NGOs in South Africa

From NGOPedia

What is an NGO?

Introduction to NGOs Definition of NGOs What is an NPO? NGOs in South Africa Establishing the credentials of an NGO Engaging with an NGO Regional Summary

Index

Contents 1 Historical context 2 NGO funding 3 Public Private Partnerships and Development Agencies 4 Millennium Development Goals in the South African Context 4.1 Actions required to expand the access to technology for development include 4.2 Six steps 5 Some relevant characteristics of, and challenges faced by the South African NGO Sector 5.1 Some challenges that South African NGOs face

Historical context

Throughout South Africa’s development history, successive governments have decided that the country is not a welfare state. This means that when someone is in need, it is expected that the family or the community should help. The State will only become involved if help cannot be given privately. Due to this there has always been a call for individuals to show a spirit of ‘Ubuntu’ and philanthropic concern.

Before the 19th Century - there were no organised welfare services. Families looked after their own needs. In 1916 a national conference recommended the coordination of private welfare services. The late 1920s saw the beginning of a number of National Welfare Councils. Before World War II “The Carnegie Poor White Investigation” report, recommended the creation of a State Bureau of Social Welfare, to coordinate the welfare activities of state departments in cooperation with voluntary organisations and the churches. A Department of Social Welfare was established in 1937.

As a result of the active public fundraising that took place during World War II it was felt that some control of the public collections needed to be introduced. This gave rise to the Welfare Organisations Act No. 40 of 1947. With the issuing of the National Welfare Act 79 of 1975, national and regional welfare boards came into being. Several commissions of enquiry followed, including the Van Rooyen Commission of Inquiry into the Collection of Voluntary Financial Contributions from the Public and out of their recommendations came the Fundraising Act No 107 of 1978.

Most community projects were carried out by religious groups during the mid 1950s but this started to shift and change around the late 1970s when NGOs and CBOs started to form and address social imbalances. A huge growth in the sector occurred between the early 1980s and 1994 – mainly due to the flow of foreign funding and local efforts in fundraising for good causes.

“	In the past government often influenced the idea of corporate citizenship but this has changed; NGOs are becoming essential partners in the delivery of products and services to the private sector and indeed on behalf of the state.	”

Over the past 10 years there have been major shifts and changes both, in rationalisation by government of service delivery and the legislation controlling and regulating NGOs. Subsequently the role of NGOs has begun to influence the way business is done, especially with regards to corporate social responsibility (CSR). In the past government often influenced the idea of corporate citizenship but this has changed; NGOs are becoming essential partners in the delivery of products and services to the private sector and indeed on behalf of the state. Linked to this is the creation of a range of development agencies that operate in a collaborative way between the Public and Private sectors (See:Small Enterprise Development Agency (SEDA)).

The ANC-led government still has in its ranks a range of NGO activists who become political leaders and so social development/welfare is high on this government’s agenda. However in the light of the HIV/AIDS epidemic and the worsening state of the world’s economy NGOs are often filling the gaps of public service to communities; doing the work government should be doing, or raising social issues that the government pretends don’t exist. They, the NGOs, are social change agents and work in many areas of life.

NGO funding

In South Africa it is estimated that income generated through donations, grants, sales, membership dues, fees for services (contracts/tenders with government and the private sector) plus interest on investments is in excess of R16 billion per annum (US$2.3 billion). In 2007, R3 billion was contributed through corporate social investment. It is probable that more than 2 million people volunteer their time, talent and expertise to NGOs annually, with an estimated worth of a further R5.1 billion in sweat equity.

“	... it is probable that more than 2 million people volunteer their time, talent and expertise to NGOs annually, with an estimated worth of a further R5.1 billion in sweat equity.	”

Donations or funding of programmes can be provided by either private parties or government agencies. NGOs generally do not make any distinction between government funding (a significant source) and other funding.

The Income Tax Act makes provisions for NPO organisations to become registered with the South African Receiver of Revenue as Public Benefit Organisations (PBOs). This provides them with certain tax exemptions. Furthermore, if they qualify according to certain criteria, Section 18 (A) receipts can be issued to donors, affording the donors with limited tax exemption against the donations made.

Public Private Partnerships and Development Agencies

Currently welfare service and social development activities in South Africa have, to a large extent, been collaborative undertakings as part of Public Private Partnerships. Since 1994 we have seen the creation of a range of institutional forms, such as groups of NGOs forming consortia to tender for specific service delivery, PPPs and the work of agencies that work together with national and local government structures, international donor agencies and local and national NGOs. They all work together in an attempt to address issues such as HIV and Aids, poverty, environmental programmes, housing and other pressing social needs as they arise.

Millennium Development Goals in the South African Context

The Millennium Development Goals (MDGs) currently provide an overarching set of global challenges that progressive South African NGOs hold as objectives to mobilise around (described in the background section on page 3). The South African development agenda falls amongst the others of Sub Saharan African countries which are mentioned in the last MDG meeting (held in September 2008) report, as forming the epicentre of the escalating humanitarian crises due to poverty and conflict over scarce resources and ethnic feuding. This is further aggravated by the HIV/AIDS epidemic, climate changes and lack of infrastructural resources such as electricity, clean drinking water, roads and ICT. In Africa 74 people out of 100 do not have access to electricity.

“	In Africa 74 people out of 100 do not have access to electricity.	”

This first report of the Task Force highlights that there has been progress on many fronts, but the delivery on commitments has been deficient and has fallen behind schedule. A shared future for all will not be possible without globally concerted action and strong partnerships. At this midpoint in our work towards meeting the 2015 deadline, it is essential that all partners accelerate their efforts to deliver on the promises they have made.

Actions required to expand the access to technology for development include

• Formulating national ICT strategies aligned with broader development strategies
• Introducing more flexibility in relation to Trade-Related Intellectual Property Rights to accelerate the diffusion of technology for development to developing countries, including that related to renewable energy and adaptation to climate change
• Increasing efforts to expand both basic infrastructure such as electricity supply and ICT-facilitating infrastructure, especially in low-income countries
• Creating incentives for the private sector to develop technologies relevant to people in

low-income countries, including those that address issues of climate change adaptation and renewable energy

• Applying more widespread differential pricing practices to reduce the costs of key technology in developing countries in order to make access affordable to all

In addition, Archbishop Ndungane of the Anglican Church Southern Africa recommends six steps that can be taken by African civil society to accelerate the continent’s and South Africa’s rate in meeting the MDGs:

Some relevant characteristics of, and challenges faced by the South African NGO Sector

The NGO sector in South Africa is substantial and diversified, with huge differences between organisations, ranging across the organisational cultures, operational standards and resources.

NGOs in South Africa operate in the following programme areas: Advocacy and awareness around particular issues, access to justice, access to land, adult basic education, animal rights, child welfare, community development, community training and capacity building, conflict resolution, crime prevention and rehabilitation, culture and recreation, economic development, entrepreneurship, environment, formal education and research, gender, health, HIV/AIDS, housing, human rights, infrastructure development, media and communications, monitoring and evaluation, networks, participatory democracy, philanthropic intermediaries and voluntarism promotion, rural development, social services, job training and career guidance, counselling, therapy and psycho-social rehabilitation.

“	SA NGOs rise and fall; a few last and provide consistent service delivery. This rise and fall can be attributed to shifting social needs in a rapidly changing and stressed society.	”

In addition, similar NGOs often form collaborative networks that provide sector leadership around developing policy frameworks or acting collectively to engage government around issues of concern.

In South Africa they will include registered voluntary associations, section 21 companies and trusts. These run projects and programmes that positively impact social and economic policies and deliver necessary support services to those who need it the most – they feed, clothe, teach, create, guide, safeguard, accompany and facilitate.

It is difficult to provide good statistics on how many NGOs exist in South Africa, it is estimated that there are approximately 120,000 CSOs (Civil Society Organisations) of which 37,000 are registered as NPOs, what proportion of these numbers are bona fide NGOs is up for debate. What we know is that the NGO sector in South Africa 'is BIG' cynically described by some as a 'home for all'... ex-politicians, ex-government officials, people with axes to grind, messianic zealots, ‘bleeding hearts’, begging bowl subscribers, empire builders, DIY’ers and in the main, (those that last), some very sophisticated, intelligent, functional, good hearted and passionate people who see a gap and try to fill it.

SA NGOs rise and fall; a few last and provide consistent service delivery. This rise and fall can be attributed to shifting social needs in a rapidly changing and stressed society.

Some challenges that South African NGOs face

• There is a high degree of burnout amongst the leadership of SA NGOs and some of the more sustainable NGOs consider having a succession strategy as an essential element in their long-term strategic plan.
• The “self-sustainability” level of NGOs tends to be low. Which, when considered does

make sense if the activities are centred around welfare provisioning, as welfare activities tend to drain rather than generate resources.

• Most NGOs have limited financial and management expertise. However amongst some of the more ‘established’ NGOs this is changing as the donor community has wised up and has introduced a range of checks and balances that provide an imperative for NGOs to acquire these competencies. Some are financially sound, but most operate in a precarious state of scarce funding, job insecurity and threadbare facilities.
• Many NGOs lack inter-organisational communication and coordination and subsequently tackle their chosen causes without a clear understanding of the broader social and economic context.
• Funding remains a challenge with some of the funds having been diverted to government

operations as well as onerous monitoring and evaluation requirements of donors.

• Monitoring and evaluation - many lack the tools and understanding to measure and track effectively, and IT usage is not as sophisticated as a tool in this community.
• MDGs - as much as these have raised awareness and funding for NGOs, it has also

introduced new players in the form of PPPs which can be seen as competition for NGOs.

• Changing face of development - focus on sustainability. NGOs have long focused on a

“non-business” approach and are increasingly asked to introduce more business like models.

• Distrust - history of distrust in SA NGO community in particular.
• Corruption - there has been a history of corruption in the NGO community in SA (and

elsewhere). This is a stigma that some NGOs are still fighting.

“	The South African NGO sector is vast and diverse, and there is no short list of all their advantages and disadvantages.	”

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What is an NPO? | Establishing the credentials of an NGO