The four registrations a South African non-profit may hold, what each one is for, where to apply, and which ones funders ask for.
A plain-words guide with a checklist, written beside our funding windows page.
Four different words follow a South African non-profit around: **NPO**, **NPC**, **PBO** and **Section 18A**. They are not four names for one thing. Two of them are legal forms, one is a registration, and two are tax approvals, and an organisation can hold several at once. Funders ask for them in different combinations, which is why the [funding windows page](https://ulift.org.za/news/npo-funding-windows) sent readers here. This guide explains what each one is for, which ones go together, where to apply, and the order that saves time. It is general information, not legal or tax advice. > **Key facts (as at 19 October 2026)** > - **NPO registration** is under the Nonprofit Organisations Act 71 of 1997, with the Department of Social Development's NPO Directorate, and is **voluntary** in law, though most funders and government departments require it (NPO Act; DSD). > - A **non-profit company (NPC)** is a company incorporated under the Companies Act 71 of 2008 for a public benefit or similar object, registered with the CIPC, with its income and property applied to that object and never distributed to members or directors (Companies Act, Schedule 1). > - **PBO approval** is granted by SARS under section 30 of the Income Tax Act to organisations carrying on approved public benefit activities, and exempts their qualifying income from income tax (Income Tax Act; SARS Tax Exemption Unit). > - **Section 18A approval** is a further SARS approval that lets a PBO issue receipts for donations that the donor may deduct, within limits, from taxable income. Not every PBO holds it (Income Tax Act, section 18A). > - A registered NPO must file an annual narrative report and financial statements with the NPO Directorate within nine months of its financial year end (NPO Act). This guide covers: - The four terms, side by side - Step 1: choose a legal form - Step 2: register as an NPO - Step 3: apply to SARS for PBO approval, and for Section 18A if it fits - Which registrations funders ask for - A checklist ## The Four Terms, Side by Side | Term | What it is | Who grants it | What it does | Required? | |---|---|---|---|---| | **NPC** (non-profit company) | A legal form: a company with a public benefit object and no shareholders | CIPC | Gives the organisation a separate legal personality, a registration number, and a board of directors | One of three legal forms; a voluntary association or a trust are the others | | **NPO** (registered non-profit organisation) | A registration under the NPO Act, open to any of the three legal forms | Department of Social Development, NPO Directorate | Gives a public NPO number, a place on the public register, and an annual reporting duty | Voluntary in law; expected by most funders and by government departments that fund non-profits | | **PBO** (public benefit organisation) | A tax approval under section 30 of the Income Tax Act | SARS, Tax Exemption Unit | Exempts qualifying receipts from income tax, and is the gateway to other exemptions | Needed for income tax exemption; many funders ask whether it is held | | **Section 18A** | A further tax approval, for a PBO carrying on activities listed for the purpose | SARS, Tax Exemption Unit | Lets the organisation issue receipts that make a donor's gift tax-deductible, within the donor's limit | Needed only if donors want deductible receipts; corporate and foundation funders often do | The pattern most established organisations end up with is **NPC + NPO + PBO**, with Section 18A added where the activities qualify and donors ask for it. A new organisation does not need all four on day one, and it should not apply for them all at once, because each one builds on the last. > Registration is not the work. It is the proof, to a funder who has never met you, that the work has a structure behind it. ## Step 1: Choose a Legal Form A non-profit needs a legal body before it can register as an NPO or apply to SARS. There are three: - **A voluntary association**, created by a constitution adopted by its members. No registration is needed to exist. It suits small community organisations, and it can register as an NPO on the strength of its constitution. - **A non-profit company (NPC)**, incorporated through the CIPC under the Companies Act. It needs a memorandum of incorporation, at least three incorporators and at least three directors, and it files annual returns with the CIPC. It suits organisations that will employ people, hold contracts and receive larger grants, because funders recognise the form and the directors' duties are set out in law. - **A trust**, created by a trust deed and registered with the Master of the High Court, which issues letters of authority to the trustees. It suits endowed or grant-making bodies. The CIPC registers an NPC online, and the forms and the current fee are on its [non-profit company page](https://www.cipc.co.za/). Whichever form you choose, the founding document must state the public benefit object, say that income and asset...