Question NW3751 to the Minister of Social Development
23 December 2022 - NW3751
Marais, Ms P to ask the Minister of Social Development
Noting how her department has underspent on nonprofit organisations (NPOs), what measures has she taken to ensure that functional NPOs receive much- needed funding?
Reply:
The Department provide funding to variety of NPOs to render Social development services in all nine Provinces. These NPOs are functional as they deliver of much needed services. Functional NPOs do receive the funding based on the amounts agreed upon the service level agreements (SLAs).
Certain processes are followed before the funds are transferred to these functional organizations including:
- Timeous submission of progress reports and relevant documents by the NPOs
- Proof that the funds are utilized for the intended purposes.
- Compliance with the registration and governance principles as stated in the SLAs and the NPO Act.
Most of the funds that were returned to National Treasury related to the ECD conditional grant and as such cannot be diverted to other programmes.
In addition, NPO’s are also exposed to capacity building programmes that empowers them on number of aspects including financial management, governance and resource mobilization. All these efforts are aimed at empowering NPOs to render quality
services and to empower them to mobilize resources from various sources thus building a sustainable NPO sector in the country.