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Nonprofit Organizations Act

. . .– —– t-
REPUBLIC OF SOUTH AFRICA
GOVERNMENT GAZETTE
STAATSKOERANT
VAN DIE REPUBLIEK VAN SUID-AFRIKA
Regis~ered at Ihe Post Ojice as a Newspaper
As ‘n Nuusblad by die Poskantoor Geregistreer
CAPE TOWN. 3 DECEMBER 1997 VOL. 390 No. 18487 KAAPSTAD, 3 DESEMBER 1997
OFFICE OF THE PRESIDENT
No. 1627 3 December 1997
It is hereby notified that the President has assented
to the following Act which is hereby published for general
inforrnation:—
No. 71 of 1997: Nonprofit Organisations Act, 1997KANTOOR VAN DIE PRESIDENT
No. 1627. 3 Desember 1997
Hierby word bekend gemaak dat die President sy
goedkeunng geheg het aan die onderstaande Wet wat hierby
ter algemene inligting gepubliseer word:—
No. 71 van 1997: Wet op Organisasies Sender Winsoogmerk,
1997.

~ No. 18487 GOVERNMENT GAZEITE, 3 DECEMBER 1997
Act No. 71, 1997
NONPROFIT ORGANISATIONS ACT, 1997
ACT
To provide for an environment in which nonprofit organisations can flourish; to
establish an administrative and regulatory framework within which nonprofit
organisations can conduct their affairs; to repeal certain portions of the
Fund-
raising Act, 1978; and to provide for matters connected therewith.
(Afrikaans text signed
by the President.)
(Assented to 26 November 1997.)
B
E IT ENACTED by the Parliament of the Republic of South Africa, as
follows:—
CHAPTER 1
INTERPRETATION AND OBJECTS OF ACT
Definitions
1. (1) In this Act unless the context indicates otherwise—
5
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
(xiii)
(xiv)
(xv)
“accounting officer” means, in relation to a nonprofit organisation, a person
contemplated in section 60 of the Close Corporations Act, 1984 (Act No. 69
of 1984); (xiv)
“Arbitration Tribunal” means an Arbitration Tribunal contemplated in section 10
9; (ii)
“banking account” means an account with a bank registered in terms of the
Banks Act, 1990 (Act No. 94 of 1990), or with a mutual bank registered in
terms of the Mutual Banks Act, 1993 (Act No. 124 of 1993); (iii)
“constitution”
includes a trust deed and memorandum and articles of 15
association;
(ix] “director” means the person designated in terms of section 8; (v)
“Directorate” means the body established in terms of section 4; (vi)
“financial year”,in relation to the Directorate, means a period which
commences on 1 April and ends on 31 March in the following year; (iv)
20
“Minister” means the Minister for Welfare and Population Development; (x)
“national department”
means the national department responsible for
welfare; (xi)
“nonprofit organisation” means a trust, company or other association of
persons— 25
(a) established for a public purpose; and
(b) the income and property of which ‘me not distributable to its members or
office-bearers except as reasonable compensation for services rendered;
(xii)
“office-bearer” means a director, trustee or person holding an executive 30
position; (i)
“prescribe”means prescribe by regulation and “prescribed” has a corre-
sponding meaning; ( XV )
“register” means the register contemplated in section 24; (xiii)
“registered nonprofit organisation” means a nonprofit organisation registered 35
in terms of section
13; (vii)
“this Act” includes (he regulations made under this Act. (viii)
(2) Any person interpreting and applying this Act must—
(a) give a liberal construction to its provisions. in a manner that—
(i) is consistent with the objects of this Act set out in section 2; and 40

4NO, 18487 GOVERNMENT GAZET-I-E, 3DECEMBER 1997
Act No. 71, 1997
NONPROFIT ORGANISATIONS ACT, 1997
(ii) accounts for the particular purpose, role and circumstances of a particular
nonprofit organisation;
(b) with respect to any particular nonprofit organisation, apply the provisions of
sections 16( 1) and 17(3) only to the extent that they do not conflict with any
other law governing that nonprofit organisation.
5
Objects of Act
2. The objects of this Act are to encourage and support nonprofit organisations in their
contribution to meeting the diverse needs of the population of the Republic by—
(a)
(b)
(c)
(d)
(e)
creating an environment in which nonprofit organisations can flourish;
establishing an administrative and regulatory framework within which 10
nonprofit organisations can conduct their affairs;
encouraging nonprofit organisations to maintain adequate standards of
governance, transparency and accountability and to improve those standards;
creating an environment within which the public may have access to
information concerning registered nonprofit organisations; and
15
promoting a spirit of co-operation and shared responsibility within gover-
nment, donors and amongst other interested persons in their dealings with
nonprofit organisations.
CHAPTER 2
CREATION OF AN ENABLING ENVIRONMENT ?0
State’s responsibility to nonprofit organisations
3. Within the limits prescribed by law, every organ of state must determine and
co-ordinate the implementation of its policies and measures in a manner designed to
promote, support and enhance
the capacity of nonprofit organisations to perform their
functions. 25
Establishment of Directorate for Nonprofit Organisations
4. The Minister must establish within the national department a Directorate for
Nonprofit Organisations.
Functions of Directorate
5. In addition to any other function determined by the Minister or specified elsewhere 30
in this Act, the Directorate is responsible
for—
(a) facilitating the process for developing and implementing policy;
(b) determining and implementing programs, including programs—
(i) to support nonprofit organisations in their endeavour to register; and
(ii) to ensure that the standard of governance within nonprofit organisations 35
is maintained and improved;
(c) liaising with other organs of state and interested parties; and
(d) facilitating the development and implementation of multi-sectoral and
multi-disciplinary programs.
Model documents and codes of good practice 40
6. (1) The Directorate must—
(a) prepare and issue model documents, including—
(i) model constitutions for nonprofit organisations; and
(ii) a model of the narrative report to be submitted by registered nonprofit
organisations to the Directorate;
45
(b) prepare and issue codes of good practice for—

6 No. 18487 GOVERNMENT GAZETI’E, 3 DECEMBER 1997
Act No. 71,1997
NONPROFIT ORGANISATIONS ACT, 1997
(i) nonprofit organisations; and
(ii) those persons, bodies and organisations making donations or grants to
nonprofit organisations.
(~) Any model document or code of good practice, or my amendment or substitution
thereof must be—
(a) made in accordance with the procedure contemplated in section 28 with the
necessary changes; and
(b) published in the Gazette.
5
Reports of Directorate
7. Within six months after the end of each financial year, the Minister must
table a 10
written narrative and financial report on the activities of the Directorate for the previous
financial year in Parliament.
Designation of Director of Nonprofit Organisations
8. The Minister must designate an employee of the national department as the
Director of Nonprofit Organisations to be in charge of the Directorate and to perform the 15
other functions conferred on the director by or in terms of this Act or any other law.
Panel of Arbitrators and Arbitration
‘f’ribumd
9. (1) The Minister must appoint persons so as to maintain a panel of arbitrators
consisting of at least seven persons.
(2)
(a) The Minister must designate one member of the panel of arbitrators to act as 20
the chairperson.
(b) If the chairperson is unable to act in this capacity or the post becomes vacant, the
Minister may designate any other member of the panel to act as
cha@erson.
(3) Whenever the Minister is required to nominate a person to the panel of arbitrators
in terms of subsection (1), the Minister must— 25
(a) publish in the Gazette and by any other widely circulated means of
communication, a notice calling for nominees and stating the criteria for
nominations;
(b) consider all nominations submitted in response to the notice;
(c) compile a short-list of nominees and publish it for comment in the manner 30
contemplated in paragraph (a); and
(d) consider any comments received in response to the publication of the short
list.
(4) The terms and conditions of appointment of members of the panel of arbitrators
must be prescribed by the Minister.
35
(5) For the purposes of this Act, an Arbitration Tribunal maybe composed of not more
than three members of the panel of arbitrators appointed by the chairperson.
Establishment of Advisory or Technical Committees
10. (1) The Minister may appoint any advisory or technical committee in order to
achieve the objects of this Act.
40
(2) When appointing an advisory or technical committee, the Minister must
determine—
(a) the composition, functions, and working procedure of such committee;
(b) in consultation with the Minister of Finance, the terms, conditions, remunera-
tion and allowances applicable to its members; and
45
(c) any other matter relating to such committee.
CHAPTER 3
REGISTRATION OF NONPROFIT ORGANISATIONS
Benefits of registration
11. The Minister may prescribe benefits or allowances applicable to registered 50
nonprofit organisations, after consultation with the committees of the two Houses of

8 No. 18487 GOVERNMENT GAZETTE. 3 DECEMBER 1997 Ii
Act No. 71, 1997 NONPROFIT ORGANISATIONS ACT. 1997
Parliament responsible for welfare and with the concurrence of every Minister whose
department is
tiected by a particultu benefit or allowance.
Requirements for registration
12. (1) Any nonprofit organisation that is not an organ of state may apply to the
director for registration.
5
(2) Unless the laws in terms of which a nonprofit organisation is established or
incorporated make provision for the matters in this subsection, the constitution of a
nonprofit organisation that intends to register
must—
(a) state the organisation’s name;
(b) state the organisation’s main and ancillary objectives; 10
(c) state that the organisation’s income and property are not distributable to its
members or
office-bemers, except as reasonable compensation for services
rendered;
(d) make provision for the organisation to be a body corporate and have an
identity and existence distinct from its members or office-bearers;
15
(e) make provision for the organisation’s continued existence notwithstanding
changes in the composition of its membership or office-bearers;
~ ensure that the members or office-beaers have no rights in the property or
other assets of the organisation solely by virtue of their being members or
office-bearers; 20
(g) specify the powers of the organisation;
(h) specify the organisational structures and mechanisms for its governance;
(i) set out the rules for convening and conducting meetings, including quorums
required for and the minutes to be kept of those meetings;
(j) determine the manner in which decisions are to be made;
25
(k) provide that the organisation’s financial transactions must be conducted by
means of a banking account;
(1) determine a date for the end of the organisation’s financial year;
(m) set out a procedure for changing the constitution;
(n) set
out a procedure by which the organisation maybe wound up or dissolved; 30
and
(o) provide that. when the organisation is being wound up or dissolved, any asset
remaining after all its liabilities have been met, must be transferred to another
nonprofit organisation having similar objectives.
(3) The
constimtion of a nonprofit organisation that intends to register, may make 35
movision for matters relevant to conductitw its affairs, including matters that—
L (a)
(b)
(c)
(d)
(e)
@
(g)
(h)
(i)
specify qualifications for and ad~ission to membership of the organisation:
determine the circumstances in which a member will no longer be entitled to
the benefits of membership;
provide for termination of membership;
40
provide for appeals against loss of the benefits of membership or against
termination of membership and specify the procedure for those appeals and
determine the body to which those appeals maybe made:
provide for membership fees and matters determining membership fees and
other payments by members;
45
provide that members or office-bearers do not become liable for any of the
obligations and liabilities of the organisation solely by virtue of their status as
members or office-bearers of the organi~ation;
provide for the appointment of office-bearers and define their respective
functions; 50
set out a procedure for nominating, electing or appointing office-beaxers;
determine the circumstances and manner in which office-bearers may be
removed from office and provide for appeals against such removal and specify
procedures for those appeals and determine a body to which those appeals can
be made;
55
I

10 No. 18487 GOVERNMENT GAZETTE, 3 DECEMBER 1997
Act No. 71, 19!X’ NONPROFtT ORGANISATIONS ACT. 1997
(j) provide that its office-bearers are not personally liable for any loss suffered by
any person as a result of an act or omission which occurs in good faith while
the
office-betier is performing functions for or on behalf of the organisation;
(k) provide for making investments;
(1) determine the purposes for which the funds of the organisation maybe used; 5
and
(m) provide for acquiring and controlling assets.
Application for registration
13. (1) A nonprofit organisation may apply for registration by submitting to the
director— 10
(a) the prescribed form, properly completed;
(b) two copies of its constitution; and
(c) such other information as may be required by the director so as to assist the
director to determine whether or not the nonprofit organisation meets the
requirements for registration.
15
(2) Within two months after receiving an application which complies fully with
subsection (1) the
director—
(a) must consider the application and any further information provided by the
applicant; and
(b) if satisfied that the applicant complies with the requirements for registration, 20
must register the applicant by entering the applicant’s name in the register.
(3) If, after considering an application, the director is not satisfied that the application
complies with the requirements for registration, the director must send the applicant a
written notice, giving reasons for the decision and informing the applicant that it has one
month from the date of the notice to comply with those requirements. 25
(4) The period within which compliance must be effected may be extended by the
director on good cause shown by the applicant.
(5) If an applicant who has received a notice in terms of subsection (3) complies with
the requirements for registration timeously, the dkector must register the applicant by
entering the applicant’s name in the register.
30
(6) If an applicant who has received a notice in terms of subsection (3) has not
complied
timeously with the requirements set out in that notice, the director must—
(a) refuse to register the applicant; and
(b) notify the applicant in writing of the refusal and the reasons for it.
Appeals against refusal to register
35
14. (1) Whhin one month after receipt of a notice of a decision of the director not to
register a nonprofit organisation, the organisation may appeal against the decision by
submitting to the Directorate for consideration by an Arbitration
Tribunal—
(a) the application to registe~
(b) the notice sent to the applicant by the director in terms of section 13(3): 40
(c) details of the organisation’s response to the director’s notice; and
(d) the director’s notice and reasons for the decision which is the subject of the
appeal.
(2) Within three months after receipt of the relevant items. the Arbitration Tribunal
must consider the appeal in the prescribed
martn~r, including providing the appellant 45
and the Directorate with the opportunity to make oral representations, and send a written
notice of its decision to the appellant and to the director, stating the reasons for the
decision.
(3) If the Arbitration Tribunal upholds an appeal, the director must register the
organisation by entering its name in the register.
50
Certificate of Registration
15. (1) Upon registering any applicant, the director
must—

12 NO. 18487 GOVERNMENT GAZETTE. 3 DECEMBER [ 997
.4ct No. 71, 1997
NONPROFIT ORGANISATIONS ACT. 1997
(a) issue a certificate of regis~ation in the applicant’s name on the prescribed
form which must include a registration
numbe~
(b) send the certificate and a certified copy of the registered constitution to the
applicant; and
(c) advise the applicant of the date on which its name was entered in the register.
(2) A nonprofit organisation that has been registered remains registered
until—
(a) its registration is cancelled in terms of this Act;
(b) the organisation is voluntarily deregistered; or
(c) the organisation is wound up or dissolved.
Effect of registration
16. (1) The certificate of registration of a nonprofit organisation, or a duly certified
copy of the certificate, is sufficient proof that the
organisation—
(a) has met all the requirements for registration;
(b) has been registered in terms of this Act; and
(c) is a body corporate.
(2) For the purposes of this Act. service of any document directed to a registered
nonprofit organisation at the physical address most recently provided to the director
must be regarded as service of that document on that organisation.
(3) A registered nonprofit organisation must reflect its registered status and
registration number on all of its documents.
Accounting records and reports
17. (1) Every registered nonprofit organisation must, to the standards of generally
accepted accounting
practice—
(a) keep accounting records of its income, expenditure. assets and liabilities; and
(b) within six months after the end of its financial year, draw up financial
statements. which must include at
least—
(i) a statement of income and expenditure for that financial year; and
(ii) a balance sheet showing its assets, liabilities and financial position as at
the end of that financial year.
(2) Within two months after drawing up its financial statements, every registered
nonprofit organisation must arrange for a written report to be compiled by an accounting
officer and submitted to the organisation stating whether or not—
(a) the financial statements of the organisation are consistent with its accounting
records;
(b) the accounting policies of the organisation are appropriate and have been
appropriately applied in the preparation of the financial statements; and
(c) the organisation has complied with the provisions of this Act and of its
constitution which relate to financial matters.
(3) Every registered nonprofit organisation must preserve each of its books of
account, supporting vouchers, records of subscriptions or levies paid by its members,
income and expenditure statements, balance sheets and accounting officer’s reports, in
an original or reproduced form, for the prescribed period.
Duty to provide reports and information
18. (1) Every registered nonprofit organisation must, in writing, provide the director
w ith—
(a)
{b)
a narrative report of its activities in the prescribed manner together with its
financial statements and the accounting officer’s report as contemplated in
section 17(1 ) and (2), within nine months after the end of its financial
yew,
the names and physical, business and residential addresses of its office-bearers
within one month after any appointment or election of its office-bearers even
5
10
15
20
25
30
35
40
45
50

14 No. 18487 GOVERNMENT GAZETTE. 3 DECEMBER 1997
Act No. 71, 1997
NONPROFtT ORGANISATTONS ACT. 1997
if their appointment or election did not result in any changes to its
office-bearers;
(c) a physical address in the Republic for the service of documents as
contemplated in section 16(2);
(d) notice of any change of address within one month before a new address for 5
service of documents will take effect; and
(e) such other information as may be prescribed.
(~) me director ~aY cause any document or a narrative, financial or other report that
is submitted to the director to be scrutinised, or, by means of a notice, require
a
registered nonprofit organisation to submit any information or document reasonably 10
required in order to enable the director to determine whether the organisation is
complying
with—
(a) the material provisions of its constitution;
(b) any condition or term of any benefit or allowance confemed on the
organisation in terms of section 11; or
15
(c) its obligations in terms of this section. section 17 and arty other provision of
this Act.
(3) A registered nonprofit organisation must submit the information or document
contemplated in subsection (2) within one month after receipt of the notice.
(4) If the accounting officer of a registered nonprofit organisation becomes aware of
20
any instance in which the organisation has failed to comply with the financial provisions
of this Act or its constitution, the accounting officer must notify the director of the
occurrence—
(a) within one month after becoming aware of it; and
(b) in writing with sufficient detail to describe the nature of the noncompliance. 25
(5) The duty imposed on an accounting officer in terms of subsection (4) supersedes
the duty of confidentiality owed to the organisation by the accounting officer.
Changing constitution or name of registered nonprofit organisation
19. (1) A registered nonprofit organisation may change its constitution and its name.
(2) A registered nonprofit organisation that has resolved to change its constitution or 30
its name must send the
director—
(a) a copy of the resolution and a certificate signed by a duly authorised
office-bearer stating that the resolution complies with its constitution and all
relevant laws; and
(b) if the organisation has resolved to change its name, the original of its current 35
certificate of registration.
(3) Upon receiving the documents contemplated in subsection (2), from an
Orgmisation that has resolved to change its constitution, the director must—
(a) register the changed or new constitution if it meets the requirements for
registration; 40
(b) endorse a copy of the resolution, certifying that the change or replacement of
the constitution has been registered; and
(c) send the endorsed copy of the resoh.rtion to the organisation.
(4) Upon receiving the documents contemplated in subsection (2) from an
organisation that has resolved to change its name, the director
must— 45
(a) enter the new name in the register and issue a certificate of registration in the
new name of the organisation;
(b) remove the old name from the regist& and cancel the earlier certificate of
registration; and
(c) send the new certificate to the organisation. 50

16 No. 18487 GOVERNMENT GAZETTE, 3 DECEMBER 1997
Act No. 71, 1997
NONPROFIT ORGANISATIONS ACT, 1997
Noncompliance with constitution and obligations by registered nonprofit
organisation
20. (1) The director must—
(a) send a compliance notice in the prescribed form to a registered nonprofit
organisation if the organisation has not complied
with— 5
(i) a material provision of its constitution;
(ii) a condition or term of arty benefit or allowance conferred on it in terms
of section 11; or
(iii) its obligations in terms of sections 17.18 and 19 and any other provision
of this Act; and
10
(b) refer the nonprofit organisation to the South African Police Service for
criminal investigation if satisfied that any noncompliance
may constitute an
offence.
(2) A compliance notice contemplated in subsection (1) must—
(a) be in writing; 15
(b) notify the organisation of the noncompliance and the steps it is required to
take in order to comply; and
(c) inform the organisation that it has one month from the date of the notice to
comply.
(3) The period within which compliance must be effected may be extended by the 20
director on good cause shown by the organisation.
Cancellation of registration
21. (1) If a registered nonprofit organisation which has received a notice in terms of
section 20 does not comply
timeously with the notice or makes material false represen-
tations in any document or a narrative, financial or other report submitted to the director,
25
the director must—
(a) cancel its certificate of registration and its registration:
(b) notify the organisation in writing of—
(i) the cancellation and the reasons for it: and
(ii) the date on which the registration was
cancelled; and 30
(c) amend the register accordingly.
(2) When a nonprofit organisation’s registration has been cancelled, all the rights,
benefits and allowances it enjoyed as a
result of being registered end immediately.
(3) For purposes of this Act, a cancellation of registration takes effect on the date on
which the certificate of registration is
cancelled by the director. 35
Appeals against cancellation of registration
22. (1) A registered nonprofit organisation may refer the decision of the director to
cancel its registration for arbitration to the Directorate for consideration by an
Arbitration Tribunal, and the procedure established by section 14(1) applies to noting
that arbitration, with the necessary changes.
40
(2) Within three months after receipt of the relevant items, the Arbitration Tribunal
must consider the arbitration in the prescribed manner and send a written notice of its
decision to the appellant and to the director, stating the reasons for the decision.
(3) If the Arbitration Tribunal upholds the
appeal—
(a) the director must reinstate the registration of the nonprofit organisation by— 45
(i) reissuing a certificate of registration; and
(ii) amending the register accordingly; and
(b) the nonprofit organisation must be regarded not to have had its registration
cancelled.
Voluntary deregistration and winding up or dissolution 50
23. (1) A registered nonprofit organisation may reregister voluntarily by sending the
director—

18 No. 18487 GOVERNMENT GAZETTE, 3 DECEMBER 1997
Act No. 71, 1997 NONPROFtT ORGANISATIONS ACT, 1997
(a) written notice—
(i) stating its intention to reregister voluntarily and the reasons therefor; and
(ii) specifying a date, at least two months after the date of the notice, on
which the deregistration is to take effect; and simultaneously
(b) a copy of the reports referred to in section 18(1) for the period from its 5
previous financial year up to the date of the written notice contemplated in this
subsection.
(2) If a registered nonprofit organisation resolves to wind itself up or dissolve or is
being wound up in terms of any law, the organisation must, within one month after
completion of the winding up or dissolution process or the relevant order of court, send 10
to the
director—
(a) a written notice—
(i) stating this fact;
(ii) containing certified copies of all relevant documents confirming the
winding up or dissolution; and simultaneously
15
(b) a copy of the reports referred to in section 18(1) for the period from its
previous financial year up to the date of the written notice contemplated in this
subsection.
(3) Upon receiving a notice of voluntary deregistration or winding up or dissolution
from a registered nonprofit organisation, the director must on the date specified in the
20
notice—
(a) cancel the organisation’s certificate of registration, and reregister it by
amending the register; and
(b) notify the organisation in writing of the deregistration and confirm the date on
which the amendment was made to the register. 15
Register of nonprofit organisations
24. (1) The director must keep a register in the prescribed form
of—
(a) all nonprofit organisations that have been registered;
(b) all nonprofit organisations whose registrations have been cancelled; and
(c) all nonprofit organisations that have voluntarily deregistered or have been 30
wound up or dissolved.
(2)
Whhin two months after the end of each financial year, the director must publish
in the Gazette and at least one other widely circulated means of communication, the
names
of—
(u) all nonprofit organisations that are registered; 35
(b) all nonprofit organisations whose registrations were cancelled during the
previous financial year; and
(c) all nonprofit organisations which deregistered voluntarily during the previous
financial year.
(3) Subsection (2) does not preclude the director from publishing the names of the 40
organisations contemplated in that section in any widely circulated means of
communication, as and when considered appropriate.
Access by public to documents submitted to director
25. (1) The director must
presetwe in an original or reproduced form the constitution
of registered nonprofit organisations and must
preseme— 45
(a) the constitution of a nonprofit organisation whose registration has been
cancelled, or that has voluntarily deregistered; and
(b) any report or document submitted to the director in terms of this Act,
in an original or reproduced form and for the prescribed period.
(2) All members of the public have the right of access to and to inspect any document 50
that the director is obliged to preserve.
(3) The Minister must prescribe the circumstances and manner in which the public
may have access to or inspect such documents.

20 No. 18487GOVERNMENT GAZETTE, 3 IIECEMBER 1997
Act No. 71, 1997 NONPROFIT ORGANISATIONS ACT, 1997
CHAPTER 4
REGULATIONS
Regulations
26. The Minister may make any regulation that is necessary or expedient in order to
achieve the objects of this Act.
5
Conditions, restrictions or prohibitions in regulations
27. (1) Any condition, restriction or prohibition contained in a regulation
must—
(a) be proportionate to the object pursued by that regulation; and
(b,) limit the rights of persons and bodies as little as is reasonably possible.
(2) If a failure to comply with a condition, restriction or prohibition contained in a 10
regulation is an
offence, that regulation must provide that, to the extent practicable.
before being subjected to criminal liability, the
tiected person must be given notice of
the offence and an opportunity to comply with the regulation.
Procedure for making regulations
28. (1) When intending to make or amend regulations, unless the public interest 15
requires the regulations to be made without delay, the Minister must comply with the
following procedure:
(a) The intention to make the regulations must be announced by notice in the
Gazette and at least one other widely circulated means of communication.
(b) The notice must specify— 20
(i) that draft regulations have been developed for comment; and
(ii) where a copy of the draft regulations may be obtained.
(c) A period of at least one month from the date of the notice must be allowed for
interested parties to comment on the regulations.
(d) The comments received and the content of all discussions and consultations 25
must be considered before making the regulations.
(2) Subsection (1) does not apply to an amendment to correct a textual error.
(3) Any regulation affecting State revenue or expenditure may only be made with the
concurrence of the Minister of Finance.
CHAPTER
5 30
GENERAL PROVISIONS
Offences
29. (1) It is an offence to cause a nonprofit organisation, when it is being wound up or
dissolved, to transfer its remaining assets otherwise than in the manner contemplated in
section 12(2)(0). 35
(2) It is an offence for persons, bodies or organisations—
(a) to represent themselves as being validly registered in terms of this Act unless
they are so registered;
(b) to make use of a registration numtier, a registration certificate or any
information contained in the registration certificate if
they have not been 40
registered in terms of this Act; or
(c) to make material false representations in any document or a narrative,
financial or other report submitted to the director.
(3) In any criminal proceedings in respect of an offence created in terms of this Act—

22 No. 18487 GOVERNMENT GAZETTE, 3 DECEMBER 1997
Act No. 71, 1997 NONPROFtT ORGANISATtONS ACT, 1997
(a) a certified copy of the registration certificate or extract of the register is
admissible evidence and, in the absence of evidence to the contrary, is
sufficient proof that an organisation is registered or has been registered, as the
case may be; and
(b) an affidavit from the director stating that an organisation has not been 5
registered in terms of this Act, is sufficient proof of this fact in the absence of
evidence to the
contrag.
Penalties
30. A person convicted of an
offence in terms of this Act is liable to a fine or to
imprisonment or to both a fine and imprisonment.
10
Delegation of functions
31. (1) Subject to section 15 of the Exchequer Act, 1975 (Act No. 66 of 1975), the
Minister may in writing delegate any of his or her functions in terms of this Act. except
those contemplated in sections 8 and 26 to—
(i) any person in the employ of the
nationaI department; 15
(ii) any body established by or in terms of this Act; or
(iii)
any other organ of State responsible for welfare matters. if the head of that
organ of State accepts the delegation.
(2) A person or body carrying out a function delegated in terms of subsection (l) must
do so subject to the direction of the Minister. ?0
(3) The Minister may—
(a) withdraw a delegation made in terms of subsection {1); and
(b) withdraw or amend arty decision made by a person or body in terms of a
delegation contemplated in subsection ( 1).
(4) Until it is withdrawn or amended, any decision made by a person or body in terms 25
of a delegated power contemplated in subsection ( 1 ) must be regarded as having been
made by the Minister.
(5) Any right or privilege acquired, or any obligation or liability incurred, as a result
of a decision in terms of a delegation contemplated in subsection
( 1 ) is not affected by
any subsequent withdrawal or amendment of that decision.
30
Restriction of liability
32. (1) The State Liability Act, 1957 (Act No. 20 of 1957), applies, with the necessary
changes, to each body established by or in terms of this Act. but a reference in that Act
to “the Minister of the Department concerned” must be interpreted as referring to the
chairperson or head of the relevant body.
(2) No member of staff, person or contractor of a body contemplated in subsection ( 1 )
is liable for any damages arising from the publication or disclosure in terms of this Act
of any report or finding, or from any recommendation that is given in good faith and
submitted to the Minister, or to Parliament.
35
Repeal of laws 40
33. Chapters I and HI of the Fund-raising Act, 1978 (Act No. 107 of 1978), are hereby
repealed to the extent that they apply to fund-raising organisations. branches of such
organisations and any other organisation contemplated in Chapter I of that Act.
Transitional arrangements
34. (1) For the purposes of this section, every function to be carried out by the 45
Director of Fund-raising in terms of the Fund-raising Act, 1978 (Act
No. 107 of 1978),
must be carried out by the director. (~) (a) subject to p~agraphs (b), (c) and (~), any f~nd.~aising organisation, branch of
a fund-raising organisation or any other organisation, duly authorised or registered in
terms of section 4,5 or 6 of the Fund-raising Act, 1978, must be regarded as having been 50

24 No. 18487 GOVERNMENT GAZETTE, 3 DECEMBER 1997
Act No. 71, 1997 NONPROFIT ORGANISATtONS ACT, 1997
registered as a nonprofit organisation in terms of this Act, and the director must enter the
name of the organisation in the register as soon as practicable after this Act takes effect.
(b) In order to maintain its registration, an organisation contemplated in paragraph (a)
must apply to be registered in terms of this Act—
(i) within two
years after this Act takes effect, subject to paragraphs (c) and (d); and
(ii) in accordance with the procedure contemplated in sections 13.14 and 15.(c) If the authorisation or registration of an organisation contemplated in paragraph
(a) would expire—
(i) within two months after this Act takes effect,
if the authorisation or
registration of the organisation would expire within two months after this Act
takes effect; or
(ii) no
later than two months before its authorisation or registration expires, if the authorisation or registration would expire within two years after this Act takes
effect.
(d) If an application contemplated in paragraph (c)is not made timeously, the director
must notify the organisation in writing of this fact and inform the organisation that it has
two months from the date of the notice to submit its application to be registered.
(e) If the organisation does not submit its application within this period. the
organisation’s registration lapses and the director
must—
(i) cancel the organisation’s certificate of registration and its registration by
amending the
registe~ and
(ii) notify the organisation in
writing—
(au) of the cancellation and the reasons therefor; and
(bb) of the date on which the amendment in question was made to the register.
(3) If an authorised or registered fund-raising organisation, branch of a find-raising
organisation or any other organisation contemplated in subsection (2)(a) fails to comply
with the terms and conditions of its authorisation or registration, the procedures
contemplated in sections 20, 21 and 22 of this Act apply.
(4)
(a) Any pending application for authorisation or registration made in terms of
section 4, 5 or 6 of the Fund-raising Act, 1978, must be
dealt with by the director in
accordance with the procedure contemplated in sections 13, 14 and 15 of this Act.
(b) Any pending application to amend any authorisation or registration made in terms
of section 8 of the Fund-raising Act, 1978, must be dealt with by the director in
accordance with the procedure contemplated in that section despite its repeal but for all
other purposes must be regarded as having been made in terms of this Act.
(c) Any pending application to withdraw any authorisation or registration made in
terms of section 8 of the Fund-raising Act, 1978, must be dealt with by the director in
accordance with the procedure contemplated in section 23 of this Act.
(d) Any pending appeal instituted in terms of section 10 of the Fund-raising Act, 1978,
may be continued to its conclusion in terms of that section despite its repeal but for all
other purposes must be regarded as having been instituted in terms of this Act.
(e) Any pending investigation into the affairs of an authorised or registered
fund-raising organisation conducted in terms of section 30 of the Fund-raising Act,
1978, may be continued to its conclusion in terms of that section despite its repeal but
for all other purposes must be regarded as having been conducted
in terms of this Act.
@ Any pending criminal proceedings instituted in terms of section 34 of the
Fund-raising Act, 1978, may be continued to their conclusion in terms of that section
despite its repeal but for all other purposes must be regarded as having been instituted in
terms of this Act.
(5) Except as otherwise provided in this section, anything done under any provision
repealed by this Act must be regarded as having been done under the corresponding
provision of this Act and continues to have force and
effect—
(a) except if it is inconsistent with this Act; or
(b) until it is set aside or repealed.
5
10
15
20
25
30
35
40
45
50
55

26 No. 18487 GOVERNMENT GAZETTE, 3 DECEMBER 1997
Act No. 71, 1997NONPROFIT ORGANISATIONS ACT, 1997
State bound
35. This Act binds the State.
Short title and commencement
36. This Act is called the Nonprofit Organisations Act, 1997, and takes effect on a date
fixed by the President by proclamation in the Gazette. 5

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