Difference between revisions of "South Africa NGO Sector"
From NGO Handbook
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In addition to government funding, the private sector contributed R3 million in 1998, while international nongovernmental aid was about R.5 million, the bulk of which went towards health, education, and development and housing. | In addition to government funding, the private sector contributed R3 million in 1998, while international nongovernmental aid was about R.5 million, the bulk of which went towards health, education, and development and housing. | ||
| − | ==Definitions and | + | ==Definitions and Legal Classifications== |
The 1997 Nonprofit Organisations Act defines an NPO as | The 1997 Nonprofit Organisations Act defines an NPO as | ||
| − | + | a trust, company or other association of persons— | |
*(a) established for a public purpose; and | *(a) established for a public purpose; and | ||
*(b) the income and property of which are not distributable to its members or office-bearers except as reasonable compensation for services rendered. | *(b) the income and property of which are not distributable to its members or office-bearers except as reasonable compensation for services rendered. | ||
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This definition encompasses a variety of organizations, including NGOs, CBOs, faith-based organizations (FBOs), Section 21 companies, trusts, and “any other Voluntary Association that is not-for-profit.” | This definition encompasses a variety of organizations, including NGOs, CBOs, faith-based organizations (FBOs), Section 21 companies, trusts, and “any other Voluntary Association that is not-for-profit.” | ||
| − | The term “nonprofit organizations” has come into common usage relatively recently. In the 1980s and 1990s, “service organizations” was the common term, which gave way to “NGOs” and “CBOs.” NPOs then gained currency as a broad term distinguishing these organizations from the for-profit sector (Swilling and Russell 6). Prior to 1997, NPOs were variously defined as apolitical organizations serving the interests of their members, and organizations working for a “public purpose,” a phrase which was then enshrined in the 1997 law. A debate about the definition of “public purpose” followed the passage of that law, and led in 2000 to the creation of another term, “public benefit organization” (PBO), discussed below (Swilling and Russell 9). The main legal distinctions between all of these organizations are trusts, Section 21 companies, and voluntary associations. Trusts, which are governed under the Trust Property Control Act of 1988, may be established for private benefit or for a charitable purpose. A trust is created when property is transferred by a trust deed; trustees then administer the property and funds of the trust in the interest of beneficiaries (which may be broadly defined in public interest terms). | + | The term “nonprofit organizations” has come into common usage relatively recently. In the 1980s and 1990s, “service organizations” was the common term, which gave way to “NGOs” and “CBOs.” NPOs then gained currency as a broad term distinguishing these organizations from the for-profit sector (Swilling and Russell 6). Prior to 1997, NPOs were variously defined as apolitical organizations serving the interests of their members, and organizations working for a “public purpose,” a phrase which was then enshrined in the 1997 law. A debate about the definition of “public purpose” followed the passage of that law, and led in 2000 to the creation of another term, “public benefit organization” (PBO), discussed below (Swilling and Russell 9). |
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| + | The main legal distinctions between all of these organizations are trusts, Section 21 companies, and voluntary associations. Trusts, which are governed under the Trust Property Control Act of 1988, may be established for private benefit or for a charitable purpose. A trust is created when property is transferred by a trust deed; trustees then administer the property and funds of the trust in the interest of beneficiaries (which may be broadly defined in public interest terms). | ||
Section 21 companies, as defined by the Companies Act of 1973, are nonprofit associations “having the main object of promoting religion, arts, sciences, education, charity, recreation, or any other cultural or social activity or communal or group interests.” NPOs that have registered with the government and are not trusts, religious institutions, trade unions, or cooperatives fall into this category. All Section 21 companies must register with the Registrar of Companies (Companies Act Chapter IV, 63). Foreign nonprofits can register branches in South Africa under Section 21A of the Companies Act. | Section 21 companies, as defined by the Companies Act of 1973, are nonprofit associations “having the main object of promoting religion, arts, sciences, education, charity, recreation, or any other cultural or social activity or communal or group interests.” NPOs that have registered with the government and are not trusts, religious institutions, trade unions, or cooperatives fall into this category. All Section 21 companies must register with the Registrar of Companies (Companies Act Chapter IV, 63). Foreign nonprofits can register branches in South Africa under Section 21A of the Companies Act. | ||
| − | Most nonprofit organizations in South Africa are voluntary associations (USIG 3), many of which work only at the community level (Swilling and Russell 20). There is no official registration process for such organizations. Rather, an agreement, which is usually written but may be oral, is formed among three or more people with a common goal other than making profits. Voluntary associations are governed by common law, and may be classified in legal terms as either corporate bodies (“universitas”) or “non-corporate associations” (USIG 3). In order to qualify as a universitas, and organization must be structured to continue as an entity regardless of changes in membership; it must be able to hold property distinct from its members; and no member can have any rights to the property of the association based on membership (USIG 3). The Johns Hopkins study notes that while little statistical information exists regarding such organizations, they are believed to have a significant effect in alleviating poverty by responding to local problems more quickly than more formal organizations or government bodies (Swilling and Russell 21). | + | Most nonprofit organizations in South Africa are voluntary associations (USIG 3), many of which work only at the community level (Swilling and Russell 20). There is no official registration process for such organizations. Rather, an agreement, which is usually written but may be oral, is formed among three or more people with a common goal other than making profits. Voluntary associations are governed by common law, and may be classified in legal terms as either corporate bodies (“universitas”) or “non-corporate associations” (USIG 3). In order to qualify as a universitas, and organization must be structured to continue as an entity regardless of changes in membership; it must be able to hold property distinct from its members; and no member can have any rights to the property of the association based on membership (USIG 3). The Johns Hopkins study notes that while little statistical information exists regarding such organizations, they are believed to have a significant effect in alleviating poverty by responding to local problems more quickly than more formal organizations or government bodies (Swilling and Russell 21). |
==Legal Issues and Regulations on the Formation and Operation of Nonprofits== | ==Legal Issues and Regulations on the Formation and Operation of Nonprofits== | ||
Revision as of 11:51, 13 August 2008
Contents
- 1 History of the Nonprofit Sector in South Africa
- 2 Size and Scope of the Nonprofit Sector
- 3 Definitions and Legal Classifications
- 4 Legal Issues and Regulations on the Formation and Operation of Nonprofits
- 5 State-NGO Relations and the Future of Civil Society in South Africa
- 6 External Links
- 7 References
History of the Nonprofit Sector in South Africa
The nonprofit sector in South Africa has a long history. The beginnings of civil society arose during the colonial period with various religious, cultural, and welfarist community-based groups. In addition, the European colonial powers brought their own organizations with them from the seventeenth through the nineteenth centuries (Swilling and Russell 67). During the twentieth century, the nonprofit sector developed further through a corporatist pact between the British elite and Afrikaner middle class (Swilling and Russell 68). Large, formalized non-governmental organizations (NGOs) dealing with health and social services emerged for the exclusive care of the white community. At the same time, grassroots community-based organizations arose in the black community in order to provide basic services. These groups were often survivalist and stood in opposition to segregation and later Apartheid. For the most part, the white-run government tolerated these organizations, except during periods of active political repression like the 1960s.
In the early 1980s, anti-Apartheid civil society organizations grew as a result of President P.W. Botha’s liberalization of the political system. Nonetheless, his reform movement retained repressive elements, and the state-civil society relationship throughout the 1980s remained adversarial, with a hostile legal and financial environment for NGOs (Habib 675-77). Oppositional social movements spawned by community-based organizations were integral in bringing about the end of Apartheid in 1994.
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