3 hours ago
19
Nonprofit organisations (NPOs) in SA and Gauteng in particular, play a pivotal role in helping the government fulfil its constitutional mandate, especially in delivering on socioeconomic rights.
These rights, enshrined in the country’s Bill of Rights, aim to improve the quality of life for all citizens and unlock their potential. Without a compliant, vibrant and effective non-profit sector, many of these rights would remain inaccessible to some South Africans.
NPOs contribute significantly to addressing societal challenges such as gender-based violence, substance abuse, healthcare, skills development, food security, elderly care, care for orphaned and vulnerable children and care for people with disabilities, among others.
They are often at the coalface of service delivery, filling the gaps where government resources may be limited or slow to respond. Yet, while their work is invaluable, it is equally important that NPOs maintain strong compliance standards to ensure seamless service delivery and secure the necessary funding from the government and other funders.
The NPO environment in SA is mainly guided by the Non-Profit Organisations Act No 71 of 1997. This legislation provides the framework for establishing, registering, regulating, and overseeing these organisations to promote transparency, accountability and proper governance.
They must comply with the Act’s provisions to fulfil their legal obligations and build trust with the communities they serve and the stakeholders that fund them. It is the sole responsibility of the NPO to approach the national department of social development for registration and to submit compliance documents to retain its green status report on an annual basis.
Once registered as an NPO, it must comply with legislation, policies, norms and standards for the area of its operation. Failure to comply with legislation and policies will render any NPO non-compliant and therefore illegal to operate, and consequently not eligible for any financial support by the Gauteng department of social development and donors.
NPOs must also comply with municipal bylaws in the area they are operating from. These include health and safety compliance, buildings and related requirements. While the department always supports NPOs to comply, it is the sole responsibility of such organisations to comply with municipal bylaws, and only approach the department for programme registration and funding, with all compliance requirements in hand.
Once NPOs meet all compliance standards, they can apply for government funding. This process begins with a call for proposals based on the department's priority programmes. Depending on the availability of funding, some NPOs will be signed up for the upcoming year.
Organisations that qualify are subjected to site visits, a panel review and the eventual signing of a Service Level Agreement (SLA). The SLA is a binding contract between the organisation and the department, outlining the terms of funding and the organisation’s obligations in delivering the agreed-upon services.
While the government of Gauteng, acknowledges the essential role NPOs play in fostering social development, it is equally important to stress the significance of compliance. Maintaining high standards of compliance is not merely a bureaucratic requirement; it is the bedrock of sustainable service delivery and long-term impact.
NPO sector is critical to realising the socioeconomic rights enshrined in the constitution. However, to continue making a meaningful difference, these organisations must prioritise compliance.
Without it, the sustainability of their services, their ability to access funding, and serve the communities that rely on them, will be jeopardised.
Government is committed to supporting NPOs, but this support is contingent on their adherence to the laws and regulations that govern the sector. Compliance is not a burden – it is the foundation of growth, sustainability, and societal impact.
- Mazibuko is the MEC for social development in Gauteng
