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Court case summary
equalpayFree State NPOs challenge government on problems in its NPO funding policy

A recent judgment of the Free State High Court instructs the Free State government to come up with a better policy in respect of funding of non-profit organisations (NPOs). This judgment is relevant for NPOs and provincial departments of social development in other provinces as well because the Free State policy on funding of NPOs is almost identical to the national policy which covers all provinces.

The judgment relates to a court application brought by the National Association of Welfare Organisations and Non-Governmental Organisations (NAWONGO), NG Social Services Free State and Free State Care in Action against the MEC for Social Development in Free State, the Head of the Free State Department of Social Development, and the National Minister of Social Development. The three NPOs brought this court application after several years of serious frustration about the way in which the Department dealt with transfers (or subsidies) to NPOs. The frustration arose, among others, from delays in payment and failure of the Department to consult with and inform them as to how much it would pay them for the services they delivered. Equally importantly, the frustration arose from the fact that the transfers are too small. The NPOs are thus unable to deliver the services which they are willing and able to deliver, and which they know are badly needed by poor and vulnerable people in the province, because they have too little money.
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URGENT REQUEST FOR INTERVENTION IN NORTH WEST
eyes-of-a-protest-marcherDear Ms Civil Legodu

As a collective of North West Non-Profit Organisations (NPOs), we are very concerned that the planned meeting discussing the current crisis in funding situation in the North West on 23 July 2010 did not occur.

We were relying on this meeting to receive critical feedback on the outcomes of the emergency meeting held on 3 May 2010 with you, the province and other role-players, and the undertaking given by Mr. Malaka at that meeting to address the crisis. We were not informed that the 23 July meeting would not occur or given reasons for why it was cancelled.

As a result, the crisis of funding in social services is still occurring in the North West.
There are many Service Level Agreements (SLA) that are outstanding and which have not been presented to, or signed by, the NPOs. The Department undertook that this action would be completed by 15 May 2010. They also undertook that outstanding funding as well as forthcoming funding would be paid on a quarterly basis and in advance, and that this would be implemented by 30 May 2010.

The majority of organisations are now waiting for between four months and a year for overdue funding, regardless of whether the relevant SLAs have been signed.
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Problematic Policy
problematic_policyIn February this year, we asked for your input into that perennial NGO bugbear, the Policy on Financial Awards to Service Providers (PFASP).

“The Department of Social Development (DoSD) has recently released a March 2008 version of the problematic policy and intends to push it through before the close of their financial year. The NWF has already written to DoSD and Minister Molewa to request that they declare a proper open consultation process of at least a few months to make sure that all organisations have enough time to read, understand and offer a proactive critique of the policy. We are waiting to hear if this happen, but in the meantime, please take a look at the document here, and send your comments to Karen Peters, on email or fax as soon as possible. We can only hope that DoSD will do the right thing and ensure there is proper and open consultation for such an important policy instead of just trying to push it through with only a cursory “consultation” with the most unreasonable time limits.”
 
We are pleased to let you now have this latest version of comments, compiled for the JSC by Karen Peters.
Again, we ask that you read and comment, so we make sure we can get the kind of policy we need to do the work we must!
You can find the document with comments here: http://www.forum.org.za/engage/pfasp/july2010
 
Please send you comments to Karen Peters on Karen Peters karpeters@gmail.com or by fax on 011 492 0371
 
Read more:
Read the DoSD PFASP document here: http://www.forum.org.za/pfasp/12010
Read the February Update here: http://www.forum.org.za/Activity-Report-February-2010
Read the NACOSS & NWF dating from 2004 here: http://www.forum.org.za/Comments-on-the-Draft-Policy-on-Financial-Awards-to-Service-Providers
Mandela Day 2010
mandela_day_2010Members, friends and supporters – make this 18 July and Ayoba! day…

Join the global Mandela Day initiative on 18 July as a partner with the National Welfare Forum. We are the largest civil society coalition in South Africa, with national presence and membership of 3000 organisations working in all fields of social service and development from child care, the aged and HiV and Aids work.

This year, following on our past success we are assisting the Tswelopele Frail Care Centre for the elderly and people with physical and mental disabilities situated in Hillbrow, Johannesburg. There are currently 92 patients (males and females) between the ages of 40 and 82 years. The nursing staff feed, bath and clothe those who cannot take care of themselves. The centre is partly funded by the Department of Social Development but as with most other NGOs, they have experienced funding problems where the staff has sometimes been without salaries and the centre left with limited resources to feed, clothe and care for the residents.

The NWF has decided to help Tswelopele by redecorating their two TV lounges, which serve as the only communal areas for the 92 people living there. These areas are currently very drab with limited furnishings, peeling paint and do not provide any real value to the residents. We want to work with you to develop a warm, welcoming and enriching space for the residents to use to relax, read, watch TV, or listen to the radio. We want to help Tswelopele residents enjoy some of the things we take for granted everyday and your help in this would make a huge difference.
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