National Lotteries Commission grants R1.2bn as compliance hurdles slow process

The current lottery funding environment reflects a deliberate tightening of compliance controls

The Eastern Cape received a major boost after the National Lottery Commission donated nine early childhood centres.
The approved funding budget has allocated R804m to charities, R170m to arts, culture and national heritage, and R224m to the sports and recreation sector. (Supplied)

The National Lotteries Commission (NLC) has adjudicated over 1,281 applications for funding out of the 3,137 compliant applications it received across all provinces during its 2024/2025 call for applications.

The call for applications opened on December 2 2024 and closed on December 19 2025. Adjudication commenced in August 2025.

The NLC said the 1,281 adjudicated applications represented 28.6% of the total applications received, with the remaining applications to be rolled over into the new financial year for completion.

The NLC said it was working around the clock to ensure that all outstanding applications were ready for adjudication by May 31.

It is further anticipated that the adjudication of these applications will be completed by October, subject to budget availability.

The approved funding amounts to nearly R1.2bn, with R804m allocated to charities, R170m to arts, culture and national heritage and R224m to the sports and recreation sector.

The NLC said the 2024/25 call for applications was the first call to be handled through the Thuthuka online grant management system, which requires organisations to register their profiles and comply with the legislative requirements of the department of social development, the Companies and Intellectual Property Commission and the South African Revenue Service, among other bodies.

The NLC said the declined applications were because of, among others, incomplete or inadequate financial documentation, quotation deficiencies, insufficient project planning and programme details, governance, registration and institutional compliance gaps, prior funding history, risk flags and compliance status and service delivery credibility.

The NLC said the current funding environment reflected a deliberate tightening of compliance controls, including:

  • Verification of the legitimacy of applicant organisations and their directors;
  • Verification of applicant organisations’ programmes and projects;
  • Verification of applicant organisations’ physical operating addresses;
  • Assessment of financial and governance capacity; and
  • Referral of non-compliant entities for further review or investigation where required.

“Non-compliance of applications contributed to extended timelines, particularly for applications requiring further verification or validation,” NLC commissioner Jodi Scholtz said.

Where applications were compliant and adjudicated, the NLC achieved 92% adjudication within the legislated 150-day period, she said.

The NLC said it recognised that many non-profit organisations experienced compliance challenges that could affect their ability to access funding.

“We have embarked on capacity-building initiatives focused on governance, compliance, and institutional strengthening,” Scholtz said.

These initiatives include education and awareness sessions, financial and operational reporting workshops and help-desks that target stakeholders across the country.

“The NLC board is re-affirming its commitment to funding ‘good causes’ in historically disadvantaged communities by ensuring the NLC prioritises grant distribution toward projects that alleviate poverty, reduce inequality and empower vulnerable groups, specifically in rural and underserved South African areas,” NLC board chairperson Prof Barney Pityana said.

TimesLIVE


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