Question NW523 to the Minister of Social Development:

Reply:

To increase support to organisations (NPOs), the Department relies on allocations made available by treasury, and given the current fiscus constraints, there is limited room to channel more funding. However, the PFMA Section 43(1)(4) allows for departments to shift savings from their operational budget (if any) to transfer payments subject to National Treasury approval.

Secondly, other support provided by the Department to the NPO sector is through capacity building programmes to ensure that NPOs comply with applicable legislation for services they provide. The department also assist with strengthening the management and governance of NPOs to improve their performance and impact through the provision of skills development training facilitated by departmental officials and/ or through partnership with relevant Stakeholders.

Amongst others, the in-house training entails-

• Basic Financial Management and record keeping
• Compliance with the NPO Act, other related legislation and the signed MOA.
• Leadership and Governance
• Resource Mobilization
• Management and Administration

The department further collaborates with Stakeholders such as NDA (National Development Agency), SARS (South African Revenue Service), SEDA (Small Enterprise Development Agency), SAIBA (South African Institution for Business Accountants) and other partners in the Private Sector to provide capacity building training such as:

• Project Management
• Conflict Management
• Financial Literacy
• Tax Compliance / PBO Status

The Department also undertakes NPO Outreach Programmes to the far-flung communities to empower and ensure access to NPO services. These include NPO Roadshows and Compliance Drives e.g. (Know-Your-NPO-Status).