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Call for NPOs to Embrace Good Governance

The Corporate Governance Research Institute has described sustainability as a ‘good component’ of good governance.

Speaking about corporate governance and compliance by nonprofit organisations (NPOs) at the National Lotteries Board Indaba and Inaugural Awards in Johannesburg, the institute’s Terry Booysen, noted that NPOs should move away from self-serving because donors will be forced to check how well the organisations have governed themselves.

New Companies Act: Does Your Section 21/NPC Have to Adopt a New MOI

The NGO sector loves a crisis, and fresh out of the mass nonprofit organisations (NPOs) deregistration and re-registration calamity, panic is spreading again, this time about the supposed ‘deadline’ of 30 April 2013 for former section 21 companies (now called Non Profit Companies) to adopt new Memoranda of Incorporation (what the new Companies Act now calls the founding documents of all companies).

It is not true that NPCs (or any companies) have to adopt a new MOI, and it is also not true that it has to be done by 30 April.
A bit of background, first:

Political Agenda May Lie Behind Apparent State Incompetence

After a public outcry, nonprofit organisations (NPOs) whose registrations were recently unlawfully cancelled by the Department of Social Development are to have them reinstated. What is not clear is whether the cancellations were part of a sinister agenda. Given that NPOs collect money from the public, registration is desirable, provided it is straightforward and is not abused by the government for political purposes.

NGOs’ Future Under Threat Since End of Apartheid

Shelagh Gastrow, an outspoken champion of the nonprofit sector in South Africa and executive director of Inyathelo - The South African Institute for Advancement, believes that NGOs are facing the most serious threat to their existence since the apartheid government tried to close them down.

Gastrow believes that this threat is in the form of proposed legislation driven by the Department of Social Development, which says it is necessary to provide advice and training to smaller NGOs.

Constructive Conversation for a Transformed South Africa

On 5 October 2012, the Department of Trade and Industry (dti), opened a 60-day period for public comment on the revised broad-based black economic-empowerment (B-BBEE) Codes of Good Practice (CoGP). The proposed changes have prompted impassioned response from representatives of all sectors of our society, including the nonprofit sector, reflects corporate social investment (CSI) Practitioner, Samantha Braithwaite.

A Summit With Something to Say

The recently staged Nonprofit Organisations (NPO) Summit hosted by the Department of Social Development may have been another song and dance routine had it not been for the substance of the programme? But will the hoped for resolutions go forth? The theme ‘Working Together to Fight Poverty, Unemployment and Inequality’ was not just about the role of government in addressing social issues but the formation of secure partnerships with nonprofit organisations and the private sector.

Zuma Addresses the NPO Summit

In his address at the Nonprofit Organisations Summit, President Jacob Zuma focused on the importance of partnerships between the government and the nonprofit sector.

Zuma stated that this partnership is in pursuit of a common goal of building a better life for all people.

He added: “Given the size of the nonprofit sector and its potential, it is important for government to harness the power of the nonprofit organisations in tackling development challenges.”

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