Applications close 31 October
The Due Diligence Programme is designed to help organisations strengthen their governance structures, ensuring compliance with regulatory frameworks and enhancing their eligibility for funding opportunities. By conducting comprehensive assessments, we assist organisations in aligning with best practices as outlined in the King IV Report on Corporate Governance and the Non-Profit Organisations Act (No. 71 of 1997).
This service evaluates legal standing, financial management, operational capacity, and governance effectiveness, providing valuable insights to improve transparency, accountability and long-term sustainability. With a strong governance foundation, organisations can build trust with funders, donors, and stakeholders, positioning themselves for greater impact and funding success.
Go to https://airtable.com/appriW38Z110FmWeb/pagirZXstM06HrOZb/form to submit your application.
More about our Due Diligence
Why should organisations strive to meet due diligence requirements?
South Africa’s non-profit sector subscribes to the standards upheld in the NPO Code which promotes best practice standards in ethics, integrity, accountability and transparency. The King IV code of governance is designed for both the private and non-profit sector. An NPO that seeks funding or other donor partnerships maximises its attractiveness as a grantee or partner when it has been vetted and are compliant, assisting in organisational sustainability.
Why should an organisation complete our annual Due Diligence Assessment?
An organisation can use its compliance as a fundraising tool to access donor funding.
Is the Due Diligence process mandatory?
It is voluntary and open to any civil society organisation that wants to confirm its compliance with the relevant regulatory boards. However, if you are applying for funding from The Community Chest, our Due Diligence is a mandatory requirement.
What are the benefits of a Due Diligence Certificate from us?
Your organisation will gain access to funding opportunities, capacity-building training, mentoring, coaching, networking opportunities, and sector development consultation.
What documents are requested in our annual Due Diligence Assessment?
These documents are required when completing your Due Diligence submission (all documents are for the year under review):
- Registration Certificate (NPO / NPC or Trust certificate).
- PBO and Section18A approval letter from SARS.
- Founding Document (Constitution, Trust Deed, Memorandum of Incorporation or University Statute), signed and dated.
- Proof of physical address (e.g. municipal bill, creditor’s account, etc.) not older than three months.
- Bank confirmation letter not older than three months.
- Tax Compliance Status PIN / Verification.
- B-BBEE Affidavit or Certificate (this must reflect beneficiary breakdown) (to download a template to complete, click here).
- Service Registration Certificate from the Department of Social Development, the Department of Health or the Department of Education (if applicable).
- Audited financial statements (to view the financial statement requirements, click here).
- Annual Report or Chairman’s Report tabled at the AGM.
- Draft AGM or Board or Trustee meeting minutes, where annual financial statements were presented, if not signed and dated. Please include a signed and dated copy of the previous year’s AGM or Board or Trustee meeting minutes.
- List of board members (please include their ID numbers and highest qualifications).
- List of senior staff members (please include their ID numbers and highest qualifications).
Do I get feedback on the outcome of my Due Diligence Assessment?
Yes, once your documents and information has been assessed. We will communicate the outcome of your assessment.
What happens when my organisation is deemed compliant?
We will issue a Due Diligence Certificate, which is renewable annually.
What happens when my organisation is deemed non-compliant?
We will provide you with the reasons for non-compliance. Your organisation will also become eligible to enrol in our Capacity-Building Training Programme, to assist it towards the compliance standards as per the NPO Act and the King IV Report.
How long does a Due Diligence Assessment take?
It takes five business days or less to complete. If we have a query, it may take longer, depending on how swiftly you can provide us with the outstanding documents.
How often do I have to complete a Due Diligence Assessment?
Once a year.
When do our Due Diligence Assessments open and close?
Our Due Diligence submission process opens on 1 April every year, and closes on 31 March. These dates may change as required.
What happens once my organisation has been assessed and deemed compliant?
Your organisation will be added to our Compliant Database and will be eligible for funding consideration by us or our donor partners. You may also use your Compliance Certificate as an aid when applying for funding to donors as proof that your organisation has been vetted and meets all compliance standards as per the NPO Act and the King IV Report.
If my organisation is deemed compliant, does that mean we will get funding?
Our Due Diligence process is separate from our Grant-Making process and does not automatically guarantee that your organisation will receive funding from us or our partners. Our Due Diligence process means that if your NPO is deemed compliant, you will be issued with a Compliance Certificate that is valid until 31 March of the following year.
What is a Compliance Certificate?
It means that your organisation meets all compliance standards as per the NPO Act and the King IV Report. It is a valuable fundraising tool, as it makes your organisation credible to the donor market.
What happens if my organisation does not have a B-BBEE Beneficiary Certificate?
Should your organisation not have a B-BBEE Beneficiary Affidavit, you may complete the B-BBEE Exempted Micro Enterprise Specifications Affidavit (you can download it here: https://www.thedtic.gov.za/wp-content/uploads/BEE_Affidavit-EME-Spec.pdf).
Why must my organisation’s annual financial statements be audited?
Our policy, as part of our funding and Due Diligence requirements, is that all organisations that apply for funding must submit independently audited financial statements.
Is an Independent Financials Review, Accounting Officer’s Report or Compilation Report Accepted?
Unfortunately, an Independent Review, Accounting Officer’s Report or Compilation Report does not check for irregularities or provide an assessment of risk in the organisation and does not assure the Financial Report’s accuracy, completeness or reliability.
A typical clause in an Independent Review, Accounting Officers Report or Compilation Report will contain the following disclaimer:
“Since a compilation engagement is not an assurance engagement, we are not required to verify the accuracy or completeness of the information you provided to us to compile these financial statements. Accordingly, we do not express an audit opinion or a review conclusion on whether these financial statements are prepared in accordance with the International Financial Reporting Standards for Small and Medium-Sized Entities.”
Also, while the Department of Social Development (DSD) may in some cases accept Independent Reviews, Accounting Officer Reports, or Compilation Reports to accompany the submission of the Annual Narrative Report to the DSD, we no longer accept these reports for private funding and compliance purposes.
What is a service registration certificate, and why do I need one?
A service registration certificate is a document provided by a government department that oversees the services offered by NGOs, such as health, education or social work services. These are some examples of the services types that your organisation may be registered to provide:
Department of Social Development (DSD) – child protection services, orphan and vulnerable children care, social protective services, etc.
Department of Education (DoE) – early childhood development centres, etc.
Department of Health (DoH) – health and safety certificate, palliative care, care for elderly, care for the disabled (sensory, physical and intellectual), etc.
ENTITY REGISTRATIONS
Non-profit organisation (NPO)
An NPO is a trust, company or other association of persons established for a public purpose, where income and property are not distributed to members or office bearers except as reasonable compensation for services rendered.
Registration authority: Department of Social Development.
Link: https://www.gov.za/services/register-nonprofit-organisation
Non-profit company (NPC)
An NPC is a company incorporated for a public benefit or other object relating to cultural or social activities, or communal or group interests, where income and property are not distributable to incorporators, members, directors or officers except as reasonable compensation for services rendered.
Registration authority: Companies and Intellectual Property Commission (CIPC).
Link: https://www.gov.za/services/register-business-or-organisation/register-non-profit-company
Inter vivos trust (living charitable trust)
An inter vivos trust is established during the founder's lifetime to manage assets for the benefit of beneficiaries, often used for charitable purposes.
Registration authority: Master of the High Court.
Link: Trusts – Department of Justice and Constitutional Development.
Educational institution
An institution established to provide education, including schools, colleges, and universities.
Registration authority: The relevant provincial Department of Education.
Link: Trusts: For specific registration requirements, please refer to the relevant provincial Department of Education.
Public benefit organisation
A PBO is an organisation approved by the South African Revenue Services (SARS) that conducts public benefit activities, qualifying for certain tax exemptions.
Registration authority: South African Revenue Services.
Link: Trusts: https://www.sars.gov.za/businesses-and-employers/tax-exempt-institutions/public-benefit-organisations/
Tax exemption
Organisations seeking exemption from income tax must apply to SARS, typically applicable to PBOs and other qualifying institutions.
Registration authority: South African Revenue Services.
Link: Trusts: https://www.sars.gov.za/businesses-and-employers/tax-exempt-institutions/application-for-income-tax-exemption/