JHB 
Non-profit organisations (NPOs) play a vital role in South African society, supporting communities and driving positive change. However, recent reports indicate a significant rise in NPO deregistrations by the Department of Social Development (DSD), with over 14,000 organisations being removed from the register in just a few months. For NPOs, understanding the reasons behind this trend and the steps needed to remain compliant is more crucial than ever.
Why are NPOs being deregistered?
The primary reason for deregistration is non-compliance with statutory reporting obligations. Under the NPO Act, registered organisations are required to submit annual reports, including:
- Financial statements.
- Narrative reports outlining the organisation’s activities.
Failure to submit these reports for two consecutive years can lead to deregistration. The DSD has intensified enforcement measures to ensure transparency and accountability within the sector.
Consequences of deregistration
Deregistration carries severe implications for NPOs:
- Loss of legal status.
- Ineligibility for government and private funding.
- Reputational damage that can impact future partnerships and public trust.
- Potential difficulties in re-registering the organisation.
For organisations dedicated to community support, these consequences can undermine years of hard work and affect their ability to continue operations.
How to avoid deregistration
To remain in good standing, NPOs must prioritise compliance and ensure timely submissions of required documentation. Key steps include:
- Maintain accurate and up-to-date financial records.
- Submit annual narrative reports that clearly detail the organisation’s activities and impact.
- Monitor deadlines and set internal reminders to avoid late submissions.
- Seek professional assistance for compiling financial statements and preparing submissions.
Failure to comply with these obligations can result in penalties and reputational damage.
How MMS Group can assist
At MMS Group, we are committed to supporting compliance within the non-profit sector. Our team offers accounting and advisory services to support NPOs in meeting their statutory obligations with confidence.
Our services include:
- Preparation of compliant financial statements.
- Assistance with annual narrative reporting.
- Guidance on regulatory requirements and deadlines.
- Ongoing support to ensure long-term compliance and governance.
If your organisation needs assistance in maintaining compliance and avoiding deregistration, contact MMS Group for professional support tailored to your reporting needs.