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THE ESSENTIAL ROLE OF NGOS IN SOUTH AFRICA AND THE CHALLENGES OF NON-COMPLIANCE
Non-governmental organisations (NGOs) are essential pillars of South Africa’s socio-economic fabric, addressing the nation’s most pressing issues, from poverty alleviation, education, and healthcare to gender-based violence (GBV) prevention and youth empowerment. These organisations fill crucial gaps in services, often providing direct support to the most marginalised and vulnerable communities.
THE SCALE OF NGO IMPACT IN SOUTH AFRICA
As of 2024, there are over 250,000 registered NGOs in South Africa, with approximately 230,000 formally registered under the Non-Profit Organisations Act of 1997. However, of these, only around 60,000 (25%) are compliant with legal and regulatory frameworks, such as submitting annual reports and maintaining transparent financial records. Non-compliance limits access to funding, curtails operational capacity and jeopardises the sustainability of NGOs. Without the means to function effectively, many of these organisations are unable to deliver essential services to those who need them most.
THE CHALLENGES OF NON-COMPLIANCE
The legal and financial demands placed on NGOs, including compliance with the Income Tax Act, Non-Profit Companies (NPC) Act, and other statutory regulations, are significant. Many NGOs, particularly smaller or community-based organisations, struggle with inadequate financial resources, lack of knowledge, and limited administrative capacity. A 2024 needs assessment of NGOs conducted by Khulisa in Wedela, a mining community in the West Rand, Gauteng. Revealed that none were compliant with critical legal frameworks, and 86% lacked essential safeguarding and financial management policies. These challenges reflect a broader trend in the sector, where many organisations face operational obstacles that stifle their ability to achieve their mission.
THE IMPACT OF NON-COMPLIANCE ON NGOS AND SOCIETY
Non-compliant NGOs are often excluded from funding opportunities, particularly from government grants, corporate sponsorships, and international donors. This limits their ability to scale operations, provide essential services, and remain sustainable. Without proper financial management or reporting mechanisms, they also risk losing the trust of their stakeholders, including the communities they serve and the funders they rely on. This perpetuates a cycle of underfunding, operational inefficiency, and shrinking impact.
The societal repercussions of NGO non-compliance are severe. When NGOs can no longer provide critical services—such as psychosocial support, victim empowerment, or educational programs—communities are left vulnerable. This widens gaps in service delivery, exacerbating issues like poverty, inequality, and GBV, particularly in under-resourced areas.
KHULISA’S RESPONSE: DEVELOPING THE NGO COMPLIANCE UNIT
Recognising the crucial role that NGOs play and the challenges they face, Khulisa Social Solutions has developed an NGO Compliance Unit aimed at supporting organisations in achieving full legal and financial compliance. This unit is part of our broader strategy to build the capacity of NGOs, ensuring that they not only survive but thrive in their mission to serve South African communities.
Khulisa’s experience over 15 years has demonstrated that strengthening the organisational and operational foundations of NGOs is key to their sustainability and impact. Our capacity-building work includes:
- Legal Compliance Support: We provide training and guidance to ensure that NGOs meet legal obligations, such as registering with relevant authorities, maintaining tax exemption (PBO) status, and adhering to governance requirements.
- Infrastructure Development: We assist NGOs in accessing technology and resources, including computers, internet access, and office equipment, so they can operate efficiently and meet compliance requirements.
- Governance and Leadership Training: Our programs include leadership development and governance training to ensure that NGOs have strong management structures, enabling them to grow sustainably and manage resources effectively.
- Financial Management and Fundraising Support: We help NGOs develop transparent financial practices, report writing, and monitoring and evaluation (M&E) systems that position them for long-term success and funding opportunities.
By building an ecosystem of compliant, well-managed NGOs, Khulisa is committed to enhancing the long-term sustainability of civil society organisations in South Africa. Through this support, NGOs can access funding, strengthen their service delivery, and expand their reach to uplift vulnerable communities, driving social change at scale.
MOVING FORWARD: FOSTERING COMPLIANCE FOR COLLECTIVE IMPACT
The development of Khulisa’s NGO Compliance Unit and our capacity-building initiatives are part of a larger vision to create a thriving network of NGOs that can collaborate to tackle the country’s most pressing issues. By supporting NGOs in their compliance journey, we ensure they can continue delivering essential services and achieving their mission. Our work empowers NGOs to become resilient, transparent, and impactful, ultimately contributing to the collective goal of a more equitable and just South Africa.
CALL TO ACTION
The time for action is now. We invite NGOs, government bodies, private sector partners, and international donors to join us in our mission to build a sustainable, impactful, and compliant civil society in South Africa. By working together, we can ensure that NGOs have the tools, resources, and support they need to thrive.
- If you are an NGO, reach out to Khulisa Social Solutions for support in compliance and capacity building. We are here to help you navigate the legal, financial, and operational challenges you face.
- If you are a funder or corporate entity, invest in the sustainability of civil society. Your partnership can empower NGOs to scale their impact and continue serving vulnerable communities across the nation.
- If you are a policymaker, advocate for policies that support the capacity building and compliance of NGOs. Together, we can ensure that NGOs are positioned to contribute effectively to South Africa’s development.
Now is the time to strengthen the backbone of our society—our NGOs. Together, we can drive change, foster resilience, and create lasting impact for generations to come.
Join Khulisa Social Solutions in this crucial journey of transformation.
About us
Khulisa Social Solutions is a non-profit company that helps vulnerable children, youth, and communities unlock their potential and develop skills toward a sustainable future.
It operates nationally, employs approximately 200 staff through 19 offices, and works in approximately 150 communities in collaboration with 350 NGO partners, impacting the lives of close to 200,000 people per annum.
Khulisa partners with national and local government departments, schools, correctional facilities, community leaders, corporates, thought leaders, academic institutions, and private companies. Khulisa’s internationally acclaimed and locally rewarded best practice programmes deliver positive and measurable impact with the main focus on youth and community development.
For more information, contact
Lesley Ann Van Selm | 082 601 2299 | lesleyann@khulisa.org.za | media@khulisa.org.za
