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BEE Compliance for Non-Profit Companies (NPC) in South Africa

Last updated: 2026-03-19

BEE compliance for NPCs is unique because NPCs do not have shareholders — there is no ownership element in the traditional sense. Under the B-BBEE Codes, NPCs and other entities without measurable ownership are assessed differently. The ownership points are reallocated to other scorecard elements, or the NPC may qualify for specific exemptions depending on its activities.

NPCs with turnover below R10 million are EMEs and can submit a sworn affidavit. Since NPCs cannot have shareholders, black ownership is typically considered to be 100% if the NPC's board of directors (who control the entity) is majority black. This is a favourable interpretation that gives many NPCs strong BEE ratings.

For NPCs that apply for government tenders or receive government funding, BEE compliance is particularly important. Many government departments and municipalities require minimum BEE levels for service providers, and NPCs are not exempt from these requirements. Having a good BEE score can significantly improve an NPC's access to government contracts and funding opportunities.

Key Requirements

Key requirements
Requirement
EME affidavit if turnover below R10 million
BEE verification for larger NPCs
Ownership element often based on board demographics (no shareholders)
Management control, skills development, enterprise development, socio-economic development measured
Sector-specific codes may apply

Fees & Costs

Fees and costs
ItemAmount
EME affidavitFree – R200
BEE verificationR5,000–R15,000

Non-Compliance Penalties

Non-compliance penalties
Penalty
No direct penalties for poor BEE score
Loss of government funding and procurement opportunities
Reduced competitiveness for corporate partnerships

Frequently Asked Questions

How is BEE ownership measured for an NPC?
Since NPCs have no shareholders, ownership is typically assessed based on board control. If the majority of the board of directors is black, the NPC may receive full ownership recognition. The specific measurement depends on the verification agency's interpretation of the Codes for entities without equity ownership.
Do NPCs need BEE compliance for government funding?
Often yes. Many government departments and funders require BEE compliance documentation even from NPCs. While the requirements may be less stringent, having a BEE affidavit or certificate can significantly improve an NPC's chances of securing government contracts and grants.
Can an NPC be Level 1 BEE?
Yes. An NPC with turnover below R10 million that is effectively controlled by a majority-black board can achieve Level 1 status through a sworn affidavit. This gives the NPC a 135% procurement recognition level, which is attractive to entities that need BEE-compliant suppliers.

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