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Donations

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Donations and sponsorships are defined as goods, services, money or facilities that are offered free of any repayment to the Department of Education. Such goods then become the property of the Department.

(Note that the donor will often attach conditions to a donation which must be complied with in as much as this does not compromise the Department; See SASA Clause 37 (4). The procedure to be followed with regard to donations is as follows:

  • Letter offering donation to be forwarded to the Department of Education finance section
  • Attach request for permission to utilise donation for indicated purpose
  • Department of Education submits proposal to Treasury for approval
  • Treasury advises if proposal/conditions are acceptable

All donations and sponsorships are subject to the Exchequer Act (Chapter 10.1.2.1 and Chapter 11), and the following points should be noted by the infrastructure manager in this regard.

  • Provinces have the right to accept donations subject to Treasury approval
  • Donations must be made in good will (i.e. without unacceptable conditions attached)
  • The Department must make the donor aware of any regulations affecting the donation, and negotiate the agreement with him/her.
  • Cash donations
    • It is important that provincial regulations be followed. Note that all funds must be paid into the Provincial Treasury, indicating what their specific purpose is.
    • Section 21 schools do not need to pay funds over to Treasury
  • Land donation
    • Provincial regulations must be followed.
    • Be aware of conditions that may be attached to any land or buildings that are to be donated (e.g. building restrictions). If in doubt, get advice from Legal Services.
  • Non-monetary donations
    • Any gift/donation must be declared to Treasury in terms of the Act, and the value of the gift must be stated.
    • In the case of any donations, where the nature of the donation is an addition or alteration to a school, permission to utilise such a donation must first be obtained.

Donations To Public Schools On Private Property
Schools on private property is thus largely confined to Section 14 schools. The same provisions as for public schools on state property apply, but with the proviso that the property owner's consent is required for structural changes or additions. In this case a written agreement needs to be entered into, and the Department's Legal Services should be consulted in drawing up such an agreement.

If the property owner should wish to donate the grounds (and the school if applicable) to the Department, the infrastructure manager should play a pro-active role in facilitating this transfer of ownership.

Co-Funding Arrangement
For the purpose of this document, a co-funding arrangement is defined as the coming together of the private and public sectors in a mutually beneficial relationship as a creative solution to financial constraints. Examples are inter-departmental co-operation initiatives, or ad hoc agreements with private sector organisations.

[Note: The co-funding arrangement referred to above exclude private finance initiatives (PFls, or public private partnerships (PPPs) as they are known in South Africa, whereby the private sector enters into a business venture in which it invests in infrastructure based on agreed long term returns. In our case the private sector contribution is grant funding and their return is by way of exposure and goodwill created.]

The role of the infrastructure manager in this process is summarised below:

  • The infrastructure manager is not expected to initiate the process of forming partnerships, but rather refer potential partnering organisations to the relevant persons within the Department.
  • The infrastructure manager will need to guide the partnership with regard to the identification of needs within the province.
  • The infrastructure manager should also serve on the Project Steering Committee for the purpose of monitoring the implementation of policy.
  • The infrastructure manager also needs to ensure that he/she is aware of all initiatives and that these are co-ordinated and records are kept. In this regard the infrastructure manager should encourage district offices to report all such initiatives as early as possible.

There are a number of challenges faced in this field, and the infrastructure manager should note these and the consequences they could have:

  • Lack of consultation between donors and the Department
  • Promises from donors or high profile facilitators that do not materialise
  • Prescriptive tendencies of some donors
  • NGOs who deal with communities directly

It is suggested that all potential co-funding arrangements are guided by the provincial priority list when considering the provision of infrastructure, and the infrastructure manager plays a key role in co-ordinating and recommending each initiative. Bearing in mind that the KZNDoE is also contributing to such an initiative, the identified project needs to conform to Departmental standards and meet departmental needs.

 Treasury Practice Note (Donor Funding 25 of 2008)
 Treasury Practice Note (Gifts and Donations) (19 of 2006)
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