GAUTENG’S SOCIAL DEVELOPMENT DEPARTMENT URGES ACTION FROM NPOS DELAYING SERVICE AGREEMENTS

• ⁠Over 400 NPOs must sign their Service Level Agreements (SLAs) by 5 June 2025, or risk losing their allocated funding.
• ⁠The Gauteng Department of Social Development will redirect funds from NPOs that fail to sign SLAs, assuming they have voluntarily waived their right to the money.
• Delays in signing SLAs could disrupt essential social services provided by NPOs, affecting vulnerable communities across Gauteng.

Hundreds of NPOs risk losing funding if they don’t sign by 5 June

In a move that could affect hundreds of community-serving organisations, the Gauteng Department of Social Development has announced that it will begin issuing final notices to Non-Profit Organisations (NPOs) that have yet to sign their Service Level Agreements (SLAs) for the 2025/26 financial year.
As of this week, over 400 SLAs remain unsigned—despite the Department having approved 1,687 business plans and issued 1,587 agreements for the current funding cycle.
At a meeting held on Monday with some of the affected organisations, Department officials made it clear: if the agreements are not signed by the final deadline of 5 June 2025, the funds allocated to those NPOs will be forfeited and redirected to others in need.
“We cannot allow allocated funds to remain in limbo,” said a Department spokesperson. “If an NPO does not take the simple administrative step of signing their SLA, we must assume that they are declining the funding—knowingly and voluntarily.”
Letters warning of potential forfeiture will begin reaching the affected NPOs from Wednesday, 28 May. The Department reiterated that this is not a punitive measure but a necessary administrative action to ensure that public funds are used effectively and efficiently.
The outstanding SLAs raise concerns about service delivery delays across sectors such as early childhood development, care for the elderly, support for people with disabilities, and community nutrition. Many of these services are provided in partnership with NPOs across Gauteng, relying heavily on government funding to operate.
Social sector analysts warn that missed deadlines could create unintended disruptions in essential services and urge NPOs to act swiftly.
“Time is of the essence,” said the spokesperson. “We are counting on our NPO partners to honour their part of the agreement so we can continue supporting the most vulnerable in our communities.”