DSD PRIORITIES AND POLICY ON FINANCIAL AWARDS TO

SERVICE PROVIDERS

25 MAY 2011

Presentation OutlineIntroductionThe NPO sector in SADistribution of NPO sectorDSD Priorities Why review the Policy- ChallengesOutcomesOutline of the policyImplementation of the policyConclusion

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IntroductionIntroduction Social development’s business is to drive social change

designed to promote the well-being of the population as a whole in conjunction with a dynamic process of economic development.

Hence our vision is to “…build a caring and integrated system of social development services that facilitates human development and improves the quality of life”.

Social welfare deficits have thus far negatively impacted upon the development pursuits of South Africans – services to the needy remain historically acute.

In the absence of the social grants that millions of South Africans receive, the consequences would have been extremely perilous

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Introduction (2)Introduction (2)

Over the past 17 years, social enterprises have emerged out of broad-based community development strategies involving citizens, the voluntary sector, businesses, learning institutions, and other partners.

These enterprises provide a flexible and sustainable tool that can help communities to achieve their own objectives, such as: stimulating job creation and skills development; enhancing community capacity for social supports supporting economic growth and neighborhood

revitalization; and mobilising disadvantaged groups

Introduction (3) Community structures are generally organized around three

realms, the government, business and nonprofit sectors Like a three-legged stool, all three sectors must be present, and

working together to achieve balance and stability in a country

The rapid growth of the role of the voluntary sector in the provision of social services in the last two decades of the twentieth century became a major social policy as well as political and ideological issue in the country

Civil society Organizations are important in community development, community empowerment and the delivery of social services and this development put the civil society organizations or voluntary sector on the agenda of service delivery improvement.

Introduction (4) NPO sector has been in existent for a long period in the country

and internationally. Even before the 1994, NPO were the key in the struggle against apartheid

Post apartheid NPO’s are still a key in the delivery of social services. NPOs are therefore a vehicle in which social services in the communities are delivered to the communities, especially the poor rural communities

Little had been known about the size and scope of the civil society organizations in the country until the department passed an Act that compels civil society organizations to register as NPOs

DSD is responsible for the administration of the NPO Act and

creating of enabling environment for all NPOs in the country

NPO registration2010/2011 financial year (April 2010 to31st March 2011)

the Department received 15 232 new applications of that 10 238 organisations were eventually registered 4 723 did not met the registration requirements. This translate to 69% registration compliance by

organizations. An increase of 6% from 2009/2011This represent an increase of 14% in the NPO register.97% of registered NPOs during this period were

Voluntary associations, while the remaining 3% were shared between Section 21 (2%) and Trust with (1%)

Distribution( types)

NPO Type

97%

2%

1%

Section21

Trust

Voluntary

Provincial Distribution

Province Number of NPOs

Eastern Cape 1041

Free State 453

Gauteng 3353

Kwazulu Natal 1927

Limpopo 1234

Mpumalanga 583

North West 556

Northern Cape 250

Western Cape 1145

Total 10542

Received vs Registered for 2010/11 FY

01000200030004000

Received Registered

Figure 1: Growth over 4 yrs

0

10000

20000

30000

40000

50000

60000

70000

80000

NPO registered per sectorCLASSIFICATION Total number Percentage

Social Services 26 199 34%

Development and Housing 15 797 21%

Religion 8 839 12%

Health 8 723 11%

Education and Research 8 655 11%

Culture and Recreation 4 069 5%

Law, Advocacy, and Politics 1 605 2%

Environment 918 1%

Philanthropic Intermediaries and Voluntarism Promotion 912

1%

Business and Professional Associations, Unions 402 0.5 %

International 53 0,06%

Not elsewhere classified 3 -

OVERALL 76 175

Provincial Distribution

Provincial Registered NPOs

05

101520253035

Perc

enta

ge

Funding of non profit organisations

Treasury in its 2005/06 – 2011/12 Provincial Budget and Expenditure Review document published, identifies the expanding of social welfare services, and building of stronger partnerships with NPOs as one of the priories that inform the provincial share of revenues

DSD identified a number of gaps through the internal Desktop Analysis and interaction with service providers and Provinces

DSD PRIORITIES “AREAS OF CSI AND NPO

FUNDING”

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Department’s Priorities

Welfare Services Improvement

Community Development

Social Policy Coordination and Research

Comprehensive Social Security

Strengthening of the NGO Sector

Food Security

Social Protection Agenda

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WELFARE SERVICE IMPROVEMENT WELFARE SERVICE IMPROVEMENT (1)(1)

Sector CapacityHuman resources capacity in the welfare services field is

currently inadequate to address the critical social development needs of the country ( social worker, ASW, CDP, ACP)The emphasis in this area will be on enhancement of

sector capacity in terms of bolstering the presence of social services professionals on the ground, unblocking service delivery issues related to the application of the legislation, training, social infrastructure and implementation support to delivery partners.

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WELFARE SERVICES IMPROVEMENT WELFARE SERVICES IMPROVEMENT (2)(2)

A reduction in substance abuse The Department of Social Development lead campaigns that seek

to reduce the abuse of drugs and rehabilitate and integrate drug users to become addiction-free and productive members of societysocial change strategies to change the current unhealthy use of

substances including alcohol in South Africa. This campaign will oversee policy and legislative changes that

will regulate the manner in which alcoholic products are marketed and distributed.

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WELFARE SERVICES IMPROVEMENT WELFARE SERVICES IMPROVEMENT (3)(3)

Tackling of social crimeDespite our progress and ‘best practice’ policies our

country still has high levels of social crime particularly violence against women and children

Our Victim Empowerment Programmes and social

crime prevention strategies are delivered in partnership with civil society organisations and partner government departments.

We need to increase the approaches

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WELFARE SERVICE IMPROVEMENT (4)WELFARE SERVICE IMPROVEMENT (4)

Promotion and establishment of ECDsThe Department continue to accelerate the Early Childhood

Development Programme to ensure that every child is given a good start early in life

The number of children in Early Childhood Development

sites subsidized by the Department of Social Development has increased from 270,096 in 2005 to 443,545 in 2011.A need to partner with civil society organisations to

accelerate the efforts

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COMMUNITY DEVELOPMENTCOMMUNITY DEVELOPMENTSocial mobilization and facilitation The Department of Social Development continues to develop and

implement an array of programmes that do not only protect South Africans against poverty, but also promote investment in building and strengthening community and household’s capacity towards self-relianceCommunity projects , capacity of community structure

Youth and women to ensure that they are provided with appropriate support to unleash their potential to achieve sustainable livelihoods. This collective effort will certainly create solidarity; promote social change and justice as part of nation buildingYouth and women capacity & skills and economic

opportunities

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COMMUNITY DEVELOPMENT (2)COMMUNITY DEVELOPMENT (2)

Social mobilization and facilitationThe Department will further place more

emphasis on repositioning its community development and focus on Community mobilisation with other departments

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PROVISION OF COMPREHENSIVE SOCIAL PROVISION OF COMPREHENSIVE SOCIAL SECURITYSECURITY

Extending the reach of social assistance to the poor

The mainstay of our contribution to reduce income poverty remains in our social assistance programmes.

The number of poor households in receipt of social grants reached a high of 15 million by January 2011

We will research the viability of revising the means tests for all the grant types so that more people who need assistance may be reached

The Department will ensure that our retirement systems is more responsive to the needs of all working people.

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PROVISION OF COMPREHENSIVE SOCIAL PROVISION OF COMPREHENSIVE SOCIAL SECURITY SECURITY (2)(2)

Ensuring access and integrity in the Social Security

The Department has established a Tribunal to investigate and adjudicate on all the social grants appeals and it is now establishing the Inspectorate to examine and maintain the integrity of the social security framework and systems.

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STRENGTHENING OF THE NGO STRENGTHENING OF THE NGO SECTORSECTOR

Improving governance and the turn around time for the registration of NPOs

Working together with various sections of our society remains a key strategic anchor for the Department of Social Development and is a necessary step in ensuring that social development goals are realised.

The Department will continue to lead in the registration and strengthening of civil society organisations that support communities in service delivery and broadly on development issues.Capacity building of organisationsMonitoring of organisations

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STRENGTHENING OF THE NGO STRENGTHENING OF THE NGO

SECTOR SECTOR (2)(2)Improving governance and the turn around time for the

registration of NPOs The Department will improve its Information Technology Systems

and publish lists of organisations that have opted to demonstrate their willingness to be accountable on resources raised and allocated by government - thereby increasing their credibility and indeed marketability.

More emphasis will be on education through consultative workshops and information to the public and indeed other agencies in government on the NPO registration system as stipulated in the NPO Act of 1998.

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FOOD SECURITY FOOD SECURITY Zero hunger DSD is working towards further improvements of the people of

South Africa’s food security through linking the provision of social assistance to programmes that will facilitate the integration of food production to the consumption of healthy food by poor South Africans. This will be done in partnership with partner departments such as Rural Development and Agriculture

Our participation in this programme loosely termed “the Zero Hunger Programme” as is the case in Brazil; has the potential to significantly change the manner food is produced and distributed in South Africa.

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SOCIAL POLICY COORDINATION AND SOCIAL POLICY COORDINATION AND RESEARCH RESEARCH

Population Development Implement research, capacity building programs and improve communication

to strengthen implementation of the population policy, particularly in support of the local government

Place more emphasis on gender equity, equality and the empowerment of women and youth as well as health concerns with demographic consequences (HIV/Aids)

Play a progressive role in international population affairs in the build up to the 20 year review of the International Conference on Population and Development (2014).

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SOCIAL POLICY COORDINATION AND RESEARCH SOCIAL POLICY COORDINATION AND RESEARCH (2) (2)

Evidence based policy development

Provide strategic guidance on social policy development, coordination and guidance.

Deepen social policy discourse and evidence based policy making

Contribute towards a fight against poverty through research and policy development

Driving the Department’s social policy analysis thrust in support of the African agenda

ROLES OF CIVIL SOCIETY ORGANISATIONS Community structures are generally organized around three realms,

the government, business and nonprofit sectors Like a three-legged stool, all three sectors must be present, and

working together to achieve balance and stability in a country

The rapid growth of the role of the voluntary sector in the provision of social services in the last two decades of the twentieth century became a major social policy as well as political and ideological issue in the country

Civil society Organizations are important in community development, community empowerment and the delivery of social services and this development put the civil society organizations or voluntary sector on the agenda of service delivery improvement.

Matrix of Challenges

ChallengesUniformity in NPO funding in the DSD sector ( National

Branches & Provinces)Delays in NPO funding in provincesNational roles in the coordination of the sector NPO

fundingPoor Monitoring and evaluation and reporting systemsNon-Compliance of NPOs to the NPO ActImplementation of the new pieces of legislationDisparities in the NPO funding Disparities among the NPOs

Outline of the Policy (1) The thrust of the reviewed Policy hinges on the approach that DSD

takes charge in establishing partnerships with NPOs Build around establishing partnerships as a form of financing

NPOs for sustainable service delivery It seeks to position the DSD to assume its leadership position

towards effective management of financing services delivered by the NPOs within the social development sector

The following are key areas that have been introduced to address challenges or gaps in the implementation of the current policy:Transformation PartnershipsRoles and responsibilities New approach of Financing ( Programme Funding) Implementation of the Policy

Intended OutcomeTransformation of civil society organizations and NPO

Uniformity

Empowerment

Partnerships establishment

Better financial management

Effective and efficient service delivery

Synchronization with new legislations

Outline of the Policy

Transformation:Focus on empowerment of emerging NPOsProvision of support to such organisations to be

responsive to the PolicyDepartment to take leadership in financing of NPOsFunded NPO to implement transformationThe Department to monitor transformation

Outline of the Policy (2) Partnerships: The policy recognizes the significance of partnerships and strives

to improve and clarify relationship between DSD and the NPO

sector

Strengthening of communication

Clarification of roles and responsibilities of DSD and NPO sector

Effective management of financing services delivered by the

NPOs within the social development sector

Outline of the Policy (3)Financing: In order to address the challenges identified with respect to the

funding of the statutory services, this chapter proposes a move from subsidisation to programme financing in accordance to national norms and standards and costing models to ensure uniformity

Financing based on departmental priorities and affordability Financing based on identified needs and availability of financial

resources Introduction of call for proposals The policy proposes NPO financing time lines linked to MTEF

and the guidelines Streamline budget to avoid double dipping

Outline of the Policy (5)

Implementation of the Policy:The policy proposes

The introduction of the NPO financing guidelinesThe role of national and provincial department

( coordination)Implementation of one PFA across the Departments Implementation of new legislations ,norms and

standards and Costing modelsIntegrated Service Delivery approach

NPO GuidelineProvide guidance to National and Provinces on NPO

funding Provide a practical processes and steps for NPO fundingStandardize NPO funding processes to uniformity in the

sectorTo define capacity for the management of NPO fundingTo strengthen NPO management in the sectorTo strengthen NPO monitoring and reportingTo integrate NPO funding into the MTEF cycle

ConclusionConsultation with the civil society organisations to

begin to ensure buy-in and participationFinalisation of the costing models creation of capacity at all spheres of governmentStrengthening of monitoring and evaluation systemsCapacity building or training of provinces on

guideline (call for proposal approach) where necessary

Implementation for next year

Thank you