How to Start a Foundation In South Africa
How you should proceed
Send two copies of the founding documents and the completed NPO application form to the provincial social development office in your area: You can submit an application for registration if your company is non-profit and not a part of the government.
Registration
To register as a non-profit organization (NPO), visit the provincial social development office that is most convenient for you. Your application can be submitted in person at the Department of Social Development, 134 Pretorius Street, HSRC Building, Pretoria, or it can be mailed to The Directorate, Non-profit organizations, Department of Social Development, Private Bag X901, Pretoria, 0001
What Happens Next
- You will be given a memorandum and articles of association, as well as a certificate of incorporation.
- Nine months after the end of the organization’s fiscal year, you must submit the annual report once it has been registered. An account of the year’s events and a financial report should be included in the annual report.
Constitution of a voluntary association
The provisions of Section 12 (A-O) of the Nonprofit Organizations Act, 1997, must be met by the NPO’s founding documents (Act 71 of 1997). Your application will be turned down if you don’t comply with that.
Importance of registring your foundation
Your foundation will benefit from registration because of the following reasons:
Increases your funding opportunities and credibility
Permits your business to open a bank account
Assists your company with tax incentives.
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What are the benefits of starting a nonprofit organization/ foundation in South Africa?
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- Get a tax deduction for the current year, but only give when you feel like it.
- keep complete legal control over the foundation’s administration, resources, and spending
- Establish an enduring legacy that associates the family name with honorable deeds.
- Employ relatives and pay foundation-related costs
- transmit values and abilities to the next generation
- Directly give tax-deductible donations to people in need
- Run charitable initiatives without establishing a distinct nonprofit
What is the starting price for a foundation in South Africa?
Startup expenses: A foundation’s initial setup expenses range between R10,000 and R20,000.
NPOs include trusts, companies or other associations of persons established for a public purpose.
A foundation’s initial setup expenses range between R10,000 and R20,000. The provisions of Section 12 (A-O) of the Nonprofit Organizations Act must be met by the NPO’s founding documents.
