A Non Profit Company ( NPC ) is a business entity that is not driven by profit. They are also granted tax-exemption status by the revenue service. Donations made to a Non Profit Company are usually tax deductible for the businesses or individuals making the donations.
There are certain regulations that an NPC must abide to in order to be registered as a Non-Profit Company. These regulations include:
- The name of a Non Profit Company must end with NPC.
- A NPC must have a minimum of three directors.
- The primary goal of a NPC must be to benefit the public and not to make profit.
- The NPC must be incorporated by at least three persons for the benefit of the public, community interest or social activities.
- Property of the NPC may not be distributed to any person that has an interest in the NPC.
For a new NPC it is important to find your focus point. A lot of NPCs aim to help every person as much as possible, which is good but not always doable. The NPC should find one thing that all the members of the company feel strongly about and to work towards people and causes in that line. When you put work into a specific area, the impact on the certain people will just be so much greater.
To register a company one should pay for the Company Name Reservation and for the Company Registration. All of this is normally included in the total amount of registration. Pty Company Registration can assist you with the process of registering your NPC. All documents are then lodged with the Companies and Intellectual Properties Commission of South Africa (CIPC). As soon as the NPC is registered, the Documents of Incorporation will be available.
In South Africa the NPC can issue a tax certificate to the donors when it is requested. This will enable the donor to use it as a tax deduction. The NPC will also be registered under the Non-Profit Organization Act and Trust will be registered with the Master of the High Court.
Goals of an Non Profit Company
When starting a NPC it is also necessary to draw up a mission statement. The goals of the NPC are then formed in accordance with the mission statement. The goals will normally include making the public aware of the cause or idea they started the NPC for. The ultimate goal of the NPC should not be wealth, but success in terms of giving back to the different people they provide to.
Challenges
One of the most challenging things about an NPC is capacity building. These development challenges include funding. Most NPCs rely solely on external funding.
Another challenge is to retain staff. There are very few people that are willing to work for a minimal to no remuneration for the work they do. This also makes it difficult to find loyal workers that will dedicate their time and effort to the NPC for a very long time.
Like in any scenario, every business structure has its challenges. You should make it your goal to get answers and solutions to these challenges. When using a bit of creativity, it is even possible to turn these challenges into opportunities. Never lose focus because of the things that can go wrong. Rather focus on all the reasons why it will work out.
When you have a certain goal in mind for a NPC, go after it. When you have the entrepreneurial drive in you, there is nothing that can stop you from reaching your goals.
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