NPO Legal Issues is a bi-monthly electronic newsletter:
VOLUME 87: CIPC HIGHLIGHTS CHANGES TO THE NPO ACT
In the August 2026 edition of NPO Legal Issues, we unpack a recent report by the CIPC detailing critical non-compliance risks for Non-Profit Companies (NPCs). Drawing on data from its Electronic Compliance Checklist Service, the CIPC highlights concerning trends such as likely inaccurate "Nil turnover" declarations, unlawful financial assistance to directors, and the misapplication of organisational assets. This edition explores the severe implications of these findings, including the growing risks of fraud and the misuse of legitimate funds, for the broader NPO sector. Also, it provides concrete, practical steps that boards must take to strengthen their corporate governance, enhance internal controls, and safeguard their organisations against both regulatory penalties and criminal infiltration.
\VOLUME 86: PROPOSED CHANGES TO THE NPO ACT
The June 2026 edition of NPO Legal Issues unpacks one of the most consequential developments for South African nonprofits in recent years: the proposed General Laws (Anti Money Laundering and Combating Terrorism Financing) Amendment Bill. With South Africa preparing for the 2027 FATF mutual evaluation, the Bill introduces sweeping changes to the NPO Act and Companies Act, changes that will directly affect how NPOs register, report, disclose beneficial ownership, and respond to regulatory enforcement. This edition provides a practical breakdown of what these reforms mean for NPOs and NPCs, including enhanced monitoring powers for the Directorate, new administrative sanctions, expanded reporting duties, and the introduction of discrepancy reporting for beneficial ownership. It also offers concrete steps that organisations should take now to strengthen compliance and governance.
VOLUME 85: FATF MUTUAL EVALUATION AND IZINGA ASSIST DONOR JOURNEY LAUNCH
This edition of NPO Legal Issues unpacks the upcoming Financial Action Task Force (FATF) Mutual Evaluation and its direct practical implications for South African non-profit organisations. Following a critical engagement session held in Pretoria, the newsletter outlines the evaluation's 18-month timeline, which officially begins in July 2026 and features a pivotal on-site assessment visit scheduled for March 2027. The evaluation will operate on two parallel tracks, Technical Compliance and Effectiveness Assessment, to review South Africa's AML/CFT systems. Crucially, while the FATF does not view NPOs as reporting entities, assessors will engage directly with selected sector representatives to examine the sector's exposure to Terrorist Financing (TF) risks and evaluate how internal governance measures interact with national frameworks.
Additionally, this issue features a major development in sector transparency with the official launch of the 'Donor Journey' feature by iZinga Assist. Heralded as a gamechanger for African philanthropy, this digital verification platform allows donors to track their contributions in real-time, from the initial transfer into secure Shoprite Money Market Accounts directly to the on-the-ground impact. With 261 NPOs already onboarded and dozens fully verified and ready to receive funds, the platform introduces unprecedented end-to-end traceability designed to rebuild and solidify trust within the South African philanthropic landscape
VOLUME 84: PROTECTING THE NPC's NAME
In this edition, we unpack the Companies Tribunal’s recent approach to protecting an NPC’s name — a reminder that your organisation’s identity is legally shielded, and that enforcement does not require costly High Court litigation. The Tribunal’s willingness to grant default orders, including compelling the CIPC to change an offending company’s name to its registration number, offers a powerful and accessible remedy for NPOs.
VOLUME 82: NPO Director to get Teeth
The legislative landscape for South African NPOs is shifting once again with the introduction of the Draft General Laws (Anti-Money Laundering and Combating Terrorist Financing) Amendment Bill, 2025. In the 82nd edition of NPO Legal Issues, we unpack the critical changes proposed for the NPO Act, most notably the transition of the NPO Directorate from a primarily administrative body into a regulator with increased enforcement powers. Beyond the NPO Act, the newsletter also highlights urgent risks for Non-Profit Companies (NPCs) under proposed changes to the Companies Act. The Bill empowers the CIPC to deregister companies that fail to submit securities or beneficial interest registers for two consecutive years, posing an existential threat to non-compliant entities. We explore what these "teeth" mean for NPO governance and provide practical steps boards must take immediately, from reviewing constitutions to ensuring beneficial ownership records are up to date, to navigate this stricter regulatory environment.
VOLUME 76: AI and NPO Fundraising - 2025
Artificial intelligence is reshaping nonprofit fundraising by automating donor outreach, personalizing appeals, and streamlining campaign analytics. But as NPOs race to adopt AI tools, it’s essential to remember that automation doesn’t remove your legal obligations under POPIA and the Information Regulator’s guidance on direct marketing.
VOLUME 75: AI on the NPO Board Agenda
Explore how nonprofit boards can responsibly adopt artificial intelligence (AI) in governance, strategy, and service delivery. In our latest article, “AI on the NPO Board Agenda,” legal expert Ricardo Wyngaard examines the growing imperative for AI governance in South African NPOs, drawing insights from the Institute of Directors and the draft King V Report. Learn why AI oversight belongs in the boardroom, how ethical deployment intersects with POPIA compliance, and what questions directors should ask to assess AI readiness. This Volume of NPO Legal Issues is essential reading for NPOs navigating digital transformation and regulatory risk.
VOLUME 72: Building Stronger NPOs: Why Board Training is Non-Negotiable
On 28 August 2024 the Gauteng Division of the High Court in Pretoria handed down a judgment in which it provided clarity on the review standard for the removal of directors pursuant to section 71 of the Companies Act.Click here to read more.
Companies and Intellectual Property Commission (CIPC) published a Guidance Note, No. 2 of 2023 entitled Beneficial Owner Filing Requirements on 29 May 2023. With reference to Non-Profit Companies, the Guidance Note states: Non-profit Companies with members will have to file a register containing details of their members. In line with the definition of ‘beneficial owner’, persons who exercise effective control of a no-profit company have to be included with the filing.’ Click here to read more.
SPECIAL VOLUME: NON-PROFIT TRUSTS AND BENEFICIAL OWNERSHIP
The General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act, 2022 (the Amendment Act) introduced several changes to the Trust Property Control Act (the Trust Act) that are also relevant to non-profit trusts. the amended section 1 of the Trust Act contains a definition for ‘beneficial owner’, which includes: ‘a natural person who exercises effective control of the administration of the trust arrangements that are established pursuant to a trust instrument’ and ‘each founder of the trust’ and ‘each trustee of the trust’.This definition is wide enough to apply to non-profit trusts. Put differently, non-profit trusts also have beneficial owners, as defined in the amended Trust Act.
VOLUME 62: NPOS IN SOUTH AFRICA – CHANGES TO THE NPO ACT
On 29 December 2022 the President of South Africa determined the dates on which sections of the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act, 2022 (the Amendment Act) take effect. The Amendment Act introduces several changes to the Nonprofit Organisations Act (the NPO Act). As from 1 April 2023, which is the date on which most of the substantive changes to the NPO Act comes into effect, NPOs in South Africa must comply with the new compliance requirements.
PROTECTION OF PERSONAL INFORMATION ACT: The Protection of Personal Information Act (POPIA) imposes important obligations on Organisations in the event of a data breach involving personal information of a data subject. Section 22 of POPIA (which should be easy to remember in 2022) compels Organisations to notify the Information Regulator if the Organisation has reasonable grounds to be believe that the personal information of a data subject has been accessed or acquired by any unauthorised person. | VOLUME 62: NPOS IN SOUTH AFRICA – CHANGES TO THE NPO ACT On 29 December 2022 the President of South Africa determined the dates on which sections of the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act, 2022 (the Amendment Act) take effect. The Amendment Act introduces several changes to the Nonprofit Organisations Act (the NPO Act). As from 1 April 2023, which is the date on which most of the substantive changes to the NPO Act comes into effect, NPOs in South Africa must comply with the new compliance requirements. |
NPO & POPIA:12 month | POPI ACT MEANING OF DONATION The word ‘donation’ is contained once within the Protection of Personal Information Act. It is under the definition of DIRECT MARKETING. This means that fundraising for nonprofits must comply with the relevant POPIA compliance requirements that are applicable to direct marketing. Check out NPO LEGAL ISSUES dealing with fundraising for nonprofits in terms of POPIA. |
VOLUNTEER IN SOUTH AFRICA There are many nonprofit organizations in South Africa that offer opportunities to volunteer. Some organizations are better equipped than others to manage volunteer projects. It is important to note that the relationship between a volunteer and the nonprofit organization has legal implications. Persons that volunteer at an organization in South Africa should have an understanding of the applicable laws. Check out our NPO LEGAL ISSUES | THE NPO ACT - PROPOSED CHANGES The NPO Act may soon be amended. The Non Profit Organisation Amendment Bill, 2021 was proposes several changes to the the NPO Act which would have important implications for many non-profit organisations. In this edition of NPO LEGAL ISSUES we deal with the key changes proposed to the NPO Act. |
NPOs and POPIA - 12-Month Check-up
NPOs and SAFETY MANAGEMENT - PART 2
'ENTITIES SUSCEPTIBLE TO ABUSE'
POPIA and FUNDRAISING
'A DISTURBING PICTURE'
'AT BEST,CYNICAL'
Governing through a crisis
Covid-19: NPOs as Essential Service Providers
NPOs and Tax-Deductible Donations
NPOs and Volunteers
Regulations Relevant to NPOs
Deregistration of Companies
Lessons from DA & De Lille
PBOs and Business Activities (Judgment)
NPOs and Financial Reports
Five agenda items for NPO Boards
Non-profit companies and Proxies
NPOs and Fixed Term Contracts
NPOs take Note! Two Pending Laws
NPOs and BEE Verification
The Small Business Funding Entity
Starting a NPO in South Africa - Revised
'A poorly drafted constitution'
Draft Amended Broad-Based Black Economic Codes of Good Practice (for NPOs)
Protection of Personal Information Act
The NPO Act: Who is non-compliant?
Independent Contractors vs Employees
NPOs and the Revised B-BBEE Codes
The 31 July 2013 and Analysis: The Non-Profit Revitalization Act
When is a volunteer an employee?
The myth of the 30 April deadline
The South African NPO Crisis - time to hold hands
Lotto Policy Review and Volunteer Risk Management
The Second-Hand Goods Act and NPOs
Practical challenges when starting a NPO in SA.
Summary of Supreme Court of Appeal judgment against Lotteries Board
Professional Fundraisers and CPA
Free State High Court Judgment & Employment Equity Reports
Companies Act, Companies Regulations and CPA Regulations
NPOs as Suppliers and Consumers
Companies Amendment Bill
The Company Secretary
Companies Act: Transitional Provisions
BEE and NPOs - Part 1
Defining the non-profit company
Compulsory Registration for NPOs?
