Cap to be Imposed on Lotteries Funding

Department of Trade and Industry

Proposed amendments to the National Lotteries Regulations will set a cap on how much funding potential beneficiaries can apply for in response to calls for applications.

The proposal is contained in Draft National Lotteries Amendment Regulations published in Government Gazette 38043 for comment.

The limit would be specified in the call for applications issued by the National Lotteries Commission.

The funding is sourced from the National Lottery Distribution Trust Fund.

The proposal adds that the cap would be imposed irrespective of the number of projects listed in the organisation’s application.

The amendments also call on the National Lotteries Commission to help distributing agencies with administrative support when deciding on the merits and demerits of applications.

The commission must also:

•    Undertake awareness programmes on the grant making process;
•    Provide financial management or capacity building training to applicants for grants when required; and
•    Develop procedures to ensure allocation of funds to worthy causes as identified by government priorities.

Distributing agencies would also have to finalise their decision-making process on applications within 150 days.

The commission would also be empowered to visit an applicant to check on the veracity of the application. A request for additional documentation could also be made.

Grant recipients would also have to follow treasury regulations when making purchases using acquired funds.

The amendments also outline how applications from agents are to be drawn up and under what circumstances such applications will be considered.

Agents will not be able to claim more than R150 000 in fees for services rendered.

State entities will not be allowed to make applications for funding.

Changes are also proposed for the regulations governing how trust fund money is allocated.

Not more than 30% of the fund can go to sporting sector beneficiaries and arts and culture-related entities will be limited to 20%.

Small grants cannot exceed R500 000 while large grants are those in excess of R5 million.

No applications for further grants can be made within 12 months of having received funding.

Written comment is invited until 30 October 2014.

It can be emailed to MLebotse@thedti.gov.za.

Sabinet Cape Town Office