Clarification of Notice of Intent.

Some people are quick to show their ignorance.

Using the same phrase in two different pieces of legislation, and you will be successful in attracting the best advisors you can get.

WorkSafe recently sent out a notice of its intention to register a Public Benefit Organisation in South Africa..

So if you received the notice you may think it is necessary to reply….

I don’t think you have had good advice.
Membership organizations are not PBO’s, they are a distinct class of tax exempt entities.
Very strange email.
….continue reading…

There are two types of Non-profit organisations. The one is dealt with in the Companies Act, and includes organisations involved in education and development as a public benefit, such as WorkSafe and which is:

(a) incorporated for a public benefit or other object as required by item 1(1) of Schedule 1; and

(b) the income and property of which are not distributable to its incorporators, members, directors, officers or persons related to any of them except to the extent permitted by item 1(3) of Schedule 1.

This is called a company not for profit (old Section 21 companies).

An NPO is defined by the Non-Profit Organisations Act as:

“a trust, company or other association of persons:

(a) established for a public purpose; and

(b) the income and property of which are not distributable to its members or office- bearers except as reasonable compensation for services rendered.”

A Public Benefit Organisation is dealt with in terms of the Income Tax Act.

It is important to note that although the charity vehicles have different characteristics and different purposes, the operation of the one does not preclude the operation of the other.

In other words, an organisation may register as a PBO, NPO and an NPC, as long as all the criteria and requirements are satisfied in terms of the relevant legislation.

When it comes to “Membership” in the OHS sphere, the word seems to have one meaning only. It refers to SAQA, The NQF, Registration and alphabet soup.

Fortunately Gyms don’t really care, and neither do we.

When you register as a member with WorkSafe, you will get benefits. You will NOT get alphabet soup since most of us already have recognisable qualifications.

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