/ 2 August 2010

Donations to non-profit organisations

Estelle asks:
Donors offer to install a wash basin and paint the rooms of a non-profit organisation like a children’s home.

The constitution states that all assets will be passed on to a similar association if the NPO is dissolved. How are these donations handled if they are then permanent fixtures in the individual’s home? May the NPO then accept such donations?

Maya replies: According to Andrew Wellsted of Deneys Reitz attorneys, the “fixed” donations become part of the property itself and thus would not need to be passed on as per the constitution. There is no reason why the NPO could not receive the donations as these fixtures are required in terms of running the NPO.

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