Thank you for your patience.

Often churches believe that they are required to register with the government. This is not the case. Churches were required to register in the past. Some churches may still have certificates of registration issued in terms of these old laws. Today, our constitution protects each individual's freedom of religion, belief, and association. Any group of people may gather together, worship, and practice their faith without informing the government or seeking its permission. However, a church may still choose to apply to one or more government departments in order to be eligible for the specific benefits indicated below.

 

1. Recognition of clergy as marriage officers

The state does not regulate religious marriage ceremonies. However, if a marriage is to be recognised by the state, it must conform to certain rules and must be performed by a licensed marriage officer. A church that wishes to have its clergy licensed as marriage officers must first apply to the Department of Home Affairs on behalf of the applicant(s). Thereafter, individual clergy will be licensed upon successful completion of an examination administered by the Department.

To apply, a church must write a letter to the Department with the names and identity numbers of the individuals who wish to become marriage officers. The letter should also identify the Home Affairs office nearest to each applicant where she or he will sit the examination. A church that has not previously had marriage officers appointed should also include a copy of its constitution.

Send this information to:

The Director-General Department of Home Affairs Private Bag X114 PRETORIA 0001

 

2. Tax exemption

Until 2001, religious organisations were explicitly exempted from income tax. In 2001, a new tax system came into effect. This offers tax exemption to a generic category of "Public Benefit Organisations" (PBOs). In order to qualify as a PBO, an organisation must:

• Be a trust, an association or a Section 21 company;
• Pursue only approved public benefit activities (the list of which includes religious activities) on a non-profit basis and primarily within South Africa;
• Be of a "public character";
• Submit to the Commissioner of Revenue a copy of the constitution, or other written instrument under which the organisation has been established and which meets the requirements of section 30 of the Income Tax Act.;
• Register as an non-profit organisation (NPO) in terms of the Non-Profit Organisations Act, 1997 (unless the Commissioner of Revenue waives this requirement);
• Comply with any reporting requirements set by the Commissioner of Revenue;
• Not pay "excessive" remuneration to any employee, office bearer or member; and
• Stay within limitations on business activities.

Organisations that are approved as tax-exempt PBOs will also be exempt from most other taxes, including donations tax, transfer and estate duties, stamp duty, and the skills development levy. Note, however, that this does not include property rates.

Forms EI 1 and 2 are available from SARS offices or from the SARS web site (see the "Public Benefit Organisations" page in the "Income Tax" section).

 

3. Fundraising

Organisations are no longer required to register with the government or obtain a fundraising number in order to raise funds. However, if you register with the Department of Social Development, you can get a certificate confirming that you are a Non-Profit Organisation.

In order to register, your constitution and financial practices must comply with the rules and standards specified in the Non-Profit Organisations Act (Act 71 of 1997). This includes a duty to report certain information to the Department on an annual basis.

Some people feel that registering gives churches and para-church organisations additional credibility by reassuring potential donors that they adhere to responsible financial policies and have accountable structures. Others argue that there are few benefits to registration.

If you wish to register, contact your local Department of Welfare and Population Development office and ask for a registration form or write to:

• Directorate for Nonprofit Organisations
  Department of Social Development
  Private Bag X901
  PRETORIA
  0001

The Department can also provide you with a model constitution that includes language consistent with the registration requirements.

For more information on registering as a nonprofit organisation, call the Directorate for Nonprofit Organisations on (XXX) XXX XXXX. Forms and information are also available from the Department's web site.

 

4. Protecting a denominational name

A church may see registration as a way of protecting its name from being used or misused by others. For example, if conflict within a church prompts some members to breakaway, one or both groups may want to establish an exclusive right to continue to use the church's name. Protection of the denominational name can be achieve through registering the name as a trademark at the Companies and Intellectual Property Registration Office (Cipro).

 

I trust you find the above in order.

 

Yours faithfully,