Discover your passion * Implement your vision:
How to start and manage a non-profit project
The gift of Mercy / Compassion = a helping heart
Mercy / Compassion (Serving Gift) – The special gift whereby the Spirit enables certain Christians to feel exceptional empathy and compassion for those who are suffering (physically, mentally, or emotionally) so as to feel genuine sympathy for their misery, speaking words of compassion, but more so caring for them with acts of love that help alleviate their distress.
The divine enablement to cheerfully and practically help those who are suffering or are in need by putting compassion into action.
People with this gift:
– focus upon alleviating the sources of pain or discomfort in suffering people
– address the needs of the lonely and forgotten
– express love, grace, and dignity to those facing hardships and crisis
– serve in difficult or unsightly circumstances and do so cheerfully
– concern themselves with individual or social issues that oppress people.
If you are not sure what your spiritual gifts are – please complete our Spiritual Gifts Sorter.
If you have a helping heart, and a burning passion to help those in need, then this info is for you. This is a process that will take you through the paces, step by step of how to become involved and serve the body of Christ, and your wider community with your unique gifting and anointing. Your involvement depends entirely on you, maybe you want to serve as a volunteer in an existing project, or start your own project, or even start your own NPO. The e-book manual also available on request: Helping Heart Workbook.
HELPING HEART aim to support those with a helping heart to discover their passion and implement their vision:
DISCOVER YOUR PASSION:
We help individuals discover their gifting and passion. See our 4 Seasons Temperament Profile and Spiritual Gifts Profile.
IMPLEMENT YOUR VISION:
We aim to support individuals with knowledge and skills to formulate a vision for helping others and to implement their vision.
Process of starting a new project
So, you have a helping heart, a burning passion and a prophetic vision for serving and being involved in mercy ministry. Where do you start?
STEP 1: PRAY
Pray! Communicate your heart and vision to others in your church community that you are accountable to. There is wisdom in the counsel of many… Pray with others that share your heart and passion. Do not be discouraged! God has a plan for you – open your spiritual eyes and ears and wait on Him to give you strategy and direction. Remember to be Spirit-led and never fear-driven, always operate from a place of faith.
STEP 2: JOURNAL
Write it on a tablet. Start journaling your vision, mission statement and goals, identify the target group of your project. What are the key needs of your target group? Will you need staff and volunteers? What resources do you have available? What resources can you share and make available for joint projects? What resources do you need? What are your current needs? What are your future needs? What are obstacles that you currently face? How can networking with others help you? What network relationships do you have and what new network relationships do you need to establish?
Make an appointment with Helping Heart Center. We will do a NEW PROJECT ASSESSMENT (see Workbook) to support and help you. Gain as much knowledge and skills as you can. Research similar projects, Google similar projects. Read read read.
STEP 3: VOLUNTEER
Volunteer at a similar project to see if the work suits you and to gain knowledge and skills in that area. Especially if your educational and professional background is in another field. Visit as many similar projects to make sure you have a realistic expectation of the work involved. Make room for yourself to grow and give yourself time. Remember that God has perfect timing… there is a time and a season for every purpose under heaven.
STEP 4: BUSINESS PLAN, REGISTER AS NPO
Draft a Business Plan. See no. 5 underneath and the Workbook for detailed information. Register as NPO if needed.
STEP 5: NETWORK
GET CONNECTED! Start networking and start to position yourself strategically within the welfare sector. No project can function effectively and sustainably in isolation. Find out what other projects, NPO’s and Welfare Organizations function in the area where your service delivery will be. If there is a local network of welfare initiatives in your community, start visiting them and build relationships. All role players in the community should be notified and a network of relationships should be established. The following persons will be targeted: Social Workers of Welfare Organisations;, Hospitals and Municipalities; Officials from the Department of Social Development; Doctors; Nurses; Police officials; Clinic staff; Potential sponsors; Potential Volunteers.
STEP 6: FUNDRAISING AND FINANCIAL MANAGEMENT
Fundraising and financial management of your project is crucial for its survival. See underneath and the Workbook for detailed information on fundraising. As well as a directory of possible funders.
STEP 7: QUALITY CONTROL
A new project is like a baby that will need a lot of attention and care. As your project ‘grow up’ it will need less intensive care, but you need to realize that as the Project Leader you are the one responsible for managing the project and your staff/volunteers effectively.
Take a deep breath – and a leap of faith! Be honest about your limitations, view them as areas to grow in. Remain humble and teachable, and remember that we are all here to serve one another in love. You are not alone. You are now a part of a vast army of helpers – advancing God’s Kingdom! Our fight is not against flesh and blood, and our weapons of warfare are mighty in God! You are on the winning team.
Writing a Business Plan/Project Proposal and register as a NPO/PBO
How to write a Business Plan/ Project Proposal
The purpose of a Business Plan/ Project Proposal is to communitcate the vision of your proposed project to other role players. This is a document, including time frames and budgets, outlining the specific steps to be taken to achieve a Project/NPO’s objectives, usually for three to five years. However, the purpose of a Fundraising Proposal is to raise funds for your project.
See Workbook for an outline of a Business Plan, and examples of Business Plans.
See Workbook for a Model of a Constitution.
How to register as an NPO and PBO
The Non-Profit Organisation Act of 1997 establishes a legal framework that allows non-profit organisations to grow and develop. Under this act, is the Directorate of Non-Profit Organisations, which is now housed in the Department of Social Development. This department is responsible for building a system of social development services that facilitates human development and works in partnership with non-profit and non-governmental organisations.
Importance of registering
It is important to register your organisation as a legal entity. Most – if not all – funders, require that each organisation they fund is officially registered with the government as a non-profit organisation. A non-profit organisation is defined as a trust, a company or other association of persons, established for a public purpose, where the income and property of the organisation are not distributable to its members or office bearers, except as reasonable compensation for services rendered.
Any organisation can apply for registration, provided that it is not for profit and is not part of the government, such as:
Non-government Organisations (NGO),
Community-based Organisations (CBO),
Faith-based Organisations (FBO),
Organisations that have registered as Section 21 Companies under the Company Act 61 of 1973,
Trusts that have been registered with the Master of the Supreme Court under the Trust Property Control Act 57 of 1988, and
Any other Voluntary Association that is non-profit.
The registration process
There are several things you need to consider before you decide to register your organisation.
The directorate will only register a properly set up legal entity with a founding document, such as a constitution. This document must
explain what your organisation will do, how it will be structured, and how it will be run. An example of a constitution can be downloaded from
http://www.welfare.gov.za or obtained directly from the department at (012) 312 7500.
Type of organisation.
Your organisation will need to make a decision about the type of non-profit organisation it would like to form. There are several different types: Section 21 or Section 18(a) companies; trusts and voluntary organisations.
Choice of legal entity.
Be aware that while many donors will fund any type of non-profit organisation, others will only fund a Section 21 or Section 18(a) company. This is an ‘Association Not For Gain’ and does not intend to make, or to be judged by, the profits that it makes. It is therefore important to consider which type of registration is best suited to your organisation. This information, and other details regarding legal entities is available on http://www.welfare.gov.za .
Opening a bank account.
A funding organisation cannot give you funding without a bank account. Therefore, if you are a new organisation you will need to open one.
Submit a completed application form (obtainable from the Department) and two copies of the organisation’s founding document i.e. a constitution/ deed of Trust or, a Memorandum and Articles of Association. Please note that registration for a non-profit organisation is free of charge.
Department of Social Development
Private Bag X901, Pretoria, 0001
Tel: 012 312 7500
Benefits of registering
Registering helps in finding ways of getting benefits like tax incentives and funding opportunities.
Registering brings your organisation into a formal system.
Registering makes your organisation accountable to a public office, which, in turn improves its credibility.
Income tax exemption
Income tax exemption is preferential treatment that is granted to non-profit organisations established for the benefit of the general public.
The Taxation Laws Amendment Act, No. 30 of 2000 introduced the concept of a “public benefits organisation” carrying on a “public benefits activity”. Given that non-profit organisations play a significant role in the societal and developmental needs of the country, they relieve the State of a financial burden. Therefore, preferential tax treatment is designed to assist non-profit organisations with resource maximisation and to provide an enabling environment in which these organisations can achieve their objectives.
It should be noted that even if an organisation has a non-profit motive, it is not automatically exempt from paying income tax. The organisation will only be exempt from payment of income and other related taxes, if it complies with the relevant requirements and conditions as set out within tax legislation.
Requirements and conditions necessary to qualify for this exemption are laid out in Section 30 of the Act and are as follows;
A company incorporated under section 21 of the Companies Act, which has a memorandum and articles of association as its founding documents and is registered with the Registrar of Companies,
A trust which has a founding document, a trust deed which is registered with the Master of the High Court,
An association of persons, which is a voluntary association of persons governed by a constitution, and
An organisation of which the sole object is carrying on one or more public benefit activities.
Details of conditions for qualifying as a Public Benefits Organisation (PBO) are available on the South African Revenue Service (SARS) website at http://www.sars.gov.za . Should your organisation meet the requirements as set out, it can apply for tax exemption as a PBO.
Procedure for applying for tax exemption
Organisations wishing to apply for exemption from income and, for approval for donations to be tax deductible in terms of section 18A of the Income Tax Act, must complete an application form EI 1. The EI 1 can be downloaded from the SARS website at http://www.sars.gov.za .
The completed form, together with the relevant required supporting documentation, must be submitted to the Tax Exemption Unit (TEU), which is an office within SARS that deals with tax exempt entities.
The supporting documentation must be attached and submitted together with your application form EI 1. A list of the required supporting documentation is available from the SARS website at http://www.sars.co.za .
The TEU handles the application for tax exemption from non-profit organisations. It further conducts annual assessments of organisations once they become tax exempt. It is important that all requested information and relevant required supporting documentation is submitted to the TEU along with the application form EI 1. Incomplete applications will be returned.
Submit applications to:
The Head: Tax Exemption Unit:
P. O. Box 11955, Hatfi eld, 0028
Telephone: 012 422 8800, Facsimile: 012 422 8830
Email address: firstname.lastname@example.org
Writing a Fundraising Proposal and Raising Funds
How to write a fundraising proposal
The main purpose of a fundraising proposal is to persuade donors that your organisation is worthy of investment. At a minimum, you must ensure that your proposal looks good and reads well. The real challenge is to make your proposal stand out from the others. The decision to fund your project or programme, is based on the quality of your proposal. For this reason, the preparation of the proposal is the most important step in the fundraising process.
Questions to consider when developing a proposal
The following questions should help you to structure your proposal to donor specifications:
What are the donor’s priorities and organisational values?
What are the donor’s funding areas of interest?
Has the donor funded projects before?
What will the donor not fund and should it therefore be excluded from the budget report?
Are there any specific proposal guidelines?
Is there a deadline for proposals?
How much is the donor prepared to give?
Components of an effective proposal
It is focused and articulate.
It is clearly written and structured.
It is well researched and concise.
It is complete, with all the necessary documentation and attachments.
The problem or need to be addressed is clearly defined.
The project goals and objectives are clearly outlined.
It meets the donor guidelines and specifications.
The organisation has the capacity to carry out the desired project.
The budget is cost-effective and realistic.
The timetable for the execution of the project is feasible.
The project is sustainable.
There is a clear plan for accountability, including reporting.
Some reasons why proposals are unsuccessful
Proposals show little evidence of research, or knowledge of the donor. They are mass-mailed and are not tailored to the donor’s specifications.
Project goals and aims are not clear.
The proposal does not follow donor guidelines.
The proposed projects are based on insufficient evidence.
The proposal does not convince the funder of the need for such a project, or proposal.
The overall design and layout of the proposal is not clear.
The project is not carefully thought through.
The people involved are not suitably qualified to carry out the project.
There is not enough evidence of partnerships, or reference to relevant people.
The project outlined in the proposal appears to be impractical and difficult to carry out.
The proposal is incomplete, or does not stick to the format required by the funder.
If you note these points as you research, structure and write your proposal, you will increase the chance that your proposal will be seriously considered. If you follow these guidelines and, nonetheless find that your proposal is unsuccessful, it is in your best interest to ask what exactly went wrong, so that you can learn from the experience and produce better proposals in the future.
Content of a Fundraising Proposal
See detailed information in the Workbook.
How to raise funds
When it comes to obtaining assistance from donors, there are three basic rules to consider:
Familiarise yourself with current trends in the donor environment.
Understand whether you match the objectives and meet the criteria of your prospective donor/s.
Formulate a strategy on how to approach funders.
There is a wide selection of sources to which fund seekers can appeal for support, both locally and internationally. These include but are not limited to;
Philanthropic entities (foundations and trusts),
Educational institutions, and
The type of assistance is not confined to monetary contributions only, but can involve a variety of other forms of support (Refer to section on The Diversified Funding Approach). Understanding the various forms of support that are available will help you to diversify your funding streams in order to;
Identify and tap into a wider range of funding opportunities,
Avoid limiting yourself to one area of support, and
Spread your options widely.
A good place to start, particularly if you are a recently established NGO or fund seeker, is to create a comprehensive list, preferably in a database format. Then, prepare a strategy detailing how you will approach the funder. In preparing this strategy you should;
Understand the broader funding environment,
Familiarise yourself with the donor/s, and
Prepare an appropriately tailored application.
The local funding scenario
In the past several years, the funding scenario in South Africa has changed, particularly with respect to overseas aid. Previously, international funding was directly available to non-profits.
Currently, most international funding is channelled through governmental departments, which then filter the funding through to various agencies on the ground. As a result of this shift, fund seekers must be creative and competitive when sourcing funding support.
Many non-profit organisations in South Africa have come to rely on government for their funding. Various departments within government have particular focus areas and have specific programmes and funding requirements. Departments which have extensive funding programmes are the Department of Trade and Industry, Department of Social Development and the Department of Tourism.
While government sources do provide a significant amount of funding in the sector, the reliance of non-profit organisations on government as their single source of funding, creates a level of dependency that is problematic. Diversifying funding options is key to sustainability in a non-profit organisation. Projects have been known to fail, because non-profi ts have not adequately diversified their funding options.
Having a sound knowledge of available local resources and learning how to persuade funders of your organisation’s need, is vital. Your efforts to secure funding will more likely be successful if your approach is proactive, creative, and professional.
The international funding scenario
International donors want to be assured that their money is being spent for its precise purpose. Accountability is an essential pre-requisite to receiving development assistance. It is imperative that you incorporate a comprehensive system of monitoring and reporting into your proposal. This will not only demonstrate willingness on your part to be transparent, it will also serve to highlight to the donor your professionalism – and, will go a long way towards convincing the donor that your organisation is a worthwhile investment. Most international donor governments tend to channel their financial assistance or Official Development Assistance (ODA) in a variety of ways;
● Through government entities in the form of partnerships,
● Through other international donor institutions (i.e. UN, World Bank etc),
● Through their embassies, and
● Through their own development agencies – sometimes housed in their embassies.
Sources of funding:
Independent trusts and foundations (both international and local) tend to support gaps in government funding, although each has its own and independent culture and criteria. These are independent entities, which ordinarily provide assistance in the form of grants to non-profit organisations. Most of the income of trusts and foundations is derived from sources such as an endowment, a wealthy benefactor, a corporation or, from fundraising campaigns.
Faith-based organisations (FBOs)
FBOs remain an under-utilised resource. Many funders make it a point not to fund causes which have a religious focus. This can limit the scope of funding sources for those non-profits that have this particular area of interest. FBOs are increasingly being asked to assume leadership positions in tackling social issues and are being relied upon by government and other entities as initial entry points into affected communities.
Non-profit organisations should realise that education institutions are also potential sources of funding. Some institutions either provide assistance by way of volunteer programmes, donations-in-kind, or direct monetary assistance.
South African corporate provide a substantial degree of funding support to local development initiatives through sponsorships or corporate social investments (CSI). Government provides incentives to corporate who demonstrate commitment in this area through tax incentives, black economic empowerment compliance awards and recognition. The list continues. Added conviction for corporate to engage more responsibly, is provided by the United Nations Millennium Development Goals (MDGs), which recognise corporate social responsibility as part of a wider campaign towards global poverty alleviation.
See Workbook for detailed information on ‘How to raise funds”.
See Workbook for ‘List of potential funders’.
Good governance, financial management and human resources
Managing your project: Best Practice and quality of service delivery
As the Project Leader of your project, it is of utmost importance that you implement strategies for good governance and financial management. This will directly determine the quality of your project’s service delivery. Helping Heart Center will help you to grow in this area. Administration is an integral part of successful management of your project and you will have to give it priority.
Every project will have a structure to help you manage the project and to facilitate communication within the project. A project will normally consist of a:
- PROJECT LEADER
This is normally the person with the vision and passion to start the project. The Project Leader manages the project and communicates with other role players, e.g. Helping Heart. The Project Leader is also responsible for writing the Business Plan, the Fundraising Proposal and for fundraising. The Project Leader is a volunteer and does not necessarily receive a salary and lives in the same community where the project is established. The Project Leader can earn a salary if the Project’s finances allows it and if they are full time involved in the management of the Project. However, we recommend that you start off as a volunteer until the Project can grow to a place to sustain salaries.
ROLE OF THE PROJECT LEADER
Day to Day encouragement and management of Project , Volunteers and portfolio members of Project Team.
- PROJECT TEAM
The project team are a team of volunteers that help the Project Leader to manage the project. They will have different portfolios to focus their responsibilities and tasks within the project. Porfolios will be determined according to the need in the project. E.g.
- Project Leader
- Secretary: This person gives notice of meetings, distributes the agenda, arranges refreshments, keeps the minutes and distributes it to members. This person will also be responsible for letters of acknowledgement tot sponsors.
- Treasurer: This person manages the finances and is responsible for the opening of the bank account, bookkeeping and the provision of monthly and quarterly financial statements. Financial reports must be tabled at every management meeting (Income and Expenses). This person has to arrange for the annual audit of the books.
- Other portfolios (e.g. Fundraising and marketing, co-ordinator of volunteers)
ROLE OF THE PROJECT TEAM:
Day to Day management, Encouragement, Administration, Human Resources, Financial Management, Networking, Mobilisation.
FUNCTIONS AND TASKS OF THE PROJECT TEAM:
- Quarterly meetings
- Approval of financial statements
- Deal with recommendations from Helping Heart Center’s Steering Team and Directors
- Receive feedback from Portfolios
- Receive feedback from the Project Leader
- Deal with problem situations
- Does project planning
- Minutes of meetings must be kept in a book with numbered pages, to be signed after approval and has to be submitted when the audit of the project/NPO is done.
Proper meeting procedures are extremely important as it brings about professionalism, credibility and accountability.
- Frequency of Project Team meetings must be established (e.g. quarterly) and adhered to as far as possible. Meetings that are postponed/cancelled on a regular basis causes uncertainty and eventuallly mistrust
- A Chairperson should be apointed to take responsibility of the meeting, and a secretary to take the minutes.
- Notice of meetings should be given in advance to the Project Team and other role players, at least two weeks ahead of time, the time and place of the meeting must be clear.
- Agenda of the meeting must be set up by the Project Leader and distributed ahead of time, if possible. Otherwise it should be distributed at the meeting, before the meeting commences.
- Minutes of the previous meeting must also be distributed ahead of time, or at meeting before it commences. An action list as an addendum to the minutes are important, so that every one is clear about their tasks and responsibilities.
Administration of the Project
It is important to have a proper admistration system and record keeping system in the Project. A pioneer project will develop this system, or if a Operations Manual already existes, you will only have to implement these systems in your own project. A Project File needs to be kept and should contain the following:
- Original minutes of the negotiations to start the project.
- Contract with support services available.
- Business Plan of Project.
- Fundraising Proposal of Project.
- Constitution of Project (when registered as NPO).
- Process Notes of communication with different role players.
- Process notes of project planning.
- Minutes of Project Team meetings.
A simple but sound, accurate and accountable financial system is an important indicator of the success of a Project. It influences the input from sponsors and donors and the acceptance of the projects by communities as well as Government.
- A Treasurer with some experience in finances will be available;
- Bookkeeping system, accepted by the committee, will be established;
- A decision regarding signatories has been taken and a bank account has been opened;
- A system of requisition must be established;
- A proper budget has been done – all role-players have given input;
- Bank statements will be acquired and checked;
- Monthly reports/financial statements of income and expenditure will be available;
- Finances will be audited annually and reports will be tabled at committee meetings;
- Finances must be dealt with at every management meeting and approval of the financial statements and reports must be documented. Extra ordinary expenses must be approved and documented.
- Minutes, with all the decisions and resolutions must be pasted into a Minute book, with numbered pages, and must be handed in for audit.
- Audit must be done as soon as possible after the financial year end.
CHECKLIST TO BUILDING GOOD FINANCIAL MANAGEMENT PRACTICES WITHIN NONPROFIT ORGANISATIONS
Every registered non-profit organisation is obligated in terms of section 17 of the Non-profit Organisations Act, 71 of 1997, to maintain its financial transaction records accordingly to the standards of generally acceptable accounting practices.
Office Bearers (governing body members) are obligated to ensure that the organisation keeps proper books, records and that annual accounts are prepared as financial statements to be submitted to the Directorate of Non-profit Organisations, nine months after the financial year ends of the organisation.
This checklist enlists basic elements for an organisation to work towards building good management practices. Financial management in organisations involves the management and recording of the flow of money. This includes all money coming into the organisation (income) and all money flowing out (expenditure).
Proper financial systems are necessary feature of any well managed organisation-whether for profit or non profit in nature. Good financial management practices for non=profit organisations is especially important as they play an essential part in helping to instil confidence in potential donors and beneficiaries that the organisations’ assets are secure and that they are managed in an efficient manner. Effective financial management control gives a sense of confidence in the entire non=profit sector and increase attraction of the sector to potential donors.
While the vast majority of people are honest, organisation still need to take steps to avoid putting people in situations where they might be tempted to defraud the organisation. The lack of proper guidelines may cause harm to the reputation of the organisation. Proper financial management ensures the protection of interest of the organisation’s beneficiaries, its employees and governing body members themselves.
This checklist is not intended to set-out an exhaustive listing on how best to build good financial management practices within non-profit organisations. Organisations should still always seek professional advice as much as possible from registered professional financial service providers when dealing with organisational financial matters.
The checklist articulates basic elements on good financial management that an organisation can use to develop its own internal financial control mechanism. The checklist is specifically aimed at medium to small non-profit organisations especially community based organisations. These basic guidelines, however, can also form a framework for larger organisations to consider when developing financial control systems.
These specific elements on good financial management follow hereafter:
- Check that actually tasks of approving and managing the finances are shared, so that no one single person can control all aspects of financial management process.
- Check that your financial policies require more than one single employee or governing board member to be able request, approve, make payments and withdraw money from the bank.
- Check that bank reconciliations are done by someone who does not sign the cheques, have access to cash nor records cash transactions.
- Check that the financial records are reviewed regularly by people other than the person who is responsible for maintaining the records.
- Check that your governing board receives regular, preferable a monthly, financial report and a list of all cheques drawn by your organisation.
- Check that salary records are kept (locked in a filled cabinet) for all staff, detailing attendance and leave entitlements.
- Check that you have an annually audit.
- Check that signatories take their responsibilities seriously. Remember, signatories are responsible for any cheques they sign.
- Check that signatories never sign black cheques. Cheques should only be signed once they have been written out in full.
- Check that your cheque book is not left lying around. It should always be kept locked in a safe place.
- Check that you never issue uncrossed cheques, unless it is a cash cheque. Always cross cheque payments ‘Not Transferable’.
- Check that you never withdraw money from your savings account. Always transfer money from the savings account into the cheque account.
- Check that you always bank any money promptly, such as money generated from donations, sales or fees.
- Check that monthly bank reconciliations are undertaken and any discrepancies (differences either over or under) are immediately investigated.
- Check that you never cash personal cheques from petty cash.
- Check that you always issue serially numbered receipts (with the name of your organisation) for all cash received.
- Check that you keep all cancelled receipts. These are still a part of your financial records.
- Check that receipts books are kept in a safe and locked place.
- Check that you keep a written record of any donations or pledges to the organisations.
- Check that all expenditure and payments are approved in writing by the person nominated by your governing board.
- Check that you use a purchase order for all purchases.
- Check that you always obtain quotes before you purchase equipment and other services and file them with the purchase order.
- Check that once the purchase has been approved that competitive quotes are obtained before the item is purchased. Many organisations have a policy that if a purchase is over R3,000, three quotes should be obtained first.
- Check that when you receive goods or services that they are in working order. Check that the quality of the goods or services you have received are the same as those you ordered.
- Check that you fill in the guarantee and post it to the manufacturer.
- Check that you make all payments for goods and services by cheque.
- Check that you receive an invoice for your purchases and that you file this along with all the other documentation relating to the purchasing.
- Check that you monitor your budget against expenditure to ensure that you can afford the purchase you are making.
- Check that the funds are available before you make the purchase and that the necessary person/people approved the expenditure.
MANAGING PETTY CASH
- Check that when payments are made with cash, petty cash vouchers and receipts are submitted.
- Check that you have established an assets register and that you regularly maintain it.
- Check that all equipment and other items listed on the assets register has an identification mark or number. This can be a sticky label which is attached.
- Check that you protect against loss and theft of equipment. Take out the necessary insurance.
- Check that you use log books for motor vehicles.
- Check that you follow-up on any advances you may have given and get them reimbursed as quickly as possible. For example, if you give an advance for travel to a workshop, ensure that once the person returns they reconcile the advance.
- Check that you are receiving money by the due date. If there are overdue amounts owed to your organisation, chase them up.
- Check that your financial reporting deadlines are adhered to according to your contract with each funder.
- Check that your grant payments are received according to the time line contained in your funding contract.
MANAGING THE MONTHLY FINANCIAL CHECK
- Every month your bookkeeper and treasurer (or two other people nominated by your organisation) should review the operations of the previous month. Specifically, they should:
- Check what cheques were made out for cash and what they were for?
- Check if there were they any `odd’ or unusual payments.
- Check the wages book and all other payments.
- Check which items are running over or under budget and ask and why.
- Check which funds were received and whether they were deposited
- Check the bank reconciliations.
- Check that any other money received (such as donations, sales, membership fees) was deposited.
Depending on your project, you may only have volunteers, or you may also have paid staff/personnel. Either way it is very important to manage the human resources within you Project effectively and professionally. To keep your volunteers/staff motivated and create an environment for humility, a teachable spirit, unity, love and compassion, and nurture every helping heart to flow in their unique gifting and anointing.
The following aspects will be ascertained regarding personnel:
- Identify Key Positions and define specific Job descriptions and requirements;
- Identify a screening team and make a person responsible for the process;
- Advertise by Word of Mouth/Media/Churches etc.
- Interview candidates and contact referees – concentrate on Credibility, Ability, Teach ability and Availability;
- Appointment must be done in writing – i.e. Formal letter;
- Service Contracts must be signed prior to commencement of service – all conditions must be clear in contract;
- Successful candidates must acknowledge receipt of appointment letters, job descriptions and contracts;
- A staff file must be opened for each staff member. Contact details as well as copies of all the following relevant documents should be kept in file:
Letter of Appointment
Copy of I.D. and Driver’s License
Staff appraisal notes
- An application for leave form will be developed. Personnel should complete leave forms every time they take leave/sick leave/compassionate leave. A Register shall be kept of leave taken and leave available.
- Personnel must be registered with the Department of Home Affairs and UIF must be paid over every month (1% contribution from employee and 1% contribution from employer).
- The Human resources manager should have monthly meetings with personnel in order to support, encourage, evaluate and do appraisals.
- A disciplinary system must be implemented/developed and personnel must have insight into the Code of Discipline.
- A relevant and suitable/relevant training programme should be developed and executed.
- Personnel must receive a proof of payment slip when they receive their salary.
- Personnel administration must be the responsibility of one person who takes care of the following:
- Opening of a personnel file.
- Process as per action list on file.
- Registration with UIF and SARS.
- Proof of Payment/Pay Slip.
- Keeping record of leave.One person is responsible for the inputs in terms of the Staff. If too many people are involved, confusion often occurs as opinions and instructions come from different people. This causes relationship problems, not only between personnel, but also between committee members and volunteers.
- This person also takes responsibility for the following:
- Emotional support of personnel.
- Recognition and encouragement.
- Recognition on special occasions – birthdays etc.
- Disciplinary process in terms of personnel appointed by committee.
- Feedback to management regarding the needs and functioning of all personnel.
The following is a list of useful resources which offer a wealth of information. Due to the scope of information contained within these sites and resources, we were unable to verify the validity or accuracy of the information provided. We suggest that you verify contact information and funding criteria before you proceed to submit a letter of enquiry or a proposal. We recommend that you use these resources not only to identify possible donors, but also to improve your knowledge of fundraising for the development sector. The publications can be sourced from your local library, ordered directly from the organisation, or obtained through http://www.amazon.com.
Please note that through the City’s Smart Cape Access Project, internet access is available free of charge at public libraries in and around Cape Town.
- www.bigdatabase.com – A site with information about international non-profit funding from U.S. foundations and corporations. The site also provides excellent information on the fundraising process.
- www.cafonline.org – Although Charities Aid Foundation (CAF) Southern Africa does not have a general grants fund, CAF offers specialised financial services to charities and their supporters. CAF helps charities to manage their resources, working with individual and corporate donors, ensuring their giving is easy to manage, and that it has the greatest possible impact.
- www.casidra.co.za – CASIDRA promotes rural development in the Western Cape. It manages the Ikapa Absa Entrepreneurial programme, co-funded by the Provincial Government of the Western Cape and ABSA. They offer business loans for rural development at low interest rates of 10% (fixed).
- www.catalystworks.co.uk – A U.K. based marketing agency, specialising in the non-profit sector.
- www.changemakers.net – The Citizen Base Initiative, provides invaluable insight, information and ideas on ways to creatively source for funding. It discusses strategies that engage local as well as international resources in order to assure the sustainability of an organisation.
- www.charitychannel.com – The world’s largest on-line community of non-profit professionals.
- www.cordis.europa.eu – This website provides a free on-line service that is tailor-made to help you to find the best research partners for your projects, either in the context of EU-funded Research and Development projects, or within broader technology orientated partnerships. The service includes details on thousands of active partnership requests from companies, research institutions and universities around the world.
- www.comminit.com – The Communication Initiative is a space to debate and advance effective communication regarding development issues.
- www.dag.org.za – The Development Action Group provides direct assistance to projects, focusing on securing land, training services, housing and community facilities in the Western Cape.
- www.devdir.org – This website provides a list of development organisations in South Africa. This site is useful, because it also lists development organisations in countries throughout the world, which helps to facilitate international co-operation and knowledge sharing in the field. It links the work of civil society organisations, research institutions, governments and the private sector in an interesting and informative way.
- www.digitalopportunity.org/aricle/frontpage/296/1061 – This website features the Digital Opportunity Channel, which is a joint endeavour of One World and the Digital Divide Network. The website provides a list of potential global funding opportunities.
- www.edc.org – The Education Development Center is an international, non-profit organisation with a portfolio of more than 325 international projects, dedicated to enhancing learning, promoting health and fostering a deeper understanding of the world.
- www.fastennetwork.org – The Faith and Service Technical Education Network (FAST) offers informational resources and networking opportunities to faith based practitioners, private philanthropies and public administrators. This site also has effective tools and insight on basic fundraising fundamentals.
- www.foundationcenter.org – The Foundation Centre provides a tutorial on proposal writing and has posted a grant seeking reference on the web.
- www.fundraising-tips.co.za – A site that provides details on how to be successful in a fundraising campaign and lists some of the common mistakes of unsuccessful fundraising efforts.
- www.gdrc.org/ngo/ncafe-ww.html – The NGO Café is a forum for NGOs to discuss, debate, and disseminate information on their work, strategies and results. It contains a useful section that reflects on fundraising strategies and proposal writing. It aims to assist NGOs in enhancing and improving their programmes and activities, better enabling them to network at local, regional and international levels.
- www.grantcraft.org – A project of the Ford Foundation, this website offers a multitude of capacity-building tools and guides for grant makers and grant seekers.
- www.grantproposal.com – A site devoted to providing free resources for both advanced grant writing consultants and less experienced non-profit staff.
- www.greatergoodsa.co.za – The Greater Good Foundation is a non-profit organisation which tries to facilitate the process of partnerships between corporates and NGOs. It assists businesses in locating and funding NGOs, which are in line with their own corporate initiatives.
- www.interfund.org – Interfund is a consortium of donors based in Scandinavia and Europe who pool resources around a common set of criteria and policies, to advance development and democracy in South Africa.
- www.jasa.co.za – Junior Achievement South Africa, (JASA) offers experiential business and related life skills programmes, to young people.
- http://www.ncvo-vol.org.uk – The National Council for Voluntary Organisations (NCVO) is the umbrella body for the voluntary sector in U.K. Their website offers useful advice on the European funding scene, as well as general and comprehensive information on sustainable funding.
- www.gilbert.org – This website publishes a diary of articles by the Gilbert Centre, including the Non-profit On-line News.
- www.polity.org.za – This website provides an array of resources regarding fundraising, policy and law, as well as on-line news.
- www.prodder.org.za – Prodder is a free NGO and on-line directory that can be accessed directly or through the Sangonet site (www.sangonet.org.za).
- www.resource-alliance.org – This is an international network, working to build the fundraising and resource mobilisation capacity of the voluntary sector, and of non-governmental and community-based organisations.
- www.saifundraising.org.za – The Southern African Institute of Fundraising, is a professional body representing fundraising practitioners who promote and encourage high standards of ethics, practice and public service in Southern Africa.
- www.sangonet.org.za – Sangonet is a free on-line source, which provides information on South African NGOs, development agencies, government information and, directories.
- www.seda.org.za – The Small Enterprise Development Agency (SEDA) is the Department of Trade and Industry’s agency for supporting and promoting small business enterprises in rural South Africa.
- www.takingitglobal.org – This on-line community is a youth network that aims to get youth involved in their local and global communities. It is now the world’s most popular on-line community for young people interested in making a difference.
- www.tgci.com – This site lists U.S. foundations and corporate-giving programmes, which provide assistance to various African countries.
- www.tidesfoundation.org/about-tides/index.html – The Tides Foundation offers a range of services, which simplify and streamline international giving. It works to support donors in providing international grants to fund seekers.
- www.thefundingsite.co.za – The Funding Site hosts a searchable on-line database of potential donors. At a fee, grant seekers are given access to detailed information on donors.
- www.thembalitsha.org.za – The Thembalitsha Foundation provides training for youth entrepreneurial efforts.
- www.worldbank.org – This site is a collaboration between the small grants programme and the international youth foundation of the World Bank, which is meant to assist development organisations with mobilising resources for development. It also offers useful information on the funding sector internationally.
- www.yesweb.org/alliance – The Global Alliance for Youth Employment is a coalition of diverse stakeholders that are committed to promoting youth employment. These stakeholders include governments, NGOs, the private sector, youth organisations, education and training institutions.
Internet sites for Government funding sources
- www.capegateway.gov.za/eng – Capegateway provides easy access to government information and services.
- www.polity.org.za/html/lists/govsites.html?rebookmark=1 – This link opens directly to Unwembi’s list of government internet sites, relating to governmental departments. Visit Unwembi’s site at http://www.unwembi.co.za.
- www.socdev.gov.za – The website for the Department of Social Development provides assistance and services in the following areas; registration of non-profit organisations, poverty relief projects, home-based/community based HIV/AIDS projects and contacts for the National Call Centre for Social Grants Enquiries.
- www.dac.gov.za – The website for the Department of Arts and Culture has a funding programme, which offers scholarships.
- www.thedti.gov.za – The website for the Department of Trade and Industry offers skills transfer and training, as well as community-based funding opportunities.
- www.environment.gov.za – The website for the Department of Environmental Affairs and Tourism offers support through various programmes, such as the poverty-relief programme. The programme was established to allocate funding support to projects which aim to; create jobs through the development of tourism infrastructure, develop new tourism products, provide training and capacity-building, as well as to ensure long-term sustainability.
- www.capegateway.gov.za/eng/your_gov/13330 – (Western Cape Provincial) The Department of Economic Development and Tourism Chief Directorate has an annual budget for funding projects, which aim to build the tourism industry. Eligibility for funding is limited to a range of entities, such as Section 21 companies or NGOs, which are locally focused, are community-based and have a focus on job creation, training or infrastructure development. The funding policy manual is available onwww.capegateway.gov.za/ Text/2003/12/funding_policy_manual.pdf.
- www.theta.org.za – The Department of Labour (www.labour.gov.za) has established a business trust called The Tourism Learnership Project (TLP). It is an initiative founded to accelerate the provision of learnerships and skills programmes, in order to promote better service and productivity in the tourism, hospitality and conservation sub-sectors.
- www.capegateway.gov.za/eng/your_gov/301/services/11438 – (Provincial Government of the Western Cape). The Department of Cultural Affairs and Sports offers funding in various areas. (Also, refer to: http://www.capegateway.gov.za/eng/ directories/services/11542/100, for more information).
- www.capegateway.gov.za/eng/pubs/guides/A/116508 – The Department of Social Services and Poverty Alleviation offers funding in various areas.
- For a list of Western Cape Provincial Departments which offer funding, visit:
- The African Leader. (Black Management Forum). The official quarterly magazine of the BMF, addressing issues of empowerment, leadership and development. On-line address: www.bmfonline.co.za
- The Big Issue. (The Big Issue). A monthly magazine which addresses and challenges various issues facing South Africa. On-line address: www.bigissue.org.za.
- The Business Trust Newsletter. (Business Trust). A monthly newsletter which examines the impact business trust initiatives have had on South African lives. On-line address: www.btrust.org.za
- Community Self Reliance (Stutterheim Foundation). A bi-monthly newsletter for local development and community economic development practitioners. On-line address: www.led-sa.co.za/news.htm
- Company Giving in Europe, The Directory of Social Change. Radius Works, Back Lane, London NW3 1HL, England.
- CSI Year in Review. (Mail and Guardian). A newspaper supplement, released annually in December, which highlights the CSI activities of the year.
- The CSI Handbook –This comprehensive reference guide to corporate social investment in South Africa is updated annually. It provides valuable information on corporate social investment projects and programmes, giving examples of best practice and key benchmark indicators, against which companies can plan and measure their social investment campaigns and initiatives. For more information about the publication, call 021 683 7417 or visit www.trialogue.co.za.
- For copies of on-line publications from the Department of Trade and Industry (DTI), visitwww.thedti.gov.za/publications/smmeservices.htm.
- Directory of International Corporate Giving in America & Abroad. The Taft Group, 27500 Drake Road, Farmington Hills, MI 48331-3535.
- Economic Policy Making in a Developmental State: Review of the South African Government’s Poverty & Development Approaches 1994-2004. By Swilling, Mark & van Breda, Johann& van Zyl, Albert & Khan, Firoz (2004). Economic Policy & Poverty Alleviation Report Series Research Reports 4 & 5: 1-157.
- Grants for Foreign and International Programs. Guide to Funding for International & Foreign Programs, The Foundation Centre, 79 Fifth Avenue, New York, NY 10003-3076 USA
- A Guide to Mobilising Resources – A Fundraising Manual for Southern African non-profit organisations. David Cuthbert, published by CAF Southern Africa (email@example.com ). This handbook provides NPO volunteer leaders and staff managers with information necessary to achieve financial security and sustainability. Subjects covered include; the role of the NPO in civil society, keys to sustainable funding today, funding sources in Southern Africa, planning for income and developing a funding plan.
- Handbook: Support Programmes for Tourism Business. Visitwww.environment.gov.za/Documents/Documents/support_tourbus_contents.htm for more information about the handbook.
- Inside Japanese Support, Directory of International Corporate Giving, The Taft Group, 12300 Twinbrook Parkway, Suite 450, Rockville, MD 20852 USA.
- International Encyclopedia of Foundations (1990), Greenwood Press, 88 Post Road West, Westport Connecticut, USA 06881.
- Like Chalk, Like Cheese: Professionalism & Whim in Corporate giving at AngloGold Ashanti and Pick & Pay In: The State of Social Giving in South Africa: Report Series Research Report 2: 1-36 (2005). Friedman, Steven & Hudson, Judy & Machey, Shaun.
- My Business. (DTI). Monthly newspaper for SMMEs (Small, Medium and Micro Enterprises) offering advice, information and success stories.
For more information regarding the monthly paper, visit www.thedti.gov.za.
- A Nation of Givers: Social Giving Among South Africans. In: The State of Social Giving in South Africa: Report Series Research Report 1: 1-68. By Everatt, David & Solanki, Geetesh, Solanki. Visit www.ukzn.ac.za/ccs/fi les/ SOG_Report.pdf for more information.
- The NGLS Handbook, United Nations Non-Governmental Liaison Service, Room 6015, 866 UN Plaza, New York, NY 10017.
- Our living World. A monthly overview of WWF programmes, projects and activities in Southern Africa. Available in Africa Geographic magazine.
- People and Projects in Development (2004/5 )– published by Dictum Publishers (011 616 7401) and distributed by Blue Weaver Marketing (021 701 4477). This Directory contains over 25 000 entries of registered NPO’s (Non-profIt Organisation) and NGO’s nationwide. It is an essential resource for CSI departments of all companies, government, academic and research institutions, as well as regional and international funders.
- Practical Guide to Obtain Finance for a Small and Medium Sized Enterprise. (Small Business Project). Provides insights for SMEs into the South African Banking and financing industry, 2001. On-line address: http://www.sbp.org.za.
- Proposal writing& fundraising – Kathy Cook, published by South Coast Foundation (021 438 9063). A comprehensive guide and reference manual that takes the reader step-by-step through the proposal writing and fundraising process. Written in friendly style by an experienced international grant maker, it offers practical guidance to those seeking information and insights into the world of funding. The manual is ideal for non-profits looking for income generating projects – from those with no formal training in proposal writing or fundraising, to those who would like to sharpen their existing skills.
- The South African Donor Directory – published by Papillon Press (021 683 6471). A reference guide that features in-depth details on over 700 active corporate, trust and foreign mission (embassy) donors, active in South Africa. The publication also includes guidelines on proposal writing, developing budgets, writing letters of appeal and completing application forms.
- South Africa’s Economic Transformation. (DTI) A strategy for broad-based black economic empowerment in SA, 2003. Visitwww.thedti.gov.za for more information.
- Towards Financial Self-Reliance – by Richard Halloway, published in association with the Aga Khan Foundation and Civicus. It is available from
Thusanang (011 492 1058). This practical guide is aimed at the managers of civil society organisations, primarily in developing countries and focuses on how to mobilise funds and other resources.
- Unleashing Entrepreneurship: Making Business Work for the Poor. 2004. A report by the UNDP, which highlights ways that poor communities can involve the private sector in development of their ambitions and how, private sectors can, in turn, be facilitated to engage directly in the non-traditional sectors of society. On-line address: www.undp.org/cpsd/indexF.html.