GDSD TO CONSIDER NPO FUNDING OVER 3-YEAR CYCLE

By Sipho Ncube

• Gauteng MEC for Social Development Faith Mazibuko announced plans to extend the current one-year funding cycle for Non-Profit Organisations (NPOs) to a three-year term, aiming to stabilise the sector and enhance services for beneficiaries.
• The proposed shift underscores the need for NPOs to be trustworthy, financially independent, and compliant with regulations, while also avoiding unsustainable practices such as inflated staff salaries.
• The department emphasised the importance of NPOs adhering to their non-profit mandate and outlined upcoming opportunities for funding applications and service level agreements.

Gauteng MEC for Social Development, Faith Mazibuko, has announced that the department is considering converting the current one-year funding cycle for Non-Profit Organisations (NPOs) into a three-year term. This significant update was revealed during an Imbizo with NPOs held at Sijula Hotel in Westonaria.

The meeting followed a commitment made by MEC Mazibuko last month to stabilise the NPO sector and ensure that services to beneficiaries are strengthened. She highlighted that while the department is exploring longer-term funding cycles, it is crucial for NPOs to build trust, diversify their funding sources, and engage in outreach programmes to secure additional funding, even from the private sector.

“While we are considering longer-term funding cycles, NPOs must be trustworthy, not solely dependent on Social Development funding. They should also actively engage in fundraising and outreach programmes to source additional funds, including from the private sector,” Mazibuko stated.

Mazibuko also cautioned NPOs against using large salaries as a retention strategy, urging them to manage their finances prudently. “Stretch your rand to get your money’s worth, as we will continue monitoring NPOs to ensure we all get value for money. The state’s purse is shrinking, and inflated salaries are not sustainable,” she warned.

She further announced that the department would open up applications for NPO funding in October, ensuring that successful applicants receive funding at the start of the new financial year. Additionally, NPOs will be invited to sign service level agreements for the remaining two quarters of the current financial year.

Representatives from the National Department of Social Development were also present to discuss NPO registration and amendments to the NPO Act. Nokuthula Dube, from the National Department of Social Development, reiterated the importance of compliance. “As the National Department, we are mandated by the NPO Act 71 of 1997 to assist NPOs with registration, training, and guidance to ensure they remain compliant. NPOs are not profit-making entities; they are meant to serve the greater good of their beneficiaries,” Dube emphasised.

The Imbizo provided an opportunity for NPO representatives to engage with the MEC and department officials, ask questions, and provide feedback on the proposed changes.