Oliver's House: Legal status of non profit organisations.

Legal Status

Non Profit Organisations

(NPO)

The primary objective of non profit organisations (NPO) is to benefit the community they serve. The income and property of non profit organisations is non-distributable as it is an organisation without share capital. Members and office bearers may receive reasonable remuneration for services rendered on behalf of the NPO. All registered NPO’s are issued with a Certificate Of Registration Of Nonprofit Organisation which reflects the name of the organisation, date of registration and registration number.

Public Benefit Organisation (PBO)

In order for a NPO to register for tax exemption they have to register as a Public Benefit Organisation (PBO) in terms of Section 30 of the Income Tax Act. As an approved PBO the organisation can issue Section 18A certificates for any donations they receive. A Section 18A Certificate allows the donor (individual or company) to claim the value of that donation from their taxable income provided the donation does not exceed 10% of their taxable income.

Broad-Based Black Economic Empowerment (B-BBEE)

It is always advisable for any NPO to comply with the Broad-Based Black Economic Empowerment Act (B-BBEE). Most companies in South Africa are partnering with NPO’s that are BEE compliant. The partnership is mutually benefit in that the NPO receives much needed support and the company is able to increase their score in the Enterprise Development and Socio-Economic Development elements of their BEE scorecard.

Documentation of Oliver’s House’s Legal Status as an NPO Organisation:

Income Tax Registration

income_tax_registration

B-BBEE Certificate 2017 – 2018

bee-certificate

NPO Certificate

non-profit-organisations

Tax Clearance Certificate 2017 – 2018

Tax Clearance Certificate

Section 18A Certificate

section_18a_certificate

Auditor’s B-BBEE Verification Letter

auditors_bee_verification_letter

Section 21 Registration

section_21_certificate

 

(all documentation watermarked with “Specimen Copy”)

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