Several non-profit organisations (NPOs) in South Africa issue an annual integrated report. Some have been preparing integrated reports since 2010 on the King Code’s recommendation to prepare an integrated report. NPOs in South Africa follow the King Code voluntarily in the interests of good governance, rather than by any regulation. The King IV Code, released in November 2016, has a Sector Supplement specifically aimed at NPOs.
Not all NPOs in South Africa prepare integrated reports. With over 85 000 registered NPOs in South Africa there is opportunity for many more reports to come from the NPO sector. Some of the NPOs that prepare integrated reports in South Africa cite that, among the many benefits, their integrated report is a very good governance and funding tool for both reporting to current funders and explaining the organisation to future funders.
Please see the IR guidance pages on this website.
King IV’s Sector Supplement for Non-profit Organizations – The purpose of the supplement is to provide guidance and direction on how the King IV Code should be interpreted and applied by NPOs.
Some examples of NPO integrated reports
The 2019 Chartered Governance Institute of Southern Africa’s NPO award winner: National Sea Rescue Institute of South Africa.
Some tips from an IR practitioner
“The integrated report of an NPO details and communicates activities for the year to its various stakeholders (which include, donors, funders/financiers, government/councils, employees, etc). Management prepares and verifies the information in the report ensuring an accurate, balanced and comprehensive overview of the organisation. All the financial information is extracted from the audited financial statements. The selection of non-financial information in the reports is informed by what the Board and management assesses as material information. This allows for information that will provide the user with a broad overview of the operations and the environment in which it operates, the business model as well as insights into the strategy, funding base, mportant risks and opportunities, progress against the current business plan, the vision of the organisation and the values the organisation operates by, and what the future both in the short, medium and long term looks like.
“It also provides a platform to demonstrate the extent of governance that has been embedded in the organisation and the way that the various stakeholders needs, interests and expectations have been understood and responded to, as well as an identification of the risks and opportunities that arise from these relationships and how the NPO responds to these.
“If these reports are prepared well they can go a long way to supplement the brand of the organisation and can serve as a powerful and effective communication tool to all stakeholders. A little bit of effort can produce a compelling and meaningful account of the NPO’s value creation story. Posting the integrated report on the NPO’s webpage provides an easily accessible repository.” 2020
Application of King IV by NPOs. This article considers the proportional application of the King IV principles by NPOs.