Note to Editors: Please find English and Sesotho soundbites by Refiloe Nt’sekhe MPL.
The Gauteng Department of Social Development (GDSD) has reduced the number of funded Non-Profit Organisations (NPOs) from 2061 in 2014 to 1328 by 2025 while R1.7 billion allocated for social development purposes remained unspent during this period. This significant decrease raises concerns about the support available for the poor and vulnerable Gauteng residents.
The DA Gauteng uncovered this disturbing revelation from the data supplied in a written response by the Gauteng Department of Social Development.
See the reply here.
The provided data reflects the funding and expenditure of NPOs over eleven financial years, allowing for various interpretations regarding funding trends, budget management, and the state of NPOs.
From 2014/15 to 2019/20, there was a notable increase in the number of NPOs funded, rising from 2 061 to 3 311, which indicates a growing recognition of the importance of NPOs or a strategic expansion of funding initiatives.
However, in 2017/18, there was a significant drop in expenditure to over R1.7 billion, despite a substantial budget of over R2.4 billion. This was a deviation of over R691 million could indicate underutilisation of funds, possibly due to the department appointing fewer NPOs than the budget could accommodate, taking away the opportunity to provide more services to the vulnerable.
While the budget allocation peaked in 2021/22 at R2.7 billion, the number of funded NPOs declined sharply in 2022/23 and 2023/24, falling to 1 837 and 1 464, respectively. This signifies a shift in funding strategy that tightened the criteria for NPO eligibility.
Furthermore, data analysis shows that the highest deviation occurred in 2024/25, with over R360 million left unspent.
“This raises concerns about the department’s ability to support NPOs in Gauteng. Significant financial deviations indicate poor management and inadequate support for NPOs. Consistent underspending since 2017/18 has caused turmoil, denying vulnerable individuals crucial services,” says Refiloe Nt’sekhe MPL, DA Gauteng Shadow MEC for Social Development
Accordingly, the data shows that GDSD is not doing enough to capacitate NPOs and assist municipalities to help NPOs become municipal-compliant with zoning, environmental health certificates, and building plans.
Under a DA Gauteng government, the strategic direction of funding would ensure that funds are effectively utilised and aligned with societal needs. No NPO would have to shut down when over R1 billion is left unspent.