Understanding a Non-Profit Company
What is a Memorandum of Incorporation, and why does it matter?
Last Updated: 31 August 2026What is a Memorandum of Incorporation, and why does it matter? A Memorandum of Incorporation (MOI) is the main founding document of a South African company. It records the company’s purposes and the rules that govern how the company works. Every Non-Profit Company (NPC) must have an MOI. The NPC and its directors must follow...
Can a Non-Profit Company earn income, charge fees, pay salaries or reimburse expenses?
Last Updated: 31 August 2026Can a Non-Profit Company earn income, charge fees, pay salaries or reimburse expenses? Yes. “Non-profit” does not mean that a Non-Profit Company (NPC) may never receive income, charge an appropriate fee, pay a salary or reimburse a genuine expense. The important rule is that the NPC’s income and property must be used to advance its...
Who owns a Non-Profit Company, and what happens to its money and property?
Last Updated: 31 August 2026Who owns a Non-Profit Company, and what happens to its money and property? A Non-Profit Company (NPC) is not owned by its directors, founders or congregation members as private property. The NPC is a separate legal entity, and its money and assets belong to the company. What must the NPC use its assets for? The...
What do the directors of a Non-Profit Company actually do?
Last Updated: 31 August 2026What do the directors of a Non-Profit Company actually do? The directors form the board that directs and governs the Non-Profit Company (NPC). They are not ceremonial name-holders. They are responsible for the company’s decisions and oversight. What does the board do? The board should: The Memorandum of Incorporation (MOI) is the company’s founding document....
What is the difference between an incorporator, a director and a legal company member?
Last Updated: 31 August 2026What is the difference between an incorporator, a director and a legal company member? An incorporator, a director and a legal company member are different roles. One person can sometimes hold more than one role, but the words do not mean the same thing. What is an incorporator? An incorporator is a person who participates...
What does “without legal company members” mean for my church or Soul Center?
Last Updated: 31 August 2026What does “without legal company members” mean for my church or Soul Center? It means the Non-Profit Company (NPC) does not have a separate group of people who hold formal membership rights under company law. It does not mean your church or Soul Center cannot have members, attendees, volunteers, donors or supporters. Two meanings of...
Is a Non-Profit Company the same thing as my church or ministry?
Last Updated: 31 August 2026Is a Non-Profit Company the same thing as my church or ministry? No. Your church or ministry and its Non-Profit Company (NPC) are closely connected, but they are not exactly the same thing. Your church or ministry describes the religious community, ministry and work that you carry out. An NPC is a particular legal structure...
What is a Non-Profit Company, and how does it work?
Last Updated: 31 August 2026What is a Non-Profit Company, and how does it work? A Non-Profit Company (NPC) is a type of South African company created to pursue a public-benefit purpose or another purpose connected with cultural or social activities, or communal or group interests. An NPC is registered with the Companies and Intellectual Property Commission (CIPC). CIPC is...
What is the difference between an NPC, a registered NPO, a PBO and section 18A approval?
Last Updated: 31 August 2026What is the difference between an NPC, a registered NPO, a PBO and section 18A approval? A Non-Profit Company (NPC), a registered Nonprofit Organisation (NPO), a Public Benefit Organisation (PBO) and section 18A approval are not four names for the same thing. They are different legal registrations or approvals, handled by different South African authorities....
What does incorporation mean, and what changes when my organisation becomes a Non-Profit Company?
Last Updated: 31 August 2026What does incorporation mean, and what changes when my organisation becomes a Non-Profit Company? Incorporation means the legal creation of a company. For a South African Non-Profit Company (NPC), incorporation takes place when the company is registered with the Companies and Intellectual Property Commission (CIPC). CIPC is the South African public authority responsible for registering...
