sustainability

sustainability

  • For and Not-For-Profit Big Bang...

    Two worlds are colliding and the results can only be fun.

    I am sitting in the Impact Investing conference organised by the South African Network for Impact Investing (SAII) and hosted by the University of Pretoria’s Gordon Institute of Business Science (GIBS) and you can see it happening.

    There are those of us from the nonprofit background (clearly visible as we don’t wear sharp cut suits or impossibly high heels) and those from the financial world, who talk a strange language of bonds and equity and use acronyms as if they are pronouns.

    I often think that the jargon of business is designed to be intimidating so that those of us on the periphery are forever excluded, like little children not invited to the Top Dogs birthday party.

    But this week, I had one of those moments where all became clear and suddenly it made sense. I missed the choir of angels and harps accompanying my epiphany, but it was no less dramatic.

    We are all saying the same thing - just differently.

    There are fund managers out there looking (yes – looking!) for social enterprises to invest in. This took a long time for the fundraiser in me to understand, as these moments are few in the nonprofit world.

    These fund managers will take you through a rigorous process assessing your business, your future growth and your ability to survive independently of traditional grants and handouts. You are after all, a business. They do however, despite the sharp suits and high heels, seem to have a heart. They are just approaching us from a different angle.

    So no longer can nonprofits assume that business does not understand the world of social service delivery. They bring new insights, which we must acknowledge and respect and vice versa.

    So this is the Big Bang, where the world of for and not-for-profits collide.

    It is a change in thinking.

    We know that the traditional funding model - of dependency on finite grants, and hard-won subsidies - cannot last.
    The financial stress and pressure that we all largely operate under means that we can never think ahead. We are always worrying about the now, rather than the where do we want to be.

    Impact Investing may not be your thing, but the thinking of this new approach has to be explored and interrogated.
    Why?

    Because it encourages you to develop a social enterprise - a business wing that supports the delivery of social services. Because it is passionate about measurement and accountability. Because taking on financing  forces you out of the cushioned security of grant funding and means you have to face up to your own organisational risk: ‘Will it work?’ takes on a whole new meaning when you have to pay the money back.

    And let us be honest. This is exactly what the nonprofit world has been calling for. We have just been using different phrases that ask for new funding streams, greater accountability and transparency, as well as ownership by all.

    So. Sparks will fly, as our worlds slowly collide. But Impact Investing has gravitational pull and its going to be hard to resist.

    - Kerryn Krige is a freelance advisor in development. She has worked for some of South Africa’s leading non-profits as a fundraiser and programme manager. She started off as a journalist and moved into the non-profit sector in the United Kingdom, working for traditional charities and social enterprise. She has worked in East and Southern Africa and is passionate about building the capacity of the nonprofit sector. You can get in touch on ayandamalindi@yahoo.co.uk.

  • New Publication on the Sustainability of South African Civil Society

    South Africa’s civil society sector, variously known as the nonprofit (NPO) or non-governmental organisation (NGO) sector, plays a vital and often unacknowledged developmental role. In spite of an enlightened Constitution, discrimination and inequity still abound in South Africa. Women, children, people of colour, indigenous peoples, migrants, gay and lesbian groups, and people living with HIV/AIDS, are among particularly vulnerable groups. Although there has been some progress in racial, ethnic, and gender equality since1994, South Africa remains a vastly unequal society, driven by all the worst consequences of pervasive poverty. These include health, education, welfare and human rights failures.

    The civil society sector is dedicated to alleviation of these and other damaging socio-economic conditions. Over the past two decades the sector has increasingly filled gaps in government service delivery. It is no exaggeration to contend that without the efforts of organisations of civil society the suffering of the poor, the marginalised and the sick would be significantly more acute. In view of this it seems indefensible that this important sector is experiencing a sustainability crisis. While we do not have current and reliable statistics on funding to the sector, a variety of sources show that most organisations rely on a combination of (diminishing) international funding, corporate social investment, donations from individuals, and a degree of income-generation, often via government contracts. The support of government is erratic at best, as reflected in several recent media exposés. As a result, the sustainability of many important organisations is threatened and many have been forced to close or to drastically reduce staff and associated capacity. These circumstances are greatly exacerbated by the current uncertain economic climate.

    With the intention of improving this situation, a group of organisations have published a new report: ‘Critical Perspectives on the Sustainability of the South African Civil Society Sector’. Including an assessment of the functioning of the National Lotteries Distribution Trust Fund (NLDTF) and the National Development Agency (NDA), the report represents the outcome of extensive research and consultation. The objective is to  improve the practice of government grant-making and investment in the sector, and in the process contribute to an effective enabling regulatory environment for South African civil society.

    The research revealed that the legislated ‘enabling environment’ for civil society requires review and strengthening. The NPO Directorate within the Department of Social Development has been unable to effectively implement its responsibilities in accordance with the Nonprofit Organisations Act. The NLDTF and the NDA have not managed to disburse funding effectively to the sector in accordance with the relevant legislation. The serious lack of current and reliable national data about the size, scope and activities of the sector negatively affects the ability of the sector and of government to support it. Statistics South Africa has not met its obligations in this regard. The sustainability and effectiveness of civil society to address poverty and inequality is compromised by these problems.

    The report concludes with a number of practical conclusions and recommendations. Key among these is a call for the National Planning Commission to review the current dysfunctional regulatory environment in consultation with representatives of the sector. Piecemeal adjustments will not work – a cross-government systemic approach must be adopted in order to ensure that the various departments and state-related agencies function in accordance with over-arching developmental policies. The expected outcome of this recommendation should be a holistic framework for the location and effective functioning of the NDA, NLDTF, specific allocations from official development assistance, private philanthropy and corporate social investments, congruent with the developmental state.

    Click here to read the full report.

    For more information contact:

    Colleen du Toit
    Mobile: 083 646 8469

    Phiroshaw Camay
    Mobile: 082 886 5886

    Rajesh Latchman
    Mobile: 083 443 0227

    Issued by:

    Charities Aid Foundation (CAF Southern Africa)
    CIVICUS: World Alliance for Citizen Participation
    Co-operative for Research and Education (CORE)
    Southern African NGO Network (SANGONeT)
    Legal Resources Centre (LRC)
    National Welfare Social Service & Development Forum

    To view other NGO press releases, refer to www.ngopulse.org/group/home-page/pressreleases.

     

    Date published: 
    07/08/2012
    Organisation: 
    Charities Aid Foundation (CAF Southern Africa), CIVICUS:World Alliance for Citizen Participation, Co-operative for Research and Education (CORE), Southern African NGO Network (SANGONeT), Legal Resources Centre (LRC), National Welfare Social Service & Development Forum
  • Donor Engagement Forum

    People First Foundation

    The People First Foundation will host a Donor Engagement Forum on 3 August 2012 in Cape Town.

    The aim of the forum is to create a mutual space for non-profit leaders and donors to engage as equals around the issue of alternative funding strategies and donor practices in a time of finanicial crisis.

    Background:

    Non-profits live and operate in extremely difficult times! There are 3 types of non-profits operating currently namely the ones that have perished and became victims of the funding crisis, those who are currently struggling to maintain themselves and thirdly those who anticipated the crisis and managed to avoid it.
     
    Since 1998 the fundraising scene is not improving for non-profits in South Africa. It is actually getting worse! Budgets on social expenditure have been diverted to the World Cup and now we are paying the price. Donors (and government) are moving more and more toward very big non-profits who can demonstrate big impact so that they can justify their appeals for raising funds from their sources. The effect is that more and more medium to smaller non-profits are pushed to the periphery and being marginalized. More and more international donors are exiting South Africa claiming we are now a middle income country and must look after itself. What they conveniently forget is that in terms of the black population SA is a third world country with the highest ratio of income inequality in the world. Already it was announced that Atlantic Philanthropies from the US and maybe even the Ford Foundation will wind up operations in 2012. Cordaid from the Netherlands has already started exiting.
     
    This will be a major blow for many non-profits who received their funding from these sources. Already there is speculation that PEPFAR funding (for HIV/Aids) will be phased out in 2012. In order to survive this reality, non-profits will be forced to reposition themselves as a matter of urgency!! If a climate of urgency does not permeate the corridors of each and every non-profit then there is a big problem!! It is extremely desperate and difficult times!!!
     
    All this is on top of a deepening funding, and at a deeper level, a leadership crisis, with its roots post 1994. Even non-profits who were well funded and highly professional are now feeling the pinch. The shift towards right wing administrations in Europe coupled with the deepening global economic crisis (caused by greedy bankers bailed out with taxpayers money) are exacerbating an already precarious situation.

    Panel members:
    • Taj Aklekker, National Chairpeson of Community Chest of SA and panel chairperson;
    • Frank Julie, Facilitator, author, strategist, advisor and chairperson of People First Foundation;
    • Titania Fernandez, Senior Fundraising Manager at Community Chest - Western Cape;
    • Ric Amansure, Corporate funding specialist and director of SA Gowth Institute;
    • Anthea Davids-Thomas, Director of Social Change Assistance Trust (SCAT);
    • Soraya Mentoor, Director of The Wheat Trust;
    • Tina Thiart, Convener of Grant.net and New Fundraisers Forum;
    • Jessica Fortuin, Provincial Director (WC) National Development Agency;
    • Freda Camphor, Assistant Director (Bellville Labour Centre), Dept of Labour.
    Donation: R60 per person.

    Make payments to:

    Account: People First Foundation
    Bank: FNB
    Acc nr: 62279429619
    Branch code: 250655

    Please e-mail deposit slip to peoplefirst.za@gmail.com or fax to 021 911 5444, with your name and contact details.

    RSVP: Vuyiseka January at peoplefirst.za@gmail.com or sms to 083 263 3015
    .

    For more about the People First Foundation, refer to http://peoplefirstfoundation.weebly.com.
     
    Event start date: 
    03/08/2012
    Event end date: 
    03/08/2012
    Event venue: 
    Artscape (opposite the CT Civic Centre), Cape Town, 10h00-13h00 (networking 12h30-13h00)
    Event type: 
    Seminar
  • NLB Extends Call for Input into Funding Criteria

    The recent call by the National Lotteries Board (NLB) for stakeholder input to assist in identifying the focus areas for National Lottery Distribution Trust Fund (NLDTF) funding has been positively received by major roleplayers. The input from stakeholders is streaming in steadily and the NLB has decided to extend the period for input to 22 May 2012 so that more roleplayers, especially those in outlying areas, can also use the opportunity to make valuable input.

    Input into focus areas for funding in the sectors of Arts, Culture and National Heritage (including Environment); Charities; Miscellaneous Purposes and Sport and Recreation will help streamline the process and will be clearly identified in the next call for applications.

    When identifying the focus areas, stakeholders should take into account Government Regulation 9340 of July 2010 that highlights that 50 percent of NLDTF funds are to go to rural, under privileged and poor communities. Beneficiaries of NLDTF funding have to be registered nonprofit organisations.

    Stakeholders should identify five priority areas for funding within their sectors e.g. children (charities sector), film (arts, culture and national heritage (including environment sector), youth sport development (sport and recreation sector) etc.

    Input from stakeholders should reach the NLB by no later than 22 May 2012 using the fax number and e-mail addresses below. This will be shared with the relevant distributing agencies and will assist in the planning for the next call for applications while taking into account the amount available in the NLDTF for distribution during 2012/2013 financial year.

    The input forms are available at www.nlb.org.za/applicants-and-beneficiaries/pamphlets.html.

    Those organisations without access to the internet, can obtain input forms by calling 08600 65383

    Input can be sent by fax to: 086 555 7623

    E-mail responses will be linked to the province from which the input comes as follows:

    For more about the National Lotteries Board, refer to www.nlb.org.za.

    To view other NGO press releases, refer to www.ngopulse.org/group/home-page/pressreleases.

    Date published: 
    08/05/2012
    Organisation: 
    National Lotteries Board
  • 2010 South African NGO Web Awards Announced

    The Southern African NGO Network (SANGONeT) has announced the winners of the 2010 South African NGO Web Awards.

    Click here to view the full press release.
    Source: 
    SANGONeT
  • SANGONeT Announces Winners of 2010 South African NGO Web Awards

    The Southern African NGO Network (SANGONeT) is pleased to announce the winners of the 2010 South African NGO Web Awards
    Press Release

    01 September 2010


    The Southern African NGO Network (SANGONeT) is pleased to announce the winners of the 2010 South African NGO Web Awards.

    The winning organisations are:
    The winners were announced on 1 September 2010 in Johannesburg during the first leg of SANGONeT’s 6th Annual “ICTs for Civil Society” Conference.

    The three winners each received R10 000 worth of prizes sponsored by Torque IT.

    The overall objectives of the competition are to raise awareness amongst South African NGOs about the benefits of having an online presence, stimulate interest in the application of web solutions and applications, and showcase best practices in website creation and maintenance.

    In line with SANGONeT’s 2010 conference theme of “Fundraising in the Digital World”, the 2010 competition aimed to identify NGOs which excel in “Best Use of Websites for Online Fundraising”.

    "The entries received for the 2010 competition, and the quality of the three winning websites, reflect the growing importance of online tools such as websites to the fundraising and resource mobilisation efforts of NGOs in South Africa," says David Barnard, SANGONeT’s Executive Director.

    The following organisations were shortlisted for the 2010 South African NGO Web Awards:

    For more information:

    Nicolle Beeby
    Project Manager: NGO Pulse Solutions
    011 403 4935
    083 379 5551 
    nicolle@sangonet.org.za 

    David Barnard
    Executive Director
    011 403 4935
    082 870 8968
    info@sangonet.org.za

    Ends...
    Date published: 
    01/09/2010
    Organisation: 
    SANGONeT
  • #SANGO10 - “Fundraising in the Digital World”

    The 6th Annual SANGONeT “ICTs for Civil Society” Conference (#SANGO10) will be held in three parts from 1-6 September 2010.

    Following the success of the previous five SANGONeT annual events, the 2010 conference will focus on “Fundraising in the Digital World”.

    The main event will be held from 1-2 September 2010 in Johannesburg, followed by one-day seminars in Durban on 3 September 2010 and Cape Town on 6 September 2010.

    Ted Hart
    , a leading US fundraising expert, will be the keynote speaker at the conference, and also present the seminars in Durban and Cape Town. He is the CEO of P2PFundraising and TedHart.Com, and Founder and CEO at GreenNonprofits.org.

    Raising money through the Internet, mobile phones and other online applications is gaining international importance. This is particularly evident, especially during high-profile events such as disasters, political campaigns and targeted multi-channel media efforts that draw attention to a particular cause or campaign.

    According to Ted Hart, global Internet fundraising generated more than $29 billion in 2008.

    Similarly, the recent earthquake in Haiti marked a turning point in the development of mobile giving. According to mGive, the company that worked with the American Red Cross to set up a SMS donation campaign in the wake of the disaster, more than 2.5 million people texted $10 pledges to Haiti relief in the week immediately following the earthquake. And this was just one of many mobile giving campaigns that were created to help fund relief efforts.

    The challenge for NGOs, fundraisers and other development stakeholders in South Africa is to ensure that they are prepared to embrace and maximise the opportunities presented by a fast changing digital world.

    Although only a small percentage of local NGOs are actively involved in fundraising through the Internet and mobile phones, a number of factors will contribute to accelerated growth in this area over the next few years. These include the growing number of South Africans with access to the Internet, the fact that most South Africans already own a mobile phone, the ongoing reduction in Internet costs, more NGOs with their own websites, the increasingly relevance and popularity of social networking platforms, a growing middle class and a significant expatriate community with an interest in supporting good causes back home.

    Furthermore, the 2009 “State of ICTs in the South African NGO Study” survey confirmed that local NGOs are becoming mainstream users of technology and are increasingly thinking about the role and relevance of the online environment in support of their work.

    To register, and for more information about the conference, refer to www.ngopulse.org/conf2010.

    We look forward to your participation in 2010 SANGONeT Conference!
  • NPO forecast for 2010

    This past year has been a tough one for all in South Africa but we have survived albeit battered and bruised. The 2010 Soccer World Cup is only a few months away and there are signs that the economy is picking up and a positive spirit is responding to this stimulus.

    CSI will stay flat

    First signs of economic green shoots are showing, a growth of 2.4 percent for this year is predicted by AfriFocus, an investment company, although this is encouraging it will take some time before companies are able to replenish corporate social investment (CSI) budgets, so don’t get too excited, stay real as the cut-backs made in late 2008 and 2009 will be in place for at least another year.

    Remember that CSI income is derived from company profits and few corporates will be in a position to boost CSI until they find themselves in the same healthy position before the recession struck.
    Some analyst have a sense that a few companies may drop their CSI programmes permanently as associated administrative costs and oversight of projects is time consuming and the promised fuzzy feeling from social responsibility is not realised. Fundraisers take note – this must be your fault, so fix it!

    International decline in donations

    Many non-profits, who have enjoyed long-term relationships with foreign foundations (mainly USA linked), have received depressing news that cut-backs will continue and that in some instances programmes will be suspended. However, President Barack Obama has made a commitment to strengthen the USAid programmes in South Africa, so those few who are able to comply with stringent criteria will be happy.

    Some were able to increase international support; mainly from European government funding agencies, but then they have been nurturing these relationships for a long time and have programmes that fall into line with new focus areas. Another factor contributing to ‘less money’ is a strong Rand, predicted to remain close to R7.5/US$ for at least the first-half of 2010. We can only dream of those halcyon days during 2001 and 2002 when the rate was R20 to the US$1.00.

    Shut-downs

    The economic downturn is blamed for the closure of many non-profit organisations, between 5 000 to 9 000 – most will never return, which is tragic as this will eventually impact on development goals for the country. Others have downsized to such an extent that they are unable to deliver services on the scale that they were able to do for the past 15 years. We can expect a downward trend in the number of active organisations for a couple of years. As some would have it “2009 is a year that is best forgotten”.

    More effort, not less, into raising funds

    Brave NPO’s have put extra energy into raising funds this past year and have actually reported better returns than in previous years, but these are exceptional cases and they had the support of visionary board members who were prepared to back new or increase existing initiatives. However, the maxim remains – when the going gets tough, put more effort into raising funds and creating new relationships.

    One organisation that is not such a well known brand, upped their direct mail campaign to individuals and had an 85 percent return on their investment. Another charity that is very well-known decided to go the e-mail route sending thousands of appeal messages to unknown faces, “much cheaper, more modern” the new leaders (from the corporate sector) thought and dumped their annual postal Christmas campaign, the e-mail campaign didn’t do well.

    We will find ourselves in competition with some government departments for funding this year and probably for years to come, as some attempts will be made to dip into the private sector for contributions towards programmes! For instance the health sector is in dire straits and many of the government funded hospitals will consider setting-up fundraising arms for major capital equipment and even raise money for top-ups and short-falls in running costs. This model of a separate fundraising entity has worked extremely well for the Red Cross War Memorial Children’s Hospital in Cape Town through the Children’s Hospital Trust. This is common practice in the United Kingdom to have a charity arm where they have a national health system in place. Also it’s common place in the USA and other countries. Not fair you may cry “isn’t our tax contribution sufficient?” sadly no it isn’t. The National Health Insurance will be introduced but it will take awhile for the new machinery to work - some voluntary health organisations may find this to their advantage in the long-term but their voices need to be heard.

    Setting Higher Standards

    The New Companies Act will come into being around June 2010 (or maybe a bit later) and there will now be an entity known as the Non Profit Company (NPC) instead of a Section 21 Company not for gain – it’s vital that leaders get to grips with these amendments and consider their options as soon as possible. Every Section 21 is deemed to have amended its Memorandum of Incorporation to expressly state that it is a Non Profit Company (NPC) and change its name accordingly by the new effective date. Visit www.nonprofitlawyer.co.za for help and updates.

    The King III Report also calls for stricter governance and standards in the NPO sector - this will become a hot topic for the next few years and the demands envisaged on the NPO sector will drain human resources and create even more paper-work.

    The above changes will pressurise amendments to the 1997 NPO Act and we will find that the character of an enabling environment and voluntary registration might have to change to one that is compulsory and prescriptive. We so wanted to avoid this in the early 1990’s when the Bill was first drafted but alas illegal doings have emerged like money laundering, terrorist manipulation, generally bad governance with sloppy oversight by board members that an about face is unavoidable. The engagement for amendments to the NPO Act will probably start this year but it will take two or more years to get the process to draft stage as it requires resources and a budget.

    There are more than 61 000 NPOs registered with the NPO Directorate and on average around 10 percent will be deregistered due to non-compliance or lack of commitment to submit annual reports. Few bother to lodge Appeals, probably about 140. But there are more than 12 000 new registrations annually. This is probably higher than in most countries in Africa where similar legislation exists. Interesting to note that 33 percent of the registered organisations are in social services (the aged, children, the disabled, poverty relief, early childhood development, gender and so forth).

    Buzz around Impact assessment

    More donors will be requesting that you measure the impact of projects and how their investments made a difference – not just numbers to how many you helped but how lives have improved, how things have changed. This will need in-depth record keeping, research and interpretation, all very costly exercises but it will have to become part of the process if you want to secure funding from international agencies and large corporate donors in South Africa. "No numbers without stories; no stories without numbers." Comment from an evaluator on how quantitative and qualitative outcomes can reinforce each other .

    Climate Change – new balls please!


    Is Climate Change just a buzz word to you or is it giving you sleepless nights? If you’re working in disaster management, conservation and agriculture and other areas then it should be giving you nightmares. The outcomes from the COP15 talk shop was a big flop to ‘sign-the-deal”, latter-day hippies protesting just won’t cut it - so our best hope will rest in the efforts of civil society actions, in particular ecological and human rights organisations, who will need to, as they say in tennis, get “some new balls, please”!

    Bingo!

    At last, a call for lottery improvements! Minister Rob Davies of the Department of Trade and Industry (DTI) appointed the new Lotteries board at the beginning of December last year and requested that they seriously look at the way the distribution is being carried out and to speed-up the process. He has also taken advantage of a clause in legislation that allows for the appointment of a DTI representative to the board; Ms Zodwa Ntuli will be the person to have her finger on the pulse and kick some butt if the new measures falter and hamper development of our needy communities. However R1.3 billion was successfully distributed during 2009 and we praise the National Lottery Distribution Trust Fund (NLDTF) for this incredible achievement. Well done to all.

    Training


    Those NPO’s operating in the education and training sector will find themselves very frustrated with the Sector Education and Training Authorities (SETA) as rumours of closure or mergers continue to rumble on, even though their mandate has been extended to March 2011. If they disappear what will replace this system that does work on many levels. Isn’t it better to stick with the devil we know and fix shortcomings?
    An interesting observation is that the benefits of the skills levy hasn’t been harnessed by the non-profit sector on the grand scale envisaged due to the so-called complexities of application. The majority of organisations encourage their staff and volunteers to attend short courses, receive attendance certificates and apply their new knowledge - few are keen to acquire qualifications when time is so precious. It’s a convoluted process for those already working a 12-hour day in the average NPO. Sad but true.

    Women and children first

    The new ministry for Women, Children and People with Disabilities is a great idea but so far it hasn’t said or done anything. The former nurse and union activist; Minister Noluthando Mayende-Sibiya seems to be keeping a low profile and at times uncertain about her role - is it possible she needs help from the NPO sector and perhaps a budget from the President? What about a campaign in recognition of those wonderful people who carry out home-based care duties on a daily basis to thousands of lonely people in our communities. Also the volunteers in our communities who give emotional support to child-headed households and those who counsel battered women and abused children! There’s so much more we can do together.

    Challenges ahead;
    • Be prepared for a little drop in CSI giving but continue to nurture relationships
    • Convince your board members to get involved in raising funds and put more effort into this important work to ensure continuity of services
    • Brace yourselves for more rules and regulations and higher levels of accountability
    • Don’t underestimate the effects of climate change and put measures in place to prepare for; increase in costs, disruption in communities, health issues, power supplies and so on
    • continue to invest in your people – tap into the Skills Levy and ensure staff growth through training
    • Keep a watchful eye on the Lotto – make sure they perform
    • Be proactive and draw attention to social issues through the media, lobby, make a noise at government level

    - Ann Bown of Charisma Communications, is a financial sustainability consultant, mentor and coach to non-profit organisations. For more information go to www.charisma.za.org
  • South Africa’s Social Investment Context in 2010

    1. The Political Environment

    1.1. Grace before the meal

    The very essence of “politics” is the human intercourse about how we are governed, where we are going, what our context is, where we find ourselves among broader humanity, and the essential and ever-changing debate about how best to divvy up limited resources.

    This very short overview will not attempt to discuss politics in any depth as to do any justice to politics in such a space would be incredible. Rather, this summary tries to give an overview of broader trends affecting political and societal development and allows readers to draw their own conclusions.

    1.2. Society’s political make-up
    Last year’s general election results continue the entrenchment of the one-party dominant state. This should not be surprising. After all, there is no society on Earth whose history is characterised by deep racial, ethnic or religious division that has seen voters cross these divides in significant numbers with the advent of democracy. This isn’t to say that this can’t happen; just that it never has, with the remarkable exception of the United States in its election of Barack Obama as president in 2008. Nevertheless, the 2009 April election results did signify significant change in some ways. The ANC saw its core support base shift ethnically and geographically to KwaZulu-Natal for the first time. In this province the ruling party did exceptionally well, and in every one of the other eight provinces it saw its support merely consolidate or more likely dip, if in some more spectacularly so than others.

    Opposition parties also saw change, with a slow consolidation of voters taking place under the official opposition DA to the detriment of the IFP, FF+, UDM and ID. The PAC and Azapo were virtually destroyed and the newcomer Cope has subsequently seen its initial momentum diluted by internal wrangling. It could be doubted whether Cope will regain the electoral momentum again. Indeed, the nature of this society’s voting patterns could lead to opposition parties having to opt for a “coalition of the opposition” sometime soon.

    The ANC, however, enjoys the very strong advantages that come from historical positioning, state patronage of the poorer classes through service provision and welfare payments of various sorts, and the dependency on it of the black middle classes through its policies of BEE and related interventions in the private sector. But all of this means that opposition to the ANC, not being accommodated in the normal opposition parties through their supporter make-up, can become factious and sometimes violent, as seen in around 500 separate incidents of “service delivery protest” in 2008 alone.

    1.3. Groupings of dialogue
    A unique feature of the South African political scene is that a very high proportion of personal income tax is collected from people who do not support the political party in power, and that they have no realistic hope of seeing the parties that they do support coming to power. This uncomfortable fact has enormous and uniquely South African consequences for ordinary political discourse as different centres of power and interest are working in somewhat removed spaces from one another. Nonetheless, it should be noted that this distribution of the taxpayer base is changing; that South Africa’s across-the-board ability to collect both direct and indirect taxes points to a high legitimacy of the State; and that upper quintile taxpayers form a group of increasing fluidity.

    To read the full article, click here.

    Tshikululu Social Investments is South Africa’s leading social investment manager, providing a one-stop service for private sector entities to undertake comprehensive community grantmaking. For additional information on this work, please refer to www.tshikululu.org.za. Comment on this report by writing to info@tsi.org.za

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  • CAF Southern Africa: Best-practice Model of Sustainable Social Investment

    South African NGOs are currently facing a crisis of financial sustainability. The combined result of diminishing international funding, ineffective delivery by state funding institutions, and the current economic recession, has placed many organisations in financial crisis.

    What better time than now for NGOs and the institutions that support their work to be thinking together about more sustainable financial models.

    The Shalamuka Foundation, established in 2006 as the funding vehicle for Penreach (an NGO skills development programme), has built an investment fund with a transaction value already exceeding R350 million. This investment vehicle will gradually reduce Penreach’s reliance on grant funding.

    CAF Southern Africa invites you to this seminar to hear Gareth Armstrong and Julia Woods of RMB Corporate Finance share the story of this path-breaking financial sustainability project.

    It will fascinate both NGOs and donors (corporate, private and individual) to hear how the RMB corporate finance team has facilitated the inclusion of Shalamuka in numerous BEE ownership deals and other investment options.

    This project provides a best-practice model which can be replicated by innovative NGOs and social investors.


    There will be the opportunity to network with colleagues over tea and refreshments from 10h00 to 10h30

    Date: Wednesday, 25 November 2009
    Time: 10h00 for 10h30 (until 12h00)
    Seminar Fee: R200 (excl VAT)

    To book your seat, please confirm your participation to:

    Mihloti Mgimeti
    CAF Southern Africa:
    Tel: 011 726 1148
    Fax: 011 726 3877
    E-mail: mmgimeti@cafsouthernafrica.org

    To assist us with catering arrangements, please respond by Thursday, 19 November 2009.

    If you require any additional information, contact Colleen du Toit on Tel: 011 726 1148.
    Event start date: 
    25/11/2009
    Event end date: 
    25/11/2009
    Event venue: 
    Industrial Development Corporation (IDC) Auditorium, 19 Fredman Drive, Sandton
    Event type: 
    Seminar
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