DSD AND HEALTH FOUNDATION AGREEMENT A STEP TOWARDS MORE RESILIENT NGOS

• The first step to launching the Cape Care Fund was taken on 28 January 2025 with the signing of a memorandum of agreement between the Western Cape Department of Social Development and the Health Foundation South Africa.
• The agreement will see the two entities working together to strengthen registered welfare organisations.
• Many non-profit organisations across the country are facing severe financial constraints following the economic downturn post-Covid-19.

With non-profit organisations feeling the financial pinch as funding shrinks in the economic downturn post-Covid-19, a memorandum of agreement between the Western Cape Department of Social Development and the Health Foundation South Africa aims to boost registered welfare organisations.

The agreement, signed on 28 January 2025, is the first step to implementing a model that can strengthen support for well-functioning non-profit organisations (NPOs): a priority identified by the Western Cape’s Minister for Social Development, Jaco Londt.

The model, called the Cape Care Fund, will be launched later this year.

NPOs across South Africa are having to tackle the combined impact of static or reduced government transfers and donor funding.

Many funders, including the government, have faced reduced income and have had to reduce or even cease funding NPOs altogether.

During the last three financial years (2022/23 – 2024/25), NPOs across various sectors in the Western Cape have had to close their doors due to budget shortfalls, including:

•       12 NPO child protection branches rendering statutory services;
•       Three homes for older persons;
•       18 community centres for older persons; and
•       Four NPO-run child and youth care centres.

NPOs like these play an essential role alongside the state in promoting the well-being of communities, especially those operating in the social development sector.

Londt has requested the Department of Social Development to do everything possible to strengthen support for this vital sector.

Through the memorandum of agreement, the Health Foundation South Africa will be assisting the department to get the Cape Care Fund off the ground by serving as the administrator of the initiative.

The initiative seeks to link donors with registered NPOs with a proven record for delivering effective social services.

“Together, we have the chance to address some of the most pressing challenges our communities face. By working together, we can scale programmes, share resources, and extend our reach to those who need it most,” says the Health Foundation South Africa’s CEO Harry Grainger.

“Together, we can uplift individuals and families, equipping them with the tools, knowledge, and opportunities they need to thrive,” he adds.

Londt is excited to see the Cape Care Fund evolve over the next few months. “Lots of hard work has gone into this project, keeping residents of this province top of mind. Vulnerable residents especially, like the elderly, people with disabilities, and orphaned children, rely on the organisations funded by the department,” he says.

“The Department of Social Development supports over 1 000 organisations in various spaces, such as child protection, disability, and victim empowerment. But fiscal constraints have hampered many of these organisations.

“This is why we are creating the Cape Care Fund,” says Londt.

Premier Alan Winde also attended the signing and delivered the keynote address.

“Our government deeply values partnerships like this as we can achieve so much through collaboration into driving economic growth and job creation.

“The Cape Care Fund is but one example of partnerships and innovation merging to offer support to the most vulnerable in our province,” the premier said.

“Empowering and enabling our social development partners is critical to catching those who fall through the cracks of society and working together to lift them so they can realise their potential to become part of our growing province,” Winde added.

He applauded the Department of Social Development and the Health Foundation for moving forward with purpose in establishing the Cape Care Fund, adding he was looking forward to seeing how this new model succeeds.