An overview of the non-profit sector in South Africa

An overview of the non-profit sector in South Africa

There were 127 032 non-profit institutions (NPIs) in 2014, according to a report released by Stats SA. Sourcing data from the Department of Social Development (DSD), the report offers an overview of the non-profit sector in South Africa, providing information on the various roles in which NPIs are involved, their income sources, and what they spend their money on.

Voluntary associations, which are traditionally informal organisations that serve the communities in which they are based, dominate the sector, making up 94,7% (120 268) of all NPIs. A second type of NPI is non-profit companies, formally known as Section 21 companies, comprises 3,5% (4 446) of all NPIs. Non-profit trusts are a third type, of which there are 2 318 (constituting 1,8% of NPIs). These are trusts that are administered for the benefit of particular individuals or purpose.

The report shows that 40,8% of voluntary associations are classified as social services. These might include institutions that support the elderly or the youth, or provide assistance in times of emergencies and disasters. Over a fifth (20,4%) of voluntary associations are classified as being involved in development and housing, while 12,1% fulfil a religious role.

NPIs rely heavily on government subsidies. Of the total income received in 2012, 39,2% was in the form of subsidies. Donations comprised 28,5% of all income received.

The highest expenditure incurred by NPIs in 2012 was for the compensation of employees (73,6%), followed by maintenance and repairs (19,0%) and telephone and faxes (6,7%).

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