The North West Social Development MEC has called on non-profit organisations to comply with legal frameworks and prescripts to avoid deregistration and disqualification from government funding.

Durig a two-day NPO summit at Sun City MEC Gaoge Oageng Molapisi said most NPOs do not honour their service level agreements while some lack sound financial management skills. It came to the department’s attention that some organisations request loans for themselves using government funding as collateral. Molapisi emphasized that it is unlawful to commit government funds without authorisation from the department.

“NPOs have always been part of the communities, dating back to the dark days of apartheid,” he said. “They served as a means of survival for black people. As social protection for the disadvantaged and the deprived.

“The scale of social problems in our country is such that neither government alone can change the lives of people, nor could the NPO sector make an impact without working in partnership with government.”

Part of the Delegates attending Social Development Summit with NPOs. Photo: Facebook                               

Meanwhile, North West Social Development spokesperson Petrus Siko said the summit at Sun City is being attended by over 100 delegates from the NPO sector. The mayors of Bojanala Platinum District and Moses Kotane Local Municipalities, representatives from the North West University, the South African Revenue Services, and the Social Security Agency are also present.

In 2020, Tshikululu Social Investments surveyed more than 170 NPOs around the country and found two-thirds of respondents experienced a decline in income. Another third of those interviewed said they had to lay off staff. At least 61% of respondents believed that the damage from the pandemic could either be partly or fully countered and expected income to return to 2019 levels in the next three years.

The survey found that despite these challenges, approximately 60% of organisations reported they didn’t apply for relief funding from either the public or private sector.

Drop in income for NPOs a major concern

This year, MEC for Social Development in Free State has called for increased support and financial backing for nongovernmental organisations in the province, especially in townships.

Free State Social Development MEC urges support for township NGOs

OFM News/Kekeletso Mosebetsi mvh