Determinants of non-profit registration in early childhood development centres in South Africa

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.