the good, the scary & the unclear proposed amendments to the npo act
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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 1978. - PowerPoint PPT PresentationTRANSCRIPT
THE GOOD, THE SCARY & THE UNCLEARProposed 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 1978.
• Registration facility managed by the DSD’s 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 15-17 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:
2010 2011 20120
20000
40000
60000
80000
100000
120000
Registered NPOs are growing
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 & EnforcementRegistration
SANPORASouth African Nonprofit Organisations Regulatory Authority
Mediation
Mediation?
Arbitration
TECHNICAL ADVISORY COMMITTEE
SANPOTRISouth 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 isn’t 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 framework2. Drafting a memorandum based on the policy
document3. 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.org • New NPO Directorate - npo.gov.za • Inyathelo - inyathelo.org.za• CAF Southern Africa - cafsouthernafrica.org • GreaterGood SA – myggsa.co.za