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Policy on Financial Awards to Service Providers (PFASP) Print E-mail

Background / History
The Forum and NACOSS, working together as the Joint Strategic Committee (JSC), have been voicing their concerns about the government’s PFASP since 2004, when it was introduced in draft form. Although the policy is currently being applied, there is as yet no consensus between government and civil society on this policy.

Problem
Our country’s social welfare services are in a crisis of under-funding, and it is the poorest and most marginalised of our people who are suffering as a result.

The amount of money that NPOs can raise falls far short of the gap between the services which government provides directly and the actual social welfare needs of the country.

The JSC’s position is that the PFASP fails to provide for an efficient distribution of resources. It places unrealistic expectations on the NPO sector, which is already severely overstretched in trying to meet the demands from extremely vulnerable individuals, families and communities. In short, it is not providing the amount and kind of support that is essential for NPOs to meet the enormous social welfare needs of the South African population.

The JSC firmly believes, though, that it is fully possible to solve most of the problems with the policy if appropriate action is taken, and has made a number of recommendations to this end. The JSC has also expressed its willingness to provide any assistance it can to implement these recommendations.

Among the recommendations the JSC has submitted to the government are for:

  • an on-going and properly researched audit to serve as a basis for planning and budgeting, as well as for adjustments to the PFASP as and when indicated; and
  • the PFASP to be redrafted in line with the Integrated Service Delivery Model (ISDM), which has since been put in place.



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