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Gauteng fails to spend money on NPOs

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By Johannah Malogadihlare

Over R1.7 billion allocated for non-profit organisations in Gauteng was not spent by the social development department, the Democratic Alliance said on Wednesday.

“This raises concerns about the department’s ability to support NPOs in Gauteng. Significant financial deviations indicate poor management and inadequate support for NPOs,” said DA social development spokesperson and MPL Refiloe Nt’sekhe.

“Consistent underspending since 2017/18 has caused turmoil, denying vulnerable individuals crucial services.”

The figure was revealed in data supplied in a written response by the department.

NPOs were reduced from 2061 in 2014 to 1328 in 2025, raising concerns about the support available for poor and vulnerable residents.

From 2014/15 to 2019/20, there was a notable increase in the number of NPOs funded, rising from 2061 to 3311. However, in 2017/18, there was a significant drop in expenditure to over R1.7 billion, despite a budget of over R2.4 billion.

Nt’sekhe said in a statement the deviation of over R691 million could indicate underutilisation of funds, possibly due to the department appointing fewer NPOs than the budget could accommodate, taking away the opportunity to provide more services to the vulnerable.

While the budget allocation peaked in 2021/22 at R2.7 billion, the number of funded NPOs declined sharply in 2022/23 and 2023/24, falling to 1 837 and 1 464, respectively. This signifies a shift in funding strategy that tightened the criteria for NPO eligibility.

Furthermore, data analysis shows that the highest deviation occurred in 2024/25, with over R360 million left unspent.

The DA has accused the department of not doing enough to capacitate NPOs and not assisting municipalities to help NPOs become municipal-compliant with zoning, environmental health certificates and building plans.

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