpose of the day is that the NPO Sector ensures that the legislation that governs it is enabling rather than disenabling and policy plays a critical role. The purpose of the dialogue is to discuss NPO compliance in both policy and practice and how to jointly engage in unblocking tools that disenable the sector. This will address the challenge of sustainability of the NGO sector and its ability to attract and strengthen relationships with the public/private sector. Importantly the dialogue will be a platform that allows a joint collective voice and collective action in tackling socio-economic issues. This joint action will also be cascaded at District level and tools and resources will be developed to strengthen the NPO sector. The dialogue platform also serves as a good reflection, sharing and learning platform.

  2. Background The Independent Code describes the NPO sector as a sector which is committed to a number of values and principles which are different to those which are applicable to the business sector. There a number of laws which govern the NPO sector and these need to be adhered to. These compliance issues include; Establishment and incorporation (includes registration) Administrative and procedural requirements NPO ACT – consequences and benefits of registration PBO status – Fiscal benefits and conditions Other legislative and regulatory and compliance

  3. Legislation Defined Legislation (or "statutory law") is law which has been promulgated (or "enacted") by a legislature or other governing body, or the process of making it. Legislation can thus be; 1. The act or process of legislating; law making. 2. A proposed or enacted law or group of laws.

  4. Legislative Framework Modern South African legislation reflects South African society's attempt to emerge from the deep bias and prejudice embedded in apartheid legislation, by passing a variety of laws dealing with rights and freedoms enshrined in the Constitution of the Republic of South Africa, and by developing institutions upon which society and each of its individuals can depend in making the ideals of the South African Constitution a reality. Legislation is one of the most important instruments of government in organising society and protecting citizens. It determines amongst others the rights and responsibilities of individuals and authorities to whom the legislation applies The South African Legislative system, including Parliament and the nine Provincial Legislatures has been in a process of development since 1994. The South African Parliament consists of two Houses, namely the National Assembly (NA) and the National Council of Provinces (the NCOP). These two Houses together form the National Parliament and participate in the legislative process as set out in the Constitution.

  5. Cont… The Constitution of the Republic of South Africa, 1996 (Act 108 of 1996), is the supreme law of the Republic of South Africa and provides, among others, how the three branches of Government, namely the Legislature (Parliament, provincial legislatures and municipal councils), the Executive Authority and the Judicial Authority should conduct their business. Further The Constitution of the Republic of South Africa is the piece of legislation against which each prior piece of legislation must be judged and if necessary be amended, and it is backdrop which has coloured each subsequent piece of legislation promulgated. Importantly legislation regulates the way people live and also improves the lives of people. Legislation can also have many other purposes: to provide, to prescribe, and to authorize, to grant, to declare or to restrict. People or the society are at the centre of legislative formulation. It is the people that make and amend laws; they also debate on issues concerning national interest

  6. NPO Act The NPO environment is governed by key legislation that either enables or disenables the NPO sector. The NPO Act was promulgated on the 3rd December of 1997 and the first organisation under this Act was registered on the 1st of September 1998. The objectives of the Act is to create an enabling environment that would allow non-profit organisations to maintain adequate standards of governance, transparency and public accountability, while at the same time enjoying a wide degree of freedom and autonomy. The NPO Act resulted from a lengthy process of policy and legislative reform negotiated between government and civil society organisations. The NPO Act’s framework is reflective of the country’s adherence to the principles of a constitutional democracy that is committed to a free and open society within the socio-economic contexts of South Africa. This policy framework provides for the basis to review and enhance the legal framework on non-profit organisations, based on the principles reflected in the South African Constitution and the provisions of the existing statutes affecting the non-profit sector

  7. Preamble of the NPO Act In its preamble the NPO Act’s intention is;   To provide for an environment in which non-profit organisations can flourish; to establish an administrative and regulatory framework within which non-profit organisations can conduct their affairs; to repeal certain portions of the Fundraising Act, 1978; and to provide for matters connected therewith.

  8. Cont… The NPO Act has a mandate to ensure that there is a conducive environment for the smooth running of all NPO’s within the Republic. The Act’s provisions are instructive such that the administrative and regulatory frame must be enforced and regulated without fear, favor or prejudice.

  9. Purpose of the NPO Act The purpose of the Act is also encourage and support non-profit organisations (NPOs) in their contribution towards meeting the many needs of the Republic of South Africa’s diverse population by: • creating an environment in which non-profit organisations can be productive and effective; and • developing the abilities of non-profit organisations to become effective partners with government and the private sectors in the upliftment and care for South Africa’s communities and environments; and • encouraging non-profit organisations to accept the responsibilities of ensuring that they respond to and maintain high standards of practice in: good governance; effective management; optimisation of resources; successful fundraising; productive relationships with government, beneficiary communities, donors, sponsors, and the general public; careful administration of their organisations; and ethical behaviour.

  10. Compliance In view of the current global funding crisis facing the NPO Sector, compliance issues are becoming extremely critical. In December 2012/January 2013 the National DSD NPO Directorate deregistered a huge number of NPOs based on issues of compliance as stipulated in the NPO Act. In addition the welfare funded NPO sector are expected to deliver compliance services, but funding to deliver such services is not available to the sector, as currently the major funding to the NPO sector comes predominantly from the DSD. Also government has over the years failed to deliver on their statutory obligation that is services such as nurses in old peoples’ homes.

  11. Way Forward In strengthening the sector, the NPO Sector will reflect and review the NPO legislation that governs it, so that it can comply with good governance. In addition the ECNGOC has developed tools to strengthen the NPO Sector which includes the NGO Tool kit as well as the NGO Digital Resource Portal. In addressing capacity issues facing the NPO Sector the NDA /DSD/NPO Sector have embarked on structured capacity building in key topics: Good Governance and Financial Management, Resource Mobilisation and Project Management and Conflict Resolution. In addressing Vision 2030 – The Triple Challenge – Poverty, Unemployment and Inequality the NPO sector plays a key role in delivering sectors to the masses of the country affected by the Triple Challenge. The Eastern Cape NGO Coalition held a Provincial Conference on the 22nd-23rd November 2012, the theme of the conference was “Sustainability in the Context of Poverty, Inequality and unemployment, THE TRILPE CHALLENGE”. Representatives from civil society met in East London to share experiences on building effective civil society engagement and address the triple challenges faced by our societies.

  12. Cont.. The conference illustrated the progress and challenges faced by civil societies in eradicating poverty, inequality and unemployment. The outcomes of discussions were encouraging with frank exchange on the opportunities and challenges of moving ahead to eliminate poverty, inequality and unemployment.

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