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Hi my name is Ricardo Reinhardt, and I'm going to talk to you today about starting a nonprofit organization in South Africa what are the legal issues to take into account when you start a nonprofit organization, so we have three options to choose from when you start a nonprofit organization in South Africa first one is a voluntary association now this is the most popular legal entity for nonprofit organizations I think it's because most nonprofit organizations are community-based organizations and the voluntary Association is the easiest way to set up a non-profit legal entity, so it's very popular the NPO Directorate estimates that over 90 percent of organizations on the database are volunteer associations it is established in terms of common law so in essence the decisions that the courts have made over time would govern the volunteer Association the founding document for the volunteer Association is the Constitution, so the Constitution is in essence the agreement amongst the members of the organization and that document must set out certain clauses in order for the volunteer Association to be registered in terms of the nonprofit organizations that ought to apply for the text benefits the governance structure of the volunteer Association is very flexible you could have a volunteer association that has only got a governing board and no general members a lot of volunteer associations they've got a governing board together with Anime English, so that's in a nutshell the voluntary association the second option is the nonprofit caste which is established in terms of the Trust property Control Act the UK, so you cannot set up a trust without it being registered in terms of the Trust property Control Act and the office that is responsible for the oversight of trust is called the master by Court there is about fourteen offices in South Africa and the processing time for registration depends on the particular on the particular office the founding document for the trust is a trusted a lot of the information that you'll find in the trust deed is similar to that you'll find in a Constitution, but there are some differences for example the names of the trustees are usually captured in the trust deed and the trust deed is in essence an agreement between the founder and the trustees so the idea of a trustee of a trust is that you'll have a founder who would make a donation or transfer property to the trust and the trustees would take responsibility to administer that donation and the trust assets for a particular objective I publicly enough the objective for nonprofit trusts or for a particular group of people were call the beneficiaries, so you have the founder trustees and the beneficiary terms of the governance structure the board of trustees is responsible to govern the trust, and you can have a trust with members, although it's not that common usually a trust are set up with only trustees or the board of trustees as the governing structure and the...
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