Attracting funding as an NPO and the benefits available to the value-driven organizations.

Non-profit organizations have access to quite an extensive list of benefits, given that they are more purpose over profit driven. Adding value to the economy, community and the environment in which they do does come at a cost. Some NPO's unfortunately carry these costs on their own without being aware that there are benefits available to them.


This article will assist current and prospective NPO's with the knowledge of knowing what benefits are available to them to set up systems and processes while being efficient, effective and economical. The real value is obtained when a Non-profit organization has all four: NPC + NPO + PBO + Section 18A.


1. Government and Regulatory Benefits

DSD NPO Registration

A registered NPO:

  • Gains credibility with donors and funders.
  • Becomes eligible for many government and donor funding opportunities.
  • Can more easily open organizational bank accounts.
  • Demonstrates compliance with the NPO Act.

CIPC NPC Registration

An NPC:

  • Exists as a separate juristic person.
  • Can own assets.
  • Can enter contracts.
  • Provides stronger governance and continuity than an informal association. 

2. SARS Tax Benefits (Most Valuable)

PBO Approval

An approved PBO may qualify for:

  • Income tax exemption on qualifying receipts and accruals.
  • Potential exemptions from donations tax.
  • Access to certain VAT concessions (depending on activities).
  • Preferential treatment by many institutional funders.

Section 18A Approval

This is often the "gold standard". Benefits include:

  • Donors can claim a tax deduction for qualifying donations.
  • Corporate donors often specifically require Section 18A status.
  • Significantly improves fundraising ability.
  • Enhances CSI and B-BBEE funding opportunities. 

3. Microsoft Nonprofit Programme

Eligible South African nonprofits can access:

  • Microsoft 365 Business Basic licenses at no charge.
  • Discounted Microsoft 365 Business Standard and Business Premium.
  • Teams.
  • SharePoint.
  • OneDrive.
  • Exchange Online.
  • Discounted Microsoft cloud services and software. 

Eligibility is typically verified through TechSoup South Africa. 


4. TechSoup South Africa

In my experience this is one of the most underutilized benefits. TechSoup South Africa offers registered nonprofits access to:

  • Microsoft products.
  • Adobe products.
  • Windows licenses.
  • Cybersecurity software.
  • Productivity tools.
  • Nonprofit technology discounts.
  • Training resources.

Many products are either free or available at a fraction of commercial cost. 


5. Google for Nonprofits

Many South African nonprofits qualify for:

  • Google Workspace for Nonprofits.
  • Professional email hosting.
  • Google Drive storage.
  • Google Meet.
  • Google Ad Grants (subject to eligibility and country availability).
  • Security and collaboration tools.

Access is generally verified through a nonprofit validation process such as TechSoup. 


6. Fundraising Platforms

Many fundraising platforms provide:

  • Reduced platform fees.
  • Preferential nonprofit rates.
  • Donation processing tools.
  • CRM systems for donors.

Examples often include:

  • GivenGain
  • BackaBuddy
  • GlobalGiving
  • Donorbox

Specific benefits differ by provider.


7. Banking Benefits

Many South African banks provide:

  • Reduced banking fees.
  • Nonprofit banking accounts.
  • Preferential merchant rates.
  • Dedicated business banking products for NGOs and NPOs.

Examples include special offerings from:

  • Nedbank
  • Standard Bank
  • FNB
  • ABSA

Benefits vary by institution and often require registration documents.


8. Software Often Available for Free or at Nonprofit Rates

Common nonprofit discounts include:

Accounting

  • Xero discounts
  • Sage nonprofit solutions
  • QuickBooks nonprofit pricing

Design

  • Canva for Nonprofits
  • Adobe nonprofit licensing

CRM and Donor Management

  • Salesforce Nonprofit Cloud
  • HubSpot for Nonprofits
  • Zoho for Nonprofits

Project Management

  • Asana Nonprofit Programme
  • Monday.com for Nonprofits
  • Airtable nonprofit discounts

Many of these require proof of nonprofit status.


9. Domain and Website Benefits

Many nonprofits qualify for:

  • Discounted web hosting.
  • Discounted domains.
  • Website builder credits.
  • Professional email hosting.
  • Reduced cybersecurity subscriptions.

Some providers offer entirely free nonprofit packages.


10. Corporate and Foundation Funding Opportunities

Many grant makers specifically require:

  • DSD NPO registration.
  • NPC registration.
  • PBO status.
  • Section 18A approval.

Examples include:

  • National Lotteries Commission.
  • Corporate CSI programmes.
  • International foundations.
  • Foreign donors.
  • Embassy grant programmes.

Without registration, access to these opportunities is often substantially restricted. 


I usually tell clients that the registration "ladder" looks like this:

NPC Registration (CIPC)        

 ↓ 

NPO Registration (DSD)

 

PBO Approval (SARS)

 

Section 18A Approval (SARS)

 

TechSoup Verification

 

Microsoft, Google, Adobe, Canva, Salesforce and other nonprofit benefits 

 

Improved grant and donor funding access


For most South African NGOs, the single most financially valuable benefits are:

  1. Section 18A status.
  2. PBO tax exemption.
  3. Microsoft Nonprofit licensing.
  4. Canva for Nonprofits.
  5. Google Workspace for Nonprofits.
  6. Salesforce Nonprofit licenses.
  7. Access to institutional grant funding. 

These benefits can collectively save a nonprofit tens of thousands of rands per year while making it significantly easier to attract donor funding. So why would you want to spend so much time on doing the hard yards when it has already been made easier for you? I rest my case.


We hope that this article has enabled you to get some food for thought. As the saying goes, "eat the fish and leave the bones". Should you require assistance with setting up an NPO and positioning it to receive funding for a purpose-driven mission, get in contact with us at info@mysymergy.com or dial +27(0)61 125 3243. Visit our website for more info. Be emboldened, empowered and enabled. God bless.