What is a non-profit company?
A nonprofit company, also known as a non-business entity, not-for-profit company, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in contrast with an entity that operates as a business aiming to generate a profit for its owners.
This form of not for profit business is registered with CIPC (Companies Intellectual Property Commission) and a minimum of three members is required in order to register with CIPC, SARS and DSD.
Step 1: Register a non-profit company (NPC)
Once you have registered you NPC successfully you are able to open up a bank account in the NPC’s name.
This is however not the only step required to get your non-profit business going as we highly recommend registering as a PBO and registering for tax exemption with SARS to avoid paying donations tax which is currently 20%.
Step 2: Register as a PBO and a s18a tax exemption with SARS
Once your NPC has been registered with SARS as a Public Benefit Organization and registered for a s18a tax exemption status this will improve your NPC’s accendibility and individuals and businesses are more willing to donate to your NPC as they will benefit from not being taxed at 20% for donations tax.
Step 3: Register with DSD and receive your NPO number
This is optional but registering with the department of social development will place your non-profit on the DSD database which possible donors will search and you will receive an NPO number which is different to your NPC ck number.
This further enhances your changes of being funded as you are now accountable to a registration authority.
What are the different types of Non-Profit’s?
Non-Government Organization
A non-governmental organization is an organization that generally is formed independent from government. They are typically nonprofit entities, and many of them are active in humanitarianism or the social sciences; they can also include clubs and associations that provide services to their members and others.
What Is an Example of a NGO?
A non-governmental organization, or NGO, typically is established to work toward public or social welfare goals. For instance, an NGO could focus on human rights, voters’ rights, healthcare, helping the poor, and preventing cruelty to animals. NGOs can be funded by donations and grants. One example of an NGO is Greenpeace International. It was founded in 1971 to protect the environment and the Earth.
Community Based Organization
Community organization or Community Based Organization refers to organization aimed at making desired improvements to a community’s social health, well-being, and overall functioning. Community organization occurs in geographically, psychosocially, culturally, spiritually, and digitally bounded communities.
What is an example of a CBO?
A CBO is driven mainly by private individuals from the relevant community, with representation of institutions which provide scientific, financial and social support and provides education, vocational education or rehabilitation, job training, or internship services and programs and includes neighborhood groups and organizations, community action agencies, community development corporations
Faith Based Organization
Faith-based organizations are of three types: (1) congregations; (2) national networks, which include national denominations, their social service arms (for example, Catholic Charities, Lutheran Social Services), and networks of related organizations (such as YMCA and YWCA); and (3) freestanding religious organizations
What is an example of a FBO?
- Religious organizations
- Churches etc.
What documents is required by CIPC to register a non-profit company?
Note: Your NPC has to have a minimum of three members/directors in order to register with CIPC, SARS or DSD.
Apply Online
Fill out the below form and upload the above mentioned documents in order to register your Non-profit company: