inyathelo ar2018-draft 5 · 02 a year in review contents 01 supporters and donors 03 02 board of...

2018 INYATHELO ANNUAL REPORT A

182INYATHELO ANNUAL REPORT

A YEAR IN REVIEW

“Resilience is all about being able to overcome the unexpected. Sustainability is about survival.

The goal of resilience is to thrive.”JAMAIS CASCIO

2018 INYATHELO ANNUAL REPORT 01A YEAR IN REVIEW01

Vision, Mission and ValuesINYATHELO: THE SOUTH AFRICAN INSTITUTE FOR ADVANCEMENT

Our vision

A vibrant democracy in South Africa with a robust and sustainable civil society and higher

education sector, supported by a strong local philanthropic movement, rooted in the African

cultural heritage of sharing.

Our mission

To help build a strong, stable civil society and democracy in South Africa by contributing

to the development of sustainable organisations and institutions. We do this through the

development of eff ective grantseeking and grantmaking practices, and through capacity

development in the higher education and non-profi t sectors in South Africa, and on the

African continent. We also work to increase corporate and individual social giving through

promoting dialogue, sharing information, and providing support services to facilitate

sustainable philanthropic ventures that have lasting impact.

Our values

Respect

We believe all

people should

be treated with respect and we value diversity and being inclusive.

Commitment

We are

committed,

you can count on us.

Fairness

We believe

in having a

fair and just culture at

Inyathelo.

Informed Risk Taking

We are about

Advancement, pioneering philanthropy and

cultivating personal growth and

development.

Honesty and

Integrity

Our honesty

and integrity

make us

trustworthy.

A YEAR IN REVIEW02

Contents

01 SUPPORTERS AND DONORS 03

02 BOARD OF TRUSTEES 04

03 INYATHELO STAFF 05

04 LOOKING FORWARD WITH CONFIDENCE 06 DR RUSSELL ALLY, CHAIRPERSON, INYATHELO

05 THE FUTURE OF CIVIL SOCIETY TODAY 08 DR BHEKI MOYO, ADJUNCT PROFESSOR AND

DIRECTOR, CENTRE FOR AFRICAN PHILANTHROPY

06 PROGRAMME OVERVIEW 10 NAZLI ABRAHAMS, PROGRAMME DIRECTOR,

INYATHELO

6.1. Inyathelo’s capacity

building work 13

6.2. Higher Education engagement 16

6.3. Philanthropy 19

07 VOICE AND VISIBILITY 21 FERYAL DOMINGO, OPERATIONS DIRECTOR,

INYATHELO

08 OPTIMAL OPERATIONS 24 FERYAL DOMINGO, OPERATIONS DIRECTOR,

INYATHELO

09 FINANCIAL OVERVIEW 27 SORAYA JOONAS, FINANCE DIRECTOR,

INYATHELO

10 FINANCIAL REPORT 2017-18 29

2018 INYATHELO ANNUAL REPORT 03

Thank you

The Kresge Foundation

The Atlantic Philanthropies

The Charles Stewart Mott Foundation

The RAITH Foundation

The National Lotteries Commission

We would like to express our sincere thanks and appreciation to all donors for their support in sustaining Inyathelo and its work.

O1

A YEAR IN REVIEW04

Board of Trustees

O2We extend a special word of thanks to our Board of Trustees. They have made a signifi cant contribution to Inyathelo’s efforts to sustain and strengthen civil society and build support of a vibrant democracy in South Africa.

LEFT TO RIGHT: Mr Israel Noko, CEO, NPI Governance Consulting; Ms Zenariah Barends, Chief of Staff , Independent Media; Dr Russell Ally, Board chairperson, Director, Development and Alumni Department, University of Cape Town; Mr Noel Daniels, CEO, Cornerstone Institute; and Ms Nomvula Dlamini, Executive Director, The Community Development Resource Association (CDRA).


INYATHELO STAFF 2017-2018

Absolute commitment

O3

LEFT TO RIGHT: Nomawethu Maselana, Dr Russell Ally (Inyathelo chairperson), Dianne Whiting, Soraya Joonas, Bayanda Gumbi, Sandra de Jongh, Ruvimbo Gwatirisa, Jacques Swart, Feryal Domingo, Buddy Kassiem, Nazli Abrahams, Jocelyn Collins and Lizel Shepherd.

SEATED, FRONT: Hoeyaam Majiet and Cassandra Smith.

A YEAR IN REVIEW06

DR RUSSELL ALLY, CHAIRPERSON, INYATHELO BOARD OF TRUSTEES

Looking forward with confi dence

O4The past few years have been diffi cult and challenging for Inyathelo. It is never an easy process to transition an organisation from the strong base and culture established by a founder, to the next chapter. The founder makes a fi rm imprint and moulds the organisation, and on their departure it can take time and effort to re-establish equilibrium and initiate the next cycle of development.

Inyathelo has always striven to be open and trans-parent with donors, supporters and other stakehold-ers on how it deals with challenges. In fact, this can be the true test of an organisation, that it is able and willing to not only share its accomplishments, but also its challenges.

Registered 16 years ago, Inyathelo is a resilient or-ganisation with deep roots in civil society. Over the years, it has garnered support and built up signifi cant resources, not least the building of which it is the proud custodian. This is a warm and welcoming hub that is well-known to the NGO sector, a place where its members gather and learn.


Inyathelo has earned a robust reputation in the philanthropy, Advancement and tertiary education sectors. It has a proud record of quality services, delivery and innovation. Highly respected, it has long taken the lead in civil society matters, unafraid to address diffi cult issues.

Now, the organisation is entering its next phase; and we are confi dent that it can overcome its challenges and build on its strengths. We are advanced in the process of putting new leadership in place, and strategy will follow in due course. We will draw on the strengths of the past while also forging a new path that complements the way in which civil society and the higher education landscape have changed. Inyathelo needs to not only keep pace, but also provide direction and leadership in an evolving context.

On behalf of the Board, I would like to thank the staff who have remained loyal, hardworking and committed during this transitional phase. They have kept the organisation on an even keel and continued to offer the main programmes and services, seamlessly. In particular, I would like to thank the donors who have not only continued to support Inyathelo fi nancially, but have also provided moral support and shown

confi dence in the organisation despite the trying times it has experienced. We trust they will continue to support the organisation as it maps out a new strategy and puts in place leadership equipped to take the organisation forward. A founder has a particular leadership style and gives a particular character to an organisation. To transition is not always easy, especially when one is recruiting from outside the institution. However, we are confi dent that we are well on our way to putting the appropriate leadership in place.

I would like to thank our outgoing Board chairper-son, Zenariah Barends, for her strong guidance and governorship; and to thank my fellow Board mem-bers for their unwavering commitment, enthusiasm and loyalty.

Finally, while some time has passed since she undertook a caretaker role, I would also like to acknowledge Nomfundo Walaza, our former acting Executive Director. Following some diffi cult decisions the Board had to take prior to her appointment, her part in stabilising the organisation and helping with the healing process ensured good relationships continued on multiple levels. Her contribution was invaluable in ensuring the organisation remained on a fi rm footing. This has equipped us well as we move to the next phase of organisational growth.

I am honoured to have been appointed chairperson and look forward to working with the Board and staff to ensure that strong leadership and systems are in place. I remain fully committed to Inyathelo’s core values; and its mission to ensure a vibrant civil society and a thriving higher education sector, supported by philanthropists committed to social justice and the strengthening of our hard-won democracy.

We will draw on the strengths of the past while also forging a new path that complements the way in which civil society and the higher education landscape have changed.

DR RUSSELL ALLY, CHAIRPERSON, INYATHELO BOARD OF TRUSTEES

A YEAR IN REVIEW08

DR BHEKI MOYO, ADJUNCT PROFESSOR AND DIRECTOR, CENTRE FOR AFRICAN PHILANTHROPY

The future of civil society today

O5

Today, it is common knowledge that a large segment of civil society is facing what we could refer to as a drought in funding. The funding landscape has changed drastically, forcing a number of changes in civil society designs, ways of working and even identity. Many groups are adopting social enterprise

models in order to address the challenges of dwindling resources. At the same time, a few large and in most cases international organisations now based in the south are fl ooded with a lot of fi nancial donor funding.

The behaviour of donors has led to a very interesting phenomenon where most local civil society organi-sations are too small for big grants and too big for small grants. Either way these groups are faced with potential death. They can either be fl ooded if big grants were suddenly to be given to them or starved completely by the dry spell. This is the view that one gets when looking at civil society today in Africa and the prevailing funding environment. This, coupled with environmental changes that we are witnessing today, and the political and economic uncertainties, paint a bleak picture for the future of civil society.

These massive changes in the world demand that leaders of civil society institutions change the way they do things. The world is Fast, Urbanizing, Tribal, Universal, Radical and demands Ethical leadership (FUTURE). Patrick Dixon captures this in a fascinating


book called The Future of Almost Everything. Any leader today cannot avoid harnessing the power and potential presented by the Fourth Industrial Age. The fl uidity of roles, organisations and information signify a drastic shift from the traditional to the new normal future of work. The entry of artifi cial intelligence, algorithms and robots has massively changed the world as we know it and in so doing has also changed the nature of our organisations and the pace and speed at which we ought to do things. We have no choice but to think futuristic; rather be futurists than fatalists.

Five years ago, I took over leadership of a regional or-ganisation and embarked on a restructuring exercise in response to the funding environment. Little did I know that the worst was yet to come. I got the news that our main donor who had set us up would be leaving South Africa and that we would be getting our last grant, for 18 months only. We had a very short runway to take off. It was very clear to me at that point that we were being asked to either close our operations or pivot into new and perhaps even unconventional ways of doing business. We chose to pivot and manage the change that was about to engulf us. This is what we did:

1. Quickly questioned our funding model and ad-opted a hybrid between commercial and non-profi t approaches. We quickly went into the property market in order to invest in real estate for income generation. We had never considered this and our donors would never have bought us a building anyway.

2. Rebranded ourselves from a humble and conser-vative organisation to a more confi dent and visible modern organisation that utilises fi rst world tech-nologies to manage its affairs. We fully automated our operations and began working in virtual ways, including having fl exible working hours.

3. Aggressively broadened our donor base by con-ducting donor intelligence reports as well as de-veloping an infrastructure for fund management.

4. We became lean, agile and nimble. We did not solve everything, but we were certainly vigilant. We took the opportunities presented by the best of times and mitigated risks during the worst of times. This is the future of organised civil society today.

A YEAR IN REVIEW10

NAZLI ABRAHAMS, PROGRAMME DIRECTOR, INYATHELO

Sorry... there are no silver bullets

O6

Paul Light, renowned expert on public service and non-profi t management, strongly argues for capacity building measures as a way to sustain and improve the efforts of the non-profi t sector. He goes on to say that organisations that invest adequately in their infrastructure and long-term planning are the ones that will survive and continue to serve.

Capacity building well done in the non-profi t sector, I believe, is a critical answer to the extraordinary uncertainty we face and also to the tremendous political pressure under which most non-profi ts are operating. Capacity building right now is arguably the most important investment the non-profi t sector can make.

PAUL LIGHT IN SUSTAINING NON-PROFIT PERFORMANCE: THE CASE FOR CAPACITY BUILDING AND THE EVIDENCE TO SUPPORT IT


Capacity building is critical to sustaining a non-profi t’s performance and improves the odds of success. While frequently invisible, and often overlooked, capacity building is the all-important ‘infrastructure’ that supports and shapes charitable non-profi ts into forces for good. Capacity building enables non-profi t organisations and their leaders to develop competencies and skills that can make them more effective and sustainable, thus increasing the potential for non-profi ts to enrich lives and solve society’s most intractable problems.

Building the capacity of organisations in the sector is not a simple task. We’ve come to understand that there are no silver bullets or magic formulas that guarantee success, even though this is a consistent ask from our benefi ciaries.

Our work with organisations is often focused on the unsung areas of work, work that is important albeit sometimes referred to as a vague concept or a concept that lacks a shared defi nition. Donors often refer to capacity building programmes, while practitioners might refer to capacity building engagements and organisations may refer to it as a set of activities or processes towards meeting specifi c goals.

Across the sector, little agreement exists on where to begin or what to do. Instead, the process of creating and maintaining a robust and effective capacity building programme exemplifi es the tensions and trade-offs that organisations face when adapting to change. To better understand the complex and multi-dimensional facets of change and capacity building, we work at understanding long term organisational sustainability, civil society and relationship capital, and organisational development. The intersection of these three distinct areas provides us with a framework for capacity building work and the foundation for Inyathelo’s approach to long term sustainability: The Ten Elements of Advancement.

In other words, Inyathelo views capacity building as an investment in the effectiveness and future sustainability of a non-profi t. Capacity building is quite possibly one of the least understood yet most important aspects of an or-ganisation’s work. Building human and social capi-tal is integral to strategic organisational investment because it leverages and multiplies the impact of resources by strengthening organisations and in-creasing the likelihood of their programme’s success. More importantly, investing in capacity building is part of an organisation’s ability to sustain itself over the long term. When capacity building is successful, it strengthens a non-profi t’s ability to fulfi l its mission over time, thereby enhancing the non-profi t’s ability to have a positive impact.

Effective capacity building benefi ts organisations by helping to generate inclusive processes that strengthen trust and build commitment and good relationships. Capacity building interventions require consistent and careful planning to better build the right skills at the right time and over time. It is not a quick fi x nor is it a one size fi ts all approach. Capacity building initiatives tend to be more effective when they are conceived as part of an ongoing strategic commitment. There are no quick, simple solutions. Improving processes involves work. Hard work!

128

72

5

ORGANISATIONS ACCESSED ADVISORY SUPPORT

FOR THE FIRST TIME DURING THIS TIME PERIOD, I.E. JUST MORE

THAN HALF

THE THREE YEAR AVERAGE for clinic participation rates for 2015 to 2018 is similar to the three year average

reported in last year’s annual report. This demonstrates the consistent

advisory support provided.

THE MAJORITY OF SESSIONS are with Western Cape-based entities, which often have national reach and

further afi eld.

REFERRALS WERE MADE TO THE LEGAL RESOURCE CENTRE DURING THE PAST FINANCIAL YEAR

SITE VISITORS OVER THE FINANCIAL YEAR

ADVANCEMENT TRAINING AND SUPPORT1 MARCH 2017 TO 28 FEBRUARY 2018

ADVISORY SUPPORT VIA THE INYATHELO NON-PROFIT CLINIC

THE ADVANCEMENT PORTAL TRAFFIC TO THE PORTAL FROM 1 MARCH 2017 TO 28 FEBRUARY 2018

ADVISORY SUPPORT SESSIONS FROM 1 MARCH 2017 TO

28 FEBRUARY 2018

56%

OF SESSIONS WERE WITH ORGANISATIONS ACCESSING THE

SERVICE FOR THE FIRST TIME

SOUTH AFRICA, INDIA, USA, UK AND KENYA ARE THE TOP 5 SITE USERS

114 63ENTITIES ACCESSING FOR THE FIRST TIME

SESSIONS PER YEAR

3 2015-2018YEAR AVERAGE

PARTICIPATION RATES

LEARNING EVENTS

Workshop

Peer learning

Workshop

Workshop

Peer learning

Peer learning

Workshop

ACTIVITY

Strategy and fundraising workshop

Legislation and registration for non-profi ts

Proposal write-shop

Diversity training | Facilitating transformation in South African organisations

Proposal writing peer learning session

Diversity training peer learning session

Monitoring and evaluation workshop

THEME

NPOs and Higher Education (HE)

NPOs

NPOs

NPOs and HE

NPOs

NPOs and HE

NPOs and HE

SECTOR

18

8000PORTAL TRAFFIC 1 MARCH 2017 TO 28 FEBRUARY 2018

2 000

1 000

0MAR

2017 2018

873

330

APR

864

389

MAY

1134

525

JUN

1008

499

JUL

962

521

AUG

1061

564

SEP

1608

853

OCT

1738

985

NOV

1656

900

DEC

1083

612

JAN

1291

610

FEB

1317

643

NUMBER OF VISITORS

NUMBER OF VIEWS

A YEAR IN REVIEW12


Non-Profi t Engagement

Given the myriad of entities we deal with, we receive a mixed bag of good, precarious and dire news around sustainability – which can be attributed to various factors and varying perceptions of what sustainability means.

For us, sustainability continues to draw on the con-sistent and integrated application of the elements of Advancement. This incorporates effective strategies and relevant programming; voice and visibility that attracts support; sound monitoring and evaluation; consistent attention to relationships, and more. The Advancement approach and its elements continue to resonate with the organisations we encounter through our advisory services, learning events and re-source sharing.

As a learning organisation ourselves, we position the Advancement approach as an entry point and recog-nize that other disciplines and areas of work are in-creasingly relevant, e.g. Organisational Development, Diversity Literacy, etc. and as such we try to weave these into our holistic Advancement programming.

Activities delivered on for the reporting period include:

Advisory sessions through the Inyathelo Non-

profi t Clinic

• Conducted 128 advisory sessions from 1 March 2017 to 28 February 2018;

• Some 72 organisations accessed our services for the fi rst time during the reporting period;

• There were 19 referrals to the Legal Resources Centre on issues of technical governance, e.g. legal formations, NPO and Public Benefi t Organisation (PBO) compliance matters;

• At the time of writing, more than 550 organisations have accessed Inyathelo’s advisory service since its inception.

On all our visits to Inyathelo our team members have been overwhelmed by the warm welcome that we have received. There is always a willingness to share and the style of the sessions is always very interactive and non-threatening. We have always left feeling extremely motivated with some very practical things that we can try to implement.

Inyathelo provided us with clear guidelines on proposal writing, fundraising and budgeting. This laid a very good foundation for our organisation.

THE BHABHISANA BABY PROJECT

PROGRAMME OVERVIEW:

Inyathelo’s Capacity Building Work 6.1.

A YEAR IN REVIEW14

Learning events

Four capacity building workshops were conducted during the reporting period. Workshop themes were as follows: • Strategy and Fundraising• Proposal Writing• Facilitating Transformation in South African

Organisations; and• Monitoring and Evaluation.

Three peer learning sessions were held for the reporting period; areas covered include: • Issues of legislation and registrations as pertaining

to NPOs (April 2017) – fi ve clinic clients had tailored interventions with an attorney from the Legal Resources Centre;

• Proposal writing (July 2017) – 11 participants as a follow-up to the proposal write-shop that took place in May; and

• Diversity training (August 2017) – nine participants as a follow-up to the workshop on transforming organisations that took place in June.

So important to spend time workshopping this. So many tips; great stories and experiences shared. So enjoyed this. It was really helpful.

MAURITA WEISSENBERG, SHINE LITERACY,STRATEGY WORKSHOP, MARCH 2017


Research

The Funding Practice Alliance, of which Inyathelo is a member, collaborated in 2014 with Mthente Research and Consulting Services to conduct a research study on civil society in South Africa to better understand how the civil society sector is funded, and how it advances South African society through contributing to employment and to the economy. The study was completed in 2016 and we embarked on a roadshow in 2017 to share the research fi ndings.

The primary reason for embarking on the research was that the value of civil society’s contribution to social change in South Africa is often understated and undervalued. There is insuffi cient data available on the quantity of resources that fl ow to the civil society sector, what is supported and the number of individuals employed in the sector. The primary research questions were:

• Where does funding to the civil society sector come from (i.e. funding source)?

• Where does funding go to in terms of sectors and geography?

• What is the civil society sector’s measurable contribution to both remunerated and non- remunerated employment?

• What is the civil society sector’s measurable contribution to the South African economy?

The research study included:• A scoping and desktop review of the civil society sector;• A survey with 448 civil society organisations (CSOs);• Nine focus group discussions, comprising 77 CSOs

across eight provinces; and• Six stakeholder interviews.

A summary of the research fi ndings can be found on: www.inyathelo.org.za/media-centre/inyathelo-s-blogspot/item/fpa-report-civil-society-in-south-africa.html

A YEAR IN REVIEW16

The institution-specifi c interventions took the form of on-site technical workshops, mentoring or clinic sessions focused on an Advancement-related topic. Where Inyathelo was unable to facilitate the interven-tion, an appropriate expert, with the relevant skills and experience, was contracted to develop and facilitate the intervention for each of the grantee institutions.

These bespoke interventions were primarily aimed at building and strengthening Advancement opera-tions, promoting individual giving and stewardship, and increasing the quality and number of Advance-ment professionals in South Africa.

Learning Events

Activities delivered on for the reporting period include:

• Refl ection Dialogue; • Donor Stewardship;• Strategy and Planning for Durban University of Technology;• Proposal Writing: Write successful fundraising

proposals in eight easy steps;• Comprehensive Campaigns and the role of Annual Funds; and• Learning Exchange: Effective Leadership,

Successful Fundraising and Digital Fundraising.

PROGRAMME OVERVIEW:

Higher Education Engagement6.2.


Leadership Retreat

Ninth Annual Leadership Retreat: Positioning

Institutional Advancement in times of

Challenge and Change (19-20 October 2017).

The Inyathelo Ninth Leadership Retreat provided a platform and an open environment for the Vice-Chancellors, Executive Leaders and Advancement Directors to refl ect on the best practices for ensur-ing successful Advancement programmes. The re-treat also marked the end of the Leader Universities programme that comprised the fi rst cohort of in-stitutions as part of the Kresge Inyathelo Advance-ment Initiative. A celebratory awards evening was held and these institutions were acknowledged for their contribution to building institutional Advance-ment. Moreover, these institutions formed part of Inyathelo’s fi rst ever multi-year, multi-institutional programme and were part of the fi rst programme that sought to build Advancement capacity in a structured way, using a systematic approach.

Rhodes Inyathelo ShortCertifi cate Course

Developed in partnership with Rhodes University’s Business School, this accredited certifi cate course uses Advancement as an entry point to sustainabil-ity. Advancement is a multi-layered approach span-ning 10 elements such as governance, leadership, relationship building and fi nancial management. It encourages organisations to work in an integrated way to attract resources for long-term sustainability. The course is now a fi ne-tuned, six day offering, and 2017 saw us deliver the seventh iteration. To date the course has graduated more than 90 Advance-ment professionals and forms part of Inyathelo and its partners’ long term aim to make Advancement an area of professional study in Africa.It is worth not-ing that there were substantially more queries about the course in 2017. However, we only had 12 par-ticipants. Up until last year, participants comprised roughly half non-profi t and half university practi-tioners. In 2017 participants were entirely from the university sector. That was a particularly challenging year – the fi nancial crisis saw the country anticipate a downgrade to junk status. The possibility saw or-ganisations worry about future funding. Training budgets were cut and staff development became a luxury for most non-profi ts. The result – for the fi rst time ever, all the course participants were from the university sector only.

A YEAR IN REVIEW18

Research

Annual Survey of Philanthropic Income in

Higher Education - ASPIHE

The pilot study was conducted in 2014 and the most recent report completed in 2018 marks the fi fth year of research reporting into understanding philanthropic income to HEIs in South Africa. The current research outcomes provide us with enough material to recognise patterns and trends, and means we can draw meaningful conclusions based on a signifi cant body of research fi ndings.

In 2017 we had 12 universities participating. Participation was by invitation to ensure a reasonable spread of institutions by type, historical background and geographical location.

The 12 participating institutions for 2017 were:

1. University of Cape Town (UCT)2. University of the Western Cape (UWC)3. Cape Peninsula University of Technology (CPUT)4. University of KwaZulu-Natal (UKZN)5. Durban University of Technology (DUT)6. University of Zululand (UniZulu)7. University of Pretoria (UP)8. Tshwane University of Technology (TUT)9. University of the Witwatersrand (Wits)10. University of Johannesburg (UJ)11. University of the Free State (UFS)12. University of Stellenbosch (SU).

The overarching aim of the ASPIHE is to coordinate research into Advancement operations and determine levels of philanthropic income to South African universities. The ASPIHE initiative has aimed to:

• Introduce a robust mechanism for collecting reliable and consistent information about philanthropic support for the HE sector;

• Enable ongoing assessment of the overall impact of philanthropy on the sector;

• Provide the basis for benchmarking and development of best practice indicators for those in the sector who are responsible for attracting, generating and administering philanthropic income;

• Stimulate the development of a body of scholarship on Advancement in South Africa; and

• Prompt similarly comprehensive work on other forms of third-stream income in the HE sector.

As far as is known, no other study of comparable scope or depth has yet been conducted in South Africa. This, in itself, is an exciting accomplishment that should stimulate changes in the benchmarking of HE Ad-vancement and lead to new frontiers in Advancement and scholarship and other sources of third stream in-come in South African HEIs.


PROGRAMME OVERVIEW:

Philanthropy 6.3.Inyathelo Philanthropy Forum

For 10 years, until 2016, Inyathelo held an annual Philanthropy Awards event to recognise outstanding individuals, families and organisations that have worked tirelessly to improve the lives of others. The awardees have proven that you don’t have to have large resources or great infl uence to make a real difference in many people’s lives. Inyathelo launched the Philanthropy Forum in 2017 to examine the impact of philanthropy and discuss the intersection of traditional and new in the giving environment. In doing so, it highlighted the need for research in the philanthropy sector.

We need to focus on resilience. The real challenge is to get someone who grows up vulnerable, is rightfully angry and feels like giving up, the agency to persevere.

PROFESSOR WILLIAM GUMEDE, KEYNOTE SPEAKER PHILANTHROPY FORUM 2017. EXECUTIVE CHAIRPERSON, DEMOCRACY WORKS FOUNDATION

'HITS' LISTED BY NEWSCLIP

WORTH:

148R5 775 877

R56 880RADIO INTERVIEW

WORTH:

1TOTAL CIRCULATION

REPRESENTS OVER:

A SERIES OF VIDEO INTERVIEWS WAS ALSO RECORDED ON

THE 2017 ASPIHE REPORT, TO BE RELEASED DURING THE

2019 FINANCIAL YEAR.

4 407 705

PRINT COVERAGE ’HITS’

WORTH:

73R3 089 198

TRADITIONAL MEDIA 01 MARCH 2017 TO 29 FEBRUARY 2018 SOCIAL MEDIA

ONLINE COVERAGE ’HITS’

WORTH:

R2 629 800

74READERS REACHED:

24 343 486

INYATHELO IN THE NEWSR A D I O , P R I N T , O N L I N E A N D S O C I A L M E D I A C O V E R A G E S T A T I S T I C S

2017-2018

25 000 INYATHELO WEBSITE USERS

VISITS:

32 000VIEWS:

75 000

10 000

6 200 TWITTER FOLLOWERS

3 350FACEBOOK FOLLOWERS

VISITS:

8 000VIEWS:

17 000

ASK INYATHELO WEBSITE USERS

A YEAR IN REVIEW20


INYATHELO STRATEGIC COMMUNICATIONSFERYAL DOMINGO, OPERATIONS DIRECTOR, INYATHELO

Voice and visibility

O7Traditional media

There was a steady output of news releases through-out the year. Initial coverage was generated on the appointment of a new Executive Director at Inyathelo, while in April the Funding Finder service was a popular topic. That same month, Inyathelo commented on the impact of junk status on the not-for-profi t and civil society sector.

During May and June, there was prominent coverage of the ASPIHE Report. The news angle was the high dependence by many South African tertiary educa-tional institutions on a few international donors for their philanthropic income.

Mid-year, two major donations attracted keen media interest. The Kresge Foundation awarded a grant of US$857 734 (about R11,1 million) to Inyathelo, while the Charles Stewart Mott Foundation announced a US$150 000 grant (about R2 million). Later in the year, coverage was generated around the Beyond Sports visit to Inyathelo: the organisation welcomed 22

A YEAR IN REVIEW22

young athletes from colleges and universities across America and the UK. The students worked together for half of each day in the Inyathelo Sustainability Centre on team building and planning sessions, as well as carrying out vital research for their courses. This enabled them, in turn, to maximise their skills to strengthen organisations in the broader peninsula.

The Philanthropy Forum took place in November, generating coverage on the keynote address by Dr William Gumede on “The Power of Philanthropy to Build Resilient Democracies and Societies”.

In early 2018, the focus was on alerting the public to Inyathelo’s facilities and workspace available for rental.

Throughout the year, workshops were publicised to show continuity within the organisation. There were both pre-event announcements and post-event snippets. Examples include a write-shop for NPOs on building support for your organisation; the

accredited Advancement course developed in part-nership with Rhodes University’s Business School; a proposal writing workshop; and a Comprehensive Campaigns workshop.

Mid-year, Inyathelo considered it important to en-hance the media skills of the senior management team, and offered a media training session to ensure more confi dent and effective media interactions. The fi rst half of the session comprised theoretical train-ing, explaining the workings of a newsroom, plus hints and tips on delivering key messages. Follow-ing this, a videographer recorded mock interviews with managers and feedback was provided. Finally, a briefi ng document was prepared to ensure that ap-propriate spokespeople addressed various topics.

During the fi nancial year, the total media coverage comprised 148 ‘hits’ worth R5 775 877 in total according to Newsclip. This comprised print with 73 hits, circulation of 4 407 705, worth R3 089198; online 74 hits, AVE 24 343 486, worth R2 629 800; and radio with one interview worth R56 880. A series of video interviews was also recorded on the 2017 Aspihe Report, to be released during the 2018 fi nancial year. We will continue to show both continuity in our operations, and positioning as thought leaders, in our media interventions. Regular, consistent messaging ensures that our wide range of stakeholders remain up-to-date with the many activities taking place both within Inyathelo and externally in the wider NPO and civil society sectors.

Social media

Our social media goals are to provide advice that is useful to South African NPOs, and to promote In-yathelo facilities, services and events. We do this by sharing ASK Inyathelo articles as well as content cu-rated from various websites. We use tools to show which articles receive more engagement to help us

The tools are clear, practical and powerful.

FRIDA VESTERBERG, PROJECT PLAYGROUND,DIVERSITY PEER LEARNING


determine what topics interest our audience the most. We also use promoted posts on Facebook as well as regular tweets to showcase Inyathelo’s offerings.

Websites

The Inyathelo website continues to enjoy steady traf-fi c, with 25 000 users visiting the site over 32 000 times, and viewing 75 000 pages over the course of the year. Popular posts on the website have largely come from articles published in the annual report. We plan to review the website content and design to see how it can be upgraded to more accurately refl ect Inyathelo’s work, services, priorities and facilities.

The ASK Inyathelo website traffi c is slowly growing. Some 8000 visitors used the site 10 000 times and viewed over 17 000 pages. Features from the ASK Inyathelo site will be integrated into the Inyathelo site when it is redesigned.

Facebook

Inyathelo’s Facebook following continued to show steady growth and robust engagement. We currently have 3350 followers on the page, and with targeted paid promotions we reach over 7500 people. This helps us access a wider audience to promote our events and facilities. The page is primarily used to share articles about Inyathelo, but we also share general articles of relevance and interest to NPO staff.

Twitter

Inyathelo’s Twitter following has exceeded 6200 followers. Due to regular retweets and responses from our followers, our tweets are often seen more than 65 000 times in the course of a month. We have seen a steady growth in followers, with an average of 50 new followers per month.

Our primary content is articles focused on grant-making and grant-seeking. We choose a monthly theme and use our social networks to showcase content and amplify the voices of South African

nonprofi ts. For example, in March and April we focused on human rights-related nonprofi ts. We continue to emphasise visual elements in our social media as this has proven to increase the visibility, reach and engagement of our tweets. We have seen an increase in Funding Finder subscriptions as a result of our regular tweeting. This has also helped boost enquiries about our offi ce and meeting spaces.

Content

We saw good engagement when we tweeted about health and wellness for NPO staff, news about South African NPOs, funding opportunities, Inyathelo’s offi ce and conference facilities, Inyathelo’s blog posts, and days dedicated to specifi c causes. We found that by broadening the themes that we share on social media, even if they are not specifi cally related to Inyathelo’s work, we are able to grow a bigger audience to which we can advertise our work and services.

A YEAR IN REVIEW24

FERYAL DOMINGO, OPERATIONS DIRECTOR, INYATHELO

Optimal operations

O8The Operations team is solutions-driven, and is con-stantly seeking ways to improve Inyathelo policies, processes and systems. During the past year, man-agement worked hard to maximise the assets of the Civil Society Sustainability Centre. This attractive, well-resourced hub was generously funded some years ago by The Atlantic Philanthropies, for the ben-efi t of Inyathelo’s stakeholders.

An example of how this warm and welcoming space can be used was for the annual #ThinkGood event, in October. The Sustainability Centre was the venue for the NPO Service Providers’ Network’s one day, free skills-sharing event. Some 200 representa-tives of NPOs and civil society bodies gathered to hear experts discuss a variety of topics concerning good management and sustainability. The Opera-tions team has pursued its work plans aggressively, ensuring that all key performance areas have been met. Management has sought out collaborations and partnerships with sector role players that have a common mission and a full understanding of what Inyathelo can offer, with the aim of making optimal use of the facilities and resources.


Funding Finder Donor Data Base

The Funding Finder service enables grant seekers to easily access details of nearly 1100 South African donors. Apart from free in-house access, many sub-scriptions were taken up, mainly from Gauteng and the Western Cape. There were 59 subscribers this year, of which 19 were members that renewed their subscriptions. During the year Inyathelo installed software that reminds subscribers of their renewal dates, helping with tracking.

IT insourcing

The technical duties of maintaining all the Inyathelo websites – the ASK portal, governance website and main websites – were done internally, to build the capacity within. We plan to implement new features in the next few months, such as sound and video clips, to attract new visitors. Insourcing IT for both the Inyathelo websites, as well as the Salesforce data base, has created staff training and development opportunities and saved costs.

Conferencing and events

The conference centre bookings have increased, com-pared to the previous year. We hosted approximately 54 events, for 15 clients, spanning local and interna-tional NGOs, corporates, universities and consultants.

Most of the enquiries were from NPO representatives who had attended workshops at the Inyathelo Civil Society Sustainability Centre, or been to a meeting at our offi ces. In a number of cases, conference clients showed an interest in the Inyathelo resources and returned for a clinic session, to access the Funding Finder data base, use the hot desks or access the resource library.

Rentals

Inyathelo rented out offi ces to non-profi t organi-sations in the 2017-2018 fi nancial year. It also let parking bays to both its offi ce tenants as well as businesses and individuals in the Woodstock area. There was also a small income from hot desk rentals.

An example of hot desking is when Inyathelo hosted interns from a programme called Students Abroad, which uses sport to help uplift youth in disadvan-taged communities. They are linked to Beyond Sports, an organisation set up seven years ago to create opportunities for student athletes to enjoy life-changing cross-cultural experiences. They spent half of each day in the Inyathelo hub. Beyond Sport Site Director (South Africa) Nawaal Nacerodien said: “This has been a great opportunity for 22 American and two English students to broaden their horizons and help local NGOs. Thank you Inyathelo for pro-viding a welcoming space.”

We look forward to another year of hosting a variety of inspiring events, and using our assets wisely for long-term sustainability.

Inyathelo was very empathetic and spent a great deal of time listening. I had started the year feeling depleted but felt encouraged, which gave me strength to continue. I feel there is much more to cover and would like to have a follow-up visit when I am ready.

SIGN LANGUAGE EDUCATION AND DEVELOPMENT

A YEAR IN REVIEW26

COMMENTS AND FEEDBACKCONFERENCE SPACE CLIENTS

Excellent collaborators, good services, lovely

environment. Continue providing quality

services.

OXFAM

Will refer other organisations to your centre for

meetings and trainings.

SWEAT

I was highly impressed – the booking was

easy and quick, everything was taken care of

with such attention to the details. The service

provided and the venue are of superb quality

and highest standard. The participants loved it

as well.

ILKA STEIN CONSULTING

STUDENTS ABROAD

Inyathelo provided a quiet space, focused

atmosphere, and an endless amount of

resources that helped my team to be successful.

KATE MCDONNELL, SAN DIEGO STATE UNIVERSITY

Inyathelo gave us a comfortable environment to

work in, along with great staff !

JASMINE HICKMAN, TENNESSEE WESLEYAN UNIVERSITY

@Coolplay.SA Interns (2017) would like to

thank Inyathelo for providing the space and

environment that allowed us to maximise our

time, energy and ideas here in Cape Town.

STEPHAN MARSHALL, TEMPLE UNIVERSITY, PHILADELPHIA


SORAYA JOONAS, FINANCE DIRECTOR, INYATHELO

Planning for long-term resilience

O9In advisory sessions over the years, nonprofi ts (NPOs) have approached Inyathelo for guidance and sup-port, as they have faced growing challenges in cov-ering core costs. This, coupled with the reality of an economic downturn and a change in donor funding focus, means many NPOs are operating under great-er fi nancial constraints.

In current times we know there is a dire need for good governance and accountability against fraud and corruption. NPOs play a crucial role in maintaining such standards, and also for some, advocating social justice causes. The work of NPOs is more relevant now than ever before. The fact that these NPOs are surviving and are indeed resilient in integrating and implementing fi nancial strategies is commendable.

A common theme around non-profi t fi nancial man-agement practitioners is the method of integrating the core of the organisation into budgeting practice and making sure that each programme pays its way. This budgeting approach has been entrenched within Inyathelo since inception and is something we ad-

vocate. However, this has become increasingly diffi -cult and NPOs fi nd that they are having to contribute their own reserves to ‘pay their way’.

A YEAR IN REVIEW28

We need a common language so that NPOs under-stand how to communicate true costs and, accord-ingly, align funding to support what is truly needed. This is illustrated graphically in an Inyathelo blog feature which was based on an article by nonprofi t expert Curtis Klotz, entitled A Graphic Re-visioning of Nonprofi t Overhead. He presents an old view of an organisation versus a new, integrated and re-envi-sioned view that pinpoints the organisation’s mission as its nucleus in harnessing a comprehensive, fi nan-cially sustainable approach, with funding partners.

Another challenge we fi nd NPOs struggling with is needing to bridge the gap when funding doesn’t come

through as committed. While donors are attracted to the fi nancial sustainability of an organisation, too often these NPOs fi nd themselves having to bridge cash fl ow gaps when funding tranches are delayed, due to no fault of their own. The irony is not lost on us – Inyathelo is no different from the NPO clients it serves and faces some of the same challenges experienced in the sector. During these times of austerity we are needing to fi nd creative and transparent ways to make our Rands stretch further in carrying out our mission and respecting our commitments. As such, with our strong belief in what we do, we have also championed and invested in our own services when there have been gaps in funding. We are only able to do this because of our strong historical fi nancial sustainability strategy and our traditional four pillar approach: Income generation, focusing on a diversifi ed donor base, building a reserve and investing wisely and prudently.

We are committed to meeting our fi nancial sustain-ability goals by continuing to put away any savings towards generating passive income, to give Inyathe-lo fi nancial freedom to pursue new projects and to focus our energies on implementation, thereby de-livering on our mission. We and other NPOs must al-ways be cognisant that we have been entrusted with a mission to deliver on the needs of civil society; thus our resources, both fi nancial and others, belong to civil society. We strive to build fi nancial systems that guide planning, fundraising and implementation to deliver both effi ciently and effectively, but also with value and care.

We will continue to motivate and support our peers in the sector, while focusing on building the fi nancial structures and Advancement practices of Inyathelo, to deliver the core mission.

The fi nancial statements will once again show Inyathelo’s resilience through income generation and growth in reserves.

See: http://www.inyathelo.org.za/media-centre/inyathelo-s-blogspot/item/

time-for-a-new-piechart.html

It’s Time to Retire This Pie Chart

Tired View of An Organisation

See: http://www.inyathelo.org.za/media-centre/inyathelo-s-blogspot/item/time-for-a-new-piechart.html

A New Image for Core Organisation Support

Whole Organisation and True Programme Cost

PROGRAMME 1 PROGRAMME 2

PROGRAMME 3

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XPENSES - PROGRAMME SPECIFIC

DIR

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XPENSES - SHARED BY PRO

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FUNDRAISING

& PARTNERS

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THE SOUTH AFRICAN INSTITUTE FOR ADVANCEMENT TRUST FOR THE YEAR ENDED 28 FEBRUARY 2018

Financial Report

1OGeneral Information

Country of incorporation and domicile South Africa

Trustees R Ally Z Barends N Daniels N Dlamini I Noko

Registered offi ce Mazars House Rialto Road, Grand Moorings Precinct Century City, 7441

Bankers Nedbank, a division of Nedcor Bank Limited

Auditors Mazars Registered Auditor

Masters reference number IT 2285/2002

A YEAR IN REVIEW30

Index

The reports and statements set out below comprise the annual fi nancial statements presented to the trustees:

INDEX PAGE

Independent Auditor’s Report 30-32Trustees’ Responsibilities and Approval 33Trustees’ Report 34Statement of Financial Position 35Statement of Comprehensive Income 36Statement of Changes in Equity 37Statement of Cash Flows 38Accounting Policies 39Notes to the Annual Financial Statements 40-43

The following supplementary information does not form part of the annual fi nancial statements and is unaudited:

Detailed Income Statement 44

Opinion

We have audited the annual fi nancial statements of The South African Institute for Advancement Trust set out on pages 35-44, which comprise the statement of fi nancial position as at 28 February 2018, and the statement of comprehensive income, statement of changes in equity and statement of cash fl ows for the year then ended, and notes to the annual fi nancial statements, including signifi cant accounting policies.

In our opinion, the annual fi nancial statements present fairly, in all material respects, the fi nancial position of

The South African Institute for Advancement Trust as at 28 February 2018, and its fi nancial performance and cash fl ows for the year then ended in accordance with the trust’s accounting policies.

Basis for opinion

We conducted our audit in accordance with Inter-national Standards on Auditing. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the annual fi nancial statements section of our report. We are independent of the trust in accordance with the Independent Regulatory Board for Auditors Code of

Independent Auditor’s Report TO THE TRUSTEES OF THE SOUTH AFRICAN INSTITUTE FOR ADVANCEMENT TRUST


Professional Conduct for Registered Auditors (IRBA Code), together with the ethical requirements that are relevant to our audit of the fi nancial statements in South Africa. We have fulfi lled our other ethical responsibilities in accordance with these requirements and the IRBA Code. The IRBA Code is consistent with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (Parts A and B). We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our opinion.

Emphasis of matter

Without modifying our opinion, we draw attention to note 1 which describes the basis of accounting. The annual fi nancial statements are prepared in accordance with the trust’s own accounting policies to satisfy the fi nancial information needs of the trustees. As a result, the annual fi nancial statements may not be suitable for another purpose.

Other information

The trustees are responsible for the other information. The other information comprises the Trustees’ Report on page 34 and supplementary information indicated on page 44. The other information does not include the fi nancial statements and our auditor’s report thereon. Our opinion on the annual fi nancial statements does not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the annual fi nancial statements, our responsibility is to read the other in-formation and, in doing so, consider whether the oth-er information is materially inconsistent with the an-nual fi nancial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed,

we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the trustees for the

Annual Financial Statements

The trustees are responsible for the preparation and fair presentation of the annual fi nancial statements in accordance with the trust’s accounting policies and the requirements of the trust deed and for such internal control as the trustees determine is necessary to enable the preparation of annual fi nancial statements that are free from material misstatement, whether due to fraud or error.

In preparing the annual fi nancial statements, the trustees are responsible for assessing the trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the trust or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of

the Annual Financial Statements

Our objectives are to obtain reasonable assurance about whether the annual fi nancial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to infl uence the economic decisions of users taken on

A YEAR IN REVIEW32

the basis of these annual fi nancial statements. As part of an audit in accordance with International Standards on Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: ÐÐ • Identify and assess the risks of material misstate-

ment of the annual fi nancial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is suffi cient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control rel-evant to the audit in order to design audit proce-dures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the trust’s internal control.

Ð • Evaluate the appropriateness of accounting

policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

ÐÐ • Conclude on the appropriateness of the trustees’

use of the going concern basis of accounting and based on the audit evidence obtained, whether

a material uncertainty exists related to events or conditions that may cast signifi cant doubt on the trust’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the annual fi nancial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the trust to cease to con-tinue as a going concern.

ÐÐ • Evaluate the overall presentation, structure and

content of the annual fi nancial statements, includ-ing the disclosures, and whether the annual fi nan-cial statements represent the underlying transac-tions and events in a manner that achieves fair presentation.

We communicate with the trustees regarding, among other matters, the planned scope and timing of the audit and signifi cant audit fi ndings, including any signifi cant defi ciencies in internal control that we identify during our audit.

Mazars Partner: Jean Wessels Registered Auditor 07 June 2018 Cape Town


The trustees are required to maintain adequate accounting records and are responsible for the content and integrity of the annual fi nancial statements and related fi nancial information included in this report. It is their responsibility to ensure that the annual fi nancial statements fairly present the state of affairs of the trust as at the end of the fi nancial year and the results of its operations and cash fl ows for the period then ended, in conformity with the trust’s accounting policies. The external auditors are engaged to express an independent opinion on the annual fi nancial statements.

The annual fi nancial statements are prepared in accordance with the trust’s accounting policies and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgments and estimates.

The trustees acknowledge that they are ultimately responsible for the system of internal fi nancial control established by the trust and place considerable importance on maintaining a strong control environment. To enable the trustees to meet these responsibilities, the trustees set standards for internal control aimed at reducing the risk of error or loss in a cost-effective manner. The standards include the proper delegation of responsibilities within a clearly defi ned framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the trust and all employees are required to maintain the highest ethical standards in ensuring the trust’s business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the trust is on identifying,

assessing, managing and monitoring all known forms of risk across the trust. While operating risk cannot be fully eliminated, the trust endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints. The trustees are of the opinion, based on the information and explanations given by the trustees, that the system of internal control provides reasonable assurance that the fi nancial records may be relied on for the preparation of the annual fi nancial statements. However, any system of internal fi nancial control can provide only reasonable, and not absolute, assurance against material misstatement or loss.

The trustees have reviewed the trust’s cash fl ow forecast for the year to 28 February 2019 and, in the light of this review and the current fi nancial position, they are satisfi ed that the trust has or has access to adequate resources to continue in operational existence for the foreseeable future. The external auditors are responsible for independently auditing and reporting on the trust’s annual fi nancial statements. The annual fi nancial statements have been examined by the trust’s external auditor and their report is presented on pages 30-32. The annual fi nancial statements and supplementary information set out on pages 35-44, which have been prepared on the going concern basis, were approved by the trustees on 07 June 2018 and were signed on their behalf by:

THE SOUTH AFRICAN INSTITUTE FOR ADVANCEMENT TRUST

TRADING AS THE SOUTH AFRICAN INSTITUTE FOR ADVANCEMENT TRUST

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2018

Trustees’ Responsibilities and Approval

Z Barends N Daniels

A YEAR IN REVIEW34

The trustees submit their report for the year ended 28 February 2018.

1. Review of activities

Main business and operations The operating results and state of affairs of the trust are fully set out in the attached annual fi nancial statements and do not in our opinion require any further comment. The trust carries on the business of developing and training similar organisations to obtain funding.

2. Going concern

The annual fi nancial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to fi nance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

3. Events after the reporting period

The trustees are not aware of any material reportable event which occurred after the reporting date and up to the date of this report.

4. Trustees

The trustees of the trust during the year and to the date of this report are as follows:

Trustees R Ally Z Barends N Daniels N Dlamini I Noko L Ntsebeza (Resigned 2 March 2017)

5. Auditors

Mazars will continue in offi ce for the next fi nancial year.




Trustees’ Report





Statement of Financial Position as at 28 February 2018

FIGURES IN RAND NOTES 2018 2017

Assets

Non-Current AssetsProperty, plant and equipment 2 - -Investments 3 26,862,677 22,706,755

26,862,677 22,706,755

Current AssetsTrade and other receivables 4 348,691 321,571Cash and cash equivalents 5 32,568,893 36,415,217

32,917,584 36,736,788

Total Assets 59,780,261 59,443,543

Equity and Liabilities

EquityTrust capital 6 100 100General reserve 7 53,647,168 51,058,885Distributable reserve (Designated funds) 5,715,759 6,519,877

59,363,027 57,578,862

LiabilitiesCurrent LiabilitiesTrade and other payables 8 417,234 1,864,681

Total Equity and Liabilities 59,780,261 59,443,543

A YEAR IN REVIEW36




Statement of Comprehensive Income


Revenue (Note 1 - refer below) 9 10,046,667 14,137,169Other income 1,625,700 1,437,231Operating expenses (13,777,251) (12,232,403)Operating (defi cit) surplus (2,104,884) 3,341,997Investment revenue 11 3,371,114 4,062,057Fair value adjustment 517,935 318,219Surplus for the year (Note 2 - refer below) 1,784,165 7,722,273

Note 1: The grant income fi gure for 2017 included a fi gure of R1,655,000 received from the National Lotteries Board related to grant agreement #75216.

Note 2: The fl uctuation of the rand, timing of grant payments and a change in grant income, together with the delivery of certain pieces of programme work after funds were receipted, contributed to the unusually high surplus in the 2016/17 fi nancial year.





Statement of Changes in Equity

FIGURES IN RAND TRUST CAPITAL GENERAL DISTRIBUTABLE TOTAL

RESERVE RESERVE EQUITY

(DESIGNATED

FUNDS)

Balance at 01 March 2016 100 42,962,344 7,017,697 49,980,141Surplus for the year - - 7,722,273 7,722,273Transfer to general reserve - 8,220,093 (8,220,093) -Land and buildings write-off - (123,552) - (123,552)

Total changes - 8,096,541 (497,820) 7,598,721

Balance at 01 March 2017 100 51,058,885 6,519,877 57,578,862Surplus for the year - - 1,784,165 1,784,165Transfer to general reserve - 2,588,283 (2,588,283) -

Total changes - 2,588,283 - 2,588,283

Balance at 28 February 2018 100 53,647,168 5,715,759 59,363,027

Notes 6 7

A YEAR IN REVIEW38




Statement of Cash Flows


Cash fl ows from operating activities

Cash used in operations 12 (3,788,254) (5,372,561)Interest income 2,614,497 3,370,980Dividends received 756,617 691,077Net cash from operating activities (417,140) (1,310,504)

Cash fl ows from investing activities

Purchase of property, plant and equipment 2 (107,006) (193,729)Purchase of investments (5,451,047) (4,278,713)Proceeds on disposal of investments 2,128,869 3,255,992Net cash from investing activities (3,429,184) (1,216,450)

Total cash movement for the year (3,846,324) (2,526,954)Cash at the beginning of the year 36,415,217 38,942,171Total cash at end of the year 5 32,568,893 36,415,217





Accounting Policies

1. Presentation of annual fi nancial statements

The annual fi nancial statements have been prepared in accordance with the trust’s accounting policies as described below. The annual fi nancial statements have been prepared using a combination of the historical cost basis and fair value basis of accounting. They are presented in South African Rands.

These accounting policies are consistent with the previous period.

1.1 Property, plant and equipment All property, plant and equipment are initially recognised at cost and subsequently written off in full in the year in which they are brought into use.

1.2 InvestmentsInvestments are recognised and derecognised on a trade date basis when investments are acquired and disposed of. Investments are measured initially at cost and subsequently at fair value. Gains and losses arising from changes in the fair value of investments are included in surplus or defi cits for the year.

1.3 Trade and other receivables Trade and other receivables are recognised and carried at the original invoice amount.

1.4 Trade and other payables Trade and other payables are initially measured at fair value and are subsequently measured at amortised cost, using the effective interest method.

1.5 Revenue Revenue is recognised once donations and grants have been received. Interest is recognised, in profi t or loss, using the effective interest method. Dividends are recognised, in profi t or loss, when the trust’s right to receive payment has been established.

1.6 Cash and cash equivalents Cash and cash equivalents consist of cash on hand, bank balances and short-term deposits. These are initially and subsequently recorded on the historical cost basis.

A YEAR IN REVIEW40




Notes to the Annual Financial Statements

FIGURES IN RAND 2018 2017

2. Property, plant and equipment

Audio-visual equipment 221,002 (221,002) - 221,002 (221,002) -Buildings 16,160,830 (16,160,830) - 16,160,830 (16,160,830) -Computer equipment 1,007,203 (1,007,203) - 981,780 (981,780) -Furniture and fi ttings 1,913,932 (1,913,932) - 1,832,349 (1,832,349) -Offi ce equipment 172,585 (172,585) - 172,585 (172,585) -Telephone equipment 214,709 (214,709) - 214,709 (214,709)Total 19,690,261 (19,690,261) - 19,583,255 (19,583,255) -

2018 2017

COST ACCUMULATED CARRYING COST ACCUMULATED CARRYING DEPRECIATION/ VALUE DEPRECIATION/ VALUE LAND AND BUILDINGS LAND AND BUILDINGS WRITE-OFF WRITE-OFF

Audiovisual equipment - 32,959 (32,959) - -Buildings - 123,552 - (123,552) -Furniture and fi ttings - 37,218 (37,218) - - - 193,729 (70,177) (123,552) -

Reconciliation of property, plant and equipment - 2017

OPENING ADDITIONS DEPRECIATION LAND AND TOTAL BALANCE BUILDINGS WRITE-OFF

Computer equipment - 25,423 (25,423) -Furniture and fi ttings - 81,583 (81,583) - - 107,006 (107,006) -

Reconciliation of property, plant and equipment - 2018

OPENING ADDITIONS DEPRECIATION TOTAL BALANCE







3. Investments At fair value through surplus or defi cit for the year

Listed shares at market value 26,862,677 22,706,755

The shares are shown at market values with the profi t or loss taken to the statement of comprehensive income.

4. Trade and other receivables VAT 126,672 73,094 Accrued income on investments - received March 222,019 248,477 348,691 321,571

5. Cash and cash equivalents Cash and cash equivalents consist of: Cash on hand 1,216 1,336 Bank balances 32,567,677 36,413,881 32,568,893 36,415,217

6. Trust capital Capital account Initial donation 100 100

7. General reserve Balance at beginning of year 51,058,885 42,962,344 Movement during the year 2,588,283 8,220,093 Land and buildings write-off - (123,552) 53,647,168 51,058,885 Comprising: General reserve 53,348,643 50,614,088 Portion of trading VAT refund in reserves 298,525 444,797 53,647,168 51,058,885

A YEAR IN REVIEW42






8. Trade and other payables Accrued leave pay 172,530 233,516 Amounts received in advance (refer note below) - 1,550,738 Deposits received 19,857 16,160 Other accrued expenses 224,847 64,267 417,234 1,864,681 Amounts received in advance: Amounts received in advance relating to grant programmes for the 2018 fi nancial year were R1,550,738.

9. Revenue Grants received (Note 1 - refer below) 10,046,667 14,137,169

Note 1: The grant income fi gure for 2017 included a fi gure of R 1,655,000 received from the National Lotteries Board related to grant agreement #75216.

10. Grants received Current projects 10,046,667 11,178,145 Future projects - 2,959,024 10,046,667 14,137,169

11. Investment revenue Dividend revenue Dividends received from listed companies 756,617 691,077 Interest revenue Interest received 2,614,497 3,370,980 3,371,114 4,062,057







12. Cash used in operations Surplus for the year 1,784,165 7,722,273 Adjustments for: Depreciation 107,006 70,177 Profi t on disposal of investments (315,808) (496,229) Dividends received (756,617) (691,077) Interest received (2,614,497) (3,370,980) Fair value adjustments to investments (517,935) (318,219)

Changes in working capital: Trade and other receivables (27,121) 55,624 Trade and other payables - Note 1 below (1,447,447) (8,344,130) (3,788,254) (5,372,561)

Note 1: The 2017 trade and other payables fi gure includes amounts received in advance of R1,550,738 described per Note 8 - Trade and other payables.

13. Commitments Operating leases - as lessee (expense) Minimum lease payments due - within one year 69,681 111,239 - in second and third years inclusive 100,365 - 170,046 111,239

Operating lease payments represents rentals payable by the trust for equipment and plants. The leases are escalated at various rates and are negotiated for periods between one and three years.

Consulting contracts Minimum payments due - within one year 376,881 155,131 Consulting contracts represent consulting fees payable by the trust for consulting services. The contracts

are renewed on an annual basis at rates agreed upon between the trust and the service provider.

14. Tax No provision has been made for taxation as the trust is exempt from payment of Income Tax. The trust

is an approved public benefi t organisation in terms of Section 10(1)(cN) of the Income Tax Act.

A YEAR IN REVIEW44




Detailed Income Statement


RevenueGrants Received (Note 1 - refer to page 36) 10,046,667 14,137,169 9 10,046,667 14,137,169Other incomeCost recovery fees 1,309,892 941,002

Operating expensesAdvertising, promotions, marketing and publications 446,768 430,892Audit and accounting fees 195,736 216,200Bank and portfolio management charges 291,182 265,725Cleaning 155,373 146,941Database 110,181 103,656Depreciation 107,006 70,177Dissemination and exchange of learning 261,962 296,146General expenses 10,180 12,821Hire of equipment 153,495 139,246Insurance 67,210 67,210Lease rentals, rates and levies 261,581 301,168Printing, stationery, postage and offi ce supplies 185,623 171,340Professional and legal fees 549,036 511,570Programmes and projects 3,267,286 1,970,546Repairs and maintenance 121,315 138,072Resource centre and material 12,880 52,764Salaries 5,944,425 5,980,727Service providers and consultants 536,333 391,193Staff and organisational development 439,266 280,712Telecommunication 59,824 63,176Travel - international and local 519,738 544,048Website development and internet 80,851 78,074 13,777,251 12,232,404Operating (defi cit) surplus (2,420,692) 2,845,767Investment incomeDividends received 756,617 691,077Interest received 2,614,497 3,370,980Fair value adjustments 517,935 318,219Profi t on disposal of investments 315,808 496,230 4,204,857 4,876,506Surplus for the year (Note 2 - refer to page 36) 1,784,165 7,722,273

The supplementary information presented does not form part of the annual fi nancial statements and is unaudited.

Second Floor, The Armoury, Buchanan Square, 160 Sir Lowry Road, Woodstock, 7925, Cape Town, South Africa

P O Box 43276, Woodstock, 7915, Cape Town, South Africa

Telephone: +27 21 465 6981/2 • Fax: +27 21 465 6953 • Email: [email protected]

www.inyathelo.org.za

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NPO REGISTRATION: 023-432-NPO • TRUST REGISTRATION: IT2285/2002

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