THE ITHUBA TRUST by gyvwpsjkko


									    TH E ITH UBA TRUST


     Ithu ba (a Zu lu and Xhosa w ord m eaning “opportunity”) w as form ed in 1989 as
     a Su stainable Develop m ent fu nd ing cond u it, in ord er to allocate fu nd s am ongst
     d isad vantaged grou p s and com m u nities via grass-roots and com m u nity-based
     organizations. The objective w as to rend er services in the field s of H ealth;
     Welfare; Ed u cation and Su stainable Develop m ent.

     Ithu ba w as the brainchild of a creative and innovative thinker, namely Gareth
     Pyne-Jam es, w hose d ream w as to d evelop a fu nd raising m echanism that w ou ld
     captu re both the im agination of the Sou th African p u blic and simu ltaneou sly
     raise su bstantial fu nd s for p eop le in need . Arm ed w ith this vision, Gareth
     m anaged to p ersu ad e First N ational Bank to p rovid e a loan of R400,000 w ith
     w hich the Ithu ba initiative w as lau nched . Ithu ba also m anaged to secu re a rent-
     free office in Braam fontien and ad d itionally negotiated w ith the com p u ter and
     m otor trad e to d onate equ ip m ent and vehicles to the Ithu ba initiative.

     The Ithu ba fu nd raising strategy w as based on the significant role that the
     m ed ia, p articu larly the electronic m ed ia, p lays in general fu nd raising. The first
     p art of the strategy w as to secu re air-tim e on SABC national television for the
     televised national telethon, in w hich the Sou th Africa p u blic w as invited to call
     in w ith financial p led ges.

     Ithu ba secu red the sup p ort of a variety of high p rofile Sou th Africans, m ostly
     from the sp orting and entertainm ent sectors, to p articip ate (free of charge) in a
     variety of fu nd raising and p rom otional activities in variou s centers arou nd the
     cou ntry. The fu ll-d ay televised p rogram , u np aralleled in Sou th Africa to this

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     d ay, show ed all events occu rring cou ntry-w id e, w hilst sim u ltaneou sly
     rep orting on the p rogress of fu nd s being p led ged .

     Ad d itionally, Ithu ba recognized the need to involve the corp orate sector, w hich
     has rem ained a significant role-p layer in the d evelop m ent of the Ithu ba
     initiative. In retu rn for any corp orate sp onsorship (w hich w as u tilized to fu nd
     op erations) comp anies su ch as Pick n Pay received su bstantial air-time d u ring
     the televised telethon to exp ose their corp orate p rofile. The valu e of su ch air-
     tim e w as in excess of any corp orate sp onsorship . This arrangem ent p roved to
     be a w in-w in scenario.


     “The Ithuba Trust is a dynamic, innovative human development initiative which seeks
     to empower disadvantaged groups and communities through the Republic of South
     A frica, by enhancing the quality of human life and by the alleviation of human
     suffering; through the power of opportunity, and via the creation of a multiplier effect.”


        (A)       DON ATION S

                  Du ring the p eriod 1989-1992, the Ithu ba initiative had tw o p rimary
                  sou rces of fu nd ing:

              •   The Corp orate Sector

                     Corp orate d onations secu red from bu siness, in retu rn for airtim e
                     on SABC Television, w ere u tilized to fu nd op erational and infra-

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             stru ctu re costs of the Ithu ba initiative, in keep ing w ith Ithu ba’s
             p hilosop hy of allocating one hu nd red p ercent of all fu nd s
             p led ged to su stainable d evelop m ent.

      •   The Sou th African p u blic

             As has been noted , this su p p ort w as secu red via the annu al
             televised “Ithuba D ay” telethon w hich interestingly (and in m ost
             instances) yield ed in excess of a 100% p aym ent ratio in relation to
             the am ou nt p led ged .


          In the early 90’s, w ith an ailing econom y, a cripp ling d rou ght and
          p olitical u ncertainty in Sou th Africa, Ithu ba id entified the need to
          critically re-exam ine its fu nd raising techniqu es. Extensive research
          w as cond u cted , both locally and abroad , the resu lts of w hich clearly
          ind icated that by far the m ost efficient and effective m echanism for
          raising su bstantial fu nd s for so-called “good cau ses” w as via the
          m arketing and sale as scratch-card s. Sim u ltaneou sly, international
          exp erience   d ictated   the   need    for    m ass    m ed ia   (electronic)
          involvem ent, i.e. television gam e show s, to coincid e w ith a scratch-
          card op eration.

          Ad d itionally, the research ind icated that the p recu rsor of N ational
          Electronic Lotteries, w orld w id e, w ere the lau nch of a scratchcard
          op eration. This has com e to p ass in Sou th Africa.

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               In 1991, the Ithu ba Tru st’s p rofessional fu nd -raising w ing, Gam es
               Africa (Pty) Ltd w as form ed . This com mercial ventu re w as lau nched
               by sharehold ers (both foreign and local) w ho invested som e R12
               m illion, and the services of the US-based Lottery Su p p ort Grou p
               w ere engaged to set u p the op eration.

               Within a p eriod of six m onths of com m encing scratch-card sales, R22
               m illion w as raised for allocation via the Ithu ba Tru st to the
               “su stainable d evelop m ent”. Likew ise, the w eekly television gam e
               show “Win ‘n Spin” w as lau nched sim u ltaneou sly and continu ed to
               enjoy sp iraling Au d ience Ratings (A.R.’s), thu s ensu ring that the
               Ithu ba brand rem ained a hou se-hold nam e. To d ate, the Ithu ba
               Gam es initiative has raised in excess of R200 million for the Sou th
               African w elfare and su stainable d evelop m ent sector.


     The focu s of the Ithu ba Tru st continu es to rem ain that of em p ow ering
     grassroots,   com mu nity-based      organizations   that   rend er   services    to
     d isad vantaged grou p s and com m u nities involved in su stainable d evelop ment.


     From hu m ble beginnings, the Ithu ba Tru st has m ad e significant gains, som e of
     w hich are highlighted below :

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      Mind fu l of the scarcity of resou rces, Ithu ba has consistently engaged in
      creative fu nd raising ap p roaches. The Annu al televised telethon w as
      noted as u np aralleled in Sou th Africa and cap tu red the hearts and the
      im agination of the Sou th African pu blic. Likew ise, Ithu ba anticipated
      the need for a critical re-evalu ation of existing fu nd raising ap p roaches
      and consequ ently em barked u p on a jou rney into the initially u nknow n
      territory of lotteries and scratch-card s.

      The “Ithu ba Games” initiative w as so su ccessfu l, that research ind icated
      a 98% brand -aw areness level in Sou th African hou sehold s. Ad d itionally,
      Ithu ba is one of the largest not-for-p rofit fu nd ing initiatives, w ith no
      foreign or state fu nd ing being received , yet having d istribu ted a
      staggering R200 p lu s million to d ate.


      Im p licit in the op erating p hilosop hy of the Ithu ba Tru st is the notion of
      partnerships, and thus com m u nicating w ith su ch p artners and stake-
      hold ers has remained a constant featu re w ithin Ithu ba. This has resu lted
      in Ithu ba being w id ely know n as “com m u nity-orientated ” and easily
      accessible, d esp ite being based in Johannesbu rg.

      The Ithu ba Tru st has m aintained consistent com m u nication w ith the
      follow ing grou p s:

         •     Governm ent- Dep artm ents of Social Develop m ent, Inland
               Revenu e, Trad e and Ind u stry; Ju stice etc

         •     Para-Statals – for exam p le, the N ational Develop m ent Agency

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                •     The Corp orate Sector – via foru m s su ch as The Sou th African
                      Grant-Makers Association

                •     The Welfare and Social Develop m ent Sector – via “Ithu ba
                      Calling”, the Tru st’s new sletter m echanism , etc.


     Ithu ba has m aintained a constant vigil regard ing the legislative framew ork
     w ithin w hich it op erates. Rep resenting a su bstantial p rop ortion of civil society,
     the Tru st has u tilized all op p ortu nities to m ake rep resentations regard ing
     legislation for the u ltim ate benefit of its stakehold ers.

     Ithu ba has m ad e significant rep resentations vis-à-vis the follow ing p ieces of

        •   The Fu nd raising Act, 1978 (Act of 1978)

        •   The White Pap er for Social Welfare (Government Gazette, 1996/ 02/ 02)

        •   The Social Welfare Action Plan (SWAP) (1996) Dep artm ent of Welfare)

        •   N ot-for-Profit Organisations Bill (1997)

        •   The Katz Com m ission (1997)

        •   The H ow ard Com m ission (1992)

        •   The Wiehann Comm ission (1994)

        •   Poverty H earings convened by SAN GOCO, the H u man Rights
            Com mission and the Sou th African Cou ncil of Chu rches

        •   The Lotteries and Gam bling Bill (1997)

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     The Ithu ba Games initiative based its op erations (both in term s of fu nd raising
     and fu nd -d istribu tion) on solid international and local research. Ad d itionally,
     the Ithu ba Tru st has contribu ted to a new bod y of know led ge (one of the core-
     goals of research) via a Research Stu d y in association w ith the:

            Grad u ate School of Pu blic and Develop m ent Managem ent

            Facu lty of Managem ent, University of the Witw atersrand .

     The stu d y, a Masters Degree Thesis entitled “Fu nd ing Crisis in the Welfare
     Sector” attracted the attention of the Washington-based Johns H op kins
     University, w hich is cond u cting an international stu d y on “not-for-p rofit”
     sectors, w orld -w id e. The Ithu ba Research p roject w ill form a su bstantial basis
     of the Sou th African chapter of the international p rogram , w hich is being
     m anaged and coord inated by the University of the Witw atersrand .

     The Ithu ba Tru st has received su bstantial recognition for this contribu tion
     w hich, it is anticip ated , w ill translate into m eaningfu l gains for “not-for-p rofit”
     sectors w orld -w id e.


     The Ithu ba Tru st has consistently re-invented itself in ord er to rem ain at the
     cutting ed ge of socio-p olitical d evelop m ents w ithin a cou ntry engaged in a
     p rocess of d ynam ic transition. Recognizing that it is a m icrocosm of broad er
     society, the Ithu ba Tru st itself has u nd ergone significant, ap p rop riate and

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     necessary transform ation in ord er to facilitate a continu ed m eaningfu l role as a
     significant p artner w ithin the su stainable d evelop m ent sector.

     A su bstantial strategic p lanning exercise resu lted in a transform ed initiative
     w ith a strong focu s on the follow ing issu es:

     •   Accou ntable and solid lead ership

     •   Em p ow erm ent

     •   Re-d ressing m anagem ent inequ ities inherited from the ap artheid era

     •   Particip atory managem ent

     •   Fiscal m anagem ent and accou ntability

     •   Corru p tion-free governance

     •   Equ itable allocation and m anagem ent p olicy and p roced u res


     In resp onse to the rap id d evelop m ents w ithin the gam ing and gam bling
     ind u stry, and in accord ance w ith variou s p rovisions w ithin the Lotteries Bill,
     the m ost relevant in this instance being the ap p ointm ent of Distribu tion Agents
     (for the allocation of fu nd s raised ) w ithin civil society, the Ithu ba Tru st
     sp earhead ed the lau nch of the Ubu ntu Tru st, to be app ointed as the
     d istribu tion agency for charities.

     The nam e “Ubu ntu ” w as d eliberately and carefu lly selected and w hilst there
     app eared to be no d irect English translation, the p rincip le w hich form s the
     basic of the term relates to that of “hu m anity”. The Ubu ntu Tru st w as a
     strategic alliance of stake-hold ers, all of w hom had an interest in the so-called

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“good cau ses” asp ect of the scratch-card ind u stry. The variou s mem bers of the
Ubu ntu Tru st are the follow ing:

•     The Ithu ba Tru st

•     The Viva Tru st

•     The Kagiso Tru st

•     The Sou th African Red Cross Society

•     The World Wid e Fu nd for N atu re (WWF-SA)

•     The Sp orts Cou ncil (N .S.C)

•     The Comm u nity Chest

•     The N on-Profit Partnership

•     Sou th African N on-Government Organisations Coalition

•     The Welfare Foru m

The Lotteries bill stip u lates that p otential Distribu tion Agencies m u st rep resent
and act for and on behalf of civil society. Ad d itionally they m u st m eet the
follow ing criteria:

•      Track record and ap p rop riate exp erience in fu nd -d istribu tion on a
       national basis,

•      Cap acity to m onitor fu nd allocation (to ensu re efficiency and
       effectiveness in u tilization of fu nd s);

•      Self-regu lation throu gh stringent ad m inistrative p roced u res and
       m anagement skills,

•      Marketing and p rom otional cap abilities to be su pp lied in sup p ort of the
       national lottery.

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      It is app rop riate to note that the Ithu ba Tru st, both ind ep end ently and w ithin
      the Ubu ntu Tru st, satisfied all these requ irem ents. Althou gh the Ubu ntu Tru st
      w as u nsu ccessfu l in secu ring the app ointm ent as a d istribu ting agency for
      N ational Lottery, the Chief Execu tive Officer of Ithu ba Tru st w as app ointed by
      the Minister of Trad e and Ind u stry, Alec Irw in, to serve on the Distribu tion
      Agency for charities.


      Mind fu l of its resp onsibility to assist the su stainable d evelop m ent sector and
      likew ise in accord ance w ith recent trend s vis-à-vis m arrying comm ercialism
      w ith the “not-for-p rofit” sector, the Ithu ba Tru st lau nched its com m ercial w ing,
      know n as Ithuba Trust Investments (Pty) Ltd, (trad ing as Ithu ba H old ings).
      The rational u nd erlying this strategic d ecision w as that of ensu ring a flow of
      fu nd s for the su stainable d evelop m ent sector in the face of the cessation of the
      scratch-card ind u stry.

      This is likew ise in keep ing w ith cu rrent trend s of “not for p rofit” entities
      engaging in incom e-generating activities. As the fu nd ing crisis w ithin the
      Sou th African N GO sector d eep ens, N GOs are increasingly taking the initiative
      to generate their ow n fu nd s w hich are p lou ghed back into su stainable
      d evelop m ent p rojects.

      Ithu ba Tru st Investm ents (Pty) Ltd is aim ed at p rom oting su stainability in both
      the op erational infra-stru ctu re of the Ithu ba Tru st, as w ell as in the continu ed
      generation and allocation of fu nd s for the su stainable d evelop m ent sector.

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      The Sou th African “not-for-p rofit” sector cu rrently faces a fu nd ing crisis of
      su bstantial p rop ortions. Over recent years, there has been a stead y d ecline of
      income from d onors (both foreign and local), su bstantial governm ent su bsid y
      cuts, rising levels of p overty, p op u lation grow th and crim e and violence, w ith a
      concomitant increase in d em and for services. Increasing p ressu re is being
      p laced up on ailing resou rces and infra-stru ctu re. There is no d ou bt that this
      com bination of factors is a recip e for certain financial d isaster and that u nless
      broad-based empow erment initiatives su ch as Ithu ba can be fou nd , the Sou th
      African w elfare and su stainable d evelop m ent sector face collap se.

      Ithu ba w ill continu e to rem ain the voice of civil society and continu es to be
      d eep ly com m itted to su stainable d evelop m ent, the alleviation of hu m an
      su ffering and the enhancement of the qu ality of hu man life.

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