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Corporate Resources: Supporting philanthropy and NPOs

Non-profit organisations, also referred to as non-governmental organisations, encapsulate a broad range of interests, from faith-based, community and charity organisations, to social and sports clubs, all contributing to the social fabric of South Africa. The Non-profit Organisations Act 71 of 1997 (the NPO Act), which regulates standards of accountability, transparency and governance for NPOs, defines an NPO as a trust, company or other association of persons that is established for a public purpose and does not operate at a profit (i.e. its income and property are not distributable to its members or office bearers, except as reasonable compensation for services rendered.

Read more: Overview of non-profit organisations in South Africa

BBBEE status is an important factor for NPOs, particularly when engaging government or applying for public and/or private sector funding. Companies can earn BBBEE points by contributing to causes that promote enterprise and supplier development, skills development and socioeconomic development (SED). If a company contributes to these through an NPO, the company will only earn BBBEE points if the NPO complies with the requirements set out in the Codes.

Read more: Broad-Based Black Economic Empowerment

In 2018, 56% of non-profit organisations (NPOs) surveyed by Trialogue reported having risk management plans in place, while 53% of companies said that it was a prerequisite for NPOs to access funding. These are relatively low rates, despite the vast number of risks that can hinder effective delivery of social impact in the development sector – including logistical challenges, fraud, reputational risk, corruption, arson, war, political obstacles, procurement issues, natural disasters and more. Nozuko Nkumanda of Social Impact Partners shares how social impact organisations and donors can navigate these risks. 

Read more: Risk Management in Development

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