1. Keep management in shape
Orientation & Training in basic compliance of NPOs in terms of legal and service delivery requirements

2. Copyright SHAPE (078-672-NPO)
Content
Basic compliance issues
Legal and service delivery requirements
The Board/Management Committee (qualities, duties and composition)
Administrative systems (filing)
Meetings and meeting procedures
The Annual General Meeting and Annual Reports
Duties of registered NPOs
Contact details of SHAPE
Copyright SHAPE ( NPO)

3. Copyright SHAPE (078-672-NPO)
Basic compliance
The organisation has a Constitution in place. It is advisable to update the Constitution every two years ü
Copyright SHAPE ( NPO)

4. Copyright SHAPE (078-672-NPO)
Basic compliance
The organisation shall be registered as a non-profit organisation (NPO) with the Department of Social Development. The Board shall comply with all duties as required by the NPO Act (1997) ü
Copyright SHAPE ( NPO)

5. Copyright SHAPE (078-672-NPO)
Basic compliance
An elected Board shall be in place. Each Board shall consist of a number of office bearers. Each office bearer/board member shall perform the duties as assigned to them in the Constitution ü
Chairperson
Deputy Chairperson
Secretary
Treasurer
Copyright SHAPE ( NPO)

6. Copyright SHAPE (078-672-NPO)
Basic compliance
The Board shall meet on a montly basis to discuss their operations and the progress made. An agenda is used to list all points of discussion ü
Copyright SHAPE ( NPO)

7. Copyright SHAPE (078-672-NPO)
Basic compliance
A quorum shall be observed at each board meeting. A quorum refers to half (50%) of the board members plus one. If a board consist of 8 members, the required quorum shall be 5 members
= members present
= members absent ü
Copyright SHAPE ( NPO)

8. Copyright SHAPE (078-672-NPO)
Basic compliance
Minutes shall be kept at each board meeting. Minutes shall list all points of discussion, the decisions taken, as well as actions required in terms of follow-up. Minutes shall be kept by the secretary ü
Copyright SHAPE ( NPO)

9. Copyright SHAPE (078-672-NPO)
Basic compliance
The board shall discuss progress made at each board meeting in terms of projects/ programmes, finances, recruitment of members, etc. A written report by the Director/Manager can be submitted to the board for discussion ü
Copyright SHAPE ( NPO)

10. Copyright SHAPE (078-672-NPO)
Basic compliance
The board shall discuss the financial position of the organisation. This is presented in the form of an income and expenditure statement, prepared by the treasurer ü
Copyright SHAPE ( NPO)

11. Copyright SHAPE (078-672-NPO)
Other requirements
The organisation shall have a strategic plan in place. This shall include of a vision and mission statement. This plan shall be updated every 3 – 5 years ü
Copyright SHAPE ( NPO)

12. Copyright SHAPE (078-672-NPO)
Other requirements
The organisations shall have a organogram in place. This shall outline the structure of the board, as well as the staff employed by the organisation ü
Copyright SHAPE ( NPO)

13. Copyright SHAPE (078-672-NPO)
Other requirements
The organisation shall have a sound system of record keeping in place. This shall include a filing system (together with files), correspondence register, attendance register, assets register, etc. ü
Copyright SHAPE ( NPO)

14. Copyright SHAPE (078-672-NPO)
Other requirements
The organisation shall have management and administrative policies in place. Examples include: human resources, financial management, internal control and risk management, succession, etc. ü
Copyright SHAPE ( NPO)

15. Copyright SHAPE (078-672-NPO)
Other requirements
For each employee the organisations shall have:
a Contract of Employment; and
a Job description that outlines the duties to be performed by the employee. ü
Copyright SHAPE ( NPO)

16. Copyright SHAPE (078-672-NPO)
Other requirements
Each organisations shall have written cooperation agreements in place:
This document describes how organistions are going to work together and share resources ü
Copyright SHAPE ( NPO)

17. Copyright SHAPE (078-672-NPO)
Other requirements
Each organisation shall register their employees for unemployment insurance (UIF) and occupational injuries and diseases with the Department of Labour ü
Copyright SHAPE ( NPO)

18. Copyright SHAPE (078-672-NPO)
Other requirements
An organisation shall be registered at SARS for tax exemption (Article 18A) and as a Public Benefit Organisation (PBO, Article 30(4)) ü
Copyright SHAPE ( NPO)

19. Service delivery requirements
The organisation plan and present activities and programmes for their target group(s) and in line with service delivery mandates ü
Copyright SHAPE ( NPO)

20. Service delivery requirements
The organisation ensures that their services are accessible to their clients and target group(s) ü
Copyright SHAPE ( NPO)

21. Service delivery requirements
The organisation ensures that their physical location facilitates service delivery to be their clients and target group(s) close to their homes ü
Copyright SHAPE ( NPO)

22. Service delivery requirements
The organisation ensures that clients and target group(s) are aware of the services in their area, community or neighbourhood ü
Copyright SHAPE ( NPO)

23. Service delivery requirements
The organisation inform their clients of their rights, e.g. by means of training and information sessions, talks, posters, pamphlets, copies of legislation, etc. ü
Copyright SHAPE ( NPO)

24. Service delivery requirements
The organisation plan and launch actions with the purpose to recruit new members and/or clients, e.g. by means of home visits, open days, pamphlets, posters, etc. ü
Copyright SHAPE ( NPO)

25. Service delivery requirements
The organisation ensures that their clients or members are satisfied with the services that they receive, e.g. by means of client satisfaction surveys, a focus group or by using a suggestions box ü
Copyright SHAPE ( NPO)

26. Service delivery requirements
The organisation is part of local or regional networks and they build lasting partnerships. Examples are: NACOSA, Community Chest, Grassroots, SCAT, Inyathelo, FCW, etc. ü
Copyright SHAPE ( NPO)

27. Qualities of a board member
Easy to talk to
Can inspire others
Is enthusiastic
Willing to perform duties
Can exercise authority
Is trustworthy
Set an example to others
Can work together in team
Support the vision and mission of the organisation
Copyright SHAPE ( NPO)

28. Composition of the Board
THE ORGANOGRAM
Chairperson
Secretary
Treasurer
Additional Member
Director/ Manager
Operational staff
Support staff
Volunteers
Deputy Chairperson
Copyright SHAPE ( NPO)

29. Functions or duties of Board
Governance role pertaining to-
Strategy and planning
Programmes, activities
Staff, volunteers
Finances and funds
Assets and property
Internal audit and risks
Accomplishment of goals
Administration and reporting
Planning, measuring performance
Marketing and recruitment
Fundraising
Liaison, networking and partnerships
Copyright SHAPE ( NPO)

30. Administrative Systems
Main elements:
Postal address 
Correspondence register  
Filing cabinet 
Files for filing 
Filing system  
Lockable cabinets 
Office equipment 
Dairy, registers 
Stationery 
Report writing 
Copyright SHAPE ( NPO)

31. Copyright SHAPE (078-672-NPO)
Filing procedure
Receive a document: complete the correspondence register)
Action: hand the document to the correct person for action
Follow-up: Secretary to ensure the document was handled and action taken
Preparation: gather to documents to be filed
Filing: use a fling key and file as often as possible
Copyright SHAPE ( NPO)

32. Example of Filing System
A. General administration
Correspondence
Acts and Regulations
Programmes/Activities
Legal and service delivery requirements
Board
Policy documents
Registers
B. Human resources
Policy and procedures
Staff:
Contracts of Employment
Job Descriptions
Training and Development
Performance evaluation
Volunteers
Copyright SHAPE ( NPO)

33. Example of Filing System
C. Finances
Budgets
Income and expenditure: source documents
Internal audits
Financial statements
Dept. Labour & SARS
Petty cash
Property & assets
D. Marketing & fundraising
Policy and procedures
Marketing plan
Marketing materials
Fundraising
Donors and funders
Funding proposals
Copyright SHAPE ( NPO)

34. Example of Filing System
E. Planning & performance
Strategic plan
Operational plans
Service Plans
Organogram
Monitoring & evaluation
Reports
F. General
Risk management
Copyright SHAPE ( NPO)

35. Copyright SHAPE (078-672-NPO)
Important Meetings
AGM or annual general meeting – once a year
Board meeting – once a month
Executive committee meeting – when necessary
Special General Meeting – on request of members
Member or Client Meeting – once a quarter
Staff Meeting – once a month
Stakeholder Meeting , networking events – by invitation
Copyright SHAPE ( NPO)

36. Before a board meeting takes place
Finalise the minutes of the previous meeting
Compile a list of tasks:
Who responsible (official)
Timeframes (dates)
Finalise the agenda
Send out notice of meeting together with previous minutes and agenda
Follow-up on assigned tasks
Secretary, assisted by the Chairperson
Secretary
Secretary and Chairperson
Copyright SHAPE ( NPO)

37. During the board meeting
Start the meeting on time, as arranged
Chairperson to chair meeting
Deputy Chairperson to act as chair in the absence of Chairperson
If both persons absent, postpone the meeting or elect the chair from members present
Quorum to be observed
If no quorum is observed, postpone the meeting for minutes; if no quorum can be observed after 30 minutes, postpone meeting to another date
Secretary to ensure:
Each board member has a agenda and the minutes of the previous board meeting
Signing of the attendance register
Copyright SHAPE ( NPO)

38. Copyright SHAPE (078-672-NPO)
Board agenda
Opening and welcoming
Attendance and apologies
Attendance Register
Finalising the agenda
Announcements
Minutes of the previous board meeting
Acceptance and approval
Matters arising from the minutes
Standing points, such as:
Governance
Activities/programmes
Finances, fundraising
Human resources
New matters
Correspondence
Date of next meeting
Vote of thanks and closure
Copyright SHAPE ( NPO)

39. Copyright SHAPE (078-672-NPO)
Meeting procedures
Stay with the agenda
Finalise the agenda at the start of the meeting
Identify the outcomes to be achieved during the meeting
Allow everyone to express their views
No one should dominate the meeting
Everyone’s views should be valued
Discussions should be summarised occasionally
Make sure everyone with an assigned task-
Know what the task is; and
When the task must be completed.
Copyright SHAPE ( NPO)

40. Copyright SHAPE (078-672-NPO)
Meeting procedures
Democratic: when decisions are taken on the basis of consensus or by voting
Point of order: when correct meeting procedures is not followed
Out of order: when a member is not adhering to meeting procedures, or misbehaving in some way
Point of information: when a member need more information for own clarity
Protection: when a member ask for the protection of the chairperson, e.g. when harassed
Copyright SHAPE ( NPO)

41. Keeping minutes and after the board meeting
Secretary to take minutes
Assistant secretary can be elected to assist the Secretary (if appropriate)
All discussion points and decisions are minuted (in correct order)
Actions and responsible board members shall be duly minuted
Finale the minutes at least one week after the board meeting was held
Secretary to perform duties as assigned (before the next board meeting)
Secretary to follow-up on board members performing assigned tasks
Distribute the minutes in time to all board members
Copyright SHAPE ( NPO)

42. Annual General Meeting (AGM)
Notice and agenda send out in advance
Attendance register completed
Approve minutes of previous AGM
Present Chairperson’s report
Present Director’s / Manager’s report
Treasurer to present financial report and financial statements
Annual financial statements (ASF) approved and signed
Accountant or auditor appointed for coming year
Changes to the Constitution (if applicable)
Election of new board
Copyright SHAPE ( NPO)

43. Copyright SHAPE (078-672-NPO)
Annual Report
Chairperson’s Report:
Overview of the board’s activities for the year:
Functioning (e.g. number of meetings, attendance, vacancies, training, etc.)
Achievement of goals
Marketing and recruitment
Fundraising
Networking and partnerships
Overall evaluation
Highs and lows, as well as challenges during the year
Planning and strategy for coming year
Vote of thanks to staff and volunteers
Vote of thanks to sponsors, donors and funders
Copyright SHAPE ( NPO)

44. Copyright SHAPE (078-672-NPO)
Annual Report
Director’s Report:
Overview of staff activities for the year:
Rendering of services, programmes and activities
Statistics (number of programmes presented, number of persons reached, etc.)
Impact made
Staff (e.g. vacancies, training)
Evaluation of services, programmes and activities
Achievement of goals
Highs and lows, as well as challenges for coming year
Planning for coming year
Copyright SHAPE ( NPO)

45. Copyright SHAPE (078-672-NPO)
Annual Report
Treasurer’s Report:
Overview of the financial situation of the organisation:
Total income and expenditure
Profit//shortfall for the year
Report of financial officer/accountant/auditor
Qualified/unqualified audit
Budget for coming year
Financial targets for coming year
Copyright SHAPE ( NPO)

46. Duties of registered NPOs
General:
NPO number reflected on all documentation
Financial/accounting record are kept – systems in place
Financial statements are drawn up
Preparation of written reports
Annual submission of:
Narrative report (by December of a year)
Notice of changes of office bearers
Notice of changes of contact details
Notice of changes to Constitution
Copyright SHAPE ( NPO)

47. Copyright SHAPE (078-672-NPO)
Questions?
Copyright SHAPE ( NPO)

48. Support and assistance
NPO Helpdesk operated by SHAPE:
Telephonic on (Franzu Badenhorst)
Send an to:
Visit the web page and follow the links:
Visit the office in De Rust:
14 Steytler Street, De Rust, Western Cape Province
Copyright SHAPE ( NPO)