Non-Profit Company
NPC Registration

Absolutely! While the term “non-profit” might suggest otherwise, NPCs can indeed generate surplus revenues. However, these funds are retained for the company’s growth, future plans, or self-preservation, ensuring they always serve the public good.

NPCs can have a diverse range of structures. They might have a board of directors, controlling members, or even unpaid volunteers. There are two primary types: membership NPCs, where members elect the board and have regular meetings, and board-only NPCs, which typically have a self-selected board with limited membership powers.

Many countries, including South Africa, allow NPCs to apply for tax-exempt status. In South Africa, NPCs can issue tax certificates to donors, which can then be used for tax deductions. It’s always a good idea to check with local regulations to understand the specific tax benefits available.

NPCs often grapple with capacity building, especially as they rely on external funding. This can affect their ability to maintain operations consistently. Additionally, resource mismanagement can be a concern, making it crucial for NPCs to have strict controls in place to ensure transparency and accountability.

An NPO is a trust, corporation, or other association of individuals that is created for the benefit of the public. In exchange for services rendered to the organization, the income and property of these organizations are not distributable to members or office bearers, with the exception of reasonable compensation. In accordance with the NPO Act, NPOs are obligated to undergo registration with the Department of Social Development and SARS as taxpayers. By satisfying the necessary criteria, NPOs may submit an application for certification as tax-exempt institutions (see PBO below).

NGO is an international abbreviation for a non-governmental organization, which denotes a voluntary organization or establishment with a social mission that functions autonomously from governmental oversight. While not necessarily synonymous, an entity resembling an NGO may also be referred to as a charity, non-profit organization (NPO), voluntary organization, or non-profit organization (NPO).

A public benefit organisation (PBO) can be a trust, a corporation (NPC or NPO), or another organization registered with the South African Revenue Service (SARS) in accordance with Section 30(1) of the Income Tax Act, No. 58 of 1962.

The South African Revenue Service grants tax-exempt status to non-profit organizations; this status is referred to as “Public Benefit Organisation” (“PBO”) status. PBO status will, in addition to enabling the organization to reduce its tax liability, provide specific tax advantages to third parties who make donations to the organization.

When selecting a domain name, many NPC’s use the .org or .us to differentiate themselves from those using the more typical .com space.

Traditionally noted .org is for companies who did not fit in anywhere else in the naming system, encompassing anything that is not classifiable as another category.

• The name of a Non Profit Company will end with “NPC”
• The NPC is incorporated by at least three persons for public benefit, social activities, communal or group interests, etc.
• Must have a minimum of three directors
• The primary goal is to benefit to the public and not to make a profit
• Income of property may not be distributed to the incorporators, members, directors or officers

Certain NPCs may also operate as service providers or charities. They may be set up as an informal group, a trust, a cooperative, or a not-for-profit business.

Similar to foundations in operation, supporting companies have some restrictions on the organizations they can assist, a more difficult administration process, and a more favorable tax position. Being successful does not mean being wealthy; rather, it means adding value to the populations they manage.

Every registered NPO is required to abide by the NPO Act’s provisions.