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 Registration facility managed by the DSDs Directorate of Non-Profit Organisations. Legal framework for regulating non profits. It is voluntary – no longer required by SARS BUT

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.

Why now? Resource, compliance and capacity challenges Ministerial Provincial Dialogues June-July 2012 National Summit 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

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

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

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

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?

THE UNCLEAR Risk-based approach based on size and income. Standards of good governance – whose standards? Self-regulation – is it enough or isnt it? International benchmarks – what are these? Funding and reporting – Section 10 of the PSA? Tribunal, Advisory Committee – constantly review legislation

WHAT NEXT? Regulatory Reform on Nonprofit Organisations: 1. Consultation and finalisation of policy framework 2. Drafting a memorandum based on the policy document 3. 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…

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….

Watch developments SANGONet - ngopulse.orgngopulse.org New NPO Directorate - npo.gov.zanpo.gov.za Inyathelo - inyathelo.org.zainyathelo.org.za CAF Southern Africa - cafsouthernafrica.orgcafsouthernafrica.org GreaterGood SA – myggsa.co.zamyggsa.co.za