Non-Profit Organisations Act, 1997 (Act No. 71 of 1997)

For purposes of this regulation and the register referred to in section 24(1) of the Act—

“fiscal sponsorship” means an agreement between a registered NPO and an unregistered NPO in terms of which the registered NPO provides fiduciary oversight, financial management, administrative or operational services to support the capacity of the unregistered NPO. Fiscal sponsorships are often used by a newly formed nonprofit organisation before it is registered or becomes tax-exempt by the South African Revenue Service, to facilitate its fundraising and to maintain controls over the expenditure before it has independent capacity to maintain oversight over its financial management, administrative or operational services in its start-up phase of development.