Y CM MY CY - Inyathelo · TRUST REGISTRATION: IT2285/2002 PATRONS: ... 2004 was a year of...

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The South African Institute for

Advancement

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Promoting solutions for Resource Mobilisationand Sustainability

THE SOUTH AFRICAN INSTITUTE FOR ADVANCEMENTFirst Floor|The Cape Quarter|Dixon Street|Green Point 8005|Cape Town, South Africa|P O Box 818|Green Point 8051|Cape Town|South Africa

Telephone: (+27) 021 425 7928/9|Fax: (+27) 021 425 7990|Email: [email protected]|Web: www.inyathelo.co.zaNPO REGISTRATION: 023-432-NPO|TRUST REGISTRATION: IT2285/2002

PATRONS: Dr Mamphela Ramphele; Cyril RamaphosaTRUSTEES: Dr Richard van der Ross, Fred Phaswana, Sipho Pityana, Nasima Badsha, Patric Tariq Mellet, Shelagh Gastrow

Advancement:Advancement refers to Institutional Advancement,

leadership development in this field and the

building of a professional resource mobilisation

apparatus to ensure sustainable development of

institutions and organisations.

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The South AfricanInstitute for Advancement

Contents1. Vision, Mission, Objectives 3

2. A Unique Niche | DR RICHARD VAN DER ROSS, CHAIRPERSON 5

3. A Year of Consolidation | SHELAGH GASTROW, EXECUTIVE DIRECTOR 6

4. Programme Report 8

• Seminars, cadetships and institutional interventions 8

• Africa and beyond 8

• Peer-learning co-operative programmes 9

• Challenging programmes for the new year 9

5. Advancement requires spirited and critical dialogue | PATRIC TARIQ MELLET, MANAGING DIRECTOR 11

Doing business as an NPO | SALIEM FAKIR 17

Religion, Philanthropy and Development in South Africa | ADAM HABIB 21

Working with Inyathelo: The University of Jos Advancement Office | DR VICTOR DUGGA 25

Perspective from the University of Fort Hare | MSI SALINGA 28

The Peer-Learning Cooperative Experience | CHARLENE HOUSTON AND FAISAL GANGAT 31

6. Financial Report 35

7. Patrons, Trustees and Staff 46

8. Supporters 47

COVER IMAGE:ANDREA ROGERS (SYNERGOS) AND MUCHIMBA SIKUMBA-DILS (FOUNDATION FOR COMMUNITY DEVELOPMENT IN MOZAMBIQUE)


A N N U A L R E P O R T 2 0 0 4 - 2 0 0 5 P A G E 3

VisionOur vision is to see the strengthening of initiatives, institutions and centres of excellence that addresshuman well-being, learning, innovation, creativity and leadership in the interest of social and humanadvancement brought about through sustainable partnerships based on common values, soundmanagement and effective deployment of resources.

MissionInyathelo promotes solutions for Resource Mobilisation and Sustainability.

ObjectivesInyathelo provides a centre for reflection and assists institutions, organisations and individuals to developa professional approach to mobilising the support and resources required to ADVANCE their objectives andsustain initiatives. In so doing, the Institute also promotes a culture of social investment, voluntarism andself-help, rooted in the African cultural heritage of sharing.

Inyathelo:

• Maintains an Advancement Training, Resource and Reflection Centre offering consultancy, professionalinteraction, training, research and resources dedicated to realise the vision and mission of the SAIA.

• Promotes initiatives and strategies related to sustainability supported by building long-termrelationships between organisations, stakeholders, supporters and potential social investors.

• Engages in leadership development programmes with civil and institutional leaders who have beendisadvantaged by the Apartheid legacy.

• Promotes the utilisation of indigenous knowledge and cultural heritage assets for sustainabledevelopment.

• Promotes social investment, voluntarism and self-help to meet national development priorities.

• Facilitates greater communication between different donor-investor sectors and civil initiativesthrough advisory services to partners.

• Conducts research on issues of advancement, social fabric, social investment, matching of donors todevelopment proposals, pre-intervention needs analysis and evaluation of post-intervention impact.


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The South African Institute for Advancementhas created a unique niche for its work and Iam pleased to be associated with an orga-nisation that is continually innovative andadaptable.

The range of programmes that are now being runby the Institute reflect not only its own strategicthinking of what is appropriate for the currentcontext, both in South Africa and the rest of thecontinent, but also reflect the demand for servicesby external clients.

Besides the development of unique training ma-terials for Inyathelo’s regular workshops, pioneeringthe programmes that link sustainability to alearning co-operative methodology has beengroundbreaking in South Africa. This will beexpanded in the coming year with the imple-mentation of a similar programme for communityfoundations.

However, the Institution’s core business, that ofpromoting philanthropy in South Africa and ofbuilding development and fundraising capacity inSouth Africa’s institutions and non-profit orga-nisations is the backbone of its programmes. In thisrespect, we are extremely pleased to have nego-tiated a partnership with The Kresge Foundation inthe USA to concentrate efforts on building andstrengthening the fundraising units at four majorSouth African institutions from the university, hos-pital and museum sectors. The Kresge Foundationhas made a $10 million grant to support a five-year

programme to this effect and The South AfricanInstitute for Advancement will be the South Africanpartner in this endeavour. This is a major challengefor the Institute. I believe that when we look back in2010 to find that more institutions in South Africahave sustainable development and fundraisingstructures and that funds from the private sector,particularly from individual South Africans, arebeing mobilized,we will know that the Institute willhave done its job.

I would like to thank my fellow trustees and thedirectors and staff of the Institute for theircontributions during a year that was crucial to thedevelopment of the organisation. We look forwardto the coming year with much enthusiasm.

A Unique NicheDR RICHARD VAN DER ROSS, CHAIRPERSON


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2004 was a year of consolidation for Inya-thelo.We built on the knowledge developedin our first year of operation and expandedour materials and methodology to adjust tothe needs of the institutional and non-profitsector, particularly in relation to their sus-tainability.

Whilst many organisations came to us for assistancewith fundraising, we frequently identified that theproblems of sustainability were not necessarilyrelated to the donor context. Such difficulties wereoften more to do with the organisation’s lack ofdirection and the fact that they had not changedtheir activities to fit with new challenges in theworld around them. This was exacerbated by a lackof strategic thinking about who they were and whatneeds they were meeting in a rapidly changingcontext. We therefore began to include modules onstrategy and development planning in our pro-grammes.

It has become clear to us that in the current globa-lised world,institutions and the non-profit sector arerequired to think entrepreneurially in order tosurvive. This does not necessarily only focus onaccessing resources, but is a way of operating inorder to retain relevance in society. This includes anability to think strategically, to take a calculated risk,a willingness to change, an interest in continualinnovation and the capacity to manage financeseffectively.We maintain that by developing an entre-preneurial ethos, organisations and institutions willattract funding as confidence in their capacity todeliver with substantial impact grows.

This, our second annual report, will give the readeran idea of the Institute’s activities over the past year.However, we have also asked various individuals tomake a contribution towards this publication,partlyto share how their contact with Inyathelo haschanged the paradigm in which they operate, butalso to put on the table and open debate on otherissues pertaining to the sustainability of our civilsociety organisations and institutions. These art-icles explore some of the issues that are continuallyraised in our workshops and programmes and withwhich we grapple to find the answers.

I would like to take this opportunity to thank thepatrons and trustees of Inyathelo for their interest,confidence, good governance, time and input theygive to us; the Inyathelo team for their hard workand commitment over the past year;Michael Dariesfor his original and creative design work in all ourpublications; Vivi Cohen for the loan of part of herart collection; Richard Rosenthal for lots of advice;our many associates and partners who madesignificant contributions to our programmes;Matthew Wilde and Jerushah Rangasami for theexcellent production of video materials; Bruno vanDyk and staff of the Natal University DevelopmentFund and Sunley Uys and staff of StellenboschUniversity fundraising office who assisted usfrequently with hosting trainees; clients and donorswho are listed elsewhere in this publication, butparticularly The Atlantic Philanthropies, our seedfunders, without whom this Institute would nothave got off the ground.

A Year of ConsolidationSHELAGH GASTROW, EXECUTIVE DIRECTOR



GRAÇA MACHEL OF THE FOUNDATION FOR COMMUNITY DEVELOPMENT-MOZAMBIQUE WITH ANDREA ROGERS (SYNERGOS),SHELAGH GASTROW AND PATRIC TARIQ MELLET


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This report will reflect a wide range of programmesthat fall within our focus area. We believe it isimperative to maintain continued innovation in theservices that we offer to fit with the changingenvironment for the institutional and non-profitsectors. Whilst many of our workshops and pro-grammes focus on the core issue of sustainabilityand resource mobilisation, each programme isuniquely tailored for the needs of the institution ororganisation with whom we are engaged.

Seminars, Cadetships andInstitutional Interventions

During 2004 we ran seven major workshops for avariety of organisations.These included universities,technikons, Further Education and Training collegesand non-profit organisations. Each workshop wasindividually tailored for the institutions ororganisations attending but they mainly focussedon understanding advancement, development andfundraising; exploring the donor world and whypeople, foundations, the corporate sector andinternational agencies contribute towards develop-ment; positioning institutions and non-profits inthe “market” and also provided specific skillstraining in prospect research and proposal writing.

Our cadetship programmes continued to thriveduring this period. These are essentially assign-ment-based, individually tailored, experiential train-ing programmes for personnel who are responsiblefor raising resources for their institutions ororganisations. The programme is labour intensivein that Inyathelo trainers play a hands-on rolethroughout the period of the cadetship, both intheoretical input, but also in working with cadets

on their assignments and providing continual in-put. The daily assignments set during the cadetshipprogrammes are done on Power Point and parti-cipants present their assignments at the end of theday. These are then discussed and critiqued. We arefrequently told that the products that emanatefrom the cadetships are used when participants areback in their own organisational settings and arerequired to present their ideas on resourcemobilisation to colleagues or even their boards oftrustees.

Inyathelo is also involved in assisting institutions toestablish fully-functional advancement, develop-ment and fundraising offices. These institutionalinterventions generally involve an audit of existingfundraising; awareness-raising amongst seniorpersonnel; development of a suitable advancementmodel for the institution; preparation of jobdescriptions and assistance in recruitment of thehead of advancement and follow-up training ifnecessary; training and team building of the newstaff complement. This process is a long-termcommitment and institutions frequently find thatin order to institute effective advancement practice,significant transformative practices need to beintroduced across the organisation. Inyathelo workswith institutions to make the transition asseamless as possible.

Africa and beyond

Inyathelo has become involved with a client basebeyond the borders of South Africa. In this respectwe ran a three-day advancement, development andfundraising workshop for African universities,funded by the Carnegie Corporation of New York.

Programme Report

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Senior personnel from universities in Uganda,Nigeria,Tanzania, Botswana, Ghana, Swaziland and SouthAfrica attended the training which will be repeated in2005. In addition, we ran a three-day workshop atObafemi Owolowo University at Ile-Ife in Nigeria andhosted a representative from the Foundation forCommunity Development in Mozambique at acadetship specifically designed for the Mozambicancontext.

Peer Learning Co-operativeProgrammes

In 2003 Inyathelo piloted the first of its peer learningco-operative programmes with black women leadersin the non-profit sector in the Western Cape.This co-operative will continue its activities until the end of2005.As a pilot,we learnt significant lessons from themethodology of learning through doing and theimplementation of this learning process.

However, this was not only for our own trainingpurposes, as the co-operative exposed many keychallenges that exist in the non-profit sectorgenerally. Seven sessions were held during this re-porting period, including financial management;the role of boards in the non-profit sector; market-ing and strategy; NPO legislation, tax, copyright andgovernance; advocacy, cultivation of prospects andstewardship of donors; personal mapping andresourcing.

In 2004 we began our second peer learning projectwith ten black tourism entrepreneurs in the WesternCape.This focussed on how to advance a sector thatwas marginalised in the burgeoning tourismindustry in the province. Sessions on strategy,marketing, innovative new products and the use ofthe participants’ own heritage in the creation ofniche products were the focus of the programmeduring the year. This programme will continuethrough to the end of 2005.

Challenging programmes for thenew year

Two major programmes will be implemented in2005. These include The Kresge Foundation SpecialInitiative in South Africa, a $10 million, five-yearprogramme supporting the establishment of self-sustaining advancement, development and fund-raising operations at four South African institutionschosen on a competitive basis. Grantees will receivefunding support, training, technical assistance andpeer learning and exchange opportunities withsimilar institutions in the United States to helpbuild their own capacity to raise private funds fromindividuals, corporations and foundations. TheInitiative was developed in co-operation withInyathelo and we will be involved in managementof the project and the training component.

The other programme is a further adaptation of thelearning co-operative methodology which will beextended to the community foundation sector inSouthern Africa. In this programme we are partner-ing with The Synergos Institute and will be linkingwith Synergos fellows who will give specialist inputas required.

In addition to the above, Inyathelo will be embark-ing on a campaign to promote philanthropy, part-icularly through the establishment of private andfamily trusts and foundations. This will be a long-term project starting in 2006.


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When considering our Annual Report thisyear, we decided to include the views andexperiences of programme participantsand other voices within the developmentarena in order to stimulate debate.

Through our experience in sessions with hundredsof development practitioners over the last threeyears we have found that many are still locked intoold developmental theories and practices from the1980s including approaches to resource mobi-lisation and sustainability. Major paradigm shiftshave occurred in South Africa and throughout theworld that require us to look with new eyes at our-selves, our activities, our organisations and how thework of civil initiatives can be sustained. A positivefeature of the 1980s was the many newsletters,popular journals and alternative newspapers thatengaged in critical debates about a host ofdevelopment issues.Today there is significantly lessof this dialogue with the main focus of currentdiscourse being that of financial survival andsustainability.

Inyathelo’s focus is to find solutions for sustain-ability contextual to the building of strong civilinstitutions and initiatives vital to the overalladvancement of South Africa and the continent as awhole. Our work takes place within a socio-politicaland economic environment that has radicallyaltered the dynamics of grantmaking and grant-seeking. There are four contributing factors thatinfluence this changed environment, including theemergence of a strong South African democracy;

globalisation; the northern war-focus and the globaleffects of the recent declining value of the dollar.Lurking within this environment are many issues thatrequire exposure, debate and dialogue. Amongstthese are some issues that have not received promi-nent attention in the centre-stage of enquiry.

Trans-national non-profitorganisations

A by-product of globalisation has been theemergence of transnational northern-based quasi-NPOs styled as ‘Aid-Foundations’ that have rapidlyspread satellite branches throughout so-calleddeveloping countries. Their agendas and resultantimpact have not been adequately assessed byhosting countries. As these trans-national Q-NPOsare often well-resourced and have experienced andtrained expatriate personnel, they quickly fill po-litical vacuums created by changing environmentalcircumstances and weaknesses in local civil societyorganisations.

While terminologies used by the new players in thelocal non-profit environment are often couched inthe language of due-diligence and the establish-ment of efficient systems, the longer-term impactof approaches taken by such organisations may bedisempowering to local NPOs and more favourableto external interests.The role of these organisationsin the development arena certainly requiresawareness-raising and debate.

Advancement requires spirited andcritical dialoguePATRIC TARIQ MELLET, MANAGING DIRECTOR


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Social engagement by faith basedorganisations

Another area that deserves more attention is theimpact of responsible social engagement by orga-nisations of faith.By far the greatest manifestation oflocal giving in South Africa can be found in thereligious sector. We do not know how much of thisgoes to propagation of faith and what goes intosocial development, poverty alleviation and welfare,but it is clear that South Africa certainly would bemuch worse off if faith-based initiatives were not astrong factor in South African development.What arethe pros and cons of religious philanthropy? AdamHabib provokes us to look more closely at religion,philanthropy and development in South Africa.

Social Fabric of South Africa

Over the last year Inyathelo participated in a majorresearch project that attempted to collate data andcome to some understanding of the extent of socialcontribution and social cohesion in South Africa.Wewere partners in this initiative led by the HumanSciences Research Council which had been com-missioned to carry out this task by the Departmentof Arts and Culture.

The process probably left us with more questionsthan answers, but it clearly showed that researchorganisations were having difficulty in coming togrips with what constitutes the social fabric of SouthAfrica.The exercise also pointed to a lack of focusseddiscourse on fundamental issues by the full range ofparticipants in key civil formations and betweenthese and the state.We found that there were majorgaps in research and there are a wide range of issuespertinent to our national advancement that cry outfor stronger intellectual engagement.

Engagement in the rest of Africa

There are also many issues where we need toengage with the African continent. Greater contactand engagement with the rest of the continent canbe attained by tackling common projects. In thisrespect, Inyathelo has shared it’s expertise with arange of institutions on their own sustainability. DrVictor Dugga of the University of Jos in Nigeria willshare his experience with us, as will Msi Silinga,Executive Director of Advancement at the Uni-versity of Fort Hare Foundation.

Sustainability and non-profitorganisations

The non-profit sector and public institutions suchas universities, hospitals and museums have for along time been reliant on corporate social invest-ment, foreign donor agencies, international found-ations and a few local trusts and foundations. Thenature of these relationships between grant-seekers and grant-makers has often been groundedin dependency and little dialogue has taken placebetween grant-makers and grant-seekers to re-define such relationships. The neglected areas ofresource mobilisation have been those of privateindividual giving, community self-help, the esta-blishment of endowments and the development ofincome-generation projects.Two other factors havealso traditionally hindered progress in finding waysforward for sustainability. One of these has beenlegislation that has not encouraged civil initiativesto be innovative around resource-mobilisation andalso has not facilitated the promotion of publiccontributions. One social activist has asked “Is it nottime for us to differentiate between not-for-profitand not-for-gain? NPOs need to make money tosustain their work.” Recently the Minister ofFinance, Trevor Manual, in his budget speech indi-cated that there may be a mechanism for allowing

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this, without compromising ‘non-profit’ status.Saliem Fakir, Country Programme Co-ordinator ofIUCN South Africa Country Office, provokes us tothink about these factors by opening up a debateon doing business as a non-profit.

State-Civil Society Relationships

Another factor has been the poor interface betweenstate driven development and civil initiatives,involving a lack of dialogue and mechanisms forcooperation. An initial start for the opening up ofdialogue would be the present culture within statedepartments to be overly bureaucratic with afaceless ‘public advertisements and forms’approachto engaging in partnerships, rather than anemphasis on ‘building relationships’. Inefficient andineffective administration by state/ foreign statepartnership initiatives as well as by the NationalDevelopment Agency and the National Lotteryrequires urgent government-civil society dialogue inthe interest of service delivery. There appears to bean approach that provides financial support forprogrammes based on written proposals in a setformat, but with no understanding of the context inwhich organisations running these programmesexist. This requires face-to-face contact betweengrantmakers and grantees.

Commitments of funding often produce furtherproblems for non-profit organisations as there islittle clarity as to when funds will actually arrive andstrategies have to be developed to cope withundefined bridging periods. Problems become evenmore exacerbated when state departments act asgo-betweens with foreign aid agencies on one sideand civil initiatives on the other. There is nosubstitute for building sound relationships betweenfunders and service deliverers.

The Role of Non-profit Boards

Another factor dogging civil institutions has beenthat of ineffective Boards which have also notmoved with the times and often display littleunderstanding of their role. Boards are foundmeddling in operational issues that should be leftto the CEO whilst they neglect the governance,financial oversight, advocacy and resource mobi-lisation role that they should be playing. Theunwillingness of board members to assist in theresource mobilisation of an organisation is a majorproblem facing many non-profits whose CEOs areexpected to do this on their own.

Donors and the Non-profit Sector

While internal issues often cripple institutions andNPOs, external relations with the donor worldshould be examined by both donors and grant-seekers. The term ‘partnership’ requires definitionand ‘funding-focussed’ interaction between donorsand grant-seekers should be replaced by a focus onrelationships built on better communication.Grant-seekers offer donors opportunities to realise theirinterests and commitments, as much as donorsoffer grant–recipients the ability to achieve theirgoals. Amongst local South African donors therehas been an increase in the levels of corporate socialinvestment. However, the Achilles heel of corporategiving is that this has not been institutionalisedthrough the establishment of endowed found-ations with the professional infrastructure requiredto build relationships with civil development initia-tives that ensure lasting and focussed support forCSI partnerships.

It is in this context that Inyathelo produced two vi-deos to promote dialogue-‘Grant-makers in Conver-sation’ and ‘Grant-seekers in Conversation.’ We arealso in the process of producing a video and bookletexploring ‘The Role of Boards in The Non-Profit



Sector.’ Both donors and grant-seekers speak outfrankly in the videos. Attitudes, practices andperceptions abound. Donors are concerned aboutdue diligence, good governance and impact of thework of NPOs. Grant-seekers are concerned aboutlack of courtesy, administrative inefficiencies, poorcommunication and lack of dialogue betweendonors and themselves. Foreign and South Africanaid agencies, international foundations, localcorporate donors, local trusts all operate in thesame development arena with the same clients butdo not talk to each other. Social dialogue is nottaking place to the extent that it should. Inyathelohas asked itself whether we can play any role inpromoting social reflection. Here we use our annualreport in a very small way to both highlight theneed for greater social reflection and as a modeststart to encourage organisations to use theirpublications as forums for dialogue.

Peer-learning

Charlene Houston,Director of The Contact Trust hasbeen a participant in the Inyathelo-facilitated NOW(No Ordinary Women) peer-learning cooperative ofblack women leaders. Many of the issues raised inthis introduction have been the subject of dis-cussion in the cooperative. She shares her ex-perience with her peers in wrestling with some ofthe many issues that arise for today’s leaders in theNPO sector. Inyathelo’s other peer-learning co-operative is the Black Entrepreneurs in Tourism.Thisgroup of Western Cape-based entrepreneurs havetraditionally faced an uphill battle in the lucrativebut heavily white-dominated tourism sector in thisprovince. A range of practical stumbling blocks havehindered advancement of these businesses as hasthe dominance of colonial tourism narratives and alack of sites and attractions that address Colouredand African heritage. While politicians, businessleaders and the tourism governance and marketingbodies all talk about tourism as being key to

addressing unemployment and the spread ofwealth, there is little evidence of this in the WesternCape. Most of the black entrepreneurs in tourismwith whom we have come into contact see nothingof the investment set aside by business or stateinitiatives.There is a need for greater direct dialoguewith black tourism businesses rather than workingthrough intermediary consultants. Faizal Gangat ofCape Capers Tours, a participant in the cooperative,contributes some thoughts on his experience withInyathelo.

Our advancement as a nation also requires from usa consciousness that ‘a constitution, flag, anthem,parliament and the vote doth not a nation make’.We are challenged to give substance to nation-building. We sorely need greater dialogue on twoissues - shifting emphasis on ‘difference’ to that of‘the ties that bind us’ and how to extend andtransform the environment of opportunity toreflect South Africa’s population diversity. Theseissues are highly pertinent to both the NPO sectorand emerging black business initiatives.

The issues involved in addressing Advancement aremany and they require a great deal more in-depthdiscussion than can be afforded in an AnnualReport. We simply hope that in creating debate,other organisations will also use their flagshippublications to bring back the spirited discussionand dialogue that we seem to have left behind.

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The non-profit sector in South Africa isbattling to make ends meet.

There are many reasons for this. Generally, it isthought that the lack of funding is the big culprit.However, when the capitalisation of the sector isconsidered: in terms of funds available from foreigndonors, government, foundations, national lotteriesand private bequeaths the picture is not so dim—South African corporations alone contributeannually close to R5billion towards worthy causes.

So, what could be the cause of failures and declinein the non-profit sector? There is no singular ans-wer, but a recurring issue that stands out is the lackof sound business principles and leadership. For along time the talk of entrepreneurship within thenon-profit community, and the use of businessprinciples as a tool in the operations of the orga-nization is usually frowned upon.

However, business modelling and strategic plan-ning, organizational development processes,project planning and execution, financial manage-ment, marketing and branding, human resourcedevelopment, and governance instruments areincreasingly being mainstreamed in the non-profitsector. The professionalization of the NGO sector inthe last ten years or more in South Africa is beingseen to be the key to long-term sustainability of theNGO sector.

In the past NGOs existed as informal institutionslargely driven by volunteers. Today the picture ischanging. In the past, and you will find similarsituations with many organizations today, NGOshave had no proper HR systems, financial manage-

ment skills, or thought critically about buildingorganizations that could last, and often those thatsurvive have done so largely through good luck thangood strategy.

Usually, NGOs were driven by an idea (led by acharismatic figure) and political success over-rodeeverything.As a result less attention was paid to theefficient and cost-effective management ofoperations. In the hey-day, prior to 1994, donor con-tributions were generous and donors themselveswere often blasé about organizational and sustain-ability issues. Without the pressure of fundraisingNGOs tended to neglect long-term sustainabilityissues – in the past donors were much moregenerous with core funds.

Things have changed. Donors are more scrutinisingand don’t easily give core funds – one is expected tomake ends meet through projects. There has alsobeen a growth of NGOs so competition for fundshas increased; donors too don’t want to see pro-jects that are aimed at keeping staff in a job andwhere funds do not go to beneficiaries.There is alsoa stronger emphasis on quality rather than quantityof initiatives or projects.

CEOs of non-profit organizations are also undermore pressure as they have to spend more timefund-raising than before and perform othermanagement responsibilities – fund-raising is nolonger a single person’s task, it requires a teameffort. This has also brought about a change in theway organizations recruit personnel and organizetheir teams.

Boards of non-profit organizations underestimatethe time and resources needed to put into fund-

Doing business as an NPOSALIEM FAKIR, DIRECTOR IUCN (WORLD CONSERVATION UNION)-SOUTH AFRICA OFFICE

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raising. CEOs who are not given the appropriateresources can be set up to fail. The success of CEOsof non-profit organizations depends on the degreeof synergy between the CEO, his/her team and theBoard.

The Board’s role should be to enhance the pro-fessional character of the organization and helpbuild and secure its funding base. Essentially, therole of the Board has to change. It should not onlydeal with governance issues, but should also focuson increasing the resourcing potential of theorganization. Board membership should includestrong management, financial and fundraisingskills as well.

Often organizations fail because their Boardmembers don’t understand the context underwhich CEOs have to operate. It is not unusual to findthat those who are versed on content and thepolitics of the issue, are not always in the bestposition to give sound business and managementadvice. Often, this is a result of Board membersthemselves not having had to face the newconstraints created by a more competitive andentrepreneurial external operating environment.Donors at times can be at fault for they don’t oftenscrutinise Board members sufficiently, and if theydo, they look for big names rather organizational,management and financial knowledge.

The new climate has entailed the need for newtypes of skills and models of organization in order tobe both relevant and sustainable. Hence, manyNGOs have had to literally borrow from the bus-iness world the tools necessary to fix organizationaland operational problems.

However, some technical knowledge about howbest to run organizations is available,accessible andis shared amongst the NGO community, andthrough NGO-Business partnerships.This alone willnot lead to success, as they are merely designed to

ensure structural stability and enhance flow ofinformation, and quality control.

An organization is not an empty shell as it is shapedby decisions made by people who occupy it or relateto it. An organization is as much shaped by how de-cisions are made in response to its external environ-ment, as its internal structures and resources. It isshaped more profoundly by the reading of changeand the ability of the organization to deal withchange.The latter is entirely attributable to a mind-set. The organizational leadership can either finditself liberated or chained by what it believes aboutitself or the world around it.

The post-apartheid transition has seen an exodusof strong leaders from the NGO sector into govern-ment and business.The dearth suggests that a newgeneration of leadership needs to be nurtured. But,what sort of leadership matters for the future?

The non-profit sector requires both technical, andorganizational leadership with strong entrepre-neurial acumen.The emphasis on the latter is muchmore pronounced in the recruitment of talent.

An organization can’t establish a programme ofaction if it has no idea of where to source funds andunderstand who other key players are that operatein the same area of work. And, even if it hassufficient funds, it cannot assume that what is onthe shelf is good enough for the future –preferences change, and ways in which to make animpact (especially for socio-economic initiatives)require constant experimentation and innovation.Organizations have to lead in developing new ideas,new products, new ways of adding value to thepublic, and not just be followers. They should leadchange in areas in which they have a strong com-petency – this in itself brings about the conditionsfor financial growth and sustainability. Anorganization’s leader or team of leaders requireuniversal skills without necessarily being an expert in



any of them. These skill attributes are a mix of ‘soft’and ‘hard’ skills. ‘Soft’ skills relate to being politicallysavvy with players in the external environment; theability to identify new funding opportunities; havinggood people skills; be able to work in a team; knowhow to delegate; and have vision. ‘Hard’ skills relatebeing able to manage the operational and financialaspects of the organization.

The job of leading is less about how to be ‘big boss’,and more an ethereal quality. It is the task of placingoneself in the recurrent position of interpreting andstudying both what is happening within the internaland external environment. In so doing, the job ofleading is to be in the position to sketch out thenature of change, and how best to align theorganization to the processes of change. Increasingly,leaders must lead through the support and leader-ship of others.

Financially, sustainability is dependent on whetherone recruits staff that are hired just to see processesthrough, or to hire staff that perform a task but arealso able to use it as a platform to grow oppor-tunities and develop new ideas. Organizations thathave more of the latter qualities within their teamare more likely to succeed than those organizationswhose staff simply see their role as having a job.

An organization’s internal culture that is cultivatedaround a team that is there only for the job is likelyto be uninspiring and moribund.Vigour comes fromcreative energy. Leadership is critical in creating thisculture within an organization.

Secondly, accounting for resource consumptionwithin an organization must be viewed not just asan overhead issue, but a form of accountability inthe way public funds are used. It has dual functions:making savings, and secondly, getting more out oflittle. The demonstration of performance in cost-recovery, and accountability for overheads should

increasingly be used by funders to assess whetheran investment in an organization should be madeor not.

Thirdly, diversification of financial sources comesthrough expanding the ‘client’ base, developingnew ideas, and fostering partnerships with insti-tutions that are like minded, and with whom newopportunities are created within a competitivemarket (often NGOs are intensely competitive andfail to find opportunity in strategic alliances andpartnerships).

Within this realm, services that lend themselvescompetitive to commercial markets-- which in anycase are offered at a price by commercial entities –should be offered on a fee based basis by NGOs ifthese services are similar, of high standard andreliable. This additional unrestricted income (i.e.outside of the restrictions of programme andproject funds) can be extremely handy whenneeding to invest in the growth of the organization.For instance, new initiatives require seed money.Donors are reluctant to give seed money unless agood case is made. However, if NGOs sit on a pool offunds that are unrestricted they can use them todevelop innovations and grow the capacity of theorganization with ideas and opportunities that arecreated as a result.

The primary asset of leadership and entrepreneurialskill is to sense the future and make others believethat there is truth in the vision.


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Liberal and radical thought grounded inthe principle of secularity and in theseparation of state and religion has forlong ignored religion and its institutionsas actors in the developmental process.

It not only focused on the state as the agent of pro-gressive development, but seemed blind to thedevelopmental virtues of religion because of theviolent history of religious persecution in Europeand the Middle East, or the complicity of itsinstitutions in European colonialism. The architectof the Russian revolution, Vladimir Lenin, whomaintained that religion is the opium of themasses, epitomized this skepticism of religion byradical intellectuals.

In the Twentieth Century,religion failed to rehabilitateits image in the eyes of left-leaning intellectuals inspite of some strikingly progressive credentials inthe developing world. Liberation theology’s emer-gence in Latin America was accompanied by at leastsome religious institutions and leaders challenges tomilitary rule and bureaucratic authoritarianism,though some of their predecessors in the 1960’s hadsupported the rise of these very institutions andprocesses. Churches, mosques, synagogues andtemples were at the forefront of the struggle againstapartheid,and could justly claim some credit for SouthAfrica’s peaceful transition to democracy.

Religious institutions and leaders also participatedin the struggles against tyranny in Eastern Europeand Asia. Yet, despite these progressive accomplish-

ments, religion did not emerge as a serious agent ofsocial development.

Only now is this being considered. Two reasonsunderlie this. First is the increasing recognition thatcivil society is a necessary actor in successfuldevelopment. This view is advanced both by neo-liberal state elites and progressive activists andintellectuals. The former hope that non-profitdevelopmental activity may reduce the socialburden on the state enabling its partial withdrawalfrom economic life. The latter envisage that civilsociety’s involvement in development would notonly lend the latter a participatory character, butalso orient it towards the most dispossessed andmarginalized. Either way, significant support existsfor civil society’s developmental activities. Given theprominence of religious institutions in the civicuniverse, it is natural that greater attention is paidto them.

Second, empirical research on the non-profit sectorand philanthropy over the last decade or two hasdemonstrated that religious institutions aredominant in the sector. Studies in the United Statessuggest that religious institutions are the largestbeneficiaries of public philanthropy. In 1996, forinstance, United States religious institutions mobi-lized $86 billion, part of which was directed topoverty alleviation and development.

These processes are similarly evident in SouthAfrica. The first survey of individual giving in SouthAfrica, commissioned by the Centre for Civil Societyas part of its State of Giving project,and undertaken

Religion, Philanthropy, andDevelopment in South AfricaADAM HABIB

Debate/


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by Strategy and Tactics, demonstrated that 93% ofrespondents gave time,money or goods in the monthpreceding the survey. This survey, based on a 3000stratified sample also indicated that differences ingiving among demographic categories weremarginal. Indian respondents were the most activegivers at 96%, dropping to 94% of Africans, 90% ofcoloureds, and 89% of whites. Extrapolated to thewhole population, the survey suggests that anaverage of R921 million per month may be donatedby South African citizens to social causes.The surveyindicated that no less than 80% of those whodonated money, and 60% of those who gave goods,food, or clothes did so to religious organizations.This suggests that South Africans tend to feel mostcomfortable directing their philanthropic impulsesthrough the medium of religious institutions,makingthe latter recipients of significant resources. Thisnecessitates their consideration as developmentalactors.

Religious-inspired giving is the essential foundationon which faith based communities and institutionsare founded. They not only ensure their ownreproduction through this giving, but are therebyenabled to support marginalized and disadvantagedcommunity members. These support activities arenot simply charitable as is commonly believed.Rather,research reports for the State of Giving projectdemonstrate that religious institutions are as muchinvolved in developmental initiatives – buildingschools, teaching skills, establishing old age homes –as they are in poverty alleviation – feeding schemes,and provision of social welfare.

Despite this positive analysis of religious phi-lanthropy, it would be remiss not to recognize itslimits and potential negative consequences. Twoimmediately come to mind. First, is the concern thatreligious engagements in public life tend to result insocial fissures, producing tensions which polarizecitizens.There is much historical evidence to supportthis concern. However, religion is an important and

abiding reality in South Africa and elsewhere. It ispointless to bemoan this. Rather the task is torecognize this reality and manage it so that thefissures and political polarization produced byextremist religious interventions can be avoided.This is particularly necessary in a context like SouthAfrica. The under-development bequeathed byapartheid is enormous and the new regime cannotalone address the racially constructed backlogs. Ifreligious institutions are generating the scale ofresources suggested in the Centre for Civil Societysurvey, is it not legitimate that they be engaged inhelping address the developmental challenges ofpost-apartheid South Africa?

This raises the second potentially negative con-sequence of religiously inspired philanthropy. Muchreligious giving is within communities rather thanacross them. Moreover, even when directed acrossreligious boundaries, its intention is often therecruitment of new people to the faith. Both theinward-looking focus of religious institutions andtheir intentions when this is transcended couldskew the developmental agenda in dramaticallynegative ways, provoking social fissures andpolitical tensions.But, the answer to this dilemma isthe public management of, and engagement with,religious institutions and communities.

At one level this seems to have been recognized bysome political elites. President Thabo Mbeki hasalready established a multi-faith forum of nationalreligious leaders with whom to engage on povertyalleviation and development. Initial indicationssuggest that his immediate interest in engagingthese leaders is not in accessing and coordinatingtheir resources, but rather on using their grassrootsinstitutions – parishes, mosques, synagogues andtemples - as mechanisms for the dissemination ofpublic social welfare grants and other funds. This isbecause apartheid ensured that state institutionsare often not present in areas where the mostmarginalized and dispossessed citizens reside.



Using religious institutions may thus enable thestate to get resources where they are most neededwithout waiting for the establishment of thenecessary public institutional infrastructure.

There is much that is positive in this proposal. Itcreates the possibility of a more equal partnershipbetween the state and one significant expression ofcivil society. But care must be taken to ensure thatthis initiative is not wrecked by religious turf wars.The forum must continue to have a multi faithcharacter, and institutions must be monitored toensure that state resources are not disbursed in areligiously exclusive way. Moreover, the forum musttransform from being a dissemination agent to aninstitution, which contributes to the nationaldevelopment agenda, and enables coordination

between religious institutions and the state on thedisbursement of their respective resources.This willnot only allow for the coordination required in asuccessful development enterprise, but wouldenable the disbursement of resources by religiousinstitutions in a socially responsive way. The neteffect would hopefully be a more efficient andeffective development undertaking, reinforcing thecommon bonds of South African citizenship, ratherthan the divisions bequeathed by a apartheid past.

A wonderfulcourse andrelevant to

Africaninstitutions in

this 21stCentury.

PARTICIPANT AT WORKSHOP FORAFRICAN UNIVERSITIES

ADAM HABIB IS EXECUTIVE DIRECTOR OF THE DEMOCRACY &

GOVERNANCE PROGRAMME AT THE HUMAN SCIENCE RESEARCH

COUNCIL (HSRC), AND A PART-TIME RESEARCH PROFESSOR IN THE

CENTRE FOR CIVIL SOCIETY (CCS) AND SCHOOL OF DEVELOPMENT

STUDIES (SODS) AT THE UNIVERSITY OF KWAZULU-NATAL (UKZN).

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In the first strategic plan of the Universityof Jos (1998-2003) we outlined the idea ofestablishing a fund raising office in theface of dwindling resources.

With the $2m grant from the Carnegie Corporationof New York, the University decided to commencethe implementation of the fundraising office pro-ject. A Subcommittee was instituted and speciallytasked to work out the modalities for its establish-ment. The subcommittee’s terms of reference wasto conceive and implement a Development Officefor the University of Jos to facilitate projects withinthe University’s Strategic Plan.

The peculiarity of the developing world – insecurity,political instability and a difficult economic environ-ment, persuaded the university to secure theservices of Inyathelo: The South African Institute ofAdvancement as consultants for the project. Theresource team at Inyathelo is not only skilled in theart and science of development work, they aresocially committed to uplifting institutions inAfrica. This private initiative is quietly achieving themuch-desired goal of the African Union NEPADproject.

Our collaboration began with a workshop in Jos,Nigeria during the month of December 2003. Twoother Nigerian universities in Zaria and Ile-Ife wereinvited to participate in what may have been thefirst Institutional Advancement Workshop in WestAfrica. Subsequently, a team of six from Jos under-took a tour of Development offices in someuniversities in South Africa.That tour exposed us to

the different set ups of advancement offices ope-rating in South Africa. It also gave us a fair idea ofhow peculiar development work would have to bein Africa. The learning process continues to be avaluable part of the consultancy partnership withInyathelo.

Since then, a clear and unambiguous concept of aFundraising Office has been developed. The Uni-versity of Jos has now set up an office for thispurpose, known as the University of Jos Advance-ment Office. I was appointed Executive Director ofAdvancement to lead the Advancement machinerydirectly under the office of the Vice Chancellor.Other staffs of the Office were seconded from otherunits in the University after a rigorous selectionprocess. During this process, Inyathelo assisted withshort listing and assessment of applicants forvarious positions. These new staff will be pro-ceeding to the cute offices of Inyathelo at GreenPoint, Cape Town for cadetship training preparatoryto functioning in their positions.

The Advancement office will champion in a pro-fessional manner, the building of relationships andstrategic partnerships to support the university.Thepersonal support and leadership of the Vice Chan-cellor, Prof. Monday Mangvwat has propelled usmuch in this direction. Similarly, the committeemanaging the Jos-Carnegie Partnership chaired byProf. L.S.O. Liverpool has taken more than a casualinterest to ensure that the Advancement Officebecomes a model of its kind. They were persuadedthat the sustainability of the University woulddepend on choices that are made while setting upthe office machinery. A physical structure for the

Working with Inyathelo:The University of Jos Advancement OfficeDR. VICTOR S. DUGGA, EXECUTIVE DIRECTOR OF ADVANCEMENT


office is currently being put in place. Significantsensitization of staff and students on the advance-ment concept has been done on campus and is on-going.

Certainly, the proficient manner that the Universityof Jos went about establishing the AdvancementOffice places it at the apex of the budding pro-fession in Nigeria. This may not have materializedwith such confidence without the input and guideof Inyathelo. Indeed, the University of Jos hasdirected many enquiries from other universitieswanting to follow its steps to the doorstep ofInyathelo.

The two-year partnership will end with a visit to theUniversity of Jos by resource persons from Inyatheloin September 2005. During this wrap up andevaluation visit, workshops will be held forvolunteers within the Alumni Association and othergroups on campus.

The local assessment of the collaboration has beenunanimous that the money paid to Inyathelo hasbeen money well spent. Beyond getting ourmoney’s worth is perhaps the fact that the much-desired south-south cooperation has beenactivated and found beneficial. Nigeria has beenenriched by the open doors to South Africa and theopportunity for networking with other universitiesoffered by the Jos-Inyathelo partnership. Universityof Jos Advancement Office is now liaising with theCouncil for the Advancement and Support ofEducation (CASE) to host African AdvancementDirectors and workers in Abuja in August 2005.

We have been rightfully positioned to function as ahub of Advancement activities and it may not belong before we begin to assist sister institutions tomidwife their advancement offices. It is a challengewe will relish, but first, we have to raise money tojustify all the enormous preparation already

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Exceptionallyuseful foranyone

involved inleadership andplanning foradvancement.

PARTICIPANT AT UNIVERSITY HIVAND AIDS PROJECTS WORKSHOP

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inputted. Already,we have begun on a good note. Atour last convocation and endowment launch inFebruary 2005, the University raised about threehundred million Naira (R12m) in cash and pledges.Obviously, managing and investing the monies callfor new ways of thinking as well. While we areaware there is much more we still have to learn, weare pleased that there is a change of perception andattitude to the operation of university finances.Hopefully these will impact positively on researchand teaching at the University of Jos, areas thathave suffered low funding over the years.


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The story of the University of Fort Hare’sassociation with Inyathelo can boldly besaid to be a story of personal development.

It began when I was Director of Co-operativeEducation at Fort Hare and became aware of thebudget pressures facing my unit. It became im-portant to me to find enduring solutions to thosepressures. My unit had a three-year grant from TheFord Foundation to run a placement programme forthe entire university. It became quite clear that thegrant was woefully inadequate to sustain theoperations of the unit, hence the search for a moresustainable solution. Among the solutions pro-ffered to me by the Vice Chancellor was the optionof fundraising externally if I wished to supplementmy budget (and this to someone who did not havea clue where to begin to fundraise). As I went aboutverbalizing my frustration to anyone who cared tolisten, a colleague, on hearing about my pre-dicament, advised me to phone Inyathelo to see ifthey could not help me. And so my association withInyathelo began, which endures to this day.

My office contacted Inyathelo to arrange for me toattend a workshop on fundraising. I made a con-scious decision to sacrifice the airfare and workshopfee as a worthy investment, somehow certain thatthere would be a return on such an investment, andthat with determination I would see the results.After discussions with the facilitators at Inyatheloduring which they were able to formulate a generalprofile of myself, they suggested that I should enrollfor a week-long cadetship. I was so desperate that

the prospect of being the only trainee in that cadet-ship did not deter me. The training itself wasintense but was offered in a relaxed and homelyenvironment, which served to mitigate the stress ofweek-long concentration.

During this training it became clear that in order toadvance the institution effectively, we needed todraw together various units at the institution thatdealt with the public in order to ensure consistencyand a clear vision for the university. I had previouslybeen employed as a strategic planner and I wastherefore acutely aware that the differentexternally facing units at the University of Fort Harethat should have been working co-operatively werecomfortably ensconced in their respective silos. Iwas conscious of the fact that this approachengendered turf wars among people who, in thefirst place, should have been working together, butalso led to practices where different unitsundermined each other. The managers leading thevarious outward facing units paid no attention tocomplaints regarding the confusing nature of thecontradictory messages that they put out. In thatcontext, Inyathelo’s idea of an Advancement Officewhich comprised the strategic co-ordination of alloutward facing units of the university madeeminent sense. But given the “political dynamics”highlighted above, was it practical?

So intense was the engagement at Inyathelo, as Isought to prove just how difficult it would be toimplement the advancement paradigm, at least inthe context I knew best, which was Fort Hare, that

Perspective from the University ofFort HareMSI SILINGA - CEO FORT HARE FOUNDATION

Perspective/



the cadetship became an exercise in strategicthinking. And that is the hallmark of the strategicleadership required for the Executive Director ofInstitutional Advancement. The days I had pre-viously spent in the strategic planning office at theuniversity, pushing through tough and far reachingchanges, had somewhat prepared me for thestrategic imperatives of advancement.

Having mastered the tricks of fundraising whichwere also part of the cadetship programme, albeitwithout the advancement machinery, I set aboutraising more money for both my unit and the rest ofthe university. This eventually drew the attention ofthe Vice Chancellor and others in the institution.Initially the Vice Chancellor asked me to assist himwith fundraising whenever I could.

My initial approach, dictated by the fact that I was aone-man unofficial fundraising office, was toconcentrate on negotiating for partnerships,focusing on one organization or company in anygiven time. Quick to join the stable of partnershipswere big parastatals such as Telkom, Transnet andthe Development Bank of South Africa. I concludedMemoranda of Understanding with these com-panies that led to millions of rands worth of dealsfor the university. As curiosity set in, my stockanswer was “go to Inyathelo”.

Since 1982, the University of Fort Hare has had aFoundation with a Board of Trustees drawn fromthe private sector. However, over the years it lost itsincome generation focus and simply providedbanking services for the numerous donor-fundedprojects run by academic staff. Even the securing ofsuch donor funds for projects by academic staff hadabsolutely nothing to do with the Foundation.Everyone was conscious of the fact that theFoundation had veered off its original mandate, butthere was little effort to redirect its energies. Withmy successes in concluding deals that benefited

the university, the question of the need totransform the Foundation cropped up more often.Eventually the Vice Chancellor asked what could bedone to redirect the Foundation. I suggested thatwe should use the existing Foundation to im-plement the principles of advancement. I was askedto submit proposals for its restructuring in line withthe principles of advancement within threemonths. These were accepted by the Board ofTrustees of the Foundation and the UniversityCouncil in October 2004. In January 2005 I wasappointed the first CEO of the Fort Hare Foundationand the following month we appointed the firstDirector of Institutional Advancement. He is part ofa team of five Directors, ie Institutional Advance-ment, Shared Services, Public Affairs and Marketing,Alumni Relations, and Business Innovation. Theselection process is continuing.

The Director of Institutional Advancement has alsoundergone a week’s cadetship training in insti-tutional advancement at Inyathelo. He is on cloudnine and raring to go. All of the staff will go thesame route. We just cannot afford to fail bothourselves and the institution which reposes somuch trust in us. The planning is intense as wespeak and the challenge is immense. But withInyathelo right on our doorstep we will not fail.


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‘No Ordinary Women’CHARLENE HOUSTON DIRECTOR CONTACT TRUST

As a first-time Director of an organisation, Iam privileged to participate in the peer learn-ing co-operative of Black Women CEOs ofNon-Profit Organisations, facilitated by SAInstitute for Advancement.

In addition to it being a learning space, it gives meaccess to nine peers, i.e. other black women wholead non-profit organisations in the Western Capewho have varying degrees of experience andoperate in similar, yet different contexts. This di-versity enriches the learning process tremendously.Each of us has taken away an informal network ofpeers that we are able to call when we need toaffirm or challenge our thinking, get ideas or have amoan. This makes all the difference in what isotherwise a really lonely job.

Three features of the methodology have ensuredthat our learning co-operative remains meaningfulto participants:

i. the learning agenda is set by the participantsii. we always use our own context as case

studies during the sessions iii. we have to develop a product to take back to

the organisation

I joined the NOW learning co-operative at a point inContact Trust where I needed to plan a fundraisingdrive;establish my organisation’s niche;market thatextensively and develop a team that could take the

organisation forward through excellence. The ses-sions were, therefore, well-timed for me to applythem in the interventions required at Contact Trust.I regularly shared frameworks and tools to guideour internal processes with staff.

The emphasis on linking fundraising to the advance-ment (sustainable development) of the organisationwas an important learning for me. I learned muchabout the changing funding environment, whatfunders think and also what to package inpreparation for the fundraising I was inevitably toundertake. Often in organisations we are reactive,responding to funders’ agendas and frameworks.Through the co-op I understood the value of beingprepared, of planning how the development of theorganisation would take place, of articulating the

Perspective/

The Peer-Learning Cooperative ExperienceCHARLENE HOUSTON AND FAISAL GANGAT


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organisation’s programme in ways that have mean-ing to us rather than trying to fit it into externalparadigms. I saw the value in being secure withinour own paradigm and then finding synergy withthat of a funding partner.

The tools for developing strategy (not strategic plan-ning) were significant in orienting me in my new role.Becoming conscious of the internal and externaldimensions and tensions inherent in implementingstrategy, has helped me to anticipate and under-stand issues within my organisational environment

that have frustrated less fortunate Directors andcaused them to doubt their leadership.

The co-op has benefited me and my organisation inthat it has enhanced my self awareness – some-thing that is critical to developing as a leader. Thelearning and tools gained in the co-op in 2004 havebeen the basis of processes that have set ContactTrust on the path to sustainability over the last year.

Thank you to the facilitation team and the resourcepeople who have spent time with us!

Professional,well-managed

and wellinformed

PARTICIPANT AT NGO WORKSHOP

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‘I do things differently now’ FAIZAL GANGAT OF CAPE CAPERS TOURS

Of all the workshops, mentorship, trainingand skills development programmes I haveattended, the Black Entrepreneurs in TourismPeer-learning Program is the most rewardingand productive of all.

The difference in the first instance,is our participationin structuring a syllabus which produced trainingsessions and lectures of the best quality available. Inthis Peer learnership, you are taught to unlock yourbrain and your inherent skills, thereby broadeningyour perspective and informing your actions forsuccess.The key is learning through doing.

The sessions included research into the achieve-ments and the history of Black South Africans bothpreceding and after the establishment of the CapeColony in 1652. In all sessions participants wererequired to come up with practical tangible productsthat could be used in our businesses. These rangedfrom producing a practical tour that was then testedin the field, to producing our own marketing videos.Through presentations by the total of 10 learners, anamazing array of historical facts around people andplaces were revealed.

The achievement in the fields of religion, commerce,dance and sport, as well as property ownership in thecity and winelands indeed calls for the re-writing ofthe narrative and itineraries of tours of Cape Town andits surrounds. This provides an opening to packagefamiliar tours with authentic variations, giving emer-ging businesses the edge by offering “new” tourismproducts.

The presenters commissioned by the Institute werepeople who were not purely lecturers and facili-tators, but who are high achievers in their field, be itbusiness, marketing, entertainment or politics. Theinsights gained by the discourse puts one at the

rock-face of best-practice,and gives one the maturityand perceptiveness to approach the challenges fromtop to bottom, rather than a cold , academic lessonwhich is not relevant when trying to break throughthe “glass ceiling”.

I do things very differently now. An example is mymarketing strategy for major travel expos aroundthe world such as WTM in London, ITB in GermanyAND Indaba IN South Africa. With a pre-meditatedand targeted approach born of the confidence andknowledge gained, I was able to procure newclients, many of them having turned me down inthe past.

Shelagh, Patric, Samantha and the team run theprogramme with professionalism and efficiency,thus adding value to the experience. They are alsogood looking and very friendly. And the lunches arethe best!

Special thanks is also due to the Swiss-South AfricaCo-operation Initiative and BP Southern Africa whohave funded this project.


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Trustees:R E Van der RossT M F PhaswanaS M PityanaN BadshaS F GastrowP W T Mellet

Bankers:Nedbank, a division of Nedcor Bank Limited

Registered Office:c/0 Moores Rowland1 Thibault SquareCape Town8001

Auditors:Moores Rowland, Cape Town

R E Van der Ross

S F Gastrow

T M F Phaswana

P W T Mellet

Approval of the Annual Financial StatementsThe financial statements which appear in this report were approved by the trustees on 25 May 2005and signed on their behalf by:

The South African Institute for Advancement Trust (MASTERS REFERENCE IT 2285/2002)

Annual Financial Statementsfor the year ended 28 February 2005


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We have audited the financial statements of The South African Institute for Advancement Trust set out onpages 37 to 44 for the year ended 28 February 2005.These financial statements are the responsibility of thetrust’s trustees. Our responsibility is to express an opinion on these financial statements based on our audit.

ScopeWe conducted our audit in accordance with statements of South African Auditing Standards.Thosestandards require that we plan and perform the audit to obtain reasonable assurance that the financialstatements are free of material misstatement. An audit includes:• Examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,• Assessing the accounting principles used and significant estimates made by management, and• Evaluating the overall financial statement presentation.We believe that our audit provides a reasonable basis for our opinion.

QualificationIn common with similar organisations, it is not feasible for the trust to institute accounting controls overcash collections from donations prior to initial entry of the collections in the accounting records.Accordingly, it was impracticable for us to extend our examination beyond the receipts actually recorded.

Qualified audit opinionsIn our opinion, except for the effect on the financial statements of the matter referred to in the precedingparagraph, the financial statements fairly present, in all material respects, the financial position of the trustat 28 February 2005 and the results of its operations and cash flows for the year then ended in accordancewith generally accepted accounting practice.

Accounting and secretarial dutiesWith the written consent of all trustees, we have performed certain accounting and secretarial duties.

Supplementary informationThe supplementary schedule set out on page 45 does not form part of the financial statements and ispresented as additional information.We have not audited this schedule and accordingly we do not expressan opinion on it.

MOORES ROWLAND, CHARTERED ACCOUNTS (S.A.), REGISTERED ACCOUNTANTS AND AUDITORS, CAPE TOWN, 25 MAY 2005

Report of the Independent Auditors to the Trusteesfor the year ended 28 February 2005

THE SOUTH AFRICAN INSTITUTE FOR ADVANCEMENT TRUST



The trustees present their report for the year ended 28 February 2005. This report forms part of the audited

financial statements.

1. General ReviewThe trust’s business and operations and the results thereof are clearly reflected in the attached financialstatements.The trust carries on the business of developing and training other similar organisations toobtain funding.

2. Statements of ResponsibilityThe trustees are responsible for the maintenance of adequate accounting records and the preparation andintegrity of the financial statements and related information.The auditors are responsible to report on thefair presentation of the financial statements.The trustees are also responsible for the trust’s system ofinternal financial control.These are designed to provide reasonable, but not absolute, assurance as to thereliability of the financial statements, and to adequately safeguard, verify and maintain accountability ofassets, and to prevent and detect misstatement and loss. Nothing has come to the attention of the trusteesto indicate that any material breakdown in the functioning of these controls, procedures and systems hasoccurred during the year under review.The financial statements have been prepared on the going concernbasis, since the trustees have every reason to believe that the trust has adequate resources in place to continuein operation for the foreseeable future.

3. Property, plant and equipmentThere have been no major changes in the property, plant and equipment during the period or any changes inthe policy relating to their use.

4. Events subsequent to the year endThere have been no facts or circumstances of a material nature that have occurred between the accountingdate and the date of this report.

5. TrusteesThe trustees of the trust during the accounting period and up to the date of this report were as follows:R E Van der RossT M F PhaswanaS M PityanaN BadshaS F GastrowP W T Mellet

6. AuditorsMoores Rowland will continue in office in accordance with section 270(2) of the Companies Act.

Report of the Trusteesfor the year ended 28 February 2005



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28 FEBRUARY 28 FEBRUARY2005 2004

R R

Assets

Current assetsTrade and other receivables 34,363 13,260Cash and cash equivalents 4,536,866 2,740,144Total assets 4,571,229 2,753,404

Capital and liabilities

Capital and reserves 4,568,012 2,749,285Trust capital 100 100 General reserve 4,567,912 2,749,185

Current liabilitiesTrade and other payables 3,217 4,119

Total capital and liabilities 4,571,229 2,753,404

Balance Sheetfor the year ended 28 February 2005




12 MONTHS ENDED 17 MONTHS ENDED28 FEBRUARY 28 FEBRUARY

2005 2004NOTE R R

Gross revenue 2,162,340 2,969,107Other income 465,746 293,844Operating costs 2,818,407 3,470,008

Operating loss (190,321) (207,057)Interest income 3 190,321 207,057

Net income _ _

Income Statementfor the year ended 28 February 2005



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Statement of Changes in Equityfor the year ended 28 February 2005


RESERVE # 2-EG SURPLUS ON

DISPOSAL OFTRUST CAPITAL INVESTMENTS TOTAL

R R R

Balance at 01 October 2002 - - -Profit for the period -Issue of trust capital 100 100

- 2,749,185 2,749,185Balance at 01 March 2004 100 2,749,185 2,749,185Profit for the period -

- 1,818,727 1,818,727Balance as at 28 February 2005 100 4,567,912 4,568,012


Cash Flow Statementfor the year ended 28 February 2005




2005 2004NOTE R R

Cash flows from operating activities 13,123 662,669Cash (utilised in)/generated by operating activities 6.1 (177,198) 455,612Interest received 190,321 207,057

Cash flows from investing activities (35,128) (671,810)

Expenditure to maintain operating capacityProperty, plant and equipment acquired (35,128) -

Expenditure for expansionProperty, plant and equipment acquired - (671,810)

Cash flows from financing activities 1,818,727 2,749,285Capital introduced - 100Grants received 1,818,727 2,749,285

Increase in cash and cash equivalents 1,796,722 2,740,144Cash and cash equivalents at beginning of the period 6.2 2,740,144 -

Cash and cash equivalents at end of the period 6.2 4,536,866 2,740,144


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1. Basis of preparation

The financial statements are prepared in accordance with generally accepted accounting practice.The financial statements are prepared under the historical cost basis.Unless otherwise specifically stated, this basis is consistent with that of the previous year.

1.1. Revenue recognitionRevenue is recognised once donations and grants has been received.

1.2 Property, plant and equipmentAll property, plant and equipment are initially recorded at cost. All assets are written off in full in the yearof purchase.

2. Property, plant and equipment

2005 2004ACCUMULATED CARRYING ACCUMULATED CARRYING

COST DEPRECIATION VALUE COST DEPRECIATION VALUER R R R R R

Owned assetsFurniture and fittings 278,718 278,718 – 273,318 273,318 –Telephone equipment 19,809 19,809 – 13,859 13,859 –Office equipment 39,730 39,730 – 35,770 35,770 –Computer equipment 272,503 272,503 – 252,685 252,685 –Audiovisual equipment 96,178 96,178 – 96,178 96,178 –

706,938 706,938 – 671,810 671,810 –

Notes to the Financial Statementsas at 28 February 2005




The carrying amounts of property, plant and equipment can be reconciled as follows:



CARRYING VALUE CARRYING VALUEAT BEGINNING AT END

OF YEAR ADDITIONS DEPRECIATION OF YEARR R R R

2005Owned assetsFurniture and fittings – 5,400 5,400 –Telephone equipment – 5,950 5,950 –Office equipment – 3,960 3,960 –Computer equipment – 19,818 19,818 –

– 35,128 35,128 –

2005 2004R R

3. Investment income

Interest income- Interest received 190,321 207,057

4. Grants received

Gross grants received 3,949,997 5,383,869Less:Transfer to general reserve (1,818,727) (2,749,185)

2,131,270 2,634,684


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2005 2004R R

5. Commitments

Operating lease commitmentsThe future minimum lease payments under non-cancellableoperating leases are as follows:Not later than 1 year 245,570 245,570Later than 1 year and not later than 5 years – 245,570

245,570 491,140

6. Notes to the cash flow statement

6.1. Cash (utilised in)/generated by operating activitiesAdjustments for:Depreciation 35,128 671,810Investment income (190,321) (207,057)

(155,193) 464,753Movements in working capitalIncrease in trade and other receivables (21,103) (13,260)(Decrease)/increase in trade and other payables (902) 4,119

(177,198) 455,612

6.1. Cash and cash equivalentsCash and cash equivalents consist of cash on hand and balanceswith banks. Cash and cash equivalents included in the cash flowstatement comprise the following balance sheet amounts:Cash and cash equivalents 4,536,866 2,740,144



Detailed Income Statementas at 28 February 2005



2005 2004R R

Gross Revenue 2,162,340 2,969,107Donations 31,070 334,423Grants 2,131,270 2,634,684

Income 656,067 500,901Cost recovery fees 465,746 293,844Interest received 190,321 207,057

Total income 2,818,407 3,470,008

Expenditure 2,818,407 3,470,008Audit and accounting fees 55,600 45,078Advertising and marketing 130,795 125,948Bank charges 9,639 10,236Cleaning 13,683 11,028Computer expenses 16,417 27,050Consulting fees 3,719 21,800Depreciation 35,128 671,810*Entertainment 50,584 47,742Hire of equipment 17,931 15,472Insurance 21,051 24,819International conference fees – 2,013Lease rentals 270,641 297,235Legal expenses 9,132 350Postage 10,133 5,557Printing and stationery 42,025 47,071Repairs and maintenance 28,533 21,588Resource centre 115,531 137,349Salaries 1,492,441 1,676,731Secretarial fees 2,430 2,150Service providers 311,425 2,310Telephone and fax 97,016 91,702Travel - local 39,277 114,102Travel - overseas 38,745 63,846Utilities 6,531 7,021

Retained income at end of year – –

* EVENTS AND TRAINING FUNCTIONS


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PATRONS: Dr Mamphela RampheleCyril Ramaphosa

TRUSTEES:

Chairperson: Dr Richard van der Ross

Deputy Chairperson & Treasurer: Fred Phaswana

Members: Sipho PityanaNasima BadshaShelagh GastrowPatric Tariq Mellet

STAFF:

Executive Director: Shelagh Gastrow

Managing Director: Patric Tariq Mellet

Senior Programme Coordinator: Nazli Abrahams

Programmes and Events Coordinator: Samantha Castle

Office Administrator: Cassandra Smith

Receptionist: Noluyolo Dingana

ASSOCIATES:

Inyathelo operates with a small unit of full-time staff. In addition, we have a number ofprofessional, independent associates who work on our programmes. Their details can beobtained on our website.

Patrons, Trustees and Staff



Inyathelo would like to thank the following organisations and individuals who have given financial support over the past year:

The Atlantic Philanthropies

The City of Cape Town

The Charles Stewart Mott Foundation

BP Southern Africa (Pty) Ltd

The Embassy of Finland

The Anglo American Chairman’s Fund

The Swiss-South African Co-operation Initiative

The First National Bank Fund

The Stella & Paul Loewenstein Charitable andEducational Trust

The David Graaff Foundation

Mr Sipho Pityana

Mr Patric Tariq Mellet

Ms Shelagh Gastrow

National Lottery Distribution Trust

The Ford Foundation

We have also worked in partnership with:

The Carnegie Corporation of New York

The Western Cape Department of Education

The Synergos Institute

The Tertiary Education Linkages Project/United Negro College Fund

Supporters

For me theworkshop has

been anexceptional

learningexperience.

UNIVERSITY OF WESTERN CAPEPARTICIPANT

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Inyathelo T R A I N I N G V I D E O S E R I E S

� Solicitation Training Video

� Grantmakers in Conversation

� Grantseekers in Conversation

� The Role of the Non-Profit Board

� The Impossible Dream-Institutional Advancement at the University of Kwazulu Natal

� An Introduction to Institutional Advancement

To find out more about the Inyathelo Training Seriescall (+27) 021 425 7928/9, visit www.inyathelo.co.za or email [email protected]

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SAIA AR2005 Final Cover 7/11/05 10:47 PM Page 1

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The South African Institute for

Advancement

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Promoting solutions for Resource Mobilisationand Sustainability

THE SOUTH AFRICAN INSTITUTE FOR ADVANCEMENTFirst Floor|The Cape Quarter|Dixon Street|Green Point 8005|Cape Town, South Africa|P O Box 818|Green Point 8051|Cape Town|South Africa

Telephone: (+27) 021 425 7928/9|Fax: (+27) 021 425 7990|Email: [email protected]|Web: www.inyathelo.co.zaNPO REGISTRATION: 023-432-NPO|TRUST REGISTRATION: IT2285/2002

PATRONS: Dr Mamphela Ramphele; Cyril RamaphosaTRUSTEES: Dr Richard van der Ross, Fred Phaswana, Sipho Pityana, Nasima Badsha, Patric Tariq Mellet, Shelagh Gastrow

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