Non-Profit Organisations Act, 1997 (Act No. 71 of 1997)RegulationsRegulations in Respect of Amendments to the Nonprofit Organisation Act, 1997 as contained in the General Laws Amendment Act, 2022 (Act No. 22 of 20227. Administrative sanctions |
| (1) | The director may impose an administrative sanction on any registered NPO or a NPO which is required to register, when satisfied on available facts and information that the NPO has failed to— |
| (a) | perform any duty imposed by, or has failed to comply with the requirements of, section 12 or 18(1)(bA) of the Act; or |
| (b) | register as required in terms of section 12(1)(b) of the Act, within the period determined by the Minister by notice in the Gazette in accordance with section 12(1)(c) of the Act. |
| (2) | No administrative sanction may be imposed until the director has issued a compliance notice to the nonprofit organisation in accordance with section 20 of the Act, and the time-period during which compliance must be effected has expired without the NPO having rectified the non-compliance. |
| (3) | When determining an appropriate administrative sanction, the director must consider the following factors: |
| (a) | the nature, duration, seriousness and extent of the relevant non-compliance; |
| (b) | whether the nonprofit organisation has previously failed to comply with any compliance notice; |
| (c) | any remedial steps taken by the nonprofit organisation to prevent a recurrence of the non-compliance; or |
| (d) | any other relevant factor, including mitigating factors. |
| (4) | The director may impose any one or more of the following administrative sanctions: |
| (a) | a caution not to repeat the conduct which led to the non-compliance referred to in sub-regulation (1); |
| (b) | a reprimand; |
| (c) | a directive to take remedial action or to make specific arrangements; or |
| (d) | the restriction or suspension of certain specified activities of the nonprofit organisation. |
| (5) | The director may— |
| (a) | in addition to the imposition of an administrative sanction, make recommendations to the relevant NPO in respect of compliance with this Act or any compliance notice issued in terms of this Act; |
| (b) | suspend any part of an administrative sanction on any condition the director deems appropriate for a period not exceeding five years. |
| (6) | Before imposing an administrative sanction, the director must give the NPO reasonable notice in writing— |
| (a) | of the nature of the alleged non-compliance; |
| (b) | of the intention to impose an administrative sanction; |
| (c) | of particulars of the intended administrative sanction; and |
| (d) | that the NPO may, in writing, within a period specified in the notice, make representations as to why the administrative sanction should not be imposed. |
| (7) | After considering any representations and the factors referred to in sub-regulation (3), the director may impose such administrative sanction as the director considers appropriate. |
| (8) | Regulation 9A provides for administrative sanctions, for non-compliance with the registration requirement applicable to nonprofit organisations contemplated in section 12(1)(b), and the reporting requirements applicable to registered NPO, in terms of the Act. |
| (9) | The administrative sanctions are not punitive in nature, but rather, are meant to encourage compliance with the Act. |
| (10) | Section 20 of the Act also provides for sanctions for noncompliance with the constitutions and obligations of nonprofit organisations (including criminal sanctions, where appropriate), and section 21 of the Act provides for cancellation of registration of nonprofit organisations. |