Interest for NPO

[oober]

So last night we had our AGM and I suggested that we look at moving our reserve funds to something like a money market account or an interest bearing account. I was told that NPOs are not allowed to receive interest.

How true is this? I've done some googling but cannot find any good sources. What are our options? Can we put our reserve funds in a money market account etc.? If you have some links that I can maybe use and print out to show the directors it will help.

 

[AchmatK]

Not true. We have some funds at Investec as part of our reserves. Some of it is in Money market funds and some in shares.

 

[borga]

As signates stated this is not true, NPO can receive interest, there is no law preventing it and I know of a few which do keep their excess cash in money market accounts at the banks and receive interest on those funds.

Print the law governing NPO and give it to the directors to show them there is no such limitation.
http://www.dsd.gov.za/npo/dmdocuments/NPO Act.pdf