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Meeting Their Mandates? Meeting their Mandates? FUNDING PRACTICE ALLIANCE The Research Report on the National Lottery Distribution Trust Fund (NLDTF) and the National Development Agency (NDA) MEETING THEIR mandatES? The Research Report on the National Lottery Distribution Trust Fund (NLDTF) and the National Development Agency (NDA) Published by the Funding Practice Alliance (FPA) c/o Inyathelo – The South African Institute for Advancement PO Box 43276 Woodstock 7915 Cape Town | South Africa Tel +27 21 465 6981 Fax +27 21 465 6953 [email protected] www.inyathelo.org.za First published by the Funding Practice Alliance 2011 First edition with corrections © the Funding Practice Alliance ISBN 978-0-9870015-0-4 Researched and written by Saranel Benjamin-Lebert and Tom Lebert (South Development Consultancy Services) Edited by Stephen Heyns Concept design and layout Angela Tuck of HANDS-ON design studio Printing and Binding by C2 Digital Print This book shall not, by way of trade or otherwise, be lent, resold, hired out or otherwise circulated without the publisher’s prior consent in any form of binding or cover other than in which it is published and without a similar condition including this condition being imposed on the subsequent purchaser. You are welcome to copy parts of this booklet for non-profit educational use but the Funding Practice Alliance must be acknowledged in full. Acknowledgements The Funding Practice Alliance wishes to express its appreciation to a range of people for their support for, and participation in, this research. Firstly, we would like to extend our deep appreciation to our funders for their support, without which this research could not have taken place. FPA funding support was received from Atlantic Philanthropies, the CS Mott Foundation, the Ford Foundation, the Anglo American Chairman’s Fund, Cordaid, the Davies Foundation Trust, the Robert Niven Trust and the RB Hagart Trust. We would like to acknowledge the researchers, Saranel Benjamin-Lebert and Tom Lebert of South Development Consultancy Services, for conducting the research and writing the report. In addition, we would like to acknowledge former SCAT director Joanne Harding for her important role in the FPA partnership. We are very grateful to all the organisations, their staff, directors and CEOs, and board members who participated in this project by completing the survey questionnaires and sharing their views, experiences and insights in interviews and focus groups. In addition, a number of individuals dedicated their time to this project by participating in reference group meetings to discuss the research, and we are immensely appreciative of their guidance and input. We also acknowledge those who were unable to participate in the interview process, but nevertheless provided information and guidance in other ways. The Funding Practice Alliance March 2011 Foreword or many years South Africa’s civil society sector funding, funding sources and funding practices, including has largely been funded by international sources. from government departments and corporate social However, after the advent of democracy in 1994, investment funds, faith-based funding institutions, it became imperative for civil society organisations international funders and private philanthropists. To F(CSOs) to find local resources to sustain their work. The understand more fully the issues related to funding post-apartheid government proposed and developed practice, sources and sustainability, four non-profit a number of important and welcome initiatives organisations came together in 2009 as the Funding towards ensuring sources of public funding for social Practice Alliance (FPA) namely: development. This report documents the experiences • Social Change Assistance Trust (SCAT) of CSOs of two government-led interventions: 1) the • Community Development Resource Agency (CDRA) disbursement of National Lottery Distribution Trust Fund • Inyathelo – The South African Institute (NLDTF) moneys to good causes through the National for Advancement Lotteries Board (NLB); and 2) the National Development • Rural Education Access Programme (REAP) Agency (NDA). The purpose of the FPA is to conduct research into, Respondents said that their experiences of the NLB and inter alia, the size and scale of funding to CSOs; good NDA were that these agencies are overly bureaucratic, funding practices including grantmaking processes; the and that agency technocrats are playing an increasing administrative capacity of state funding agencies; state role in defining and influencing approaches to social and civil society power relations; mutual accountability development. It is apparent that civil society organisations between grantseekers and grantmakers; decision-making have not yet found effective ways to engage government processes related to funding; and the effectiveness of on issues of development and funding for development funding relationships as well as exit strategies. initiatives, despite various attempts to organise Presented here are the results of the first research project, themselves to speak as a collective. focused on whether the NLB and the NDA are meeting There is common concern in the non-profit sector their mandates with regard to CSOs and grantmaking, as about the relationship between state and civil society, defined in law, and focused on the extent to which these and about state development agency funding practice. agencies are realising their potential to address South Broad concerns have been expressed about sustainable Africa’s development challenges. The Funding Practice Alliance James Taylor, Practitioner (CDRA) Shelagh Gastrow, Executive Director (Inyathelo) Glenda Glover, Programme Development, Research and Advocacy Manager (REAP) Anthea Davids-Thomas, Executive Director (SCAT) Acronyms ANC African National Congress IDT Independent Development Trust CAO Central Applications Office ISRDP Integrated Sustainable Rural Development Programme CBO Community-based organisation NDA National Development Agency NEDLAC National Economic Development and Labour Council CDRA Community Development Resource Association NGO Non-governmental organisation CEO Chief Executive Officer NLB National Lotteries Board COO Chief Operations Officer NLDTF National Lottery Distribution Trust Fund CSO Civil society organisation NPO Non-profit organisation DA Distributing agency NYS National Youth Service DSD Department of Social Development PAJA Promotion of Administrative Justice Act DTI Department of Trade and Industry PBO Public benefit organisation PGDS Provincial Growth and Development Strategy EPWP Expanded Public Works Programme PSC Public Service Commission EU European Union RDP Reconstruction and Development Programme FPA Funding Practice Alliance REAP Rural Education Assistance Programme GDP Gross Domestic Product SAEP South African Education and Environment Project GEAR Growth Employment and Redistribution SANGOCO South African NGO Coalition (macroeconomic policy) SARS South African Revenue Service HDI Human Development Index SCAT Social Change Assistance Trust IDP Integrated development plan TNDT Transitional National Development Trust Executive he Funding Practice Alliance (FPA) comprises The National Lotteries Board and the NLDTF four civil society organisations (CSOs) – the Social According to the Lotteries Act 57 of 1997, National Lottery Summary Change Assistance Trust (SCAT), Rural Education funds held in the NLDTF must be allocated and disbursed Assistance Programme (REAP), Community De- to socially worthy projects in four categories: reconstruc- Tvelopment Resource Association (CDRA) and Inyathelo tion and development; charities; sport and recreation; and – The South African Institute for Advancement. This par- arts, culture and national heritage. Reconstruction and ticular project was to conduct research into: 1) the funding development funds were to be administered by the Min- practices of the National Development Agency (NDA); and ister responsible for the Reconstruction and Development 2) the distribution by the National Lotteries Board (NLB) Programme (RDP). However, the Ministry no longer exists of moneys held in the National Lottery Distribution Trust and no allocation has ever been made. The Act makes pro- Fund (NLDTF) for distribution to socially worthy projects.1 vision for distributing agencies to adjudicate applications The main aim of the research was to gather rigorous in the last three categories. The Minister of Trade and In- qualitative and quantitative data on the NDA and the dis- dustry, acting in consultation with the Minister of Finance tribution of National Lottery funds so that CSOs can for- and the NLB, has the power to make grants from Lottery mulate strategic actions informed by sound research and funds earmarked for distribution in a fifth category – the analysis. The project was also intended to provide an op- ‘miscellaneous’ category. This research project confirms portunity for CSOs to share their experiences, and to have that the NLB has been plagued with problems in respect of these views documented. South Development Consultan- its disbursement of National Lottery funds. It is clear that, cy Services was contracted to conduct the research and while considerable thought went into the gaming side of write a report on its findings. the National Lottery, very little consideration went into This report presents the findings of a year-long re- making sure that its grantmaking would work well. search process that included interviews with six people NLB grantmaking
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