FINANCIAL SUPPORT

Scat works with rural community owned development organizations we refer to as local development agencies (LDAs)., especially those focusing on social justice. Scat is concerned with all forms of discrimination and unjust practices in communities as well as the unfair distribution of resources. 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 as a contribution to the running costs of LDAs, special development funds and rewards for local fundraising.

Scat provides the following grants:  Core Grants; Fundraising Incentive Scheme (FRIS) as an incentive to encourage community driven philanthropy; Development Fund for Training (DFT) and special project funds (e.g. food security, local economic development, youth initiatives, climate adaptation).

1. Core grants:

Small grants which contribute to the running costs of each grantee are paid into the Local Development Agency (LDA) banking account on a monthly or quarterly basis depending on the development phase of each organisation. The size of grants is determined by funds available at Scat and the capacity of the organisation to manage funds. Grants enable organisations to ensure that the basic offices costs are covered. SCAT believes that grants are developmental because they enable LDAs to make their own decisions and create the opportunity to leverage other resources.

2. 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. This grant can also be used for campaigns and workshops in the community related to the strategies and priorities of the LDA.  DFT funds are transferred on a claims basis and if they meet Scat’s criteria. Reports of the previous event are submitted before another claim can be processed.

3. Fundraising Incentive Scheme (FRIS):

FRIS is an innovative tool to encourage the mobilisation of local resources. Scat currently rewards LDAs R5 for every R1 profit made from a fundraising event. Events are verified through financial documentation and storytelling.  Fris is an important contributor to community driven philanthropy and ensures that LDAs can reduce their dependence on grant funding. Fris also encourages interest and involvement from the community in the work of the LDA and as a result encourages accountability and as sense of ownership of the LDA and its programmes.

Benefits of FRIS

• Community mobilisation
• Citizenship building
• Community governance
• Financial sustainability
• Financial management tool

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

• Dances in the community;
• Movie nights
• Sports tournaments
• Food sales, baking
• Choir competitions

Uses of FRIS Rewards

LDAs use their FRIS rewards to ensure that he organisation is able to meet its own objectives. The following are some of the ways in which FRIS rewards have been used:

• Funds to provide services to 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.
• Increasing staff salaries or paying bonuses.
• Developing a reserve or endowment fund.

FIELD SUPPORT

A Programme Officer is allocated to each Local Development Office (LDA) who is the primary interface with Scat. The Programme Officer is a development practitioner who provides guidance, monitors and evaluates progress and assists LDAs in their linking, brokering and advocacy roles. All SCAT Programme Officers speak the language of the community they work in. The relationship between SCAT and its LDA partners is based on an annual contractual agreement which is derived from the LDAs’ own internal evaluation, planning and budgeting.

CAPACITY BUILDING

Capacity building and training is offered by Scat’s Programme Team and addresses issues related to organisational management and governance. We also focus on skills areas related to the work of the LDA such as access to justice, gender, youth empowerment and local economic development.

Capacity building refers to skills development and learning for the individuals involved in the management and operations of the Local Development Agencies (LDAs) as well as other rural community-based organisations (CBOs). SCAT also facilitates opportunities for community members and volunteers. Typically, a few workshops focus on financial management, fundraising and sustainability. One of the ongoing institutional challenges for CBOs is that as people develop skills and they tend to leave the organisation and move on to new positions. The result is a continuous need for skills development within the CBO.

The benefit has been that some people leave to use their skills in local and provincial government and thus potentially continue to add value to the community.  We also coordinate training on advocacy and how to run campaigns and the role and function of local, provincial and national government. Training workshops usually fit into a programme and are linked to the grants allocated to the LDAs. SCAT seeks partnerships with other specialist organisations where we do not have the content expertise.

CRITERIA:

Rural

Rural communities which are 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 to support locally driven social change. 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 is 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 can 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 because of its efforts over a period of at least one year. They have planned activities and know who is going to do what, by when it is going to be done, how achievement will be measured and why this result is important.

Regular reporting to funders and to their community

SCAT requires monthly/quarterly or six-monthly reporting on activity, finance and case statistics from all organisations. The duration for reporting depends on the development phase of the LDA.

In addition, recipients of SCAT funding should provide general reports to their community at appropriate intervals. Recipients should be required by their own constitution 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.