Being a registered NPO doesn't mean you are automatically exempt from tax. All NPO's must pay tax unless tax-exemption is granted by SARS. • NPO Registration (CIPC, DSD, Trusts) • PBO application (SARS) • Section 18A submission • Structuring activities & funding for compliance • Risk review of constitution/MOI
NPO's are stewards who has an important role to play in poverty alleviation, community empowerment, humanitarian welfare and upliftment activities. The records needs to show this from the onset (Substance over form). • Donor reporting frameworks (Fund utilization reporting) • Grant compliance structuring (Restricted vs unrestricted funds) • Internal controls for funding (Separation of duties, risk register, approval processes etc.) • Financial reporting templates (IFRS for SMME's vs donor format differences)
If you want to inspire confidence in your financial records, systems and processes, get an independent review. Rather be proactive than waiting on the chickens coming home to roost. Independent review of annual financial statements Performance audit for donor confidence Internal control review Compliance risk review (SARS, PBO, Section 18A)
