The South African Institute of Business Accountants (Saiba) and the South African Institute of Tax Professionals (SAIT) have pledged R10-million in free accounting services to non-profit organisations in breach of the Non-Profit Organisations Act for not filing annual reports.
The professional bodies said on Monday this was in response to revelations that more than half of 140‚513 NPOs in South Africa were non-compliant with the act.
According to reports‚ five of six NPOs linked to President Jacob Zuma are amongst those that have not submitted reports to account for funds received.
The institutes said the R10-million worth of free services would assist the non-compliant NPOs in attaining compliance with regulatory filing requirements with the South African Revenue Service (SARS) and the Department of Social Development.
NPOs are required to file annual reports with the Department of Social Development. In addition to the NPO act‚ these organisations — although tax exempt — are also required to file tax returns with SARS.
Stiaan Klue‚ CE of the SAIT‚ said the NPO sector was critical in democratic South Africa‚ contributing significantly to uplifting the poor and destitute from poverty.
“However‚ as professional bodies we realise that volunteers manage most NPOs‚ with a passion for helping the poor. Under dire and difficult circumstances these volunteers allocate all of their time to helping people in need. It is therefore perhaps understandable that compliance may fall by the way‚” he said.
Nicolaas van Wyk‚ Saiba CE‚ said various pieces of legislation imposed hefty regulatory requirements on the NPO sector.
“It will be a sad day in our democracy if NPOs do not receive quality professional support to remain operational. The end result will be that donor funds may not reach the intended recipients“‚ he said.
Van Wyk said disorganised NPOs might not deliver on their legal obligation‚ which would in turn lead to the sector being accused of a lack of accountability and transparency.
Saiba has lobbied for the review of the accounting process for NPOs‚ saying auditors were milking organisations dry to the detriment of the poor.
The institute argued that NPOs could save up to R25‚000 if they used independent reviewers in the form of accountants to account for their spending instead of using auditing services.
NPOs in distress should contact technical@saiba.org.za.
Professional bodies pledge R10-million in free services to NPOs
The South African Institute of Business Accountants (Saiba) and the South African Institute of Tax Professionals (SAIT) have pledged R10-million in free accounting services to non-profit organisations in breach of the Non-Profit Organisations Act for not filing annual reports.
The professional bodies said on Monday this was in response to revelations that more than half of 140‚513 NPOs in South Africa were non-compliant with the act.
According to reports‚ five of six NPOs linked to President Jacob Zuma are amongst those that have not submitted reports to account for funds received.
The institutes said the R10-million worth of free services would assist the non-compliant NPOs in attaining compliance with regulatory filing requirements with the South African Revenue Service (SARS) and the Department of Social Development.
NPOs are required to file annual reports with the Department of Social Development. In addition to the NPO act‚ these organisations — although tax exempt — are also required to file tax returns with SARS.
Stiaan Klue‚ CE of the SAIT‚ said the NPO sector was critical in democratic South Africa‚ contributing significantly to uplifting the poor and destitute from poverty.
“However‚ as professional bodies we realise that volunteers manage most NPOs‚ with a passion for helping the poor. Under dire and difficult circumstances these volunteers allocate all of their time to helping people in need. It is therefore perhaps understandable that compliance may fall by the way‚” he said.
Nicolaas van Wyk‚ Saiba CE‚ said various pieces of legislation imposed hefty regulatory requirements on the NPO sector.
“It will be a sad day in our democracy if NPOs do not receive quality professional support to remain operational. The end result will be that donor funds may not reach the intended recipients“‚ he said.
Van Wyk said disorganised NPOs might not deliver on their legal obligation‚ which would in turn lead to the sector being accused of a lack of accountability and transparency.
Saiba has lobbied for the review of the accounting process for NPOs‚ saying auditors were milking organisations dry to the detriment of the poor.
The institute argued that NPOs could save up to R25‚000 if they used independent reviewers in the form of accountants to account for their spending instead of using auditing services.
NPOs in distress should contact technical@saiba.org.za.
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