More than R30m paid to North West NPOs

North West Department of Social Development is appealing to various None Governmental Organisations to be compliant and that will make it easy to fund them.

The department said it has transferred payments to the tune of R36, 428 557.27 to five hundred and fifty five (555) Non-Profit Organisations from April 2019 to date.

MEC Boitumelo Moiloa said that there have been some challenges with regard to transfer payments to NPOs.

She said department made a call to various organisations to submit their business plans in 2018. The responses from some organisations were received after the closing date.

Some of the organisations did not comply with the funding requirements and their applications had to be taken back for corrections, MEC Moiloa said adding that the protracted labour unrests that were experienced in the department also contributed to the delays in processing of business plans.

Majority of complying NPOs whose business plans have been approved, Moiloa said, will have received payments by end July 2019.

“Transfer payments to NPOs can only be confirmed and processed after approval of the business plans. The Department would like to put it on record that applications or submission of business plans does not guarantee funding, and as such organizations must therefore await approval processes.

The high levels of NPOs non-compliance, Moiloa said, carry the risks that grant funding institutions both in government, private sector, international donors and individuals are likely to be found wanting to partner with ghost entities in a form of NPOs who lacks legitimacy as it relates to compliance with the NPO Act.

“The high rate of the non-compliant NPOs accounts for over 60% and this remains a serious challenge for the province to intensify its efforts to ensure integrity of registered NPOs,” she said.

The department has launched a Know Your NPO Status’ (KYNS) campaign in July,16 which will be rolled out to service points including far flung villages to urge NPOs to check their status. The campaign is aimed at encouraging Non-Profit Organisations (NPOs) to comply with the provisions of NPO Act which require NPOs to submit their annual reports, verify organizations compliance status, to update both organisational and office bears details with the National NPOs database.

The National database of registered NPOs comprises of 214 743 of registered NPOs across all sectors. The North West population of the registered NPOs stood at the 12 225 across all sectors. Out of the total number of registered NPOs as listed above, a total of 7 967 represents the category of non-compliant NPOs with the provisions of the NPO Act across all sectors.

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