PORTIFOLIO COMMITTEE ON SOCIAL DEVELOPMENT 22 AUGUST 2018 DEPARTMENT OF SOCIAL DEVELOPMENT MANDATE IN NON PROFIT ORGANISATIONS REGISTRATION, DATABASE, SUPPORT AND COMPLIANCE MONITORING IN TERMS OF THE NPO ACT PORTIFOLIO COMMITTEE ON SOCIAL DEVELOPMENT 22 AUGUST 2018

Presentation Outline Purpose Background The NPO Register NPO Support programmes Provincial NPO Funding DSD Partnership Model Challenges Future Plans Recommendations

Purpose To brief the Portfolio Committee for Social Development on Non profit organisations registration funding and support

Background The Department of Social Development administer the NPO Act 97 of 1997as amended The NPO Act prescribes the functions of the Department with regards to the Non profit organisations An NPO Directorate was established to deal with the regulatory matters of all non-profit organisation as stipulated in section 1and 5 of the NPO Act One of the main function of the Directorate is to register NPOs and keep a register thereof.

NPO Register as on the 22 February 2018 Registered NPOs: 188 548 Due for Reporting: 156 313 Compliant NPOs: 32 235 (20.6 % are due for reporting) Noncompliant NPOs: 83 126 (53.2% are due for reporting)

Registration by Type

Registered, Noncompliant and Compliant

Registration of NPOs per Sector

DSD Support to NPOs The NPO Act prescribes what the Department aught to do to provide capacity and support to non profit organisations , community based organisation and community members in their endeavour to register and to ensure that newly register NPO comply to the Act

DSD NPO Support Programmes – Details of the Legislative Mandate NPO Directorate mandate is drawn primarily from Section 5(a to d) of the NPO Act: Facilitate the process for developing and implementing policies Determine and implement programs: to support NPOs to register; and ensure that NPOs maintain and improve their governance standards; Liaise with other organs of state and interested parties Develop and implement multi-sectoral and multi-disciplinary programs.

Number of NPOs capacitated ( 1 April – Dec 2017) Province Local municipality Number of NPO Number of individuals EC 9 234 310 FS 10 736 880 GP 5 270 450 KZN 6 386 489 LP 713 870 MPU 2 153 NC 3 130 201 NW 69 210 WC 7 459 590 TOTAL 54 3150 4310

Other Programmes to support NPOs Following the 2012 NPO summit resolutions, the Department ( NDSD) embarked on Programmes to support NPOs in provinces The following are programmes that are being implemented: NPO Roadshows NPO Capacity Building NPO Compliance Enhancement NPO Audit NPO Forums strengthening Intergovernmental coordination in support for NPOs

NPO ROADSHOWS FOCUS AREAS Improving Access Compliance Enhancement Education, Awareness & Communication Onsite NPO Services Provision

Municipalities covered by Roadshows (2014/15 to 2017/18) Province Number of Municipalities Visited Not visited Eastern Cape 33 26 7 Free State 19 15 4 Gauteng 9 8 1 KwaZulu Natal 44 20 24 Limpopo 22 Mpumalanga 17  0 Northern Cape North West 18 3 Western Cape 25 Totals 213 147 66

Number of roadshows conducted per Province (2014/15 to 2017/18) No of Municipalities visited No of Roadshows conducted NPOs Registered Certificates Printed Reports Received Registration Enquiries Compliance Status Enquiries No of NPOs EC 26 59 1 318 1 500 2 646 946 2 084 4 140 FS 15 25 358 380 561 615 1 548 2 774 GP 8 21 579 88 198 484 692 2 348 KZN 20 922 614 943 140 704 2 933 LP 22 51 1 024 834 4 613 609 2 971 7 408 MP 17 47 1 028 887 1 623 192 983 5 312 NC 30 517 645 552 328 741 2 263 NW 36 929 875 596 987 874 2 952 WC 7 10 534 569 106 264 173 Totals 147 304 7 209 6 392 11 838 4 565 10 770 31 158

NPO Forums Objectives of NPO forums The overall objectives of the NPO forums are to:- serve as a platform for interaction, engagement and information sharing on NPO issues enhance partnerships and relationships with other stakeholders involved in non-profit organisations create an opportunity for joint planning, implementation and monitoring of NPO programmes foster integration and coordination within the programmes aimed at supporting and promoting NPOs inform on policy and strategic direction of government in its dealings with NPOs

NDSD Support to NPO Forums DSD contribution to support NPO Forums include the following: Developed concept document which guides establishment and functioning of NPO Forums Facilitate establishment of NPO Forums in provinces and districts Conduct capacity building assessment of NPO Forums Develop capacity building programme with interventions towards strengthening NPO forums. Provide capacity building on board governance and other related areas to the NPO forums

Status of NPO Forums Province Provincial NPO Forum District NPO Forums Eastern Cape Established and functional NPO forums in 8 districts: Alfred Nzo Amatole Sarah Baartman Chris Hani Nelson Mandela Bay Metropolitan O.R.Tambo Joe Gqabi Bufallo City Limpopo NPO forums in 5 districts: Capricorn Mopani Sekhukhune Waterberg Vhembe Mpumalanga Process of establishing provincial Forum in progress Sectoral forums in 3 districts: Ehlanzeni Gert Sibande Nkangala

Status of NPO Forums Province Provincial NPO Forum District NPO Forums North West Established and functional NPO forums in 4 districts: Bojanala Platinum Dr Kenneth Kaunda Dr Ruth Segomotsi Mompati Ngaka Modiri Molema Free State Inter-sectoral forums in Mangaung Metro Thabo Mofutsanyana Western Cape Interim provincial structure established Sectoral forums coordinated by provincial government: Child Justice Forum VEP Forum ECD Forum Older Persons Forum Substance Abuse Forum Child Protection Forum Street Children Forum

Status of NPO Forums Province Provincial NPO Forum District NPO Forums KwaZulu Natal Established and functional NPO forums in 12 districts: eThekwini UGu Uthungulu Zululand Ilembe Umkhanyakude Umzinyathi Harry Gwala Uthukela King Cetshwayo Amajuba District uMgungundlovu District 

Status of NPO Forums Province Provincial NPO Forum District NPO Forums Northern Cape Established and functional NPO forums in 5 districts: Frances Baard John Taolo Gaetsewe Namakwa Pixley Ka Seme ZF Mgcawu Gauteng Process of establishing provincial Forum in progress NPO forums in 4 Districts sector based Johannesburg Tshwane Ekurhuleni Sedibeng

NPO Intergovernmental Forum Forum consists of 35 National Government Departments The meeting frequency is quarterly plus special meetings/workshops Forum is trained on NPO legislation to enable departments to provide guidance on compliance issues to NPOs they are supporting Platform for exchange of information and database for effective management of NPOs across government e.g. NPO Register and other relevant information from other government departments. Coordination and collaboration of NPO services to ensure effectiveness Forum contribute significantly on policies and legislation pertaining NPOs (NPO Amendment).

NPO Intergovernmental Forum Serve as the platform for interaction, engagement and information sharing on non-profit organizations related issues by government departments; Create an opportunity for joint planning, implementation and monitoring and evaluation of non-profit organizations; Foster integration and coordination amongst the programmes aimed at supporting and promoting non-profit organizations; Enhance partnership and relationship with other stakeholders (donors and funders) involved in non-profit organizations;

DSD Sector Funding Historically, provision of social services has been the responsibility of DSD in partnership with the NPO sector DSD developed the sector funding policy to ensure uniform funding of DSD services across provinces National DSD coordinate the implementation of the policy and ensures quality service delivery

Total Number of NPO Funded in Provinces No of NPO Funded Eastern Cape 2 687 Free State 1 541 Gauteng 2 700 KwaZulu - Natal 3 400 Limpopo 3 001 Mpumalanga 1 402 Northern Cape 751 North West 883 Western Cape 1 901 TOTAL 16 365

Transfers to NPO’s R’000

Transfers to NPO’s

Total Provincial Social Development Allocation Average growth rate overall for PDSDs is more a less in line with inflation over the medium term. Goods and services growth below inflation in the past, in line with inflation in the future Social Welfare Services growth improving compared to past years High historical growth rates in Children and families and Restorative services due to expenditure not allocated correctly according to new budget structure in the past Growth in Children and Families driven by ECD, which is expected to grow by 8.3 per cent per annum on average of over the MTEF Services to older persons makes up the largest portion of SWS, followed by management and support and HIV/AIDS What explains growth in Development and Research?

Distribution of allocation across Programmes, 2017/18 The largest proportion 38% continues to be spent on Children and families followed by social welfare and then Admin. All provinces spend the largest proportion of their budget on Children and Families, with the exception on WC and NW who spend the largest portion on Social Welfare Services GT spends the largest proportion on children and families, followed by LIM and KZN NC spends the largest proportion on Restorative services and development and research. Admin % particularly low in GT and WC. FS highest % Do high proportions reflect the priority in that province?

Key sub-programmes Low spending on crime prevention and support and victim empowerment is worrying HIV/AIDS shows significant increase over MTEF overall. Why? Substance abuse?

% Share of sub-programmes of total allocation This gives a picture of where the prioritises of the sector lies in terms of funding allocation- is this where the sector is looking to focus on? Most provinces still spend the largest proportions of their budgets on ECD and Partial Care and on Management and Support. Are sws still paid through management and support? Allocation of staff to correct subprogrammes still an issue? Free State, Gauteng and Limpopo spend a much lower proportion on M&S than other provinces – however Limpopo has increased the proportion allocated under ‘other’. It appears that GT and FS are budgeting correctly, allocating staff to appropriate subprogramme Isibindi is a priority area, but gets a minimal allocation proportionally.

Percentage expenditure on different programmes 2012 and 2016   2012/2013 2016/207 Admin SWS Children & Families Restorative Services Development and Research Eastern Cape 19.9% 47.6% 14.4% 5.6% 12.6% 17.4% 26.3% 27.8% 15.7% 12.9% Free State 23.6% 18.4% 37.5% 9.4% 11.2% 21.9% 17.8% 37.8% 10.1% 12.4% Gauteng 13.8% 22.4% 44.3% 10.0% 9.5% 12.3% 17.6% 47.2% 10.7% 12.1% KwaZulu Natal 20.0% 46.1% 22.0% 4.9% 7.0% 16.6% 23.0% 42.3% 10.3% 7.7% Limpopo Province 17.3% 44.8% 22.7% 3.2% 15.2% 18.5% 45.2% 10.2% 10.9% Mpumalanga 24.7% 12.0% 21.1% 5.7% 36.4% 18.0% 38.1% 11.0% North West 15.8% 36.9% 21.6% 11.9% 13.6% 31.2% 27.0% 16.2% Northern Cape 20.5% 30.9% 18.3% 15.3% 15.0% 14.6% 33.6% 18.2% 17.0% Western Cape 36.2% 32.4% 15.9% 3.4% 9.2% 38.9% 31.6% 17.7% 2.6% Grand Total 34.1% 8.8% 11.6% 23.1% 38.5% 12.8% 10.6% `

DSD Partnership Model for State- Civil Society In Acknowledging the importance of the partnership between DSD and the NPO sector, DSD has developed a partnership model for state and civil society organisation which is due for finalisation this financial year Model addresses key areas impacting on the partnership between the DSD and the Non-Profit (NPO) sector with a view to strengthen the Department of Social Development’s advancement towards the realization of its broader mandate

What DSD Seek to Achieve Provide guidance for both current and future strategic partnerships/engagements/activities, as well as the context in which DSD will plan and implement the strategic partnerships engagement activities with the NPO sector A fulfilment of one of the DSD’s obligations, with a view to also guide the effective management of this partnership between DSD and across all levels of governments The instilling of the concepts of transparency and accountability, empowering NPO sector organizations and opening new opportunities for cooperation Encouraging the productivity and effectiveness of NPOs as partners in addressing the plights and realities of many SA communities and environments.

Implementation Status The partnership model has been finalised Implementation modalities has been developed and finalised Provincial consultations were completed MOUs to be developed towards strengthening existing partnership arrangements

Challenges Ever increasing demand for registration versus human capacity High rate of non compliance of NPOs to the NPO Act Poor governance practices specially among NPOs Limited financial resources (funding crisis) for NPOs to address social ills-international donor funding directed straight to government

Planned Activities Continue with the NPO Legislation review exercise and ensure that the NPO Act is ultimately amended to suite the current dynamics. Continue to conduct NPO Roadshows to arears where the Department has not visited as a way of expanding access services Strengthen platforms to expand services to NPOs as a way of enhancing efficiency to the sector. Continue to support existing NPO Forums Review the institutional arrangements as recommended by the DPME Study. Implementation of the DSD sector Funding policy Implementation of the state – Civil Society Partnership model

It is recommended that Portfolio Committee: Recommendations It is recommended that Portfolio Committee: Note the presentation with regards to the role of Department of Social Development in the implementation of the NPOs Act and NPO support Programmes Provide leadership and guidance to the Department with regards to the presentation

THANK YOU