An amazing 03,279 NPOs are facing deregistration after failing to submit their annual reports as directed by the Non-Profit Organizations Act of 1997. The Department of Social Development has already issued nearly 42,000 notices of non-compliance, resulting in 6,221 NPOs being deregistered for not meeting their obligations.
These NPOs play a vital role in the community, providing essential services to children, youth, people with disabilities, the elderly, and those in need of humanitarian aid. However, without compliance, they risk losing crucial benefits such as tax exemptions, funding from government initiatives, and support from private donors who value accountability.
Among the affected provinces, Gauteng tops the list with 64,22non compliant organizations, followed by KwaZulu-Natal with 36,605 and the Western Cape with 20,371. The Department is enforcing compliance not to punish but to ensure transparency and accountability within the sector. Since a formal notice was issued in August 2023, several workshops and outreach programs have been launched to assist organizations in navigating compliance requirements.
The enforcement actions align with global standards set by the Financial Action Task Force (FATF) to combat money laundering and terrorist financing within non-profits. In response, the Department has proactively addressed over 18,000 email queries and facilitated walk-in consultations for 4,000 concerned organizations.
As the registrar under the NPO Act, the Department urges all non-profits to prioritize compliance to protect both their operations and the communities they serve. The clock is ticking for these essential organizations, and the time to act is now.
