This is the easiest and simplest structure to set up and manage. It also has the same powers and can do the same thing as a trust or non-profit company. A voluntary association can be set up when three or more people enter into an agreement to form a non-profit organisation. Voluntary associations are best suited to small community-based organisations that do not need to own or manage large amounts of money or property and equipment. For example, a school parent association.

A voluntary association is the quickest and cheapest structure to set up.

Who runs a voluntary association?

There is usually a constitution that provides for the appointment of a group of people with executive and/or management powers.

Which laws govern voluntary associations?

The common law and the Communal Property Associations Act (No 28 of 1996) govern voluntary associations.

If you want to make a voluntary association an independent legal personality, the law says the constitution must specify that:

• The organisation will continue to exist even if the membership changes
• The assets and liabilities (debts) of the organisation will be held separately from those of its members

How do you form a voluntary association?

You can form a voluntary association by having a written or verbal agreement. There is no government registry that you have to register with but you can register under the Non-profit organisation Act.

The constitution of a voluntary association

The written agreement of a voluntary association is called the constitution. These are the rules which say how the organisation will run. It also says what its main purpose and objectives are, who will make the decisions and how decisions will be made.

The constitution of a voluntary association will usually have detailed and clear sections on:

• The purpose of the organisation
• The objectives of the organisation – what it wants to achieve
• The type of organisation it is: for example, non-profit voluntary association
• The membership of the organisation – who may become a member and the rights and duties of members; how people can join, resign or be expelled
• The structures and main procedures of decision-making in the organisation:
• Annual general meetings and other meetings
• Elections and appointments for the different structures of the organisation
• Their powers and functions
• Who makes what decisions
• How the organisation is governed and how decisions are made
• How it is organised to get the work done
• The roles, rights and responsibilities of people holding specific positions and of the different structures: what individuals and structures are responsible for, to whom must they account.
• How the finances and assets of the organisation are controlled
• Financial year and audit process
• Closing down the organisation – what process must be followed and what will happen to the money and assets of the organisation.

Registering as a voluntary association under the NPO Act

If a voluntary association wants to register as an NPO under the NPO Act it will have to follow the requirements set out in the Act. It can be an advantage to register under the NPO Act because funders generally prefer to work with organisations that have been formally and legally recognised. NPOs that have registered under the Act also have access to certain government benefits.