NPC Structures In Association Public Schools
The Department of Education have in recent years placed tremendous pressure on our public schools due to the reduction in financial contributions to the schools.
Schools are therefore reliant on operating with only the school fees paid by parents. These payments by parents have also declined year on year, which is now adding additional pressure on schools to operate and run their schools effectively. It therefore became necessary for schools to create additional revenue streams with various fundraisers and from external sponsors that fall outside of the normal course of the school’s business.
It is within this scope and ambit of wanting to assist Public Schools that AS Consulting has envisaged and devised a tactical strategy whereby Public Schooling Institutions may gain significant benefit from having an investment structure that will promote the raising of capital and funding for utilisation by the Public School. This envisaged structure is realised in the form of a Non-Profit Company (“NPC”). By creating an NPC, the School’s Management Team and School Governing Body then have the ability to create a channel for businesses and individuals to donate funds to the school’s NPC, whereby the funds are ultimately donated back to the school in various forms, ie cash donations or purchasing of assets which the school will have the right of use.
​
Furthermore, by utilizing an NPC as the vehicle for cash sponsorships, donations, and capital benefaction the school automatically creates an aura and structure of transparency, credibility and trust that one would normally associate with a Non-Profit Company. In addition, an extension of the benefits are further evidenced in the fact that the school will operate the NPC very much like a typical company with reduced restriction, and one that allows for external businesses and individuals to take advantage of Section 18A of the Income Tax Act 58 of 1962 for a tax deductions for their benefaction and sponsorships.​
NPC Experience
​At AS Consulting we have extensive knowledge and experience in operating and managing an NPC due to our extensive involvement at a public school over the course of the last 3 (three) years.
During this time, AS Consulting advised, structured and assisted the management of the school’s NPC with a number of strategic initiatives that has led to extensive financial growth of the school. This is testimony to the hard work, dedication, extensive experience and deep expertise we have gained working in this highly specialised environment. And it is due to this exposure and experience that we believe that ASC is in a strong position to assist your Public Schooling Entity.