Social Development Department deregisters more than 6,000 NPOs
The department says the move is in line with a wider crackdown where over 41,000 non-compliance notices were issued to NPOs across the country.
The Department of Social Development: Picture: Facebook.com/ SocialDevelopmentZA
JOHANNESBURG - The Social Development Department has deregistered more than 6,000 non-profit organisations for failing to submit annual reports, which is a legal requirement under the NPO Act.
The department says the move is in line with a wider crackdown where over 41,000 non-compliance notices were issued to NPOs across the country.
In total, more than 200,000 organisations risk deregistration.
Gauteng has the highest number of non-compliant NPOs, followed by KwaZulu-Natal and the Western Cape.
The Social Development Department has warned that deregistered NPOs will lose access to privileges including tax exemptions, funding and government support.
This is an added stress to NPOs already face funding challenges following budget cuts from the National Treasury.
"While the department acknowledges the significant contribution of NPOs in providing the much-needed services to the vulnerable, the deregistration of non-compliant NPOs is a regulatory requirement aimed at fostering accountability and transparency within the NPO sector," said spokesperson Bathembu Futshane.
He adds that this also aligns with global financial regulations to prevent money laundering and terrorism financing.
The department says it remains committed to helping registered NPOs comply with regulations.