PUBLIC BENEFIT ORGANISATIONS - REGISTRATION

To advise clubs in the matters of registering for Income Tax, Non-Profit Organisations (NPO) and then as a PBO.

In order to enjoy tax-exempt status in South Africa Rotary Clubs (regardless of size) must register with the South African Revenue Services (SARS) and obtain an Income Tax number. They should then register as a Non-Profit Organization (NPO) and then apply to be a Public Benefit Organisation (PBO).

Non-profit organizations (such as Rotary Clubs) will only be given tax-exempt status if they carry on one or more “public benefit” activities and are approved as a “public benefit organization” by the South African Revenue Services. Such an “activity” is one, which is of a “philanthropic and benevolent nature” such a those in respect of health, welfare, housing, education, religion, culture, conservation, research and sport.

The PBO must also be registered as a non-profit organization (NPO) in terms of the Non Profit Organization Act, 1997. (The terms of this Act replaced the old requirement for an organisation to have a fundraising number in order to raise money from the public).

The PBO must be an organization of a public character and one, which is an association of persons whose sole object is to carry on one or more “public benefit activities” in a non- profit manner in South Africa.

Contact the Rotary District Services to obtain the necessary application forms and for advice on the procedure to be followed.