By Mandisi Majavu
THE City is planning to put in place a "social funding policy" to assist non-governmental organisations financially. The new policy, according to Alex Bhiman, a deputy director for social development in the city, is in line with the City's Johannesburg 2030 vision and strategy, which includes good governance and service delivery through partnership with NGOs.
Among the goals are of the new policy are: "to support initiatives promoting social development through self-reliance, socio-economic empowerment and provision for basic material, physical, psycho-social needs and essential social services".
Council decided to consider the policy after learning that the costs of service delivery - especially when it comes to setting up infrastructure, to logistics and operational management, or day-to-day activities - have escalated to such a point that the sustainability of social programmes offered by non-profit organisations and NGOs is now threatened.
Three forms of assistance are proposed. In the social responsibility category, provision will be made for assistance to meet the costs of services and taxes where the payee is the council or one of its utilities, agencies or entities. Plans are to allocate up to R10-million, which had previously been budgeted in any case for grant-in-aid for rates assessment.
A second category, entitled services and programmes, provides for cost drivers in the provision of essential services and development programmes. Up to R4.5-million has been proposed be set aside for it. The third category, dubbed mayoral support, was created because many community-based organisations approach the mayor or mayoral committee members for financial assistance in times of crisis, says Bhiman. For this category, plans are to allocate R500 000.
Under the South African constitution, development which promotes social development and encourages the involvement of communities and organisations in socio-economic development is a local government competency. This is reflected in both the Municipal Structures Act and the Municipal Systems Act.
To qualify for funding support under the City's new scheme, organisations and institutions need to be registered in terms of the Non-Profit Organisation Act no 71 of 1997, or as a Section 21 non-profit company. Also, they need to identify themselves as public benefit institutions listed in terms of Section 30 of the income Tax Act of 1968.
The funding is only provided to cover "generic cost drivers related to the delivery of programmes or services". Activities may relate to the development of women, youth, and children; the provision of services for the elderly and people with disabilities; and programmes for the unemployed and homeless.
The policy, he says, will be implemented when the council approves it; and that will be on 28 March 2003.
