Department Of Social Development Npo Funding

By | December 14, 2021

The Department of Social Development (DSD) briefed the Committee virtually on its funding model and the monitoring and evaluation of non-governmental organisations in the Western Cape.

It informed the Committee that the funding of non-profit organisations (NPOs) represented a large part of the Western Cape government’s, and specifically the DSD’s, budget.  The Department contributed significantly to the lives of the poor and vulnerable through this funding. In the 2020/21 financial year, a total of 2 193 NPOs had received funding from the DSD to further policy objectives and priorities. Of these, 61 were found to be non-compliant.

It also described the funding process that took place within a three-year funding cycle, in which programme managers analyse and assess the business plans and application forms in terms of the DSD-approved funding criteria and predetermined specifications. Funded organisations were assessed on their current performance, while new organisations were assessed on their capacity, and site visits were conducted. The Department had line programmes to monitor and assist the 2 193 funded NPOs.

Monitoring and evaluation tools were being used by M&E officials and social workers, and if any non-compliance was identified, the line programmes would develop a Service Delivery Improvement Plan (SDIP) for NPOs to comply with within a three to six month period. Follow-ups were done within a six-month period to ensure the SDIPs were implemented to improve the quality of service delivery by NPOs. If needed, further capacity building and support was provided by the capacity building unit in the areas of finance and governance management.

The DSD’s line programmes assist NPOs with:

  • Registration of NPOs as old age homes, in-patient treatment centres, child and youth care centres, early childhood development facilities and after school care facilities (funded and unfunded NPOs);
  • Registration of service delivery programmes at CYCCs and ECDs (funded and unfunded)/diversion programmes etc);
  • Training and registration of carers/ECD educators;
  • Accurate completion of non-financial data, progress reports and contracts; and
  • Any new NPO which applied for funding would be assessed by line programmes and be guided to comply with legislative norms and standards

Members wanted to know what remedial action had been undertaken to assist the non-compliant organisations so that they were not rejected; wanted to understand the processes that led to unannounced visits, and if they were only a result of complaints; wanted to find out if the R3 600 unit costs of old age homes happened automatically, or if one had to apply, because normally old age homes received a subsidy; asked if the Department did quality checks when carrying out its unannounced visits, such as inspecting the quality of the products bought, and if that inspection was part of monitoring and evaluation.  

They also requested a detailed budget breakdown of the R15.3m spent on youth development; wanted to know the number of NGOs in Khayelitsha that had been funded, especially those involved in dealing with gender-based violence (GBV); and asked what would happen when a compliant NPO needed more funds because of its extra work, and what processes it should follow to get more money.