Over 20 000 non-profit organisations face deregistration due to compliance issues

THE possible deregistration of more than 20 000 non-profit organisations in the Western Cape over non-compliance points to “the chronic lack of support and capacitation afforded to civil society organisations”, says social service and educational organisation Ilitha Labantu.

A total of 2384 NPOs have already been deregistered, while 20 475 of the 29 343 registered NPOs across the Western Cape have been found to be non-compliant. 

The biggest contributors to non-compliance related the failure to submit annual reports and organisations not adhering to the provisions of their own founding documents, said Monique Mortlock-Malgas, spokesperson for social development MEC, Jaco Londt. 

All NPOs are registered by the National Department of Social Development (NDSD), which also holds the authority to deregister them. 

Londt identified risks in turning to unregistered NPOs for services.

“For example, for the treatment of a substance use disorder. You may be swindled out of your money, or even face abuse. Registered programmes have been vetted by several government organisations to provide the client with the necessary levels of care. When a facility or programme is unregistered, departments like ours cannot offer support, or vouch for the safety or efficacy of the services rendered,” he said. 

The provincial department said they were assisting organisations to become compliant with a helpdesk initiative, under the Institutional Capacity Building (ICB) unit. 

“In the 2024/2025 financial year, the ICB unit ran 30 NPO Mobile Helpdesk drives across the province, in partnership with National DSD, which assisted 503 NPOs with registration, compliance and related concerns. A further 1,433 NPOs were assisted at the NPO Helpdesk and through the mail,” the department said. 

When an NPO becomes non-compliant and is deregistered, it is not just a number lost on a database, said Ilitha Labantu.

“It is a community that loses a lifeline. While administrative compliance is crucial, these figures speak to a broader systemic issue: the chronic lack of support and capacitation afforded to civil society organisations. The reasons cited by the Department of Social Development, namely the failure to submit annual reports and to adhere to founding documents reflect not negligence, but a capacity crisis. Many of these organisations operate under severe financial and operational constraints, often without dedicated staff for governance, reporting, or compliance. Their focus is, by necessity, on immediate service delivery in communities that have long been neglected by the state,” said Ilitha Labantu spokesperson Siyabulela Monakali.

Instead of being deregistered, Monakali said NPOs must be capacitated from the beginning, with continuous access to training, compliance tools, administrative support, and mentorship. 

“This support should not be confined to urban centres but must reach rural, peri-urban, and township based organisations. A help desk, while helpful, is not enough. What is needed is sustained institutional investment that recognises the indispensable role these organisations play,” Monakali said. 

Cape Times