TheCommunity Chest of the Western Cape (CCWC) Due Diligence is an investigativeanalysis of the governance, financial and legal structures of an organisation based on the NPO Act (no. 71 of 1997)and the King IVReport. TheNPO Act promotes best practice standards in ethics, integrity,accountability and transparency. The King IV Report promotes leadership,sustainability and good corporate citizenship.
The non-profit sector subscribes to the standards upheld in the NPO Code which promotes best practice standards in ethics, integrity, accountability and transparency. The King IV code of governance is designed for both the private and non-profit sector. An NPO seeking funding or other donor partnerships, maximises their attractiveness as a grantee or partner when they have been vetted and are due diligence compliant, assisting in organisational sustainability.
When deemed compliant, an organisation can use it as a fundraising tool to accessdonor funding.
This process is voluntary and open to any civil society organisationwanting toconfirm their compliance with the relevant regulatory boards. However, if youare applying for CCWC funding, the Due Diligence is a mandatory requirement.
Your organisation will gain access to the following benefits: Funding Opportunities, Capacity Building Training, Mentoring, Coaching, Networking Opportunities,and Sector Development Consultation.
Below are the list of documentation required when completing your Due Diligence submission:
- Registration Certificate (NPO / NPC or Trust certificate)
- PBO and Section18A approval letter from SARS
- Founding Document (Constitution, Trust Deed, Memorandum of Incorporation or University Statute), Signed and dated.
- Proof of physical address (e.g. Municipal Bill, Creditors account, etc.). Not older than 3 months.
- Bank Account Details - bank confirmation letter. Not older than 3 months.
- Tax Compliance Status PIN / Verification – 2023/2024.
- B-BBEE Affidavit / Certificate for 2023/2024 – must reflect beneficiary breakdown – go to https://bit.ly/36RnSlM to download a template to complete.
- Service Registration Certificate from Social Development, Department of Health or Department of Education (If Applicable).
- 2022/2023 Audited Financial Statements – go to https://bit.ly/3iSVt1p to view Financial Statement Requirements.
- 2022/2023 Annual Report or Chairman’s Report tabled at the AGM.
Draft 2022 AGM or Board or Trustee meeting minutes - where Annual Financial - Statements was presented, if not signed and dated. Please Include signed and dated copy of 2021 AGM or Board or Trustee meeting minutes.
- List of Board Members. Please include ID numbers and highest qualification.
List of Senior Staff Members. Please include ID numbers and highest qualification.
Yes, once your documentation and information provided has been assessed. The CCWC will communicate the outcome of your assessment.
The CCWC will issue your organisation an official “Due Diligence Compliant” certificate, which is renewable annually.
The CCWC will provide you with the reasons for Non-Compliance. Your organisation will also become eligible to enroll in the CCWC Capacity Building Training Programme to assist your organisation in journeying to the best possible compliance standards as per the NPO Act and The King IV Report.
The assessment takes 5 business days to complete, should no follow-ups be required. However,should there be a query on your submission, it could take longer.Thisdepends on how quickly you can provide CCWC with the outstanding documents.
TheCCWC Due Diligence Assessment is done, annually.
The CCWC Due Diligence submission process opens on the 1stApril annually.
The CCWC Due Diligence submission process closes on the 30thNovember each year.
Your organisation will be added to the CCWC Compliant Database and will become eligible for funding consideration by the CCWC or its Donor Partners. Your compliance certificate may also be used as an aid when applying for funding to donors as proof that your organisation has been vetted and meets all compliance standards as per the NPO Act and the King IV Report.
Please note, that the CCWC Due Diligence process is separate from the CCWC Grant-Making process and does not automatically guarantee that your organisation will receive funding from CCWC or its partners. The Due Diligence process simply means that if your NPO is deemed compliant, you will be issued with a Compliance Certificate that is valid until the 31 March of the following year.
The Compliance Certificate means that your organisation meets all compliance standards as per the NPO Act and The King IV Report. Your Compliance Certificate becomes a valuable fundraising tool, as it deems your organisation as credible to the donor market.
Should your organisation not have a BBBEE Beneficiary Affidavit, you may complete the BBBEE Affidavit EME Specifications document, this document is available for download via this link.
It is the CCWC policy, as part of its Funding and Due Diligence requirements that all Organisations applying for funding must submit independently audited financial statements.
TheCCWC Due Diligence submission process closes on the 30thNovember each year.
An Independent Review, Accounting Officer’s Report or Compilation Report unfortunately does not check for irregularities or provide an assessment of risk in the organisation and does not assure the accuracy, completeness or reliability of the Financial Report. A typical clause in an Independent Review, Accounting Officers Report or Compilation Report will have the following disclaimer:
“Since a compilation engagement is not an assurance engagement, we are not required to verify the accuracy or completeness of the information you provided to us to compile these financial statements. Accordingly, we do not express an audit opinion or a review conclusion on whether these financial statements are prepared in accordance with the International Financial Reporting Standards for Small and Medium-Sized Entities.”
We also wish to state that whereas the Department of Social Development may in some cases accept Independent Reviews, Accounting Officer’s Reports or Compilation Reports to accompany the submission of the Annual Narrative Report to DSD; please note that these reports are no longer accepted by CCWC for private funding and compliance purposes.
A service registration certificate is a document provided by a government department that oversees the services offered by NGO's such as health, education or social work services. Below are some examples of the types of services your organisation may be registered to provide.
- Department of Social Development (DoSD) - Child Protection Services, Orphan and Vulnerable Children Care, Social Protective Services etc.
- Department of Education (DoE) - Early Childhood Development Centres, etc.
- Department of Health (DoH) - Health and Safety Certificate, Palliative Care, Care for Elderly, Care for the Disabled (Sensory, Physical and Intellectual) etc.