Introduction

Specialise in the accounting and financial reporting of NPOs, NPC, Schools and NGOs.

Category: Non-Profit Organisation

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Information

Format: Examination

CPD Units: 6.5

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What will set you apart

The objective of this license is to equip Business Accountants with the designations BAP(SA) or similar to:

• Be able to compile accounts from incomplete records to assist non-compliant NPOs during the DSD deregistration campaign to become compliant
• Understand the basic concepts of effective marketing strategies and familiarise yourself with the latest industry trends and technologies to increase your income potential.
• Develop their skills in charity and non-profit organisation accounting, financial management, and financial reporting.
• Develop a specialist knowledge of the Non-Profit Organisations Act, 71 of 1997 and Income Tax Act provisions regarding Public Benefit Organisations.
• Recognise the financial statement presentation and disclosure requirements that apply to not-for-profit entities.
• Identify Department of Social Development and SARS filing requirements of an exempt organisation, recognise the core components of the annual information return, and identify when an NPO may be subject to unrelated business income tax.
• Recognise best practices in NPO board governance, risk assessment and internal controls.
• Identify steps involved in planning a successful audit, review or accounting officer engagement and identify key considerations and client communications.

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License breakdown

The license consists of the following:

Unit 1 – Introduction to Non-profit Entities (NPE)

This unit offers an understanding of the NPO lifecycle, from inception and registration to management, governance, compliance and fundraising. It introduces the various types of NPOs, terminology, the differences in organisational structures and financials. Topics included:

• Identify the unique aspects of NPEs.
• Understand the differences between for-profit entities and NPEs.
• Recognise the various types of NPEs.
• Identify NPE-specific terminology.
• Identify the basic financial statement presentation differences between for-profit entities and NPEs.
• Identify examples of the differences in the organisational structures of for-profit entities and NPEs.
• Understand the provisions relevant legislation affecting NPEs including the Non-Profit Organisations Act, 71 of 1997, Companies Act, 71 of 2008 (NPC), and Income Tax Act provisions regarding Public Benefit Organisations.

Study Unit 2  – Public Schools

Public schools in South Africa play a significant role within the non-profit industry. This unit provides an overview of the legislation, the structure and governance of public schools, as well as the engagement framework that can be applied by accounting officers when examining and reporting on the records and financial statements. Topics included:

• The legislative framework
• The role of the Department of Education
• School Governance
• Internal Controls in public schools
• Preparing Financial Statements
• Audit vs Examination
• Framework for the examination of the financials
• Ethnical requirements
• Standardised procedures to be performed at each school

Study Unit 3 – Financial Reporting

Gain practical tips and guidance on the duties of an Accounting Officer for NPOS relating to accounting and financial reporting with specific examples relating to Voluntary Associations, Non-Profit Companies and Trusts. An illustrative engagement letter and management representation letter are included. The following topics are discussed:

• Compiling accounts from incomplete records
• GAAP for NPEs
• Financial Statement Presentation
• Assets
• Investments
• Programmatic Investments
• Split-interest Agreements and Endowments
• Liabilities
• Fair Value Issues Specific to NPEs
• Net Assets
• Revenue from Contributions
• Exchange and Agency Transactions
• Expenses

Study Unit 4 – Taxation

The unit offers an overview of the Tax Act provisions related to Public Benefit Organisations (PBOs), including Section 18A receipting for donations. You will delve into the split between taxable and non-taxable income, the rules regarding Section 18A certificates, the legislation applicable to the issue of Section 18A certificates and the special VAT treatment applicable to NPOs. The following topics are included:

• Tax compliance
• Meaning of exempt purpose
• Related vs. unrelated activities
• Definition of unrelated business income
• Consequences of excessive unrelated business income
• Exempt vs. non-exempt income
• Statutory exemptions and exclusions
• SARS Filing Requirements
• Special Vat Treatments

Study Unit 5 – Governance

Governance is crucial in non-profit organisations. The unit explains the stakeholders responsibility towards good governance, provides key insights and an overview of the governance requirements. The following topics are included:

• Best Practices in Board Governance
• Risk Assessment and Internal Controls
• Fraud Overview and Prevention
• Auditing, Review, Accounting officer, Compilation considerations
• Planning the professional engagement
• Financial Oversight, Budget and Strategy

Study Unit 6 – Marketing (Bonus Material!)

The unit provides valuable insights and practical tools to boost the marketing efforts of NPO accountants and covers strategies for raising awareness, customer retention, utilising technological tools, exploring lead generation sources, and seeking funding opportunities. Specific examples are provided of social media posts and flowcharts that can be used for more effective communication with customers. The following topics are included:

• Funding opportunities and funding leads
• The Marketing Plan and strategy
• Sources to drive leads
• Fast-vertising (do what Ryan Reynolds does)
• Flowcharts for effective communication
• Social media post templates

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Presenters

Alice Jones
Alice established her practice in 1994 after completing her articles at Deloitte and Touche. She is a registered Chartered Accountant (SA) and a member of the Independent Regulatory Board for Auditors. She has extensive experience and has established her firm in the niche of providing a comprehensive business consulting service to small entrepreneurs.

Ricardo Wyngaard
Ricardo is passionate about the non-profit sector and has been focusing on non-profit law since 1999. He is a lawyer by profession who has obtained his LLB degree at the University of the Western Cape in South Africa and his LLM degree at the University of Illinois in the USA. He has authored a number of articles and booklets on non-profit law and governance, some of which have been published in international journals. Ricardo has participated as a speaker at both national and international conferences and has facilitated countless workshops with NGOs and community-based organisations.

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Certificate

The following event is awarded 6.5 CPD unit in Non-Profit Organisation

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Get Access to Related Accounting Weekly Articles

South African Non-Profits Face Urgent Compliance Hurdle as Australia Reveals Widespread Reporting Errors

Breaking New Ground: NPOs and Terrorist Financing Risks

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Support

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