Many of you may have read Alison Tilley’s recent article published in GroundUp –“Alarming new bill seeks to police non-profit organisations”. The article raises serious concerns about proposed changes that could significantly affect the nonprofit sector.

In response, the NPO Working Group has made a formal submission to National Treasury on the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Bill, 2025 (GLAB 2025), specifically addressing the proposed amendments to the Nonprofit Organisations Act, 1997.

What our submission focuses on:

For those wanting a quick read, our comments concentrate on Sections 5, 14, 20, and 30 of the Bill.

In summary:

• Enforcement independence: Expanded powers for the Directorate risk constitutional conflict. Enforcement should only follow meaningful institutional reform and adequate resourcing.
• Appeals: Appeals must be independent of the issuing authority. Options could include an Arbitration Tribunal, a neutral registry, or a future NPO Ombud.
• Administrative sanctions: The proposed sanctions may be unduly punitive. Clear guidance, proportionality, and sector support must come before penalties.
• High penalties: Maximum fines of R1 million and imprisonment of up to five years are disproportionate for administrative non-compliance and should apply only to wilful, intentional misconduct.
• Capacity concerns: A recent sector survey of over 6,000 NPOs highlights systemic backlogs, outdated databases, and limited compliance capacity.
• Overall recommendation: Prioritise capacity-building, regulatory clarity, and systemic reform — not punitive escalation — to protect procedural fairness and the sustainability of the sector.

You can read the full submission here

Why this matters now

The 13th February 2026 was the formal deadline for comments. The National Treasury has extended the deadline for comments from 13 February to 2nd March 2026, to allow for further engagement and consultation with the NPO sector.  The Bill is expected to be presented to Cabinet by mid-March, which means time is of the essence.

Add your voice by 27 February 2026

We strongly encourage you and your organisation to participate in this process. You can:

• Share your concerns or suggestions with Ann Bown at This email address is being protected from spambots. You need JavaScript enabled to view it., or
• Submit comments directly to National Treasury at This email address is being protected from spambots. You need JavaScript enabled to view it.

The proposed amendments have far-reaching implications for all nonprofits. Broad sector input is essential to ensure that regulation strengthens, rather than undermines, civil society in South Africa.

With appreciation for your engagement and solidarity,

The NPO Working Group