In South Africa, non-profit organisations (NPOs) play a vital role in addressing various social, economic, and environmental challenges. This article aims to provide an overview of the non-profit sector, its history, the challenges faced, and highlight some success stories of South African NPOs.

Understanding the non-profit sector in South Africa

The non-profit sector in South Africa is vast and multifaceted, contributing significantly to the development and upliftment of communities. To better appreciate the sector’s importance and complexities, we will examine the definition and types of non-profit organisations, their role in society, and key legislation governing their operations.

Definition and types of non-profit organisations

Non-profit organisations, as the name suggests, operate primarily to serve the public interest rather than generating profits for owners or shareholders. In South Africa, there are several different types of NPOs, including:

• Non-governmental organisations (NGOs): These are typically larger organisations that may receive funding from various sources, including government, private donors, and international agencies.
• Community-based organisations (CBOs): Smaller, grassroots organisations that mainly rely on the support of their local communities to address specific needs.
• Faith-based organisations (FBOs): Religious groups or organisations that provide social, economic, or spiritual support to communities.
• Trusts, foundations, and social enterprises: These types of organisations often focus on long-term planning and development, and may engage in commercial activities to support their social goals.
• The distinctions between these various types of NPOs can often be blurry because they may function in overlapping areas to address community needs.