​To encourage compliance and good governance, the National Department of Social Development hosted a virtual dialogue with Non-Profit Organizations (NPOs) on Wednesday. 
In terms of the NPO Act, sections 17, 18 and 19, NPOs are required to submit yearly reports and present financial records in keeping with good governance, accountability and transparency. 

Between 1998 and 2019, there has been an increase in registered NPOs leading to competition among them. The Department has 251 875 registered NPOs to date, with half of those recorded to be non-compliant. 

During the virtual dialogue, the Department brought various expertise to cover areas such as finance, professionalization of the NPO's and legal among others. 

The dialogue was facilitated by the National Department of Social Development’s NPO Chief Director, Mpho Mngxitama, who said her directorate has recorded an alarming number of misgovernance in terms of Section 18 of the NPO Act. This is followed by an increase of complaints by the public with the Boards of Directors and mismanagement of funds. 

The The Inyathelo, Nazeema Mohammed, said the Department must ensure that standard principle is consistently employed throughout the sector and that all registered organizations comply with the NPO Act. 

Kagiso Trust said since 1994 the country has achieved progress particularly in policy and legislation for NPOs, but the lack of effective monitoring and structural difficulties remains. 

CEO for Ethical Foundation for Leadership Excellence, Rev. Mautji Pataki, said resources are not respected whilst Mr Stian Klue, Executive Dean and CEO from The Tax Faculty advised that board members should, to an extent, be restricted from fully participating in operations as this is also contributing to challenges faced by the sector.