Page 75 - DSD ANNUAL REPORT 2022-2

PERFORMANCE BY PROGRAMME PART B: PERFORMANCE INFORMATION

NPO Amendment Bill Additionally, the Department conducted the information sharing
During this period, the Department continued with the process of sessions on NPO compliance and governance, in August 2021, in
amending the NPO Amendment Bill. As such, the Bill was gazetted Gauteng whereby a total number of one hundred and four (104)
for public comments. However, the sector requested extension for NPOs participated. Similarly, a further session was held in Western
submission of public comments and this resulted gazetting of the Cape, in August 2021 and a total number of twenty-four (24) NPOs
Bill for second round of public comments. Further delays were participated.
caused by postponements of the Cabinet Committee which was
scheduled for 02 June 2022. Development of NPO Mentoring Model
During the reporting period consultation sessions to popularise
Draft NPO Policy Framework the developed Draft NPO Mentoring Model were conducted
The Department is in process of consulting on the Draft NPO and the inputs from stakeholders were gathered from both DSD
Policy Framework, which outline the challenges faced by the sector officials and NPOs in six (6) provinces (which ones). The outcome
and to ensure greater accountability from the sector. During the of the session was positive as the Model was well received by
2021/22 financial year, the Policy Framework was consulted with the Sector, considering the anticipated impact it will have on the
the following stakeholders: all provinces, South African Revenue sector especially, the small emerging NPOs. The NPO sessions
Services (SARS), National Development Agency (NDA), Companies were conducted in consultation with FIC to alert NPOs about
and Intellectual Property Commission (CIPC). All stakeholders’ vulnerabilities of NPOs in money laundering and terrorism
inputs were incorporated in the Draft Policy Framework. financing. The information was then consolidated into provincial
reports. As such, total of two hundred and ninety-five (295) NPOs
NPO Management and Institutional Support and two hundred and thirty-five (238) officials were consulted.
The Department continues to provide workshops to registered
Non-Profit Organisations in order to ensure that they maintain a Know Your NPO Status Campaign
high level of governance and abide by the NPO legislation. During The Department implemented an NPO Service Delivery Blitz within
the 2021/22 financial year, Department conducted information the Know Your Non-Profit Organisation (KYNS) Campaign as part
sessions whose focus was to create awareness on compliance of the Social Development Month. The Service Blitz was at aimed
requirements with NPO Act by the religious sector as it feature addressing backlog on delivery of NPO service to communities
amongst the highest non-compliant sector in the NPO Register. which were suspended due to COVID-19 regulations. The Blitz
focused on printing and delivering NPO certificates, compliance
The intervention was undertaken at Amajuba District in KwaZulu- letters ad processing of reports. A total of thirteen (13) NPO Service
Natal province as part of implementation of District Development Delivery Blitz were conducted in seven (7) provinces, with the
Model (DDM) championed by the Deputy Minister. A total number of exception of Eastern Cape and Free State. Consequently, due to the
364 participants representing different Faith Based Organisations high demand for NPO services, a total of fourteen (14) outreach
registered as NPOs participated in the compliance drive which programmes were further conducted in different municipalities.
commenced from the 07 May to 13th June 2021. The sessions had Furthermore, the Department conducted consultation sessions on
a positive outcome as the Department understood challenges the Mentorship Model in Western Cape, Mpumalanga and Gauteng
faced by the sector who in turn gained insight on the importance where inputs were gathered and provincial reports developed.
of adhering to their legal obligations as outlined in the NPO The process towards development of the Codes of Good Practice
legislation. for Donors and Funders commenced in the fourth quarter of the
2021/22 financial year. The project will be finalized in the next
During the period under review, workshops to empower NPOs financial year.
on how to promote good governance within organisations and
the importance of compliance with NPO legislation including its Furthermore, in February 2022 the Department hosted a hybrid
processes, were also conducted in North West, Limpopo, and the NPO Webinar. The Webinar was attended by over two hundred (200)
Western Cape. A total of two hundred and two (202) participants people through various social media platforms such as Twitter,
representing NPOs attended Facebook, and YouTube. The purpose of the webinar was to raise
awareness on the compliance to the requirements of Non-profit
Furthermore, a session was convened in May 2021 for the National Organisations Act.
Body Roman Catholic South Africa. The session was attended
by members representing forty-four (44) branches throughout Risk Assessment Framework
the country. The decision from the national body was that all During the reporting period, the Department finalised the
its branches had to understand the NPO Act, more importantly development of the Risk Assessment Framework as per the
registration requirements, compliance thereof, tax compliance and recommendation of Financial Action Task Force (FATF) in the
other issues related to functioning of NPOs. latest Mutual Evaluation Report. The framework will serve as
a mechanism to flag and detect NPOs who are alleged to be
This was to ensure that by the time the organisation registers its committing fraud, money laundering and terrorist financing. A pilot
branches they have insight on the implications for registration project of the Risk Assessment Framework has been concluded and
as well. Whilst the Department shared the NPO Act, partners the Risk Assessment Framework has proven to be effective to flag
form SARS who shared benefits for registering with SARS and and detect NPOs who are alleged to be committing fraud, money
implications thereof and Financial Intelligent Centre (FIC) also laundering and terrorist financing.
created awareness on NPO vulnerability in money laundering and
terrorist financing as well as how NPO can protect themselves from
such criminal activities.

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