Transcript Recommendations - Raphael Centre

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Objective
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The key purpose of the day is that the NPO Sector ensures
that the legislation that governs it is enabling rather than
disenabling and policy plays a critical role.
The purpose of the dialogue is to discuss NPO compliance in
both policy and practice and how to jointly engage in
unblocking tools that disenable the sector. This will address
the challenge of sustainability of the NGO sector and its
ability to attract and strengthen relationships with the
public/private sector.
Importantly the dialogue will be a platform that allows a joint
collective voice and collective action in tackling socioeconomic issues.
This joint action will also be cascaded at District level and
tools and resources will be developed to strengthen the NPO
sector. The dialogue platform also serves as a good reflection,
sharing and learning platform.
Background
The Independent Code describes the NPO sector as a
sector which is committed to a number of values and
principles which are different to those which are
applicable to the business sector. There a number of
laws which govern the NPO sector and these need to be
adhered to. These compliance issues include;
Establishment and incorporation (includes
registration)
Administrative and procedural requirements
NPO ACT – consequences and benefits of registration
PBO status – Fiscal benefits and conditions
Other legislative and regulatory and compliance
Legislation Defined
Legislation (or "statutory law") is law which has
been promulgated (or "enacted") by a
legislature or other governing body, or the
process of making it. Legislation can thus be;
1. The act or process of legislating; law
making.
2. A proposed or enacted law or group of
laws.
Legislative Framework
Modern
South African legislation reflects South African society's attempt to
emerge from the deep bias and prejudice embedded in apartheid legislation, by
passing a variety of laws dealing with rights and freedoms enshrined in the
Constitution of the Republic of South Africa, and by developing institutions upon
which society and each of its individuals can depend in making the ideals of the
South African Constitution a reality.
Legislation is one of the most important instruments of government in
organising society and protecting citizens.
It determines amongst others the rights and responsibilities of individuals and
authorities to whom the legislation applies
The South African Legislative system, including Parliament and the nine
Provincial Legislatures has been in a process of development since 1994.
The South African Parliament consists of two Houses, namely the National
Assembly (NA) and the National Council of Provinces (the NCOP). These two
Houses together form the National Parliament and participate in the legislative
process as set out in the Constitution.
Cont…
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The Constitution of the Republic of South Africa, 1996 (Act 108 of
1996), is the supreme law of the Republic of South Africa and
provides, among others, how the three branches of Government,
namely the Legislature (Parliament, provincial legislatures and
municipal councils), the Executive Authority and the Judicial
Authority should conduct their business.
Further The Constitution of the Republic of South Africa is the piece
of legislation against which each prior piece of legislation must be
judged and if necessary be amended, and it is backdrop which has
coloured each subsequent piece of legislation promulgated.
Importantly legislation regulates the way people live and also
improves the lives of people.
Legislation can also have many other purposes: to provide, to
prescribe, and to authorize, to grant, to declare or to restrict.
People or the society are at the centre of legislative formulation.
It is the people that make and amend laws; they also debate on
issues concerning national interest
NPO Act
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The NPO environment is governed by key legislation that either enables or
disenables the NPO sector.
The NPO Act was promulgated on the 3rd December of 1997 and the first
organisation under this Act was registered on the 1st of September 1998.
The objectives of the Act is to create an enabling environment that would
allow non-profit organisations to maintain adequate standards of governance,
transparency and public accountability, while at the same time enjoying a
wide degree of freedom and autonomy.
The NPO Act resulted from a lengthy process of policy and legislative reform
negotiated between government and civil society organisations.
The NPO Act’s framework is reflective of the country’s adherence to the
principles of a constitutional democracy that is committed to a free and open
society within the socio-economic contexts of South Africa.
This policy framework provides for the basis to review and enhance the legal
framework on non-profit organisations, based on the principles reflected in
the South African Constitution and the provisions of the existing statutes
affecting the non-profit sector
Preamble of the NPO Act
In its preamble the NPO Act’s intention is;
To provide for an environment in which non-profit
organisations can flourish; to establish an
administrative and regulatory framework within
which non-profit organisations can conduct their
affairs; to repeal certain portions of the
Fundraising Act, 1978; and to provide for matters
connected therewith.
Cont…
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NPO Act has a mandate to ensure that
there is a conducive environment for the
smooth running of all NPO’s within the
Republic.
 The Act’s provisions are instructive such that
the administrative and regulatory frame must
be enforced and regulated without fear,
favor or prejudice.
Purpose of the NPO Act
The purpose of the Act is also encourage and support non-profit
organisations (NPOs) in their contribution towards meeting the
many needs of the Republic of South Africa’s diverse population
by:
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creating an environment in which non-profit organisations
can be productive and effective; and
developing the abilities of non-profit organisations to
become effective partners with government and the private
sectors in the upliftment and care for South Africa’s
communities and environments; and
encouraging non-profit organisations to accept the
responsibilities of ensuring that they respond to and maintain
high standards of practice in: good governance; effective
management; optimisation of resources; successful
fundraising; productive relationships with government,
beneficiary communities, donors, sponsors, and the general
public; careful administration of their organisations; and
ethical behaviour.
Compliance
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In view of the current global funding crisis facing the NPO
Sector, compliance issues are becoming extremely critical.
In December 2012/January 2013 the National DSD NPO
Directorate deregistered a huge number of NPOs based on
issues of compliance as stipulated in the NPO Act.
In addition the welfare funded NPO sector are expected to
deliver compliance services, but funding to deliver such
services is not available to the sector, as currently the
major funding to the NPO sector comes predominantly
from the DSD.
Also government has over the years failed to deliver on
their statutory obligation that is services such as nurses in
old peoples’ homes.
Way Forward
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In strengthening the sector, the NPO Sector will reflect and review the NPO
legislation that governs it, so that it can comply with good governance.
In addition the ECNGOC has developed tools to strengthen the NPO Sector
which includes the NGO Tool kit as well as the NGO Digital Resource Portal.
In addressing capacity issues facing the NPO Sector the NDA /DSD/NPO Sector
have embarked on structured capacity building in key topics: Good
Governance and Financial Management, Resource Mobilisation and Project
Management and Conflict Resolution.
In addressing Vision 2030 – The Triple Challenge – Poverty, Unemployment and
Inequality the NPO sector plays a key role in delivering sectors to the masses
of the country affected by the Triple Challenge.
The Eastern Cape NGO Coalition held a Provincial Conference on the 22nd-23rd
November 2012, the theme of the conference was “Sustainability in the
Context of Poverty, Inequality and unemployment, THE TRILPE CHALLENGE”.
Representatives from civil society met in East London to share experiences on
building effective civil society engagement and address the triple challenges
faced by our societies.
Cont..
 The
conference illustrated the progress and
challenges faced by civil societies in
eradicating poverty, inequality and
unemployment.
 The outcomes of discussions were
encouraging with frank exchange on the
opportunities and challenges of moving
ahead to eliminate poverty, inequality and
unemployment.