Financial Support & Grants

Scat works with rural community owned development organizations, especially those focusing on human rights, HIV and AIDS, local economic development, and the empowerment of women and other groups subjected to discrimination. Scat raises funds from funders – corporate, government and civil society – who support such work but do not have or wish to create the infrastructure necessary to monitor and support small and remote initiatives. Scat provides core funds for running costs, and additional special development funds, on-site support and training opportunities to rural community owned organisations.

FINANCIAL SUPPORT

Scat provides the following grants:  Core Grants; Fundraising Incentive Scheme (FRIS) for community philanthropy; Development Fund for Training (DFT) and special project funds (e.g. Local Economic Development, HIV and AIDS projects).

  1. Core grants:

Small grants to cover salaries and administration costs of each partner are transferred into the Local Development Agency (LDA) banking account on a monthly or quarterly basis depending on the capacity of each organisation to manage their finances. All grants are based on LDAs budgets and its objectives for the year. Grants enable organisations to ensure that the telephone bills and rent are paid and that some staff earn salaries. SCAT believes that grants are developmental because they enable LDAs to make their own decisions and create the opportunity to leverage other resources.

  1. Development Fund for Training (DFT):

The Development Fund for Training is a grant which is available for the training of staff and volunteers to develop their capacity in a way that is beneficial to the development of the LDA's specific programmes and activities. The grant promotes institutional capcity building and offers new opportunities for learning in the community.

  1. Fundraising Incentive Scheme (FRIS):

FRIS is an innovative tool for mobilising local resources, even in the poorest of communities. It is an incentive scheme for fundraising by a local development agency (LDA) in its community fundraising event. The current reward limits are between R 25 000 and R 120 000 per annum per rural LDA.

Aims of FRIS

  • To reduce dependence of LDAs on grant funding.
  • To provide additional local financial resources to LDAs.
  • To encourage interest and involvement in the work of the organisation funded within their community.
  • To foster accountability and a sense of ownership of the organisation and its programmes.
  • To provide an opportunity for sharing information and knowledge with the community.

Benefits of FRIS

  • Community mobilising
    • Involves community
    • Promotes participation
    • Promotes networking
  • Citizenship building
    • Promotes democracy
    • Enhances quality of life
    • Provides a sense of ownership
  • Community governance
    • Promotes accountability
    • Empowers community
    • Promotes sense of responsibility
  • Financial sustainability
    • Generates local resources
    • Builds social capital
    • Creates potential for endowment
    • Building and reserve funds
  • Financial management tool
    • Develops financial skills
    • Promotes financial accountability
    • Encourages planning and budgeting

Types of Activities

FRIS fundraising events offer many creative opportunities to involve communities, to promote local business and to support local artists and craftspeople. These events affirm cultural diversity and talent, thereby building community esteem.

Some Popular FRIS Events

Concerts/cultural events – offer financial opportunities to do the following:

  • Collect entrance fees from performers and audience and sell refreshments.
  • Encourage local business people to contribute ingredients, prizes and other forms of material or in-kind support.
  • Sports tournaments.
  • Dances – a popular, fun way of fundraising.
  • Ad-hoc street sales – selling a variety of popular goods.
  • Raffles.

Uses of FRIS Rewards

LDAs use their FRIS rewards for a number of community development needs including:

  • Increasing staff salaries or paying bonuses.
  • Providing costs to service outlying villages.
  • Purchasing office equipment.
  • Purchasing vehicles.
  • Purchasing land.
  • Generating more fundraising activities.
  • Initiating community projects like literacy programmes or local economic initiatives.
  • Building offices or upgrading existing premises.
  • Developing a reserve or endowment fund.

Community Philanthropy:

  • A tried and tested model for sustainable development.
  • Contributes to the government’s rural strategy.
  • A strong capacity-building focus.
  • A unifying tool in communities.
  • Strong elements of sustainability.

 

HOW TO APPLY:   

Please send an email with your company profile attached to info@scat.org.za or fax to 0214186840.

CRITERIA:

Your organisation must be in a rural area

Rural communities which are located in geographically isolated areas. This isolation translates into a limited access to technological resources, formal communications resources and formal institutions.

Community-based/Community-governed

The organisation exists within the community which it serves. The underlying principle is service to the community, controlled by the community. The community or a significant number of people elects and mandates a small group of people to run the organisation. This management includes the financial and resource management (including human resources) and implementation of the plans as mandated by the community.

The management committee reports to the community at an open meeting which is held on a regular basis on its performance in management and the work of the organisation. At such meetings the committee renews its mandate or a new committee is elected and the mandate is handed over.

Membership open to all

People from the community, regardless of age, political, racial, religious or gender status, are welcome in the organisation. People with any level of ability and from any economic group are able to participate in the organisation. Women should be represented all levels of that organization, and particularly in decision making positions - whether these be as members of staff or of community-based governance structures. Scat specifically supports such efforts through capacity building.

Written constitution

The organisation should have or should be striving to develop a legal document with full details of the organisation, its structure and way of operating. The process of amendment and dissolution must be specified.

Stated aims and plans

The organisation has or is striving to develop a vision and a purpose and a written record of what it wants to see achieved as a result of its efforts over a period of at least one year. It is able to say what it is going to do to achieve this, by when it is going to do it, how achievement is measured, why this result is important and how it knows this.

Regular reporting to funders and to their community

Scat requires monthly reporting on activity, finance and case statistics from all organisations viewed as struggling and developing. Organisations viewed as established may report on a quarterly basis.

Scat accepts that a characteristic of a community-based organisation is that it is accountable to the community it serves through transparent and accessible records of financial and general activities. In addition, recipients of Scat funding should provide general reports to their community at appropriate intervals. Recipients should be required by their own constitution, and are required by Scat criteria to timeously and publicly advertise and report at least one general meeting per year (AGM). Recipients should also present audited financial records at such a meeting and a fresh management mandate must be given. Attendance registers, agendas and minutes of the entire meeting should be submitted to Scat.

Annual audited financial statements.

The audit must be performed by an auditor who is registered with the Society for Chartered Accountants of South Africa.