Gauteng begins first round of NPO funding payments
The Gauteng Social Development Department has officially started disbursing funds to non-profit organisations (NPOs) that have signed their Service Level Agreements (SLAs) for the 2025/26 financial year, following months of delay and legal scrutiny.
The first tranche of payments was processed on Tuesday.
According to the Department, this confirmed that the budget allocation for the quarter is ready for full release.
Payments will continue in phases until all eligible and compliant NPOs receive their funding.
This development comes after significant public backlash and a legal challenge against Social Development MEC Faith Mazibuko and Premier Panyaza Lesufi, launched by civil society groups and affected NPOs.
The case followed widespread criticism over the Department’s failure to fund organisations on time, leaving many — including children’s homes, shelters for the homeless, and facilities for people with disabilities — unable to operate fully or facing complete closure.
The Department began the SLA signing process on April 14 but has since raised concern over the slow response from NPO board members in finalising their agreements.
In a recent statement, the Department urged all successful NPOs to expedite the signing to avoid further delays.
Some organisations have accused the Department of submitting incomplete reports and mismanaging the adjudication process.
In response, the department issued a statement citing that poor or mismanaged applications on the part of the NPOs and not the Department.
“NPOs that submitted their business plans on time and qualified for funding during paneling will be collaborating with the Department this year to provide services to beneficiaries.”
This marks a critical turning point in a saga that has gripped Gauteng’s civil society sector for months.
Lesufi previously met with representatives of several NPOs and committed to reversing budget cuts and reviewing complaints about the SLA process. His office claimed direct intervention to stabilise the sector amid widespread service disruption.
The Department’s next challenge will be rebuilding trust while ensuring transparent and efficient distribution of public funds — especially for vulnerable communities relying on NPO services for survival.
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