NPOs have six months to get their legal status in order
- Featured article by LAWYERS-ONLINE.CO.ZA - May 2018
The Gauteng Provincial Government is getting strict about NPO legal status and has given all Gauteng NPOs six months to comply. The reason for this is due to the rise in abuse by NPOs for criminal purposes, and stricter compliance regulations have become necessary.
MEC Mayathula-Khoza said that the compliance regulations are not new requirements for funding but government has begun a rigorous compliance process with regards to all funded organizations.
Ultimately, the process is to ensure that funding is adequately distributed once handed over to NPOs and that proper management and record keeping is practiced and to ensure that green status is achieved in terms of the NPO Act.
In perspective of this, the provincial government has spent over four billion rand to fund NPOs over the last four years, and several occurrences have surfaced in which inaccurate financial reports have been provided as well as inappropriate management of assets purchased with public funds.
As a result, the provincial government has given Gauteng non-profit organizations a six month grace period, ending September 2018, to get their legal standing sorted out.
This is a matter of at most importance since thousands of people depend on the assistance of non-profit organizations and much more can be done for whole communities if funding is adequately dispersed.
In light of this, the provincial government ensures that they remain sensitive to non-distribution of services to vulnerable citizens and the grace period has the best interest of service delivery in consideration and urges the relevant organizations to take the move seriously so that those who depend on the services of NPOs can be obliged.
If you are a non-profit organization who needs assistance with compliance with regards to legal status, please consult an attorney from our Lawyers Online before the end of the grace period, which ends in September this year (2018).