Legal FAQS
The Life Esidemeni tragedy is a huge reminder of what can go wrong in mental health care. Comcare, since inception has been aware of the risks related to providing our services and the responsibility we have to protect those in our care. We operate our service within a legal framework and appreciate the necessary compliance with this framework.
Some of the legislative compliance includes:
An NPO is an organisation that does not exist to make a profit from the work of the organisation for the members of the organisation. NPO’s may make a profit, but may not give any profits to their members; they can use the profits they make for the work of the organisation.
Comcare first registered as an NPO in February 1999 and has annually renewed our registration by submitting the required reports for consideration.
An NPO can choose to operate as one of several legal structures. These are:
- A Section 21 Company
- A Voluntary Association
- A Trust
- The legal structure that Comcare operates under is a trust.
A trust is an agreement between an owner of assets and trustees. In terms of this agreement, the trustees undertake that they will administer the trust’s assets with the necessary care to the benefit of the beneficiaries. It is an efficient and flexible way to ensure that assets are looked after. It also ensures that assets are objectively managed and controlled by appointed trustees in the best interests of the beneficiaries. After signature of the trust deed, the trust is registered with the Master of High Court in whose jurisdiction most of the assets are situated or where the administration is to take place. A trust may be classified as non-taxable in terms of the Income Tax Act. On 22 February 1993, the Master of High Court registered Comcare as a Charitable Trust.
Historically, non-profit organisations were exempt from income and related taxes. This provided some incentive for donors to these organisations. In 2002 the Income Tax Act was amended and tax exemption is now only granted to organisations that qualify as Public Benefit Organisations (PBOs). A PBO, as defined in the Act in the Act is a Section 21 company, trust or association of persons that has the sole object of carrying on one or more public benefit activities:
- In a non-profit manner and with altruistic intent;
- Without the promotion of the economic self interest of any fiduciary or employee, other than reasonable remuneration; and
- Where at least 85% of the activities, in terms of cost or the time expended are for the benefit of persons in the Republic, unless the Minister directs otherwise.
- The activities of the PBO must be carried out for the benefit of, or widely accessible to, the general public at large, including any sector thereof.
In 2004 the Commissioner approved Comcare as a Public benefit organisation, under Section 18A of the Income Tax Act. This means that tax exemption can be granted for donations to Comcare.
Comcare Trust currently owns eight (8) properties, one which is a block of 10 flats. This means we have 65 bedrooms, 25 bathrooms, 8 kitchens, 10 living areas, 10 bachelor flats and 8 gardens to maintain. In addition we rent 2 properties – our office and the Welcome Club. At both rented properties we are also responsible for maintenance. As responsible property owners and tenants, each year we do extensive maintenance on two of our properties and also attend to electrical , plumbing and general repairs. As our properties are within established communities, we have 16 neighbours and make every effort to establish friendly relationships with our neighbours. Most importantly what makes our properties special is that they are not distinguishable as our properties.
They are ordinary houses where people with psychiatric disabilities are afforded the chance to reintegrate into the community.
The Provincial Department of Health and Wellness is responsible for providing care, treatment and rehabilitation services to mental health users in the Western Cape. This Department has service agreements with various NPO’s to provide these services on its behalf in the community. Comcare Trust at present has a service agreement with the Department of Health to provide Type 2 Group Homes and a Psychosocial Day Centre for adults with psychiatric disabilities.
In terms of this agreement Comcare is obligated to render services in a proper and professional manner in accordance with the provisions and standards agreed upon with the Department of Health in a Service Level agreement. The Department of Health grants an amount of money to Comcare Trust annually. This is commonly referred to as a subsidy, and is used towards some of the expenses incurred in providing the service.
A brand is the face of an organisation, something that communicates the services of the organisation to others. The identifiable symbols of an organisation to others. The identifiable symbols of our brand are our name and our logo. The name Comcare was selected on 29 June 1992 by the steering committee. Permission to share this name with an existing organisation providing community services for people psychiatric disabilities, ComCare Charitable Trust in Christchurch, New Zealand was obtained. The logo was chosen from a competition for mental health users to design a logo for the organisation. On 26 January 1993 a winner was announced and this has remained our logo to date.