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2 0 0 5 - 2 0 0 6

The South African Institute for

Advancement

TM

Promoting Solutions for Resource Mobilisationand Sustainability

THE SOUTH AFRICAN INSTITUTE FOR ADVANCEMENTFirst Floor|The Cape Quarter|Dixon Street|Green Point 8005|Cape Town, South Africa|P O Box 818|Green Point 8051|Cape Town|South Africa

Telephone: (+27) 021 425 7928/9|Fax: (+27) 021 425 7990|Email: [email protected]|Web: www.inyathelo.co.zaNPO REGISTRATION: 023-432-NPO|TRUST REGISTRATION: IT2285/2002

PATRONS: Dr Mamphela Ramphele; Cyril RamaphosaTRUSTEES: Nasima Badsha, Shelagh Gastrow, Dr Loveness Kaunda, Patric Tariq Mellet, Fred Phaswana

Dr Mills Soko, Dr Iqbal Surve, Dr Richard van der Ross

A N N U A L R E P O R T

A N N U A L R E P O R T 2 0 0 5 - 2 0 0 6 P A G E 11

The One Man - One Beast Campaign

The man and the beast depict the spirit of a fundraisingcampaign spearheaded by the late President Sir SeretseKhama in 1976. The campaign, formally known as theBotswana University Campus Appeal (BUCA), andpopularised as "one man, one beast" or motho le mothokgomo was launched to raise money for the constructionof the University of Botswana. BUCA followed in thewake of a unilateral nationalisation of a joint-universitycampus facility in Roma by the Lesotho government. Thecampaign galvanised the Batswana national culture ofphilanthropy and the spirit of self-reliance. Batswanaand other stakeholders made contributions of all types(including cattle, cash, grain, eggs, etc.) towards accom-plishing the set target of one million rand. This is thefoundation of the University of Botswana! The man andbeast sculpture stands in the square outside the libraryat the University of Botswana.

P A G E 22 T H E S O U T H A F R I C A N I N S T I T U T E F O R A D V A N C E M E N T

Contents1. Vision, Mission, Objectives 3

2. On the Cutting Edge 5MESSAGE FROM THE CHAIRPERSON, DR RICHARD VAN DER ROSS

3. Capturing Knowledge 7MESSAGE FROM THE EXECUTIVE DIRECTOR, SHELAGH GASTROW

4. The Work of Inyathelo 9

5. Inyathelo 2005-6 11• The Kresge Foundation Special Initiative in South Africa 11

• Other Workshops and Training Programmes 12

• Peer-learning co-operatives 13

• Projects in other African countries 19

• Building South African philanthropy and social giving 20

• Resource Centre 21

6. Dialogue on Critical Areas of Advancement 23MANAGING DIRECTOR, PATRIC TARIQ MELLET

• Integrating heritage with all that we do 25

PATRIC TARIQ MELLET, MANAGING DIRECTOR, SOUTH AFRICAN INSTITUTE FOR ADVANCEMENT

• Special Partnerships require Specialist Financial Services 31

SIZILE MABASO, TBS CONSULTING

• Seeking More Equitable Organisational Forms 34

JAMES TAYLOR - CDRA

• Development for Security and Civil Society 37

ALAN FOWLER

• Advantage: The Complete Advancement Package 40

JERUSHAH RANGASAMI - IMPACT CONSULTING

• The First Three Years: An evaluation summary of Inyathelo-

The South African Institute for Advancement 44

HEIDI VILLA-VICENCIO

• Making Dreams Possible: The South African Foundation for Advancement 48

SHELAGH GASTROW AND PATRIC TARIQ MELLET

7. Financial Report 51

8. Patrons, Trustees and Staff 62

9. Supporters 63

Vision

The vision of the South African Institute for Advancement is to see strengthening of initiatives, institutions andcentres of excellence that address human well-being, learning, innovation, creativity and leadership in theinterest of social and human advancement brought about through sustainable partnerships based oncommon values, sound management and effective deployment of resources.

Mission

Inyathelo promotes solutions for resource mobilization and sustainability. The Mission of the Institute is toprovide a centre for reflection and to assist institutions, organisations and individuals to develop a professionalapproach to mobilising the support and resources required to ADVANCE their objectives and sustain initiatives.In so doing, the Institute also promotes a culture of social investment, voluntarism and self-help, rooted in theAfrican cultural heritage of sharing.

Objectives

Inyathelo aims to :

• Provide an Advancement Training, Resource and Reflection Centre offering consultancy, professionalinteraction, training, research and resources dedicated to realise the vision and mission of the SAIA.

• Promote initiatives and strategies related to sustainability supported by building long-term relationshipsbetween organisations, stakeholders, supporters and potential social investors.

• Engage in leadership development programmes with civil leaders who have been disadvantaged by theApartheid legacy.

• Promote the utilisation of indigenous knowledge and cultural heritage assets for sustainable development.

• Promote and build philanthropy, social investment, voluntarism and self-help to meet national developmentpriorities.

• Facilitate greater communication between different donor-investor formations and civil initiatives throughadvisory services to partners.

• Conduct research on issues of advancement, social fabric, social investment, matching of donors todevelopment proposals, pre-intervention needs analysis and evaluation of post-intervention impact.

The Vision, Mission and Objectives of Inyathelo


C H A I R M A N ’ S R E P O R T

The programmes that the Institute has developedresulted in deep systemic change in theorganisations with which they work.“ ”



Joining a board of trustees of a non-profit organisation can be risky, especially ifthe organisation is new and has no track record. Those of us who agreed to serveon the board of the South African Institute for Advancement can be proud of itsachievements over a short period of time. In essence, it has become one of theforemost institutions of its type on the continent, working with universities,museums and hospitals as well as the non-profit sector.

The programmes that the Institute has developed resulted in deep systemicchange in the organisations with which they work. We are often asked about theimpact of Inyathelo’s efforts and they are now becoming obvious to those whowork in the non-profit and institutional sectors. The word “advancement” itselfhas become common usage in the South African context, whilst organisationswith which the Institute engages have begun to show greater efficiency andeffectiveness in their fundraising programmes.

The message of confidence and investment that forms the basis of itsprogrammes has attracted many organisations to the Institute and it is now fullyoccupied through to 2007 and beyond. Key to this is The Kresge FoundationSpecial Initiative in South Africa that has made a five-year commitment to SouthAfrican institutions, partnered with Inyathelo. We expect this flagship project tohave a fundamental ripple effect on advancement operations in many of SouthAfrica’s institutions. In addition to work in South Africa, Inyathelo has workedwith institutions from other African countries. The success of these programmesis based on the unique advancement concepts developed in the African context,for African organisations and African people.

I would like to take this opportunity to thank all the trustees of the Institute fortheir time and interest; to our donors and partners for their crucial support and thedirectors and staff for their continued dedication and innovation. I look forward tothe ground-breaking and cutting edge programmes that the Institute will offer inthe future and am pleased to be associated with an organisation that has such adeep level of commitment to South Africa and the continent as a whole.

On the Cutting EdgeDR RICHARD VAN DER ROSS, CHAIRMAN

Those of us who agreed to serve on the board of the South African Institute forAdvancement can be proud of its achievements


E X E C U T I V E D I R E C T O R ’ S R E P O R T

Knowledge is crucial if we are to progress inour work as it is context based, making it moreeffective than imported models. “ ”


The mainstay of our work for the next five years is The Kresge Foundation SpecialInitiative in South Africa. Inyathelo worked with The Kresge Foundation todevelop the conceptual framework for this $10 million commitment and 2006saw the start-up process of the programme. Four South African institutions arenow receiving financial support from The Kresge Foundation to build theiradvancement capacity. These include The Children’s Hospital Trust that is thefundraising arm of the Red Cross War Memorial Children’s Hospital; theUniversity of Pretoria; the University of the Western Cape and the Cape PeninsulaUniversity of Technology. In addition to the direct funding to the institutions, theinitiative provides for training and cadetship programmes run by Inyathelo aswell as a high-level annual retreat for Vice-Chancellors/CEOs and their heads ofadvancement/development. In alternate years there is also provision for seniorinstitutional officials to visit the USA to meet with their advancementcounterparts at US universities or hospitals.

One of the key principles of Inyathelo’s work is that we capture the knowledgeproduced in our programmes. This knowledge is crucial if we are to progress inour work as it is context based, making it more effective than imported models.We have therefore produced a booklet and other products during the course ofour learning co-operative for black entrepreneurs in the tourism sector and abooklet in partnership with the Non-Profit Consortium on the Role of GoverningBoards in the Non-Profit Sector. 2006 will also see the production of othermaterials that flow from our programmes.

Whilst building institutional operations that will enable organisations to accessdonor funding, we have not lost our focus on the other side of the coin – buildinga culture of giving in South Africa.We are a middle income country and we shouldbe able to support our own institutions and civil society. However, the majority ofinstitutions and major non-profit organisations rely heavily on foreign funding,particularly through the major US foundations, foreign aid agencies and foreignbased NGO partners. These organisations have been extremely generous, but it is

Capturing KnowledgeSHELAGH GASTROW, EXECUTIVE DIRECTOR

Since its inception, The South African Institute for Advancement has focused on workingwith institutions such as universities and museums as well as the non-profit sector on theiradvancement, development and fundraising programmes. This has taken us as far afield asNigeria and Mozambique as well as in South Africa.


not in our long-term interests to build on a model of dependency when our owncountry sees an increase in wealth and a growing middle class. It becomesincumbent on us to ensure that we guard and support a thriving civil society andour major institutions as key players in a democratic country.

Inyathelo has therefore begun to move ahead with its programme to build socialgiving in South Africa. We are running a pilot schools programme entitled YouthIn Philanthropy Programme South Africa (YIPPSA). This programme wasconceptualised and co-ordinated by two of our young staff members andinvolves five schools in the Western Cape. In addition, we are working with theBoard of Executors Private Clients to produce a booklet on establishingindividual, family and corporate charitable trusts and foundations in SouthAfrica. This booklet will be sent to a targeted group of people with informationon why they should establish foundations and how this can be done. Otherprogrammes will be rolled out in 2007 onwards.

I would like to take this opportunity to thank our staff for their continuedcommitment to and passion for our organisation and what we do. We are alsodelighted to announce that we have three new board members : Dr Iqbal Surve;Dr Loveness Kaunda and Dr Mills Soko. We appreciate the time and effort givento Inyathelo by our existing board members and welcome our new members tothe organisation. I would also like to thank many others with whom Inyathelocontinues to work and partner. These include Michael Daries who produces ourmaterials including our annual report, pamphlets, booklets etc; JerushahRangasami and her team from Impact Consulting who are frequently involved inour training programmes and the development of an advancement data basesystem; Vivi Cohen for the loan of artwork that significantly enhances our officespace; our associates, particularly Andre Zaaiman, Jannie Hofmeyr and Heidi VillaVicencio who have contributed towards the success of our programmes and ourpartner organisations including the Non-Profit Consortium with whom weeffortlessly produced the joint booklet on Governing Boards in the Non-ProfitSector and Synergos with whom we are working on a project focusing oncommunity grantmakers.

I would also like to thank our donors for their continued support and interest ina project that we hope will leave a significant impact on our institutions and civilsociety in the long term.

Whilst building institutional operations that will enableorganisations to access donor funding, we have not lostour focus on the other side of the coin – building a cultureof giving in South Africa.“

”


The Centre is the base from which we deliver on the core work of the Institute,namely training and capacity-building related to institutional advancement andleadership development. When the Centre is not used for any of the abovepurposes it is available for hire as a venue for small meetings and trainingseminars, and serves as a reflection centre providing special resources dealingwith issues of cultural heritage.

Assistance to our clients is aimed at improving abilities to develop relationshipswith supporters, encouraging innovative approaches to public image andmarketing, changing outlooks to income generation, and exploring strategies toaccess finance and resources. In all of these the Institute promotes professionalskills, disciplines and structures to advance the causes of organisations and thosein leadership.

While assisting in building skills to access giving and social investment, theInstitute also promotes social responsibility, personal giving, voluntarism andself-help. The work of the Institute is rooted in an approach that sees socialinvestment and civil self-help initiatives as a partnership employing a strategicapproach to the larger development picture in South Africa. A strategic part ofthis endeavour is the building of an endowed South African Foundation forAdvancement as a long term philanthropic legacy to be left by the Institute.

The Inyathelo team and associates also work on programmes that buildleadership amongst those disadvantaged by the apartheid legacy, through theuse of peer-group learning co-operative methodologies. As part of this individualdevelopment, the Institute promotes reflection on strengths within the fields ofcultural heritage and indigenous knowledge that can be innovatively employedto enhance leadership skills.

When the Institute was founded, we also established a set of values within whichwe wished to root our work. The work of the South African Institute for Advance-ment is founded on a number of core values and recognitions. We uphold that:

The Work of Inyathelo

When referring to Advancement, we essentially refer to the sustainable development ofinstitutions and organisations, and the skills development of their leadership. The SAIAprovides a centre for reflection, learning and resources focused on Advancement.

P A G E 11 00 T H E S O U T H A F R I C A N I N S T I T U T E F O R A D V A N C E M E N T

• Holistic human and environmental well-being is the core of true advancementand sustainable development.

• Eradication of poverty, social deprivation, pandemic disease and the creation ofeconomic opportunity is a collective responsibility of all people in a societycommitted to democracy.

• Development begins with ensuring support for individual leadership and the‘power of one’ with nurturing support.

• Indigenous knowledge, cultural heritage and South African diversity are to becherished as assets for sustainable development.

• Institutional development and societal development are closely bound, with'centres of excellence' in South Africa being well placed to bridge the dividebetween social needs and knowledge.

• Advancing of the cause of institutional and organisational development isbound to the strategic advancement needs of South Africa as a whole.

• By combining innovation, expertise, skills and resources available in SouthAfrica we are able to accomplish fundamental advances.

• To ensure greater effectiveness there should be increased partnershipsbetween civil society, the state, labour organisations, businesses, individualeffort and international support.

• Ultimately the measure of success ultimately is the change in the conditionsfaced by the poorest in our society.

• Increased social investment by companies and individuals is a key componentfor effective advancement of a better life for all South Africans.

• Excellent ideas, resources and all efforts committed to advancement willflounder if good governance is not firmly in place.

Over the last three years we have worked to give meaning to our commitment tothese values by engaging with institutions such as universities, technikons,museums, hospitals, heritage sites, non-profit organisations, other civil initiativesand with individual leaders.

The Centre is thebase from which wedeliver on the core workof the Institute, namelytraining and capacity-building related toinstitutional advancementand leadershipdevelopment.

“

”

A N N U A L R E P O R T 2 0 0 5 - 2 0 0 6 P A G E 11 11

Alongside this initiative, we have consolidated our activities that focus on thebuilding of institutional and organisational advancement and fundraisingcapacity.We have continued to build on our training materials, particularly audio-visual, to ensure they remain innovative and forward-looking as well asappropriate to the context in which we operate, whether in South Africa or inother African countries. This consolidation of our core activity has enabled us tobegin to move forward on the other part of our mission – namely to promotesocial giving in South Africa.

The Kresge Foundation Special Initiative for South Africa

This special initiative is one of the largest single foundation investments of its typein South Africa. Recognition of the need for institutions to develop mechanisms toaccess private investment to ensure their long term sustainability and to growindividual social giving in South Africa is a forward-thinking strategy on the part ofThe Kresge Foundation and Inyathelo. The size of the investment indicates theimportance of this programme to the international foundation community in itsrelations with South African institutions. This is certainly a major achievement!

The Initiative was launched in April 2005 at a well attended function at theArabellaSheraton Hotel in Cape Town. The event was addressed by the Ministerof Education, Ms Naledi Pandor, and the Premier of the Western Cape, MrEbrahim Rasool. It was attended by Vice Chancellors and senior institutionalpersonnel from the university, museum and hospital sectors, by other politicalfigures and representatives from the non-profit sector. The lively function wasorganised by our own events manager, Samantha Castle, who received an awardlater in the year from Cape Town Routes Unlimited as Young Events Manager ofthe Year for this specific function.

The launch was followed by an orientation workshop for potential applicantsfrom the university, museum and hospital sectors. The process of candidateselection included a call for concept documents of which 19 were received. This

Inyathelo 2005-6

2005-6 proved to be an exciting year for Inyathelo. Anchoring our programmes well into thefuture was the launch of The Kresge Foundation Special Initiative for South Africa – a fiveyear, $10 million programme to build the advancement capacity of four institutions.


was narrowed down to seven finalists, each of whom was visited by Kresge rep-resentatives from the USA, together with Inyathelo personnel. In addition, ourassociate, Dr Sean Jones (fundraising adviser to the Vice Chancellor of theUniversity of KwaZulu-Natal and who is based in the United Kingdom) was askedto undertake an assessment of each institution’s existing advancement structureand make recommendations for possible improvement.

The final proposals required some serious strategic thinking on the part of theapplicants, particularly relating to their development and fundraising plans, theirdesired advancement operations and budgets. In December the Board of TheKresge Foundation finally made grants to four institutions, namely, the Universityof the Western Cape, the Cape Peninsula University of Technology, the Universityof Pretoria and the Red Cross War Memorial Children’s Hospital Trust. We wouldlike to extend our congratulations to these institutions for the great effort thatthey made to meet all the requirements and deadlines. We are confident thatthey will rise to the challenge of creating effective advancement offices that willgreatly contribute towards their future development needs as well as theirsustainability.

Inyathelo’s role over the next five years is to co-ordinate this initiative, provide on-going support and advice to the institutions concerned, to monitor and evaluateprogress. In addition, we will be providing the following specific training annually:

• Advancement Workshop• Two cadetship programmes• Retreat for Vice-Chancellors/CEOs and their Directors of

Advancement/Development.

Inyathelo’s co-ordinator for this programme is Ms Nazli Abrahams.

Other Workshops and Training Programmes

Tertiary Education Linkages Project (TELP)

The first six months of 2005 included an intensive advancement programme forhistorically disadvantaged institutions supported by the Tertiary EducationLinkages Project (TELP). This saw us rushing from Cape Town to East London toDurban to deliver a number of training workshops and cadetships for personnelresponsible for resourcing their institutions, including the Vice Chancellors,members of Council and other senior staff.

This consolidation ofour core activity hasenabled us to begin tomove forward on the otherpart of our mission –namely to promote socialgiving in South Africa.

“”


The training provided for the following :

• An understanding of the holistic advancement process whereby the buildingof constituencies takes place throughout an organisation.

• The role of strategy and development planning.• The fundraising cycle and the basic functionality required for effective,

sustainable resource mobilisation.• The role of institutional leadership in the advancement operation, including

the roles of the Council, the Vice-Chancellor, the Executive and Deans.• Prospect research methodology and cultivation of prospects.• The provision of various models of advancement operations that could be

adapted to each institution, taking into account that each university wasunique in terms of its history, internal dynamics, what it wanted to achieveand the resources available.

College of Cape Town

As part of an initiative for Further Education and Training Colleges begun in2004, Inyathelo worked with the College of Cape Town to establish a fundraisingoffice. This involved a high-level workshop on fundraising in the current context,assistance in developing an appropriate structure taking into account theresources available and drafting job descriptions for the required posts. Inaddition, seven senior personnel from the College attended a week’s cadetshipprogramme at Inyathelo in June 2005 which provided for specific skills training.

Learning Co-operatives

In 2003 Inyathelo pioneered the learning co-operative methodology as a keycollective learning tool in South Africa.We have used it in two major programmes– firstly for black women leaders in the non-profit sector in the Western Cape andsecondly for black tourism entrepreneurs in the Western Cape.

We at Inyathelo had felt for some time that standard training workshops did notalways make an impact on organisations and, at best, were mechanisms thatprovided information and built specific skills, but in a neutral theoretical context.They are controlled by an expert or external consultant with a focus ontheoretical knowledge and who frequently has no other relationship with theprogramme participants or their organisations. Such training, therefore, is notcontext specific and we believe that this mitigates against the achievement ofcompetence and effectiveness.


Our experience with the learning co-operative methodology which focuses onsolving defined, real-life problems in a specific context and where theparticipants set their own agenda has proved to be extremely positive. The twoco-operatives produced their own original knowledge through engaging withthe implicit and explicit knowledge and know-how of co-operative members.Thiswas then implemented in their own organisations.

Inyathelo takes a strong position on recording and capturing the knowledge thatdevelops in the course of its programmes. All its programmes are fully documentedand a monograph produced at the end is part of our commitment to ensuring thatinnovation, thinking and products that are developed in the South are documentedand disseminated. This was done in the case of the co-operative for black tourismentrepreneurs who produced marketing videos for their businesses; a culturalheritage map that reflected their niche products and provided an advertisingopportunity; a booklet on new narratives for niche-product development.and apublication that outlined their own experiences as black tourism operators in anindustry that in many instances is difficult to access. These will be used both toprofile the participants’ businesses and as educational tools by tourism marketingorganisations, the local tourism ministry and on college courses in the field oftourism, thus extending the impact of the programme. The monograph for thewomen leaders’ learning co-operative will be produced in 2006.

Learning Co-operative for Black Women Leaders in the Non-profit Sector

In January and February 2006 the programme for women leaders wasindependently evaluated by Dr Donna Podems, Director of OtherWise Researchand Evaluation Services, and Professor Len Benjamin, Assistant Professor of Non-Profit Studies at George Mason University in Virginia, USA. The evaluation indi-cated that the participants’ experience was “overwhelmingly positive”. Besidesthe opportunity to develop strategies and plans for resource mobilisation, manyof the women had found that they were isolated in their new positions and thatthe opportunity to network and learn from their peers was a key motivation forjoining the co-operative.

The evaluation found that the key strengths of the co-operative was the valueput on learning from peers and the support received (including emotionalsupport) from the network that was created. Other advantages of the co-operative included “the space to reflect away from the office; being able to set thelearning agenda; the information that the presenters brought to the group (boththe tools as well as the theoretical frameworks); and support and flexibility of theprogramme staff. For example, some participants specifically commented on thesolid and professional logistical support provided by Inyathelo.”

The two co-operativesproduced their own originalknowledge throughengaging with the implicitand explicit knowledge andknow-how of co-operativemembers.

“”


Another issue that was highlighted was that of trust between participants. Theevaluation explained that “trust is particularly important in a Learning Co-operative(vs. a traditional workshop setting)”. It was noted that trust was built as womenshared their experiences and that trust, particularly to keep confidences, wasdeveloped although at different levels for each participant.

The evaluators asked participants about the significance of the learning co-operative methodology compared to other training models. One comment wasthat “The learning is different – forces you to reflect and participate and learn fromown experience”. Two significant differences were identified. Firstly, the fact thatthey set their own learning agenda, including topics to be covered and thespecific focus areas within those topics. Secondly, they learnt from each other,exploring “multiple practical approaches to dealing with challenges or tasks”. Asan example, they were not offered a set of abstract concepts, but rather learnthow a common problem (such as the role of governing boards) could beaddressed in a number of ways. Traditional training methodology does notnormally accommodate learning from each other but “are more focused on thetrainer or presenter sharing a specific set of principles or models.”


A key outcome of the learning co-operative was “improved self-confidence”. Mostparticipants pointed out that they had come to recognize their own capacity andabilities through the learning co-operative. With this self understanding, “theyrecognized that the success or failure of the organisation did not rest solely on theirshoulders but in fact many nonprofits were struggling in this changing environment”.

Over and above the personal impact, various changes were made withinorganisations where participants applied their learnings to their work situations.One participant stated “Every theme I learned here I was able to take back anduse”. Changes included the following :

• Implementation of a new communication system. One participant talkedabout how she took the initiative to introduce advanced technology into herorganization, which enabled the field staff to stay remotely connected, egreceive e-mail.

• Clarification of roles and responsibilities within the organization.

• Changing fundraising approach. One participant described how sherecognized that she was underutilizing certain staff that should have beenintegral to the organization’s fundraising efforts. She therefore introduced amore holistic approach to fundraising, bringing other management staff intothe process.

• Creating a tracking system for donor history and reporting requirements.

• Establishing a financial tracking system. One participant indicated that fromwhat she learned she could now more effectively account for funds and thismade the auditing process easy. The organization received a very good auditstatement and consequently, it could provide evidence of fiduciaryresponsibility to potential funders.

• Challenging the staff/board to confront strategic questions and not justplanning questions.

The evaluation concluded that “all participants felt that the Learning Co-operativeexperience assisted them in some way with regards to their ability to workeffectively in their positions. Participants drew on the strengths of each other andvalued the time that they had within the Learning Co-operative. While manyparticipants suggested ways to enhance the programme, almost all participantswould recommend the Learning Co-operative format to other people.”

All participants felt that the LearningCo-operative experience assisted them insome way with regards to their ability towork effectively in their positions.“

”


Finally, the participants appreciated the logistical support provided by Inyathelo.Participants recognised that the space and time provided by Inyathelo allowedfor them to meet and support each other in an open and learning context.

Inyathelo would like to thank the programme participants for their commitmentto a two-year process which required a great deal of dedication. We would alsolike to thank the many people who contributed to the success of this programmeincluding Andre Zaaiman who developed the methodology and undertookfacilitation on a number of modules including learning organisations, strategyand advocacy; Anne Emmett, Rejane Williams, Ilze Olckers, Jan Hofmeyr, HeidiVilla-Vicencio, Dianna Herring, Eric Atmore and Bev Hawthorne. A key person inthe roll out of this programme was Jerushah Rangasami of Impact Consultingwho most ably and efficiently co-ordinated the programme and made asignificant contribution towards its success. We would also like to express ourgreat appreciation to those who invested in this project : The Charles StewartMott Foundation, The City of Cape Town, The Anglo American Chairman’s Fund,The Embassy of Finland and The National Lotteries.

Learning Co-operative for Black Tourism Entrepreneurs

The aim of this learning co-operative was to strengthen emerging black tourismoperators to enable them to play a full role in the tourism market of the WesternCape. Many serious issues were tackled and some significant products werecreated in the learning process. Most importantly, peers engaged with eachother, expressing both commonalities and differences. During the processpractical projects were tackled such as exploring new tourism narratives,development of a heritage tourism map including group advertising, productionof marketing videos for each company and the production of a book on theirexperiences. These materials have been distributed to places of learning andgovernance structures related to tourism.

Each participant was given the opportunity to produce their own marketingvideo and a session was held where they critiqued each others’ work. The videoswere sent to a range of educational institutions, tourism marketing bodies andthe tourism ministry at local, provincial and national government level. Feedbackhas been positive. Cape Town Routes Unlimited made awards for the topmarketing videos and the runner-up which were won by Faizal Gangat and CliveNewman respectively.

The unique heritage tourism map was also widely distributed in the WesternCape along with the booklet “The Stories Your Tour Guide Didn’t Tell You”. Inresponse Lulamile Stuurman, Director of Tourism Human Resource Development


in the Department of Environmental Affairs and Tourism, commended the workof the programme and acknowledged its contribution towards improving thequality of tourism guiding and tourism learning processes in South Africa.

The programme ended in December 2005 and participants produced their ownbook as part of the programme and in line with Inyathelo’s focus on capturingknowledge created in our programmes. The book was entitled “Voices of BlackEntrepreneurs in Tourism”. The participants undertook a short course on writingtechniques and produced a chapter on their experiences as entrepreneurs intourism. They explain how they tackled challenges and elaborated on theirexperiences in the learning co-operative. This unique book has given theparticipants an opportunity to record their own knowledge so that it can be usedas a learning tool for others. Feedback from colleges shows that they areextended invitations to the entrepreneurs to talk to students undertakingtourism programmes.

The final product of the programme is to take some of the information thatemerged from the heritage research done throughout the programme and toturn this into an exhibition with the theme “The Ties that Bind South Africans”.This will be completed in 2006.

Inyathelo would like to thank the participants in this programme for pioneeringa new way of treading a development path in tourism. There is a vast differencebetween entrepreneurship and simply being in business and in many respectsblack business is leading the way in an innovative type of tourism, creatingspecific niches that are unique to their own history and heritage. We would alsolike to thank the donors who contributed towards this programme : the Swiss-South Africa Co-operation Initiative, BP Southern Africa and the NationalLotteries as well as Cape Town Routes Unlimited who participated in the awards.There were also people who assisted with the marketing video production,namely Jerushah Rangasami of Impact Consulting for co-ordinating andproducing, Matthew Wilde for directing and artistic input, Odd Digital Media forcamera and post-production work and Blackbelt Jones for the original score forall the videos. This team went the extra mile and the products show their effortsin supporting the participants.


Projects in other African countries

University of Jos

The University of Jos is situated in Plateau State, Nigeria. Jos itself is situated inone of the cooler areas of Nigeria and was an administrative centre during theBritish colonial period. Inyathelo was contracted by the university to work with itover a two year period to establish an effective advancement unit. During thistime we developed close relationships and friendships with individuals withwhom we worked which endure to this day. Following a process of conscientisa-tion on campus and intensive training, the University of Jos Advancement Officewas launched at a high profile ceremony on 5 September 2005. The keynotespeaker was the Federal Minister of Education, Mrs Chinwe Obaji and spectatorswere entertained by a number of dance groups and a stand up comedian. Twodeputy governors also attended and one of them, Mr Labaran Maku, made aspeech in support of the university and announced a N1.5 million donation onbehalf of his state.

Later that month, Patric Mellet and Shelagh Gastrow traveled to Nigeria toundertake the final consultancy work in terms of the agreement with theUniversity of Jos. The five days there were extremely intensive. Sessions were heldwith the Advancement Office staff; with the Vice Chancellor and principalofficers; with Deans and Heads of Institutes; with Alumni representatives andwith the committee that spearheaded the establishment of the AdvancementOffice. We were especially impressed with the alumni, some of whom hadtraveled twelve hours by car from Lagos especially for the workshop. Thepamphlets and advertising materials that they had produced were outstandingand we felt confident that the University of Jos alumni operations were on agood footing.

The hospitality of our Nigerian hosts was exceptional. We barely had a quietevening, but were continually offered meals and entertainment, both at theuniversity and in people’s private homes. The experience of working with theUniversity of Jos was a key learning curve for us, not only when it came toassisting to establish an advancement operation in a different country, but alsoto observe and learn from the wonderful people with whom we interacted. Wesought their advice on many issues and we believe this will enable us to workmore effectively with other institutions on the continent.

Inyathelo would like to congratulate the University of Jos on the establishmentof the new advancement office and we look forward to sharing its future successwith all those with whom we work.

Inyathelo would like to congratulate the University of Joson the establishment of the new advancement office.“ ”


Advancement Workshop for participants from universities in other African countries

Following the success of our workshop for participants from universities in otherAfrican countries in 2004, The Carnegie Corporation of New York supported asimilar three-day workshop in September 2005. In addition to women fromGhana, Nigeria,Tanzania and Uganda, a number of South African institutions andorganisations also participated as well as the Director of Development from theUniversity of Western Australia.

This training programme provided all the elements of basic advancementtraining and included sessions on strategy and planning; the management ofdonor relations which provided a mix of the theory and practical aspects ofadvancement, including the fundraising cycle, cultivation, the importance ofgood stewardship, the role of the Vice-Chancellor and other senior personnel andhow to create an investment climate in the institution; understanding the donorworld; prospect research; proposal writing; solicitation; image building;evaluation and monitoring and understanding the role of advancementoperations at universities in Africa.

Mr Bill Moses, Programme Officer at The Kresge Foundation in Michigan, USA, wasable to participate in this workshop and presented a one-hour session on USFoundations, their history, their interests in international giving and how theyoperate.The workshop used a combination of expert input through presentations,group work, video materials produced by Inyathelo and specific training tools toenhance the training.

Building South African Philanthropy and Social Giving

YIPPSA : Building philanthropy amongst South African youth

Whilst promoting philanthropy and social giving, we were reminded by ouryounger staff members that we should not forget the role of youth in socialdevelopment and the need to create awareness that we all have responsibilitiesto society. As a result we tasked Samantha Castle, our events co-ordinator, andAfrica Kashe, our receptionist, to develop a new programme targeting youth.Theyexceeded our expectations!

The Youth In Philanthropy Project South Africa (YIPPSA) is a pilot programme with fourschools in the Western Cape (St Andrews High, Elsies River; Cape Town High School;Luhlaza High School, Khayelitsha; Langa High School, Langa). The participating

Community grant-makers and particularlycommunity foundations area growing element of thephilanthropic sectorglobally.

“”


students are raising funds for a community organisation or charity of their choice andthe money raised will be handed over to the recipient organisation on the night of thematric ball. The programme involves workshops for teachers and learners where theconcepts of philanthropy and promoting the public good are introduced and wherethey are encouraged to be creative and innovative in raising funds.

YIPPSA will erect a Matric Giving Board at each participating school which will logthe Matric Class year, the amount raised and the name of the recipient organ-isation. In so doing, we hope to establish a new tradition in South Africa, involvingmore schools each year. Many thanks are due to Samantha and Africa for theirinnovation and energy in kick-starting this special programme.

Southern African Community Grantmaker Leadership Partnership

Inyathelo and the Synergos Institute are working together on the Southern AfricanCommunity Grantmaker Leadership Partnership programme. Communitygrantmakers and particularly community foundations are a growing element ofthe philanthropic sector globally. They are becoming an indispensable bridge toensure that donated funds are directed to the grassroots as they have the capacityto administer small grants through their links in their local communities. Thisprogramme brings together leaders of various Southern African communitygrantmaking organisations in a peer learning partnership that focuses on thegrowth and sustainability of this sector.

The programme began in December 2005 with a retreat in Hout Bay which wasattended by 23 participants including two from Mozambique and one fromZimbabwe. The retreat was facilitated by Inyathelo associate, Andre Zaaiman,who focused on the question “What is a learning organisation?” Participantswere provided with a comprehensive set of reading materials to assist them inengaging with key questions related to the global and local context in which theyoperate. At the end of the retreat participants agreed that they would like tocontinue with the process of peer learning and networking.

Resource Centre

Library and Resources

The Resource Centre continues to serve as the base for all our training materialsdevelopment and we continually ensure that up-to-date journals, books andaudio-visual resources are available. Our own video/DVD range has beenexpanded with the production of a video on the Role of Non-Profit Boards. As a


complement to this video, we have produced, in co-operation with the Non-ProfitConsortium, a booklet on Governing Boards in the Non-Profit Sector. This is beingused in our training and is also available for sale. In a review on the Sangonetwebsite, Phiroshaw Camay concluded :

“In this reviewer’s opinion, the booklet will find wide popularity given the size of thesector and potential half a million or more non-profit board members in thecountry.”

Fundraising Prospect Data Base

We continue to maintain our prospect data base which is used in our fundraisingtraining and cadetships. We have also offered this to the public. Our associates atImpact Consulting have customized the data base for the use of institutions andorganisations, providing additional data fields that extend beyond prospectresearch, but also include, amongst others, project clearance, detailed project andproposal tracking, funds received and action required relating to eachdonor/prospect. As a result, they have developed a new and unique advancementsoftware system, ADVANTAGE, details of which are provided elsewhere in thispublication.

Conclusion

Building social giving in South Africa is a key element of Inyathelo’s mission.2005-6 saw the start of a planning process to ensure that this aspect of our workbecomes a prominent part of our annual agenda. The YIPPSA project is but one ofintended activities in this area, together with a growing focus on encouragingthe establishment of private charitable trusts and foundations. We continue toengage fully with the non-profit and institutional sector on their fundraising andadvancement and in this respect we are now well-anchored in this aspect of ourwork. We look forward to a healthy balance of organisational and institutionalcapacity building and advocacy for social giving in our future programmes.

Building social giving in South Africa is a keyelement of Inyathelo’s mission. “ ”


Our contributors include Sizile Mabaso who has written on the subject of newfinancial management services offered to donors and NPOs by Triple Bottom-lineServices Consulting, while James Taylor and Alan Fowler have written shortarticles on pertinent issues concerning new conditions faced by NPOs in anincreasingly globalised and security-driven world. The MD of Inyathelo alsomakes a contribution on the heritage component of the work of Inyathelo whichcontinues in the shadow of our core service delivery, but is nonetheless a keyfeature of our work. Jerushah Rangasami has contributed an article introducingImpact Consulting’s new improved Advantage Database which has beendesigned for fundraising and development at institutions.

After Inyathelo’s first three years of operations, Mthente Research and ConsultingServices carried out an independent evaluation of our work and progress. HeidiVilla-Vicencio has provided a contribution based on Mthente’s evaluation.

Inyathelo over the last year has established a new philanthropic foundation andhas set a five year target to raise a substantial endowment. The South AfricanFoundation for Advancement is reaching out to the South African Diaspora, thenew emergent business sector in South Africa and friends of South Africa abroadto contribute to building this endowment. A short article by two of the foundingtrustees, Shelagh Gastrow and Patric Tariq Mellet elaborates on its aims andobjectives.

The following subjects will be covered in this section of the Annual Report:

• Reflection on the field of heritage as it relates to Advancement - Patric TariqMellet, MD Inyathelo

• Partnerships between Civil Society Initiatives and Social Investors requirespecialist financial services – Sizile Mabaso, TBS Consulting

Dialogue on Critical Areas ofAdvancement PATRIC TARIQ MELLET – MANAGING DIRECTOR

As we did in our last Annual Report, we have once again opened our pages to include theviews and experiences of other voices within the broad development arena with the aim ofstimulating debate.


• Seeking more equitable organisational forms. – James Taylor, CommunityDevelopment Resources Agency

• Development for Security and Civil Society: Navigating an UncertainLandscape – Alan Fowler, author of The Virtuous Spiral: A guide tosustainability for NGOs in International Development

• New South African Database Product: Advantage – The completeadvancement package – Jerushah Rangasami of Impact Consulting.

• The first three years: An evaluation summary of Inyathelo – The South AfricanInstitute for Advancement - Heidi Villa-Vicencio

• Making Dreams Possible: The establishment of the South African Foundationfor Advancement. – Shelagh Gastrow and Patric Tariq Mellet.

The ability to sustainand advance the operationsof the actual ServiceDelivery Institution is at theheart of the debate aroundsustainability of NPOs.

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Heritage is a very emotive term that conjures up images of the old and wisehanding over the precious grail to the next generation to treasure and use totheir advantage. Heritage has many facets, each offering a different lesson thatcautions and encourages at the same time. It talks of war and peace, science andfaith, sense and fantasy, dreamers and doers, the idle and those that work, of riskand playing it safe, of poets, thinkers, muses, teachers, preachers and politicians.In the story of those who went before us in South Africa, there is so much to learnand much that offers us assistance in how we tackle our future. A great deal ofour heritage has unfortunately been kept from us because of the apartheid andcolonial era which, from an ideological bent, thwarted enquiry and went out ofthe way to denigrate anything that celebrated black history and heritage.

Inyathelo’s focus in terms of our commitment to using heritage to promote ourAdvancement has therefore been to put our weight behind initiatives andinstitutions that uncover the hidden gems of our cultural heritage. We havetherefore engaged in a number of activities which we would like to share.We alsowish to bring attention to some amazing initiatives which we have encounteredthat pioneer a way forward in integrating advancement initiatives in the here-and-now with what is held by the past.

The first step that we took at Inyathelo to fulfil our commitment was to establisha small heritage reference library as part of our working base and reflectioncentre. The reference library, which includes over 120 books, has a focus on slaveryin the Cape and the indigenous people of the Western Cape. It caters for non-academics engaged in popular research who have no easy access to universitylibraries. They may be writers, playwrights, journalists, heritage activists or justordinary folk wanting exposure to resources that help them explore theirheritage. Attached to the library is our African Creole Lounge, an in-house bistrowhere researchers can read and relax. The lounge is themed on our indigenousand slave history in the Western Cape with many exhibits that speak of thishistory on the walls.

The library played a very important role in Inyathelo’s other heritage endeavours.In 2004 through to the end of 2005, we ran a programme for black entrepreneurs

Integrating heritage with all that we doPATRIC TARIQ MELLET – MANAGING DIRECTOR, SOUTH AFRICAN INSTITUTE FOR ADVANCEMENT

The core values of the Institute, Inyathelo, speak of us celebrating and cherishing ourheritage as an asset for building our future and sustaining our development activities.


in tourism, part of which had a focus on cultural heritage tourism as a product. Inthis programme participants were encouraged to look more deeply at heritage inthe Western Cape and explore innovative ways of turning this into desirable tours.In this way our heritage could be used to strengthen black entrepreneurship in anindustry that was 95% white dominated. At the same time, we would be able toexpose to tourists, foreign and local, something of our history and heritage thatwas hidden from their gaze. Most South Africans know little about the history andimpact of over 180 years of slavery at the Cape and have little understanding of theKhoi and San and the indelible mark that they left on the cultures of the Xhosaand Coloured people. It is also our belief that greater understanding of these twofacets of our cultural heritage can be used to tackle many of the social difficultiesfaced in advancing our society. The participants in the tourism programme werealso encouraged to record their own personal history of development and writetheir stories. Inyathelo published this as a book called “Black Voices in Tourism”.Another publication produced was “The Stories your Tour Guide Never Told You” .Presently we are also working with a number of cadres who served in theliberation movement whose stories have never been told in order to produce abook of experiences that may inspire future generations. These tales reflect whathas happened in our lifetime and are also an important part of our heritage. Thusfar only the stories of famous figures that served in the liberation struggle haveappeared in books. These high profile biographies only provide a glimpse of somedimensions of the entire experience, and therefore only reflect the tip of theiceberg of the many experiences that together gave us liberation. Someone oncesaid that there were thousands of Nelson Mandelas in the struggle for a freeSouth Africa. Never has there been more true a statement.

Often history becomes twisted by information management. Inyathelo exhortsSouth Africa to pay more attention to recording and publishing our ownknowledge and to be more inclusive in so doing. Publishing is one option. Thereare also many other ways of institutionalising the heritage of struggle cadres.Here I can reference our participation with others in helping to establish the RegSeptember Trust as a legacy of one of Cape Town’s veteran cadres. This trust willbe dedicated to supporting a centre for the study and memory of slavery. A trustor foundation is a wonderful way of using heritage to mobilise energies andleave a legacy for the future.

Museums play a great role of interfacing the public with academic inquiry andheritage. Inyathelo gave assistance to two museums and a heritage site over thelast two years. These were Iziko Museums, the District Six Museum, and theCradle for Humankind heritage site. In this regard we assisted each throughresource mobilisation training programmes as the museum sector is poorlyfunded, with many caught in maintenance mode with little capacity to innovate


or upgrade. If museums are unable to transform or expand their content andservices due to financial constraints, this will have a negative effect on advancingour young democracy. It is our conviction that a holistic approach to human deve-lopment is required for us to be innovative and creative in social and economicdevelopment. Regarding resource mobilisation, our museums and heritage sitesare poorly equipped to reach out to the public, foundations and the corporateworld for support. Thus our focus was the issue of improving their resourcemobilisation capacity.

In the case of Iziko Museums we went further and assisted the Slave LodgeMuseum (one of Iziko’s social history cluster of sites) to draft a business plan fordevelopment and transformation. We have also provided a follow up servicewhere we have appraised progress and given a critique and set of suggestions inthe form of a concept paper aimed at speeding up the development process. TheSlave Lodge Museum is presently undergoing a major change in becoming thefirst museum on slavery in Southern Africa. The site is the second oldest buildingin Cape Town and served as the Dutch East India Company slave quarters formuch of the entire period of slavery in the Cape. Inyathelo has been proud toassist Iziko Museums in this institutional advancement venture.

Arising from our work with the tourism entrepreneurs and from our observationthat people in the Western Cape were terribly divided, Inyathelo has developed aportable exhibition entitled “The Ties that Bind Us”. We believe that the kind ofethnic divisions and derogatory remarks made in public by leading figures doesnot bode well for the image or the advancement of the City of Cape Town and theWestern Cape Province. Public discourse has shown that there is much ignorancewhen it comes down to who we are and the connectivity that different groupshave with each other. Years of apartheid indoctrination has left many with awarped idea of what is fact and fiction when it comes to African and Colouredhistory, the ties that bind us and the right of all to live in this province. The whitepopulation also have no reference points about that sector of their forebears thatwere non-conformists and integrated into various African identities. Theexhibition offers a new look at history and heritage and says that while there hasbeen an emphasis on celebrating our diversity, there is also much to celebrate interms of the integration of cultures, peoples and the amazing bonds developedunder difficult circumstances. People are exposed to many facts that have beenhidden for ideological reasons by past regimes

While proceeding with our commitment to integrating lessons from heritageinto all that the Institute is doing, we have also come across some wonderfulexamples of how people have incorporated heritage into their endeavours.Inyathelo salutes the efforts of all those who have been at the forefront of

There is much tocelebrate in terms ofintegration of cultures,peoples and theamazing bondsdeveloped underdifficultcircumstances.

“

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pioneering the combination of heritage into everyday business. For us twoexamples stand out. The Museum de Caab, situated on the Delta wine farm off theR45 near Franchhoek, tells the story of the Solms-Delta farm and all who lived on itfrom pre-historic times to the present. The !Khwa ttu San Culture and EducationCentre in Darling is a joint venture between the San, as represented by the WorkingGroup of Indigenous Minorities of South Africa, and the Ubuntu Foundation, aSwiss humanitarian organisation. Both projects speak of the importance ofrecognising the links between ourselves and our ancestors and the healing powerof memory that heritage offers us as a motivator for our advancement today.

The Museum de Caab is located in Solms-Delta’s original wine cellar, built in the1740s which was also the place of punishment for slaves. Glass display panels are

Inyathelo exhorts SouthAfrica to pay more attentionto recording and publishingour own knowledge and tobe more inclusive in sodoing.

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arranged against the backdrop of exposed rock and clay-brick walls. A highlightof the museum is a series of 200 granite plaques which memorialise theidentities of all the people who gave their lives through slavery to Solms-Deltafarm, from 1690 to 1834.The display includes video excerpts of oral histories givenby the workers currently living at Solms-Delta. One of the displays is a rare Khoipot reconstructed from fragments found on the farm. A large part of theexhibition exposes the visitor to San, Khoi and Slave history as no other museumhas yet done. It also candidly deals with labour conditions, poverty, segregation,evictions, apartheid and the birth of our democracy. It is truly ground-breaking.As the Museum de Caab is situated on the working farm, Solms-Delta (historicallyZandvliet), visitors can engage in wine-tasting and have picnics on the banks ofthe river. The museum is part of a renewal project at Solms-Delta which aims notonly to remember our history but to change it. The owner, a UCT Professor ofNeuropsychology, Mark Solms, is a true renaissance man who has donesomething quite revolutionary in drawing from our heritage to advance thepresent and future. The Solms-Delta farm has been in the hands of the Solmsfamily since 1899. The profits of the farm are now shared equally with the Wijnde Caab Trust. Its beneficiaries are the historically disadvantaged residents andemployees on Delta as well as the wider rural community of the FranschhoekValley. It is hoped that future generations descended from the dispossessedindigenous inhabitants and slaves will be empowered to choose vocations on thebasis of their interests and abilities rather than fate or necessity. This is where I,and all at Inyathelo, shout Viva Mark Solms Viva! I was taken to this project as asurprise treat for my 50th birthday and it really bowled me over. Imagine if thisspirit could be replicated all over South Africa.

Reporting on the !Khwa ttu San Culture and Education Centre in Darling, CapeTimes reporter Tyrone August, makes the point that a proper grasp of the pastinforms our present and guides us into the future. This is exactly what Inyathelomeans when we say that our advancement is intricately bound with our heritage.The centre is committed to bringing back the story and languages of ourforefathers. The founders of the centre have singled out education as a key reasonfor its existence. The centre has its own school as well as an adult-education andtraining component. For visitors it has conferencing facilities, a craft shop, aphotograph and audio gallery, and a restaurant. This too is a pioneering jointventure from which many South Africans could learn about a new way of doingbusiness. Inyathelo pays tribute to these partners in the project who come fromvery different worlds, where self-help has been given a helping hand to rise aboveadversity and where memory has become a launching pad for advancement.

Inyathelo would hope that the inspiration that we received from these twoprojects will be contagious. In contrast, it is frustrating to see how slowly many


potentially great heritage projects are moving in both the state and NPO sector.I was honoured to be invited to be the keynote speaker at the launch of the firstphase of the transformed Slave Lodge Museum in May 2006. Iziko Museums hasfinally overcome great hurdles to achieve this feat. The task of transforming thelodge into the only dedicated museum on slavery in the Southern Hemispherecould be made so much easier with less bureaucratic red-tape in the state sectorwhich governs the museum. It would also be made much easier if the privatesector would be more engaged in grantmaking to our museums. By the printingof our next annual report I would hope that the Iziko Slave Lodge Museum willhave completed the transformation project and be the kind of heritage site thatstands out locally and nationally as a beacon.

On its doorstep there is a major city renewal project where the Cape TownPartnership and an Irish investor are transforming the heart of the old city. Thedeveloper has established the St Patrick’s Trust which had a successful St Patrick’sday bash in the Company Gardens on 17 March 2006.The historic Slave Lodge andthe St Patrick’s Trust are just waiting to find each other. There are many reasonswhy it is a natural match given its proximity to the Mandela Rhodes Placedevelopment. One Irish connection stands out most particularly. In October 2008we celebrate the 200th anniversary of the fateful armed slave rebellion in theCape led by Louis of Mauritius, Jeptha of Batavia and the two Irishmen JamesHooper and Michael Kelly. There is a perfect opportunity just waiting to happen,where two projects could partner for mutual benefit and commemorate aforgotten moment of our heritage.

Inyathelo, inspired by the practical examples of heritage for advancementpresented in this article, will continue in its commitment to integrate heritagewith all that we do. The ‘Ties that Bind Us’ portable exhibition will be ready byJune 2006 and we would be prepared to assist anyone that may wish to havedisplay copies made at their own expense.

Inyathelowill continue inits commitmentto integrateheritage with allthat we do.

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Launched in late 2004, TBS Consulting – which stands for triple-bottom-lineservices consultingis the only specialised banking service for the social sector inSouth Africa.

TBS Consulting provides investment management; grant making, corporatesocial investment management and administration, reporting and fiduciaryservices to the social sector and its stakeholders. Through this unique serviceoffering, this specialised unit is facilitating a more professional and businesslikeapproach to development on both sides of the giving spectrum, so maximisingefficiency in the sector and enhancing development impact.

As the private sector is called upon to play a stronger role in transformation andsocio-economic development, there is a growing need for specialist expertise tomanage effective and impact driven corporate social investment programmes.Non-profit organisations and public benefit organisations are also formidablecontributors to social development – as agents of change in their own right andas vehicles through which corporate donors and government implement theirdevelopment agendas.

Non-profit organisations in particular frequently lack adequate financial skills –and access to appropriate financial products and services – with the result thatthey are often not run on sustainable business models. The introduction of newlegislation and complex compliance issues has also resulted in a greater need forNPOs to access expert advice. The focus for TBS is to assist these organisations tomanage themselves in a financially sustainable way.

With a successful record of managing non profit funds and its origins as a trustcompany dating back to the early 1800s, BoE Private Clients is in a uniqueposition to fill a gap in the social sector by unlocking its fiduciary, investment,grant making and development expertise. At the core of its tailor-made service

Special Partnerships require SpecialistFinancial ServicesSIZILE MABASO, TBS CONSULTING

Recognising the social sector’s significant role in transformation, BoE Private Clients has setup a dedicated unit to provide appropriate products and services for corporate grant makers,donor organisations, and non-profit organisations.


offering, is a thorough understanding of the challenges facing corporate donors,donor organisations, non-profit organisations, charitable trusts and individualsinterested in philanthropy.

BoE Private Clients service offering goes beyond banking, to establishing partner-ships with each client. With 13 years experience, Sizile Mabaso and her specialistmulti-disciplinary team comprising of portfolio managers, investmentspecialists, fiduciary specialists and grant making and development specialists,are ideally placed to broker partnerships and financial management solutions forboth parties. Ultimately, strengthening partnerships between donors andbeneficiaries, putting in place mechanisms to ensure efficient spending of donorfunds and equipping the social sector with skills to manage itself in businesslikemanner, is the key to achieving sustainable development impact and the realempowerment of civil society.

TBS Consulting offers a suite of core products and services for corporate grantmakers, non-profit and public benefit organisations, donor organisations,foundations, charitable trusts and individuals interested in philanthropy. Thefocus is on the following core areas:

Grantmaking

This is the integral service provided to corporate and other donor organisations.The focus is on adding value to corporate CSI and development initiativesthrough effective and targeted giving, assisting donor to realise a social return ontheir investments. The objective is to promote developmentally sound practicesand with grant making and development specialists on the team, TBS Consultingis set up to administer grants and manage corporate social investmentprogrammes. This includes assisting corporate donors to align their CSI strategyand approach with their business strategy and corporate values. Wherenecessary, TBS Consulting will also assist corporate donors to broker mutuallybeneficial development partnerships with government departments. The serviceoffered is tailor made for each client and takes into account the more stringentreporting and compliance requirements facing corporate donors, in particular.

Investment management

By developing specialised investment products and financial advisory, TBSConsulting aims to ensure sound financial management that puts organisationson a more sustainable footing and therefore guaranteeing the sustainability of

Non-profitorganisations and publicbenefit organisationsare also formidablecontributors to socialdevelopment.

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the contribution they are making at community level. The investment process isgeared towards generating above inflation yields with capital enhancement overtime. Dedicated portfolio managers, supported by an in-house investmentresearch team, ensure that appropriate risk adjusted performance is achieved.Through strategic investments, non-profit entities are able to build reserves andtherefore greater resilience in the face of external funding fluctuations andchanging donor behaviour.

Fiduciary services

The introduction of legislation and compliance standards in the social sector aimsto ensure appropriate legal registration of non-profit organisations, that all taxcertificates are tendered and that funds are managed expediently. While positive,these requirements have placed an extra burden on the social sector. TBS Consul-ting has fiduciary and tax specialists with extensive experience in assisting thenot for profit entities with legislation and compliance requirements. The servicesoffered include legal structuring of CSI Programmes/foundations, NPO and PBOregistration; trust formation and administration, advice on tax and taxcompliance.

TBS Consulting offers a one-stop shop for donors and beneficiaries alike. Thisunique service offering, works from recognition that the non-profit organisationand the donor are both engaged in giving, or social investment. One provideswhat the other cannot. Their joint efforts for social transformation requirefinancial management services that maximises efficiency and enhancesdevelopment impact. This is the challenge that TBS Consulting has taken up withvigour. As a financial consultancy we want to be partners in transformation,doing what we do best. We believe that there is much to offer and much that wecan also learn from the sector so as to continuously improve our offerings.


For those lower down it is an important time to look critically at the tensionbetween the need to keep pace with the global development industry and itsconception of best practice and our commitment to social change.

As international donor agencies compete for scarce resources from individualsand governments and struggle to prove their impact, they are increasinglyturning to proven business practices. Many of them already operating onnumerous continents have amalgamated with others to become even bigger andmore globally competitive. There is much talk of “going to scale” and theefficiencies achieved through disbursing ever-larger grants. At the strategic levelmany organisations are grappling with the pros and cons of runninginternational branches from a global headquarters versus the franchise model.At the cutting edge of their fundraising they are engaging marketing specialiststo work on their brand image and are striving to increase brand share and marketshare. Identifying niches and new markets for fundraising is a part of thecompetitive edge.

As a potential new market opportunity, we in South Africa are starting to face thereality of large, well established, organised and experienced brands moving in tothe “local market”. Many of the big brand organisations have been working in thisand other countries with money raised in Europe and America, but are nowconsidering establishing a local presence in countries that have significantwealth alongside the abject poverty (South Africa, Brazil, China and India beingexamples). The ability of these types of organisations to tap into the wealth ofcountries is far advanced. Anxiety around the likelihood of their out-competinglocal fundraising ability is well founded. At the same time there is a keenappreciation for the potential benefit to local organisations on becoming thebeneficiaries of increased funds locally raised.

However, based on centuries of experience, there is deep concern over issues ofwhere the money will go, and the power dynamics around deciding on who willbenefit from it. The local non-profit sector is facing the prospect of following the

Seeking More Equitable Organisational Forms JAMES TAYLOR - CDRA

Donor organisations at the top of the development aid chain are emulating and replicatingthe forms and practices of global corporate business.


other sectors of our society into processes of negotiating favourable deals forthose at the margins from those closer to the centre of the global game. Beforewe rush headlong onto this well trodden path it is important to stand back andtake a look at what lies behind the game and considering whether there aren’tmore developmental ways of playing it.

In working with organisations at different levels in the chain it becomes clear thatin many respects they mirror each other and share many characteristics. Slippinginto the old power dynamic of characterising some as donors and others asrecipients overlooks the fact that the acts of both giving and receiving arecharacteristic of all the links in the chain. Another “chain” image – that of a chaindangling in space, representing a gravity-fed conduit through which resources flowfrom the rich to the poor – is distorting. Joining the beginning and the end links toform a circle is a much more accurate representation of how resources flow in allliving systems (including human society). These views immediately introduce amore interactive and interdependent model of how wealth and poverty are linked,as well as how organisations relate through mutually reinforcing relationships thatgive form to the larger institutions of which they are a part.

Another common characteristic throughout the chain is the adoption ofbusiness practice as best practice. While many organisations do not aspire to“going global” there are few who seriously question dominant organisationalpractices and systems. Along with the rest of the world, our sector is shaped byan array of project and quality management systems, planning monitoring andevaluation tools, and human resource management practices that have theirorigins in business (or the military!).

The non-profit sector has benefited much from becoming more business-like,particularly those organisations measuring their impact and value to society interms of the quality of their product and quantity of delivery. There are manysuch non-profit organisations that act as delivery vehicles for resources andservices that the state and business sectors are either unable or unsuited todeliver. But these organisations represent one end of a wide spectrum oforganisational purpose that is to be found in the non-profit sector. At the otherend are those seeking to change the way society is structured. Those who take asystemic view of society and are transformational in their purpose are seekingnew, more equitable organisational forms and organising principles. Theiridealistic view is of a society that operates on principles that do not concentratewealth and power at the centre, increasingly out of reach of those who have beendisadvantaged through the process of its creation.

South Africa has a long history of grappling with and struggling against theseforces. Those at the more transformational end of the spectrum cannot simply

As a potential newmarket opportunity, wein South Africa arestarting to face thereality of large, wellestablished, organisedand experienced brandsmoving in to the “localmarket”.

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accept the principles and practices of the dominant paradigm. For them there areparticularly challenging times ahead. Their idealistic purpose demands that theynot only access and deliver resources efficiently and effectively, but that they doit in a way that transforms the relationships that shape society. The develop-mental way of changing relationships is to start with self and work outwards.Relating differently to self creates the possibility of entering into more matureand interdependent relationships with others. This involves going beyond usingthe power of one’s position in the chain to access resources from above in anattempt to change the lot of those less powerfully positioned. It involveschanging the power relations of the chain as a whole by relating and actingdifferently to all others in the chain. Efficient delivery then becomes a necessaryand relatively easy starting point; the real challenge lies in finding ways ofrelating and delivering that are transformational.

Before we start engaging the approaching “big brands”, we must first engageourselves as South African non-profit organisations. We must make consciousour purpose and our theory of social change so central to that purpose. We mustbe able to articulate clearly what we consider to be the principles of gooddevelopment practice, and reflect them in our work and in the way we relate toeach other. We must consolidate our experience and learning of the past andrecognise its value to the world. We must be bold and consistent in challengingand rejecting practices and relationships that undermine our purpose. We mustseek out those with common intentions and accept that they too are strugglingto find ways of being effective in their transformational purpose. We must seekto build, within our own sector, examples of the quality of relationships we wantto see in our transformed world.

This might be a tall order, but in a small way in the small South African NGO thatI work for, we have proven to ourselves that it is possible. We have managed toestablish remarkable relationships with a number of our northern based inter-national donors. They fund us to provide organisational development servicesmostly to NGOs and CBOs in South Africa and elsewhere on the continent. In oneinstance our donor not only provides us with core funding, but has alsoseparately paid fees for our services to accompany them through a process of re-articulating their own organisational purpose and reviewing the practicesrequired to achieve it. We are presently in the process of finalising a completelynew type of funding relationship, based on how another donor agency believes itcan benefit from sharing in what we learn from the work that we do. Over theyears we have challenged our donors and been deeply challenged by them. Wehave learned immensely from the breadth of their experience and their globaloverview, and have reason to believe that they have learned something from usin return.

We must be ableto articulate clearlywhat we consider tobe the principles ofgood developmentpractice, and reflectthem in our work andin the way we relateto each other.

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”


Development for Security and Civil SocietyNavigating an Uncertain LandscapeALAN FOWLER

It is said that when America sneezes the world catches a cold. The September 11th attack inthe United States had this effect by prompting initiatives across the world to counterinsecurity and terrorism.

In addition to negative impacts on civil freedoms and human rights, one conse-quence has been increased government suspicion about and scrutiny of civilsociety organisations (CSOs). Of particular concern are CSOs that transfer fundsinternationally and work with marginalised groups that may be more susceptibleor sympathetic to terrorists’ objectives. Another significant post 9/11 outcome isthe integration of international aid into a global security agenda. This articlesketches what appears to be in play and discusses likely implications for CSOsinvolved in the aid system.

International security strategy appears to rest on three pillars. One is the tradi-tional foreign policy instruments of diplomacy, trade and defence (includingpost-conflict reconstruction). Recently added is a second pillar of counter-terrorism laws and administrative measures. Donor by donor alignment of bi-lateral aid – about two thirds of the annual total - with security concerns is thethird. Aid in general is meant to support a human security agenda in three majorways, with civil society expected to carry out particular tasks. First, developmentinvestments should contribute to improving the quality of (failed or weak)statehood and governance. Here, civil society is expected to contribute through,amongst others, its functions as voters, as watchdogs on government behaviourand corruption, as civic educators and asserters of civic rights, as setters ofstandards for public services and as sources of public information. Second, aidmust reduce poverty and a possible feeling amongst people who are poor ofhaving nothing to lose from insurrection. In this task, aid-related CSOs aresupposed to help materially by improving livelihoods, innovating, buildinghuman capital, creating better living conditions. Psychologically by empoweringpeople in terms of dignity and self-worth CSOs should help create a positivemomentum for change that counters despair and lack of hope. Third,development assistance must help redress inequality and exclusion that feedsocial instability. Here, civil society, especially intermediary organisations, areexpected to redress inequality by acting as channels for redistribution – forexample in the provision of subsidized public services – and by supporting


marginalised groups in the affirmation of their claims and interests. Fulfillingthese roles brings contradictions, contentions and risks. For example, on the onehand interest assertion, with which regimes are unlikely to find favour. On theother hand, delivery of public services can let ineffective governments off the hookof accountability that will probably be embraced with open arms. Nevertheless,the diversity of CSOs is likely to mean that the diverse and divergent rolesexpected of them will be fulfilled to greater or lesser degrees. Whatever the case,a development for security agenda has implications that merit careful reflectionand questioning. In the space of this article, it is not possible to be exhaustive. Butsome illustrations will hopefully help set out the tricky landscape faced bynorthern and southern NGOs interested in social justice.

Close identification of CSOs with international diplomacy invites their stigma-tization as instruments of foreign policy, an almost inevitable compromise inorganisational autonomy and pressure on maintaining ethical behaviour. Foreignpolicy is notorious for inconsistent standards and ‘realist’ concentration onnational interests rather than moral principles in international affairs. Oneoutcome of association with diplomacy could be NGOs abetting authoritarian-ism because, from a geo-political perspective, it is expedient for official aid to bethere. But, keeping a far distance from states by working with marginalisedgroups agitating for change itself brings risks. An internationally agreed orbinding definition of terrorism does not exist. Consequently, at the click of afinger, today’s social movements, political activists, insurgents, rebels andfreedom fighter can be ‘relabelled’ terrorists, making relationships with them acriminal act. South Africa’s contested security legislation that became operativein 2005, creates the legal grounds for this sort of state behaviour.

The prospect of re-labelling for reasons other than security creates vulnerability.For example, working in areas of Nepal not controlled by the government,requires NGOs to pay ‘tax’ by Maoist rebels. Such payments may result in the CSObeing added to a prescribed list as well as prosecution of governing bodies thatmany board members in Nepal and in the North are simply not aware of. Createdand fed by security services, lists of proscribed individuals and organisations area common feature of counterterrorism strategies, laws and measures. Incomplying it is becoming incumbent on northern NGOs to ensure that partner


organisations and, in some instances, members of their governing boards are noton a proscribed list. In the USA, software and commercial firms offer thischecking service. An additional aspect of compliance is financial transparencyand ability to trace funds through every step of the aid chain down, in theoryanyway, to the final direct and indirect beneficiary. While this is impractical, itplaces an additional load on administrative systems and is a source of anxiety. InDenmark, an NGO was placed on a proscribed list in America. Because ofreciprocal security agreements, the Danish government froze the NGO’s bankaccounts. Subsequent investigation by Danish police found no evidence of anylink to terrorism. But this finding was of no avail in terms of having the NGOremoved from the list.The police therefore advised the organisation to change itsname and carry on as before.

The general point is that compliance brings uncertainties about the rules, theirinterpretation and application where legal redress is not a realistic option.Compliance also brings costs that put upward pressure on overheads that donorsare unlikely to be willing to finance. The combination of factors described abovebring serious problems and dilemmas in terms of CSOs undertaking the sort ofroles and tasks expected of them within a development for security framework.Some typical implications stand out.

First, for reasons of self-protection, it will make sense for CSOs to concentratetheir efforts towards palliative rather than empowering types of developmentwork. Service delivery increases at the cost of advocacy and interest assertion.More broadly, CSOs become (more) risk adverse, exhibit self-censorship andchoose to row with rather than rock the development boat. A further, particularlydisturbing implication is that trust between northern and southern CSOs iseroded. Northern NGOs become a proxy for security interests and agencies.Compliance-driven demands for additional information will make ‘partnership’even more difficult to achieve than it is already. Initiatives to ‘accredit’ CSOs as away of improving their transparency and accountability become potentialsources of data gathering and provision that security agencies use for their ownends. Finally, from a development perspective it is difficult to see why what isrequired for society to be ‘more secure’ will not make CSOs less effective andefficient in what they do. Escalating expectations within the aid system fordemonstrable or measurable results will be even harder to satisfy.

Obviously, on the ground, the story told above is strongly influenced by thepolitical geography of relationships between donor and recipient countries thatare much wider than aid or development. Nevertheless, wherever they are, it willbe prudent for CSOs to look through a security lens at what is happening aroundand to them. Forewarned could be forearmed.

It will beprudent for CSOs tolook through asecurity lens atwhat is happeningaround and to them.Forewarned couldbe forearmed.

“

”


I was also responsible for developing research profiles of organisations –compiling reports about donors’ business and philanthropic interests, theircultivation and stewardship history with UCT, details of previous donations etc.This was a mammoth task which involved contacting various differentdepartments each time, including Finance, Student Records and staff at differentunits, and consulting hard files that were in no particular order.

When I moved to the Proposals and Projects Office, we developed an Excel matrixto track the hundreds of proposals that we were writing and sending. I rememberone day when someone from another office gained access to this file and sortedit incorrectly and all the data was corrupted. Amidst tears, finger-pointing andhorrified faces, we rushed off to the Information Technology Department to geta back-up version. I also remember someone walking into our office one day toask if anyone knew about a R3 million donation as this amount had arrived in ouraccount, but we didn’t know what it was for.

These are just some of the first-hand frustrations that I experienced working in abig Advancement office that did not have an integrated information manage-ment system. In my involvement with Inyathelo in training many non-profitorganisations – including higher education institutions, museums, hospitals andnon-governmental organisations (NGOs) – I have seen that few of them have aneffective and integrated information management system. Because of this lack,and because of a desire that has been consistently expressed by theseorganisations, I started developing a comprehensive system.

Advantage: the complete Advancement system

Advantage has been developed using my knowledge of Advancement, my ownexperience working in an Advancement office and the expressed needs and

AdvantageThe Complete Advancement PackageJERUSHAH RANGASAMI - IMPACT CONSULTING

My experience in Advancement began at the University of Cape Town (UCT) DevelopmentOffice. I first worked in the Research Office, where I started a database of prospective funders.


desires of other Advancement Office staff from various organisations. Therefore,it is relevant and comprehensive, and has been designed to be user-friendly.

Advantage is unique as it integrates alumni and donor records with fundraisingand development functions and management. It serves as a central hub and acrucial management tool where organisations can input, store, retrieve, searchand download the following information related to fundraising and alumniactivities:

• Donor Details (including contacts and information on their philanthropicinterests and a user-friendly prospect search function)

• Individual Details (including whether they are an alumnus or not, contactdetails, information on education, skills, employment, interests etc)

• Interactions (including cultivation activities, stewardship activities, generaland alumni event details)

• Research (ie requests for research)• Proposals• Requests for Proposals • Donations History (including information on multi-tranche payments,

ongoing payments, acknowledgement to the donor, tax receipts etc)• Actions• Projects

Additional functionalities to save time and increase data integrity

Advantage is ideal for a newly established Advancement office as it can guidebusiness processes if they have not been set up as yet, thereby saving staff andmanagers’ time. In addition, Impact Consulting offers to export all current dataregarding development and alumni from other systems or datasheets (eg Excel)into the new system. Advantage can also be integrated with other databases atthe institution to save time and to eliminate data entry duplication, thusreducing risks of human error. For example, it can be linked to a general studentdatabase so that when students graduate, they are automatically loaded ontothe system as alumni, or it can be linked to the finance system so that donationsare automatically logged when they are paid. Advantage can also be used as acontact source for mail-merges and this function has been set up to facilitatemaximum ease for the user.

Advantage isunique as it integratesalumni and donorrecords with fund-raising and develop-ment functions andmanagement.

“”


Integrating the Inyathelo Prospect Database

Inyathelo has developed a prospect database that has contact and philanthropicinformation on approximately 1700 donors and a user-friendly search functionand reports for efficient and quick prospect searches. If the institution chooses topurchase this database from Inyathelo, Impact Consulting will integrate the datainto the new Advantage system. It is important to note that Inyathelo and ImpactConsulting work as associates and that this data can only be integrated into theAdvantage system and no other.

Reports

Reports have been set up that cross-reference between tables. For example, onecan print a report of all donations made by a specific donor or of all donationsmade to a specific project. These reports can all be printed for hard files straightoff Advantage, as well as e-mailed as attachments directly to mail recipients.

Data integrity and standards

Advantage will load the following information onto updatable drop-down lists, tofacilitate ease in data capturing and to promote data integrity:• Current project names• Current faculty names• Current staff members who are involved in fundraising.In addition, Impact Consulting will provide proposed data entry standards.

Corporate image

The Advantage system will be designed to show the institution’s logo and cor-porate colours on all forms and reports.

Security

Advantage offers a customised security rights package that will be developedwith the Office. All users will need to log in and will be granted specific rights (egview-only or edit or design) to specific sections of the system. Impact Consultingdoes not charge a licence fee per user. Once the software is purchased, theinstitution will have full rights to allow access to as many users as necessary withcustomised rights for each.

Advantage hasbeen developed usingmy knowledge ofAdvancement, my ownexperience working inan Advancement officeand the expressedneeds and desires ofother AdvancementOffice staff from variousorganisations.

“

”


Technical specification

The software is a web-based system using php and a mysql database. Thesoftware requirements are FOSS compliant, therefore the php code and mysqldatabase are open source and therefore customisable and editable by the client.However, all intellectual property rights are held by Impact Consulting.

Optional service agreement

Impact Consulting does offer an annual service agreement option that can bestructured to suit the institution’s needs and re-negotiated at the end of eachcontract. If a service agreement is not selected, Impact Consulting will be availablefor both upgrades and maintenance on an ad hoc basis at an hourly rate.

Advantage Lite

Impact Consulting also offers a version of Advantage that is suitable for smallerinstitutions such as NGOs. This system has the same basic functionalities, butwith less features and integration options. It is an excellent management toolthat will increase efficiency and ensure institutional memory.


To demonstrate Inyathelo’s commitment to excellence, transparency and continuallearning to all its stakeholders, the founders of the organisation commissionedHeidi Villa-Vicencio of Mthente Research and Consulting Services, an independentresearch and consulting practice, to undertake an evaluation of Inyathelo and itswork from October 2002 (when the institute became a legally established entity)until the financial year ending in February 2006.

The purpose of the evaluation was to provide an impartial and dispassionateassessment of Inyathelo’s performance over the past three and a half years, andto draw attention to areas where the organisation could improve its services inorder to maximise the impact and effectiveness of its operations. The evaluationwas informed by extensive feedback received from the main stakeholders ofInyathelo: donors; programme participants; and Inyathelo staff. It was also basedon a comprehensive review of documentation provided by the organisation.

The evaluation focused on four key areas: organisational issues; programmes;donor relationships; and financial management.

Organisational issues

Inyathelo’s planning and operations have been underpinned by a robust strategicthrust. The organisation’s strategic objectives are clearly outlined in its foundingdocuments, and the annual strategic retreat undertaken by the ExecutiveDirector and the Managing Director attests to the primacy accorded to strategicthinking and planning in Inyathelo’s operations.

The overarching management ethos prevailing at Inyathelo is one of delegationand nurturing staff talent. The institutional culture is open and conducive to

The First Three YearsAn evaluation summary of Inyathelo:The South African Institute for AdvancementHEIDI VILLA-VICENCIO

The purpose of the evaluation was to provide an impartial and dispassionate assessment ofInyathelo’s performance.


personal development. This needs to be harnessed and adapted to support thecritical changes that are required to propel the organisation into the next phaseof its development. There is room, however, for better team-building and intera-ction among staff, in and outside the work environment.

The formalisation of information technology (IT) systems and databases is highlyadvanced. Inyathelo has invested hugely in its IT infrastructure. This is uncom-mon among new organisations, which often see investment in IT as a cost ratherthan a strategic asset.

The Institute’s approach to dealing with funders, developing proposals andformulating end-of-project reports is exemplary. Moreover, its marketing andbranding strategies are of the highest calibre. Even so, there is a room for greaterformalisation of core operational and administrative processes and procedures.

A crucial challenge facing the organisation is to begin the task of identifying anindividual who might lead the organisation in the future. This will require that aclear succession plan or strategy be formulated and implemented within thenext 18 to 24 months so that possible successors can be identified and groomedto take over the organisation’s leadership.

Programmes

All the respondents who took part in the review described Inyathelo’s programmesas excellent and extremely helpful. They felt that they had benefited immenselyfrom participating in these programmes. The programmes: increased theirunderstanding of the fund-raising environment and the need to develop clearincome generation strategies and sound relationships with donors; inculcatedgreater awareness of the issues involved in writing and pricing proposals, includingthe operational and infrastructure overheads informing the base costs oforganisations; and improved their confidence through acquisition of new skills andcompetencies.

The high levels of satisfaction with the quality of the programmes were reflectedin the following comments:

“A wonderful relationship developed between Inyathelo and all of us as partici-pants of the learning co-operative, as well as among the group of Directors over thepast two years. Space was created of mutual trust, making the environmentconducive for us to be open and transparent. This allowed us to be supportive toone another.”

The purpose of theevaluation was to provide animpartial and dispassionateassessment of Inyathelo’sperformance over the pastthree and a half years.

“”


”A key aim of the group was to enhance the skills of black tourism companies. Thishas been achieved. I have introduced new tours since the initiation of the project.”

There was a concern, however, among some universities on the rest of the Africancontinent that the costs of Inyathelo’s institutional and advancementprogrammes were too high. As a non-profit Inyathelo’s charges are based on costrecovery and, in order to address this problem so that access to its programmescould be broadened, Inyathelo has offered discounts to the universities withwhom they worked. However, this essentially meant that the universities weresubsidized from Inyathelo’s own operating funds. It was noted that in most casesthe universities themselves sourced donor funding to pay for Inyathelo’s services.The relative currency strength of the Rand also was a factor with which Inyathelohad to contend.

Donor relationships

The outstanding performance of Inyathelo to date in attracting funding under-scores the high confidence (underlined by the extremely positive donor feedbackreceived during the review) that funders have in its capacity to carry out its work.Overall, donors are very impressed with the way in which funding has beenmanaged by Inyathelo.They conveyed a sense of ownership over the programmesthey funded and felt that their inputs were valued. In particular, donorscommended Inyathelo for : regularly accounting for how funds were disbursed;the enthusiastic participation of its staff in the workshops and their dedicationto their work; its honest relationship with donors; providing regular progressreports on projects; and the openness of its team to suggestions.

The following comments bear testimony to the strong relationship thatInyathelo has cultivated with its donors:

“We were able to get a substantial amount of work done that we would not havebeen able to complete without Inyathelo’s expertise to make the most efficient useof the funds.”

“From a financial point of view the grant has been handled very effectively fromtheir side, with punctual reporting. The content of work has been of great interestand meaning, and we have always been welcomed to participate in Inyathelo’sactivities. I have a frequent and warm ongoing dialogue with the Directors.”


Financial management

Inyathelo has managed its financial resources excellently. Even though the mainfocus has been on attracting funds from donors to support programmes andoperations; the Institute has been able to accomplish this in an entrepreneurialand sustainable manner. Grants and donations constitute over 85% of annualincome, with cost recovery income representing between 5% and 11% of annualincome. The Institute has also been able to raise a reserve as an endowment andcontinues to build this investment for greater sustainability.

Way ahead

In sum, Inyathelo has done extremely well since it was set up and has attainedimpressive levels of sustainability. To maintain this sustainability, and to steer theorganisation into the next stage of its growth, greater attention should be givento: strengthening the formalisation of core operational and administrativeprocesses; identifying additional skills and competencies needed to support agrowing organisation; diversifying the Institute’s revenue sources and reducingits reliance on external donors; and developing an organisational strategy andoperational plan for the next five years, which should include a detailedsuccession plan.

The outstandingperformance ofInyathelo to date inattracting fundingunder-scores the highconfidence that fundershave in its capacity tocarry out its work.

“

”


What happens when universities cannot afford the equipment they need to keeptheir technology up-to-date so that their graduates can compete globally? Whathappens when hospitals can no longer offer modern facilities for their patients?What happens when non-profit organisations run exceptional programmes thatare so far ahead of the game that funders cannot see the value in investing inthem?

In highly developed societies like the USA, UK and Western Europe, philanthropicfoundations step into the breach and contribute to societal advancement bysupporting precisely these kinds of worthy causes. South African giving, incontrast, is focused largely on charitable needs and poverty alleviation – and withgood reason. Individuals, trusts, foundations and many foreign donors areconcerned about the inequalities in our society and correctly believe that aprosperous future for all our citizens cannot be guaranteed unless these areaddressed.

Although essential to post-apartheid society, this tendency has resulted in avacuum when it comes to advancing the country in other important respects.Along with efforts to alleviate poverty and address disadvantage, we need tonurture the skills and talent necessary for the kind of innovation, effectiveleadership and competitiveness that will ensure prosperity and progress. This isthe focus of The South African Foundation for Advancement.

Inspired by the Great Foundations

The South African Foundation for Advancement is inspired by the qualitativechanges which occurred within global philanthropic movements in the latterpart of the 19th century and early 20th century in North America and between1925 and the 1950s in the UK and Europe. It was during these eras that US

Making Dreams PossibleThe South African Foundation for AdvancementSHELAGH GASTROW AND PATRIC TARIQ MELLET

What happens to talented South African youth, brilliant students, innovative scientists,outstanding artists, musicians and film-makers who lack the resources to reach theirpotential?

ADVANCEMENT


foundations emerged such as The Carnegie Corporation of New York, The FordFoundation and The Rockefeller Foundation, while in the UK and Europe we sawthe emergence of the Leverhulme Foundation, Nuffield Foundation, Bernard vanLeer Foundation, The Robert Bosch Foundation and others. The new approach tophilanthropy pioneered by these organisations saw a departure from a purely‘charity’ or ‘hand-out’ approach to one that emphasized investment in systemicchange. This approach is now sometimes referred to as ‘venture philanthropy’because it involves measured investment that is intended to generate clear long-term returns for society.

The emergence of this new philanthropy at critical periods during the lastcentury led the way for the establishment of hundreds of other foundations, allof them guided by the principle of initiating partnerships with, and investing in,innovative civil initiatives designed to transform society. Many internationalfoundations have supported development in South Africa for some time but nowreasonably expect South Africans to grow their own philanthropic vehicles forinvesting in the work that they have sustained for so long. It is now up to us toestablish foundations that are of equal stature to those in the northernhemisphere and that are endowed with the resources required to support thecivil initiatives which are innovatively taking up the myriad challenges associatedwith advancing our society.

A Vehicle for a different type of South African giving

The South African Foundation for Advancement aims to become precisely this – afoundation which is global in standing yet local in its giving. The Foundation hasbeen established as a charitable trust with the fundamental goal of promotingsocial giving in South Africa and directing it towards supporting worthy localtalent and innovation. Between 2006 and 2010 most of our activity will involvesecuring funds from within South Africa, from South Africans abroad and, frominternational friends of South Africa to create a significant endowment for theFoundation. This will enable us to make larger and more effective contributionsthat will have a real impact on society. We recognize that South Africa is a middleincome country and should not be dependent on international donor aidagencies. We believe that, with the current business confidence in the country,there is a window of opportunity to grow our own culture of giving. TheFoundation therefore exists to encourage South Africans to provide financialsupport to our own public benefit organisations and institutions, including ouruniversities, museums, libraries, theatres and nature reserves.

We recognize thatSouth Africa is a middle-income country andshould not be dependenton international donoraid agencies.

“”


What SAFFA will support

The Foundation will direct its resources solely towards advancing South Africansociety and its focus will be to:

• Mobilize specific constituencies to grow giving and encourage a culture ofestablishing foundations and charitable trusts.

• Contribute to building self-reliance in respect of development funding and toa shift away from dependence on international donors.

• Support initiatives that encourage further giving and have a multiplier effectin advancing development.

• Provide support for graduate development to ensure optimum use ofeducational opportunity and human resources in South Africa.

• Provide resources to public benefit organisations and institutions to supporttalented people such as scientists, technologists, emerging academics,writers, artists and innovative development practitioners who have excitingnew ideas and the potential to contribute towards advancing our society.

• Provide support for non-profit organisations and institutions that areimplementing groundbreaking development endeavours but face financialimpediments in changing existing paradigms for social, economic andcultural advancement.

• Provide support for key institutions that offer excellence in advancing socialdevelopment. These may include public benefit organisations, hospitals,universities, libraries, museums, heritage sites, orchestras, theatres and naturereserves.

• Provide support for nurturing South African intellectual capital through itsorganisations and institutions and the people who work in them.

The South African Foundation for Advancement is a vehicle specifically designedfor South Africans at home and abroad to grow South African philanthropy andcontribute to education, social development and the promotion of innovation.The SAFFA logo is inspired by the visionary South African leader, OR Tambo, whorose from humble roots to take up the challenges of the world beyond the Engelimountains of Pondoland, and in so doing played a pivotal role in transformingSouth Africa. The logo speaks to all who reach for dreams beyond their ownEngeli mountains. The Foundation is registered as an independent entity fromthe Institute and has its own board of trustees and bank account. The Institute isthe administrative body for the Foundation and further enquiries can be directedto the Executive Director of Inyathelo, Shelagh Gastrow.

SAFFA is a vehiclespecifically designed forSouth Africans at homeand abroad to grow SouthAfrican philanthropy andcontribute to education,social development andthe promotion ofinnovation.

“

”


Approval of the Annual Financial Statements

The financial statements which appear in this report were approved by the trustees on 26 April 2006 andsigned on their behalf by:

R E Van der Ross T M F Phaswana

S F Gastrow P W T Mellet

TrusteesR E Van der RossM SokoT M F PhaswanaS M PityanaN BadshaS F GastrowP W T Mellet

Registered office27th Floor, 1 Thibault Square, Cape Town, 8001

BankersNedbank, a division of Nedcor Bank Limited

AuditorsMoores Rowland

The South African Institute for Advancement Trust(MASTERS REFERENCE IT 2285/2002)

Annual Financial StatementsFOR THE YEAR ENDED 28 FEBRUARY 2006


We have audited the annual financial statements of The South African Institute for Advancement Trust set outon this report for the year ended 28 February 2006. These financial statements are the responsibility of thetrust's trustees. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with International Standards on Auditing. Those standards require thatwe plan and perform the audit to obtain reasonable assurance about whether the financial statements arefree of material misstatement. An audit includes examining, on a test basis, evidence supporting the amountsand disclosures in the financial statements. An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for our opinion.

The trust's policy is to prepare the financial statements on the basis of accounting as set out in Note 1 to thefinancial statements. In our opinion, the accompanying financial statements have been prepared, in allmaterial respects, in accordance with the basis of accounting described in Note 1.

Without qualifying our opinion, we emphasise that the basis of accounting and the presentation anddisclosures contained in the financial statements are not intended to, and do not, comply with all therequirements of South African Statements of Generally Accepted Accounting Practice. The supplementaryschedule set out on page 10 does not form part of the annual financial statements and is presented asadditional information. We have not audited this schedule and accordingly we do not express an opinion on it.

Moores RowlandChartered Accountants (S.A.)Registered Accountants and Auditors

Cape Town26 April 2006

THE SOUTH AFRICAN INSTITUTE FOR ADVANCEMENT TRUST

Report of the Independent AuditorsTo The TrusteesFOR THE YEAR ENDED 28 FEBRUARY 2006


The trustees present their report for the year ended 28 February 2006. This report forms part of the auditedfinancial statements.

1. General reviewThe trust's business and operations and the results thereof are clearly reflected in the attached financial statements.The trust carries on the business of developing and training other similar organisations to obtain funding.

2. Statements of responsibilityThe trustees are responsible for the maintenance of adequate accounting records and the preparation and integrityof the financial statements and related information. The auditors are responsible to report on the fair presentationof the financial statements. The trustees are also responsible for the trust's system of internal financial control.These are designed to provide reasonable, but not absolute, assurance as to the reliability of the financial state-ments, and to adequately safeguard, verify and maintain accountability of assets, and to prevent and detectmisstatement and loss. Nothing has come to the attention of the trustees to indicate that any material breakdownin the functioning of these controls, procedures and systems has occurred during the year under review. Thefinancial statements have been prepared on the going concern basis, since the trustees have every reason to believethat the trust has adequate resources in place to continue in operation for the foreseeable future.

3. Property, plant and equipmentThere have been no major changes in the property, plant and equipment during the period or any changes inthe policy relating to their use.

4. Events subsequent to year endThere have been no facts or circumstances of a material nature that have occurred between the accountingdate and the date of this report.

5. TrusteesThe trustees of the trust during the accounting period and up to the date of this report were as follows:M Soko R E Van der RossT M F Phaswana S M PityanaN Badsha S F GastrowP W T Mellet

6. AuditorsMoores Rowland will continue in office in accordance with section 270(2) of the Companies Act.


Report of The TrusteesFOR THE YEAR ENDED 28 FEBRUARY 2006



Balance SheetAS AT 28 FEBRUARY 2006

2006 2005R R

Assets

Current assetsTrade and other receivables 25 651 34 363Cash and cash equivalents 7 387 492 4 536 866Total assets 7 413 143 4 571 229

Equity and liabilities

Capital and reserves 7 406 850 4 568 012Trust capital 100 100 General reserve 7 406 750 4 567 912

Current liabilitiesTrade and other payables 6 293 3 217

Total equity and liabilities 7 413 143 4 571 229



Income StatementFOR THE YEAR ENDED 28 FEBRUARY 2006

2006 2005NOTE R R

Gross revenue 3 334 171 2 162 340Other income 525 881 465 746Operating costs 4 083 064 2 818 407

Operating loss (223 012) (190 321)Interest income 3 223 012 190 321

Profit for the year _ _



Statement of Changes in EquityFOR THE YEAR ENDED 28 FEBRUARY 2006

GENERALTRUST CAPITAL RESERVE TOTAL

R R R

Balance at 01 March 2004 100 2 749 185 2 749 285Profit for the year - -Transfer to General Reserve 1 818 727 1 818 727

Balance at 01 March 2005 100 4 567 912 4 568 012Profit for the year - -Transfer to General Reserve - 2 838 838 2 838 838

Balance as at 28 February 2006 100 7 406 750 7 406 850



Cash Flow StatementFOR THE YEAR ENDED 28 FEBRUARY 2006

2006 2005NOTE R R

Cash flows from operating activities 136 601 13 123Cash utilised in operating activities 6.1 (86 411) (177 198)Investment income 223 012 190 321

Cash flows from investing activities

Expenditure to maintain operating capacityProperty, plant and equipment acquired (124 813) (35 128)

Cash flows from financing activities

Grants received 2 838 838 1 818 727

Increase in cash and cash equivalents 2 850 626 1 796 722Cash and cash equivalents at beginning of the year 6.2 4 536 866 2 740 144

Cash and cash equivalents at end of the year 6.2 7 387 492 4 536 866



Notes to the Financial StatementsAS AT 28 FEBRUARY 2006

1. Basis of preparation

The financial statements are prepared in accordance with statements of generally accepted accountingpractice.The financial statements are prepared under the historical cost.Unless otherwise specifically stated, this basis is consistent with that of the previous year.

1.1. Revenue recognitionRevenue is recognised once donations and grants has been received.

1.2 Property, plant and equipmentAll property, plant and equipment are initially recorded at cost. All assets are written off in full in the yearof purchase.

2. Property, plant and equipment

2006 2005ACCUMULATED CARRYING ACCUMULATED CARRYING

COST DEPRECIATION VALUE COST DEPRECIATION VALUER R R R R R

Owned assetsAudiovisual equipment 96 178 96 178 – 96 178 96 178 –Furniture and fittings 309 656 309 656 – 278 718 278 718 –Telephone equipment 19 809 19 809 – 19 809 19 809 –Office equipment 46 744 46 744 – 39 730 39 730 –Computer equipment 321 099 321 099 – 272 503 272 503 –Computer software 38 264 38 264 – – – –

831 750 831 750 – 706 938 706 938 –




The carrying amounts of property, plant and equipment can be reconciled as follows:

CARRYING VALUE CARRYING VALUEAT BEGINNING AT END

OF YEAR ADDITIONS DEPRECIATION OF YEARR R R R

2006Owned assetsFurniture and fittings – 30 938 30 938 –Office equipment – 7 015 7 015 –Computer equipment – 48 596 48 596 –Computer software – 138 264 38 264 –

– 124 813 124 813 –

2006 2005R R

3. Investment income

Interest income- Interest received 223 012 190 321

4. Grants received

Gross grants received 6 129 609 3 949 997Less:Transfer to general reserve (2 838 838) (1 818 727)

3 290 771 2 131 270




2006 2005R R

5. Commitments

Operating lease commitmentsThe future minimum lease payments under non-cancellableoperating leases are as follows:Not later than 1 year 289 326 245 570Later than 1 year and not later than 5 years 1 408 032 –

1 697 358 245 570

6. Notes to the cash flow statement

6.1. Cash utilised in operating activitiesAdjustments for:Depreciation 124 813 35 128Investment income (223 012) (190 321)

(98 199) (155 193)Movements in working capitalDecrease/(increase) in trade and other receivables 8 712 (21 103)Increase)/(decrease) in trade and other payables 3 076 (902)

(86 411) (177 198)

6.1. Cash and cash equivalentsCash and cash equivalents consist of cash on hand and balanceswith banks. Cash and cash equivalents included in the cash flowstatement comprise the following balance sheet amounts:Cash and cash equivalents 7 387 492 4 536 866



Detailed Income StatementAS AT 28 FEBRUARY 2006

2006 2005R R

Gross Revenue 3 334 171 2 162 340Donations 43 400 31 070Grants 3 290 771 2 131 270

Income 748 893 656 067Cost recovery fees 525 881 465 746Interest received 223 012 190 321

Total income 4 083 064 2 818 407

Expenditure 4 083 064 2 818 407Audit and accounting fees 50 500 55 600Advertising and marketing 205 090 130 795Bank charges 12 023 9 639Cleaning 15 356 13 683Computer expenses 13 078 16 417Consulting fees – 3 719Depreciation 124 813 35 128Functions, events, seminars and hospitality 481 202 50 584Hire of equipment 37 863 17 931Insurance 23 145 –International conference fees 3 948 270 641Lease rentals 10 800 9 132Legal expenses 19 450 10 133Postage 10,133 5,557Printing and stationery 33 568 42 025Repairs and maintenance 34 780 28 533Resource centre 80 676 115 531Salaries 1 683 469 1 492 441Secretarial fees 13 020 2 430Service providers 535 054 311 425Telephone and fax 109 638 97 016Travel - local 108 664 39 277Travel - overseas 171 880 38 745Utilities 11 057 6 531

Retained income at end of year – –


PatronsDr Mamphela RampheleCyril Ramaphosa

Chairperson Dr Richard van der Ross

Deputy Chairperson & TreasurerFred Phaswana

MembersNasima BadshaDr Mills SokoDr Loveness KaundaDr Iqbal SurvèShelagh GastrowPatric Tariq Mellet

Executive Director:Shelagh Gastrow

Managing Director:Patric Tariq Mellet

Senior Programme Coordinator:Nazli Abrahams

Programmes and Events Coordinator:Samantha Castle

Personal Assistant to the Executive Director:Dianne Poyo

Office Administrator:Cassandra Smith

Receptionist:Afrika Kashe

Patrons, the Board of Trustees and Staff


Inyathelo would like to thank the following organisations and individuals whohave given financial support over the past year:

International

The Kresge FoundationThe Atlantic PhilanthropiesThe Ford FoundationThe Charles Stewart Mott FoundationThe Embassy of FinlandThe Swiss-South African Co-operation Initiative

South African

The City of Cape TownThe National LotteriesBP Southern Africa (Pty) LtdThe Anglo American Chairman’s FundThe First National Bank FundThe Stella & Paul Loewenstein Charitable and Educational TrustThe David Graaff Foundation Mr Sipho PityanaMs Nazli AbrahamsMr Patric Tariq MelletMs Shelagh Gastrow

We have also worked in partnership with:

The Carnegie Corporation of New YorkThe Synergos InstituteThe Tertiary Education Linkages Project/United Negro College FundThe Board of Executors – Private ClientsThe Non-Profit Consortium

List of Supporters


FROM LEFT TO RIGHT: Nazli Abrahams, Shelagh Gastrow, Sharleen Petersen, Cassandra Smith, Patric Tariq Mellet, Samantha Castle, Afrika Kashe, Dianne Poyo.

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