Funding Good Causes

Contents:

  • Funding social development overview
  • Arts, culture and heritage
  • Charitable work
  • Sport and recreation
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Funding Good Causes

The most widely known role of the NLC is its funding of non-profit organisations that play a role in the development of our society – through sport and recreation activities, through initiatives in the areas of arts, culture, national heritage and conservation, and through social services – including community health and literacy projects.

 

In the first decade of the National Lottery, the NLDTF has allocated more than R11 billion from the National Lottery Distribution Trust Fund (NLDTF) to non-profit organisations doing essential work in all of the above fields. At present, 27 percent of lottery ticket sales is transferred on a weekly basis into the NLDTF and this forms the pool of money from which good causes are funded.

 

The Commission is assisted in this by three committees known as Distributing Agencies which are appointed by the Minister of Trade and Industry to award grants from the NLDTF.

They are selected for their expertise in the specific sector for which they allocate grants.

 

These are:

  • Charities, which includes a vast range of welfare and social development interventions
  • Arts, Culture and National Heritage, including our environmental heritage; and
  • Sport and Recreation

The NLC also makes occasional grants for Miscellaneous Purposes. These are projects that might fall outside any of the above fields but meet requirements set by the Minister of Trade and Industry. The members of the Board adjudicate these applications.

sector

To be eligible for National Lottery funding, organisations must be non-profit entities – such as NPOs, NGOs, Section 21 companies, public benefit trusts, municipalities, and institutes of learning – and work for the public good.

 

The system of allocation is designed to safeguard against abuse and to bring elements of fairness and transparency into the process.

  • Applications are adjudicated by distributing agencies, meaning that a committee rather than a single individual makes funding decisions.
  • The total amount available for allocation in each funding sector is set down in regulations.
  • The kinds of organisations and types of activities that qualify for funding are also specified in regulations.
  • The application form and the documents that must accompany the application form are also prescribed in regulations.

Gradual Growth In Transfers To The NLDTF

  • The value of ticket sales has exceeded R36 billion.
  • Close to R10 billion has been transferred to the NLDTF. This amount plus interest earned on the NLDTF account are available for allocation to good causes.
  • More than R11 billion has been allocated to thousands of beneficiaries. Allocations from the fund have exceeded transfers into the fund because of the interest accrued and because some allocations are for multi-year projects and therefore project into the future.
  • The application form and the documents that must accompany the application form are also prescribed in regulations.

Transfers to NLDTF from National Lottery revenue per financial year (R billion)

annualtransfers3
ARTS, CULTURE AND HERITAGE

The National Lottery Distribution Trust Fund (NLDTF) has played an invaluable developmental role in the area of arts and culture. It has also prevented the collapse of initiatives that are of high artistic merit but have insufficient commercial appeal to survive without assistance. Overall, the NLDTF has been part of the emergence of an increasingly diverse arts and culture environment that begins to express our mixture of origins and traditions.

 

Funding from the NLDTF is also allocated to various forms of national heritage – our natural heritage, historical heritage and buildings that reflect our heritage.

 

In the first decade the NLDTF has allocated more than R3 billion to arts, culture and national heritage organisations.

Under current regulations, 28% of the total pool of NLDTF funds must be allocated to non-profit entities in the Arts, Culture and National Heritage Sector. We welcome applications from organisations of all sizes, from national bodies to local clubs and schools that meet the funding requirements.

 

The first allocation from the NLDTF to this sector was made in 2001, when R48 million was shared by 139 beneficiaries. By 2010, total allocations to this sector amounted to R1 230 million and the number of beneficiaries was 188.

 

The Arts, Culture and National Heritage Distributing Agency is required to allocate at least 50% of the available funds to organisations involved in the following activities:

  • Protecting and promoting traditional knowledge and cultural expressions.
  • Promoting arts and crafts produced by groups of women and disabled people.
  • Developing and preserving cultural heritage sites as a way to generate revenue and develop communities.

More generally, applications are welcome from organisations that help to:

  • Enable people across the country enjoy a range of art activities.
  • Make the arts accessible to more people.
  • Improve art facilities so people may better enjoy participating in the arts.
  • Provide arts facilities outside major cultural centres.
  • Promote art forms that are not adequately supported.
  • Preserve and promote awareness of culture and historical, natural or architectural heritage.

Allocations to beneficiaries in Arts, Culture and Heritage Sector

YearAmount Allocated R’ MillionsNo. Of Beneficiaries
2014470
2013793
2012459
2011843165
20101 230188
200926477
200817046
2007235117
2006229192
2005310265
2004375287
2003171220
200248139
TotalR 5 597 Million

*The figures are for financial years which run from 1 April to 31 March of the following year. They have been listed under the calendar year in which the financial year ends. The allocation cycle starts with a call for applications which can be made in any month. In some years the allocation cycle starts early in the year and is completed at the point when the statistics are compiled. In other years the allocation cycle starts much later and is far from complete at year-end. It then continues into the next year and is counted into that year. This is a major factor in the large year-to-year variation in allocations and numbers of beneficiaries.

CHARITABLE WORK

The Charities Sector funded by the National Lottery Distribution Trust Fund (NLDTF) covers a wide range of social development initiatives and social services. It extends into the fields of healthcare and literacy, as well as covering most of the more traditional social services.

 

In the course of ten years, close to R5 billion was been allocated to non-profit entities working this broad field. The National Lotteries Commission is confident that, as such a major source of funding, its policies on allocation have an impact on the field as a whole

 

We have attempted to make the allocation process conducive to expanding the network of organisations undertaking social development and social services. Over the years various strategies have been tested to encourage fledgling organisations to apply for funding so that they can achieve sustainability. This has been partly successful but a large proportion of organisations – and particularly smaller organisations – still submit applications that are incomplete in some way.

 

The Charities Sector receives the biggest share of NLDTF funds – 45 percent of the total amount.

The Charities Distributing Agency is required to allocate at least 50% of the money available to organisations involved in the following priority activities:

  • Expanding home-based care services through training and developing infrastructure for the care of old people, sick people, and vulnerable groups, including orphaned children.
  • Providing educational facilities for early childhood education and adult literacy programmes, as well as initiatives on vocational training and mentoring for skills development that include disabled people.

More generally, organisations can also apply if their activities:

  • Improve the quality of life of the community as a whole.
  • Assist disadvantaged or excluded groups, such as the elderly, disabled people and vulnerable children.
  • Provide facilities or services for the underprivileged.

Allocations to beneficiaries in Charities Sector

YearAmount Allocated R’ MillionsNo. Of Beneficiaries
2014966
2013893
2012798
20111 3541 524
20101 4021 383
2009565653
2008380362
2007428689
20066261 051
2005505955
20046131 142
20033441 325
2002103850
TotalR 8 977 Million

*The figures are for financial years which run from April to March of the following year. They have been listed under the calendar year in which the financial year ends. The allocation cycle starts with a call for applications which can be made in any month. In some years the allocation cycle starts early in the year and is completed at the point when the statistics are compiled. In other years the allocation cycle starts much later and is far from complete at year-end. It then continues into the next year and is counted into that year. This is a major factor in the large year-to-year variation in allocations and numbers of beneficiaries.

SPORT AND RECREATION

Much of the funding allocated from the NLDTF in the area of sport and recreation has been invested in levelling the playing field – between different codes of sport and between wealthy and under-resourced communities.

 

It is widely acknowledged that sport development needs to begin at the grassroots level and that recreational sport – both the active and spectator varieties – holds many social benefits. The Sport and Recreation Distributing Agency has played a role both in the development of the base for competitive sport and in promoting sport for recreation at various competitive levels.

 

One of the underlying principles of funding in this area has been to challenge exclusion due to the underdevelopment of facilities (particularly in rural areas) and the inaccessibility of facilities to people with disabilities.

 

According to regulations, this Distributing Agency must direct at least 50% of the funds available to organisations involved in the following:

  • Developing sports and recreational facilities in order to develop talent in rural areas.
  • Increasing accessibility to sport and recreation facilities for all, including disabled people.

More generally, the agency will also consider funding organisations that:

  • Enable more people to become involved in sports and recreation.
  • Assist disadvantaged communities to participate in sport and recreation activities.
  • Provide sport and recreation facilities that are accessible to communities.

Allocations to beneficiaries in Sport and Recreation Sector

YearAmount Allocated R’ MillionsNo. Of Beneficiaries
2014483
2013523
2012389
2011662621
2010649742
2009597139
2008422613
200711855
2006410795
2005389750
2004252389
2003211407
200272251
TotalR 5 177 Million

*The figures are for financial years which run from April to March of the following year. They have been listed under the calendar year in which the financial year ends. The allocation cycle starts with a call for applications which can be made in any month. In some years the allocation cycle starts early in the year and is completed at the point when the statistics are compiled. In other years the allocation cycle starts much later and is far from complete at year-end. It then continues into the next year and is counted into that year. This is a major factor in the large year-to-year variation in allocations and numbers of beneficiaries.