Funding for NGOs in South Africa: A Guide.

NGO funding in South Africa comes from five main sources: the National Lottery Commission, government departments, corporate CSI programmes, international donors, and private foundations. No funder gives money to an unregistered organisation with no paperwork. Every funder wants proof that your NGO exists legally, has a board, has a plan, and can account for the money. This guide explains what you need and where to apply.

Where NGO funding comes from in South Africa

The National Lottery Commission (NLC) is the largest single funder of NGOs in South Africa. The NLC funds organisations working in charities, sport, arts, culture, and heritage. You apply when they publish a call for applications on their website. They fund specific projects rather than general running costs, and they want detailed proposals with budgets.

Government departments fund NGOs that do work the government wants done. The Department of Social Development (DSD) has a funding programme for registered NPOs that provide social services. Other departments, such as Health and Basic Education, also fund NGOs in their sectors. You usually need to be registered with the department before you can apply.

Corporate CSI stands for Corporate Social Investment. South African companies spend a portion of their profits on social causes, partly because B-BBEE scorecards reward them for it. Each company has its own CSI focus areas and application process. You can find these on company websites or by contacting their CSI offices directly.

International donors include foreign governments, UN agencies, and large foundations. These funders tend to give larger amounts but have strict application and reporting requirements. Many require PBO status from SARS before they will consider your application.

Private foundations and trusts in South Africa fund specific causes. Community chests, family foundations, and sector-specific trusts are common. You can find these through directories like the one maintained by Inyathelo, the South African Institute for Advancement.

What you need before you apply

No serious funder gives money to an organisation that cannot prove it exists. Before you approach any funder, you need the following:

1. A registered entity. Most NGOs register as a Non-Profit Company (NPC) with CIPC, or as a Voluntary Association, or as a Trust. You then register separately as an NPO with the Department of Social Development. The NPC registration gives you a company number. The NPO registration gives you an NPO number.

1. A board. Funders want to see who governs the organisation. You need at least three people on your board, with a constitution that explains how decisions are made.

1. A bank account. The account must be in the name of the organisation, not in an individual person's name.

1. A founding document. This is your constitution or your memorandum of incorporation if you registered as an NPC.

1. PBO status from SARS. Public Benefit Organisation status gives you tax exemptions and allows donors to deduct donations from their taxable income. Not every funder requires it, but many do. You apply to SARS for this after your NPO registration.

1. A business plan or project proposal. Funders want to see what you plan to do, who you will serve, how much it costs, and how you will measure results.

1. Financial records or a budget. If you have been operating, funders want financial statements. If you are new, they want a detailed budget.

1. A compliance certificate from the NPO Directorate. You get this by submitting your annual reports to the Department of Social Development. If your reports are not up to date, your NPO registration can be cancelled, and funders check this.

Registering your NGO properly

The process to register an NGO in South Africa involves two separate steps that people often confuse.

First, you register the legal entity. If you choose an NPC, you register through CIPC. You submit a name reservation, a memorandum of incorporation, and director details. CIPC issues a registration certificate with a company number. KAGO can handle this registration for you through the Registration Basic package at R995.

Second, you register as an NPO with the Department of Social Development. This is a separate application where you submit your founding documents, a list of board members, and your organisation's mission and objectives. The department issues an NPO certificate with a unique NPO number. Many funders require this number before they will accept an application.

After both registrations, you can apply to SARS for PBO status. This requires a separate application and supporting documents, and it can take several months. Start early.

Which funders to approach first

Start with funders whose focus matches your work. If you run an after-school programme, do not apply to a funder that focuses on health. Read each funder's guidelines before you apply.

For new or small NGOs, the Department of Social Development and the National Lottery Commission are the most accessible starting points. Corporate CSI programmes are also worth approaching, especially if you can show how your work helps the company meet its B-BBEE goals.

For established NGOs with a track record, international donors and larger foundations may be an option. These funders want proof of past success, audited financial statements, and strong governance structures.

Note that SEFA, SEDA, and NYDA fund small businesses and cooperatives, not NGOs. If your organisation is a social enterprise that sells products or services, you might qualify for their programmes. If you are a traditional NGO that relies on grants, these are not the right funders for you.

Documents funders expect

Every funder asks for slightly different things, but most require some combination of the following:

• A business plan or project proposal
• A detailed budget
• Proof of registration (NPC certificate and NPO certificate)
• A list of board members with their ID numbers
• A constitution or memorandum of incorporation
• A company profile that explains what you do
• Financial statements if you have been operating
• An NPO compliance certificate from the NPO Directorate

If you do not have these documents organised, you will lose funding opportunities before anyone reads your proposal. KAGO can help you build a Complete Business Plan at R3,495 and a Funding Pack at R3,995 that puts these documents together in one professional package.

Being honest about funding

Nobody can guarantee you funding. Funders receive far more applications than they can fund. What you can do is make sure your application is complete, professional, and aligned with the funder's priorities. A strong business plan and proper registration do not guarantee money, but they stop you from being rejected before anyone reads your proposal.

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