Peer-reviewed article
Determinants of non-profit registration in early childhood development centres in South Africa
Matshidiso V. Sello ·
Summary
Written by AI, not yet AICS's view · claude-sonnet-5This South African study looked at why some early childhood development (ECD) centres registered as non-profit organisations (NPOs) before this was made compulsory. Using nationwide census data from over 39,000 centres, the researchers found that most centres were already registered. Centres that received a government subsidy, had a bank account, or belonged to a wider network of ECD programmes were much more likely to be registered as NPOs. The authors argue that subsidies and network support encourage centres to formalise, which can help improve the quality and sustainability of services for young children.
Key points
- 68.34% of ECD centres in the census were registered as NPOs.
- Receiving a subsidy was the strongest predictor of NPO registration (odds ratio 10.17).
- Having a bank account also strongly predicted registration (odds ratio 4.20).
- Being part of a wider ECD network increased likelihood of registration (odds ratio 1.81).
- The study warns that removing the NPO registration mandate could risk service quality if centres wrongly assume they can access subsidies without formal registration.
Limitations
The study is based on cross-sectional census data showing associations, not causal relationships, and does not evaluate the actual effect of removing the registration mandate.
Abstract
Background: In South Africa, the Department of Basic Education removed the non-profit organisation (NPO) registration mandate for early childhood development (ECD) programmes. The aim was to alleviate administrative burdens. If the messaging is not received correctly, it could lead to the inaccurate belief that all programmes are subsidy-eligible without any formal registration, potentially risking the quality and sustainability of ECD services. Aim: This study investigated the determinants influencing the decision of ECD centres to register as NPOs prior to the NPO registration mandate. Setting: A nationwide ECD census was conducted in all nine South African provinces. Methods: Data from 39 176 centres were analysed quantitatively to investigate the association between ECD centre registration as an NPO and various independent variables. Results: The findings show that 68.34% of ECD centres were registered as NPOs. The odds ratio (OR) of receiving a subsidy (OR 10.17; 7.82–13.22), having a bank account (OR 4.20; CI 3.01–5.72) and the ECD programme being part of a wider network (OR 1.81; CI 1.46–2.26) were strong predictors of ECD NPO registration. Conclusion: Subsidies matter in encouraging ECD centres to formalise their operations. ECDs that are part of wider networks have an opportunity to access resources, information and support that can enhance operational effectiveness. Contribution: The study provides empirical evidence to guide policy decisions and resource allocation, which can potentially lead to improved service quality and access to resources for children and families to support the growth and sustainability of the ECD sector in South Africa.