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Mini Dissertation of Miss O.N. Dlamini

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Mini Dissertation of Miss O.N. Dlamini Mini Dissertation of Miss O.N. Dlamini 0 GOVERNANCE AND FUNDING ARRANGEMENTS OF NGOs IN KWA-ZULU NATAL, SOUTH AFRICA By OLGAH NOBUHLE DLAMINI Student number 2014167494 Dissertation submitted in partial fulfillment of the requirement for MASTERS IN GOVERNANCE AND POLITICAL TRANSFORMATION IN THE FACULTY OF THE HUMANITIES at UNIVERSITY OF THE FREE STATE BLOEMFONTEIN 2015 SUPERVISOR: DR DEIDRE VAN ROOYEN 1 DECLARATION I Miss Olgah Nobuhle Dlamini hereby declare that this dissertation submitted for Masters in Governance and Political Transformation, University of the Free State is my own work and have not been previously submitted for a qualification at any other University. The work of others has been duly acknowledged. 2 ACKNOWLEDGEMENT I thank Almighty God for giving me the strength, wisdom, insight, knowledge and the healthy life throughout the study. I also thank my family for giving me support, much appreciation goes to my greatest doctoral supervisor in the world, Doctor Deidre van Rooyen for nurturing me academically, and also her guidance throughout the entire research study. I am extremely indebted for your support, passion and positive encouragement. I thank you from the bottom of my heart. You have made this qualification a reality! Thank you Doctor. 3 ABSTRACT This study focused on governance and funding arrangements of NGOs in Kwa-Zulu Natal, South Africa. The primary objective of the study was to evaluate existing governance and funding arrangements of NGOs with the view to developing alternative approaches to governance and funding arrangements with specific reference to lessons of experiences for Kwa-Zulu Natal NGOs. The study will develop a historical perspective of NGOs in South Africa, but it will be more focus at governance and funding arrangements for Kwa-Zulu Natal NGOs specifically NGOs under Sisonke (Harry Gwala) District. The secondary objectives of the study were to firstly develop a historical perspective “develop a set of conclusions and recommendations for the improved of the funding NGOs in Kwa-Zulu Natal. All secondary objectives have been formulated in support of the primary objective and that these have been directly linked to the composition of the chapters in the study. 4 CONTENTS STUDENT NAME ………………………………………………………………….0 COVER PAGE…………………………………………......................................1 DECLERATION…………………………………………………………………...2 AKNOWLEDGEMENT……………………………………………………………3 ABSTRACT………………………………………………………………………..4 CONTENT………………………………………………………………………..5-11 CHAPTER 1 GOVERNANCE AND FUNDING ARRANGEMENTS OF NGOs IN SISONKE DISTRICT, KWAZULU NATAL, SOUTH AFRICA 1.1. INTRODUCTION………………………………………………………12-13 1.2. INTERNATIONAL PESPECTIVE OF NGOS…………………………13 1.2.1. NGO-ISATION OF THE AID SYSTEM IN SOUTH AFRICA……..13-14 1.2.2. CRITICISM OF NGOs………………………………………………..14-16 1.3. NGOs IN SOUTH AFRICA……………………………………………..16 1.3.1. THE HISTORICAL BACKGROUND OF NGOs IN SA…………….16-18 1.3.2. THE NON-PROFIT ORGANISATIONS ACT 71 OF 1997….………18 1.3.3. BACKGROUND………………………………………………………..18-19 1.3.4. CHALLENGES LEGITIMACY………………………………………..19-20 1.4. FUNDING OF NGOs IN KZN…………………………………………...20 1.5. PROBLEM STATEMENT………………………………………………20-22 1.6. AIMS AND OBJECTIVES……………………………………………….22 1.7. DATA COLLECTION…………………………………………………….22-23 1.8. METHODOLOGY…………………………………………………….23-24 5 1.9. VALIDITY……………………………………………………………….24 1.10. DATA ANALYSIS…………………………………………………….24-25 1.11. RESEARCH DESIGN…………………………………………………25 1.12. LIMITATIONS OF THE STUDY…………………………………….25-26 1.13. CHAPTER DIVISION………………………………………….............26 1.14. CONCLUSION…………………………………………………………27 CHAPTER 2 GOVERNANCE AND FUNDING ARRANGEMENTS OF NGOs INTERNATIONAL 2.1 INTRODUCTION…………………………………………………….28-30 2.2. AN OVERVIEW OF THE CONCEPT GOVERNANCE………….30-31 2.2.1. GOVERNANCE……………………………………………………….31 2.2.2. GOVERNANCE: THE RELATIONSHIP BETWEEN THE STATE AND CIVIL SOCIETY…………………………………………………………………….32 2.2.3. GOVERNANCE AND NGOs………………………………………32-33 2.2.4. GOVERNANCE WITHIN NGOS……………………………………..33 2.3. NGO FUNDING RESOURCES……………………………………..33-34 2.3.1. STATE AND CIVIL SOCIETY (NGOs)……………………………34-35 2.3.2. OTHER RESOURCES ON NGO FUNDING……………………36-37 2.3.3. VARIATIONS ACROSS COUNTRIES IN DONOR NGO FUNDING ARRANGEMENT……………………………………………………………..37 2.4. CONCLUSSION…………………………………………………….37-39 CHAPTER 3 GOVERNANCE AND FUNDING OF NGOs IN SOUTH AFRICA 3.1. INTRODUCTION……………………………………………………40-41 6 3.2. TRENDS AND TENDENCIES IN THE GOVERNANCE ARRANGEMENT OF NGOs OVER THE LAST TEN YEARS…………………………………………...41-43 3.3. THE ROLE OF THE BOARD OF DIRECTORS IN NGO GOVERNANCE………………………………………………………………43-45. 3.4. THE FINANCIAL ARRANGEMENTS OF SOUTH AFRICAN NGOs BETWEEN 1994 AND 1999…………………………………………………………………..45-46 3.4.1. NGO FUNDING BEFORE 1999……………………………………........47 3.4.2. NGO FUNDING AFTER 1999………………………………………...47-48 3.4.3. TOWARDS THE NEW ROLE NGOs…………………………….…..48-49 3.4.4. THE NEW ROLE FOR GOVERNMENT……………………….……49-50 3.4.5. NGOs IN POST APARTHEID (1994+) SOUTH AFRICA…….……50-51 3.5. THE FUNDING ENVIRONMENT FOR SOUTH AFRICAN NGOs…….51 3.5.1. INDIVIDUAL GIVING………………………………………………….....52 3.5.2. GOVERNMENT FUNDING OF NGOs………………………………….52 3.5.3. CORPORATE SOCIAL RESPONSIBILITY……………………………52-53 3.5.4. FOREIGN DONORS……………………………………………………..53 3.5.5. FOUNDATIONS…………………………………………………………..54 3.5.6. NATIONAL FUNDING AGENCIES…………………………………….54-55 3.5.7. INDEPENDENT DEV. TRUST (IDT)……………………………………55 3.5.8. NATIONAL DEV. AGENCY (NDA)……………………………………..55-56 3.5.9. KAGISO TRUST…………………………………………………………...56-57 3.5.10. NATIONAL LOTTERIES…………………………………………............57 3.6. CONCLUSION……………………………………………….……………….58 CHAPTER 4 CASE STUDY ASSESSMENT OF SELECTED NGOs IN KWAZULU NATAL SISONKE (HARRY GWALA) DISTRICT 7 4.1. INTRODUCTION……………………………………………………….59 4.2. RESEARCH METHOD…………………………………………………60 4.3. LITERATURE REVIEW………………………………………………60-61 4.4. INTERVIEWS…………………………………………………………….61 4.5. CASE STUDY…………………………………………………………..61-62 4.6. HLANGANANI NGOTHANDO NGO 4.6.1. BRIEF HISTORICAL BACKGROUND…………………………….62-63 4.6.2. THE NATURE OF NGOs ACTIVITIES……………………………63-64 4.6.3. GOVERNANCE……………………………………………………….64 4.6.4. EXECUTIVE MANAGEMENT STRUCTURE………………………65 4.6.5. GENERAL MEETINGS……………………………………………….65-66 4.6.6. MEMBERSHIP…………………………………………………………66 4.6.7. TRUSTEES………………………………………….…………………66-67 4.6.8. THE DIRECTORS……………………………………………………….67 4.6.9. FINANCIAL ARRANGEMENTS……………………….……………….67 4.6.10. SOURCES OF INCOME AND PROFIT SHARING………………..67-68 4.6.11. FUNDING……………………………………………………………….68 4.7. CLOUD OF HOPE NGO 4.7.1. BRIEF HISTORICAL OVERVIEW……………………………………68-69 4.7.2. NATURE OF NGO ACTIVITIES………………………………………69 4.7.3. GOVERNANCE…………………………………………………………70 4.7.4. EXECUTIVE MANAGEMENT STRUCTURE……………………….70 4.7.5. GENERAL MEETINGS …………………………………..................70 8 4.7.6. MEMBERSHIP…………………………………………………………71 4.7.7. FINANCIAL ARRANGEMENTS………………………………………71 4.7.8. SOURCES OF FUNDING……………………………………………71 4.7.9. FINANCIAL ARRANGEMENTS………………………………………71-72 4.8. RESEARCH FINDINGS…………………………………………………72 4.8.1. NGO LEADERSHIP……………………………………………………72 4.8.2. ORGANISATIONAL POLICIES……………………………………….72 4.8.3. PROCEDURES FOR EVALUATING PROJECTS AND ACTIVITIES…………………………………………………………………….73 4.8.4. ORGANISATIONS NATIONAL POLICIES………………………….73 4.8.5. FINANCIAL SUSTAINABILITY………………………………………..74 4.8.6. INTERNATIONAL DONOR FUNDING………………………………74 4.8.7. FUNDING SOURCES………………………………………………….74-75 4.8.8. GOVERNMENT FUNDING……………………………………………..75 4.8.9. PRIVATE SECTOR FUNDING………………………….......................75 4.8.10. EXPENDITURE…………………………………………………………76 4.8.11. FUNDRAISING OF NGOs…………………………………………….76 4.8.12. SELF- FINANCING STRATEGIES…………………………………76-.77 4.8.13. SELF ENTERPRENEURSHIP…………………………………………77 4.8.14. GOOD PRACTICE OF FINANCIAL MANAGEMENT……………77-78 4.8.15. FINANCIAL CONTROL………………………………………………..78 4.8.16. FUNDRAISING STRATEGIES…………………………………….78-79 4.9. OVERALL CONCLUSION…………………………………………………79 9 CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 5.1. INTRODUCTION………………………………………………………………………80 5.2. THE ACCOMPLISHMENT OF THE STUDY………………………………………80-81 5.3. RESTATEMENT OF THE OBJECTIVES………………………………………….81 5.4. DATA ANALYSIS…………………………………………………………………….81-82 4.5. THE ACTUAL ANALYSIS OF THE COLLECTED DATE………………………..82-86 5.6. TABLING OF RESEARCH FINDINGS……………………………………………86 5.7. CONCLUSION REMARKS BASED ON THE ABOVE ANALYSIS 5.7.1. HISTORICAL BACKGROUND OF GOVERNANCE AND FUNDING ARRANGEMENTS OF NGOs………………………………………………………….86 5.7.2. GOVERNANCE…………………………………………………………………..86-87 5.7.3. GOVERNANCE AND SUSTAINABILITY OF NGOs………………………....87 5.8. CASE STUDIES……………………………………………………………………87-88 5.8.1. NGO LEADERSHIP………………………………………………………………88 5.8.2. COMPOSITION OF TRUSTEES………………………………………………89-90 5.8.3. NGO TRUSTEES………………………………………………………………..90 5.8.4. ORGANISATIONAL POLICIES………………………………………………..90 5.8.5. LACK OF CAPACITY BUILDING…………………………………………….91 5.8.6. STAFF REMUNERATIONS…………………………………..……………….91 5.8.7. RESOURCES…………………………………………………………………..91-92 5.8.8. MONITORING AND EVALUATION…………………………………………92 5.8.9. HUMAN RESOURCES……………………………………………………….93 5.8.10. INFRASTRUCTURE…………………………………………………………93 10 5.8.11. MARKETING………………………………………………………………93 5.8.12. INTERGRATED SERVICE AND PROCESSES……………………..…93 5.8.13. LACK OF ADEQUATE MANAGEMENT SKILLS………………………93-94 5.8.14. LACK OF STAFF CAPACITY………………………………………………94 5.8.15. LACK OF MEDIUM-TERM SUSTAINED FUNDING…………………….94 5.8.16. DEFICIENCY BUDGETING……………………………………………….95 5.8.17. STAFF DEVELOPMENT………………………………………………….95 5.8.18. STRATEGIC DEVELOPMENT……………………………………………95 5.8.19. ACCOUNTABILITY…………………………………………………………95-96 5.8.20. INADEQUATE BOARD GOVERNANCE………………………………..96 5.8.21. FINANCIAL SUSTAINABILITY……………………………………………96
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