1. 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

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

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

4. 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.

5. NPO Register as on the 22 February 2018
Registered NPOs:
Due for Reporting:
Compliant NPOs: (20.6 % are due for reporting)
Noncompliant NPOs: (53.2% are due for reporting)

6. Registration by Type

7. Registered, Noncompliant and Compliant

8. Registration of NPOs per Sector

10. 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

11. 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.

12. 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

13. 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

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

15. 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

16. 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

18. 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

19. 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

20. 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

21. 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

22. 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 

23. 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

24. 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).

25. 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;

26. 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

27. 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

28. Transfers to NPO’s
R’000

29. Transfers to NPO’s

30. 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?

31. 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?

32. 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?

33. % 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.

34. 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% `

35. 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

36. 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.

37. 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

38. 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

39. 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

40. 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

41. THANK YOU