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REGULATIONS RELATING TO ALLOCATION OF MONEY IN NATIONAL LOTTERY DISTRIBUTION TRUST FUND

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Last checked: 9 October 2019

LOTTERIES ACT

Act 57 of 1997.

REGULATIONS RELATING TO ALLOCATION OF MONEY IN NATIONAL LOTTERY DISTRIBUTION TRUST FUND
[Updated to 14 April 2015]

GoN R645, G. 33398 (c.i.o 30 July 2010),
GoN R311, G. 38687 (c.i.o 14 April 2015).

In terms of section 60 of the Lotteries Act, 1997 (Act 57 of 1997), I, Dr Rob Davies, Minister of Trade and Industry, hereby publish the regulations and the Form for application of grants in terms of Section 28(5), 29(5), 30(5) and 31(6) of the Act. The following regulations will be repealed with effect from 30 July 2010—

Regulation 3446 published in the Government Gazette 21619 of 29 September 2000;
Regulation 6908 published in the Government Gazette 21696 of 27 October 2000;
Regulation 1468 published in the Government Gazette 27118 of 15 December 2004;
Regulation 1863 published in the Government Gazette 28130 of 13 October 2005.

Dr Rob Davies, MP
Minister of Trade and Industry

REGULATIONS RELATING TO ALLOCATION OF MONEY IN NATIONAL LOTTERY DISTRIBUTION TRUST FUND

Definitions

1.1 In these regulations, unless the context otherwise indicates—

“the Act” means the Lotteries Act, 1997 (Act 57 of 1997).

Percentages in respect of allocation of funds (see 26(1))

2.1 The balance in the fund as contemplated in section 26(3) of the Act, shall be allocated as follows—

2.1.1 for charitable expenditure, not more than forty seven per cent (47%);

[Reg 2.1.1 rep by reg 2(a) and reg 2.1.2 renumbered as 2.1.1 and am by reg 2(b) of GoN R311 in G. 38687.]

2.1.2 for expenditure on or connected with the development of sport and recreation, not more than twenty eight per cent (28%);

[Reg 2.1.3 renumbered as 2.1.2 and am by reg 2(b) of GoN R311 in G. 38687.]

2.1.3 for expenditure on or connected with the arts, culture and the national historical, natural, cultural and architectural heritage not more than twenty three per cent (23%); and

[Reg 2.1.4 renumbered as 2.1.3 and am by reg 2(b) of GoN R311 in G. 38687.]

2.1.4 for expenditure in respect of miscellaneous category not more than two per cent (2%).

[Reg 2.1.4 renumbered as 2.1.3 and am by reg 2(b) of GoN R311 in G. 38687.]

Requirements for the allocation of funds for charities (see 28)

3.1 A juristic person applying for a grant in terms of section 28 of the Act shall—

3.1.1 be an organisation or institution established for charitable, benevolent or philanthropic purposes, including friendly societies, welfare organisations and conduit organisations or trusts in respect of any such organisation or institution;

3.1.2 state that its income and property are not distributable to its members, employees or managers, except as reasonable compensation for services rendered;

3.1.3 indicate that changes in the composition of its membership or management will not substantially affect its continued existence;

3.1.4 establish that it aims to improve quality of life of people and communities who are disadvantaged by poverty or social exclusion;

3.1.5 establish that it—

(a) funds or intends to fund projects which enable people to become involved in activities which improve the quality of life of the community as a whole;

(b) funds or intends to fund projects which assist those at greatest disadvantage or excluded from the community, especially projects pertaining to elderly people, the disabled and children or;

3.1.6 indicate that the projects undertaken or to be undertaken shall be for the public good and that there is a clear demand thereof;

3.1.7 indicate that the intended project produces or will produce significant improvements or new developments which would not have otherwise taken place;

3.1.8 establish that the project or intended project is financially viable and capable of being implemented;

3.1.9 establish that it has adequate measures and procedures for the proper application of sound economic and effective management;

3.1.10 ensure that proper accounting records are kept;

3.1.11 furnish a written report pertaining to its financial state of affairs and activities; and

3.1.12 indicate the procedure for changing its constitution in respect of its aims.

Requirements for the allocation of funds for sport and recreation (see 29d))

4.1 A juristic person applying for a grant in terms of section 29 of the Act shall—

(1) be a body established for sport or recreational purposes;

(2) state that its income and property are not distributable to its members, employees or managers except as reasonable compensation for services rendered;

(3) indicate that changes in the composition of its membership or management will not substantially affect its continued existence;

(4) establish that it—

(a) funds or intends to fund projects which enable people to become involved in activities which contribute to the development of sports and recreation;

(b) funds or intends to fund projects which assists disadvantaged communities to become involved in sporting or recreational activities;

(c) provides or intends to provide sporting or recreational facilities which are accessible to communities, including children and the disabled;

(d) will reasonably maintain such facilities;

(5) indicate that the projects undertaken or to be undertaken shall be for the public good and that there is a clear demand therefore;

(6) indicate that the project or intended project produces or will produce significant improvements or new development in sport or recreation which would not otherwise have taken place;

(7) ensure that the project or intended project is financially viable and capable of being implemented;

(8) ensure that it has adequate measures and procedures for the proper application of sound, economic, efficient and effective management;

(9) ensure that proper accounting records are kept;

(10) furnish a written report pertaining to it financial state of affairs and activities; and

(11) indicate the procedure for changing its constitution in respect of its aims.

5. Requirements for the allocation of funds for arts, culture and national heritage (see 30(1))

5.1 A juristic person applying for a grant in terms of section 30 of the Act shall—

(1) be a body established to promote the arts, culture or the national historical, natural, cultural or architectural heritage;

(2) state that its income and property are not distributable to its members, employees or managers, except as reasonable compensation for services rendered;

(3) indicate the changes in the composition of its membership or management will not substantiality affect its continued existence;

(4) ensure that it aims—

(a) to enable people throughout the Republic to enjoy a range of art activities both as audience and participants;

(b) to make the arts accessible to more people;

(d) to promote consciousness of, or to preserve, culture or national historical, natural or architectural heritage;

(5) ensure that it—

(a) funds or intends to fund projects—

(aa) which address the under-provision of facilities outside the principal centres of population;

(bb) to improve or refurbish existing venues;

(cc) within art forms which are inadequately provided for;

(dd) which extend access to the arts; or

(ee) which promote consciousness and aim to preserve culture or the national historical, natural, cultural or architectural heritage;

(b) enables people to become involved in activities which contribute to the development of the arts, culture or the National historical, natural, cultural or architectural heritage;

(c) funds or intends to fund projects which assist disadvantaged communities to become involved in the arts, culture or the ‘national historical, natural or architectural heritage;

(d) provides or intend to provide facilities in respect of the arts, culture or national historical, natural or architectural heritage which are accessible to communities;

(e) indicate that the projects undertaken or to be undertaken shall be for the public good and that there is a clear demand therefore;

(f) indicate that the project undertaken or to be undertaken shall safeguard and enhance the natural, cultural or architectural heritage of South Africa;

(g) indicate that the project or intended project will produce historical, natural, cultural or architectural heritage which would not otherwise have taken place;

(h) establish that the project or intended project is financially viable and capable of being implemented;

(i) establish that it has adequate measures and procedures for the proper application of sound, economic, efficient and effective management;

(j) keeps proper accounting records;

(k) furnishes a written report pertaining to its financial state of affairs and activities; and

(l) indicates the procedure for changing its constitution in respect of its aims.

Requirements for the allocation of funds for miscellaneous purposes (Sec 31)

6.1 A juristic person applying for a grant in terms of section 31 of the Act, in respect of any matter approved by the Minister as contemplated in section 26(3)(e) of the Act, shall—

(a) state that its income and property are not distributable to its members, employees or managers, except as reasonable compensation for services rendered;

(b) indicate that changes in the composition of its membership or management will not substantially affect its continued existence;

(c) ensure that it aims to improve the quality of life of people and communities who are disadvantaged by poverty or social exclusion;

(d) indicate that the projects undertaken or to be undertaken shall be for the public good and that there is a clear demand therefore;

(e) indicate that the project undertaken or to be undertaken shall promote social inclusion and encourage community involvement;

(f) indicate that the project or intended project produces or will produce significant improvements or new development which would not otherwise have taken place;

(g) ensure that the project or intended project is financially viable and capable of being implemented;

(h) ensure that it has adequate measures and procedures for the proper application of sound, economic, efficient and effective management;

(i) ensure that proper accounting records are kept;

(j) furnish a written report pertaining to its financial state of affairs and activities; and

(k) indicate the procedure for changing its constitution in respect of its aims.

Application Forms for grant (see s 28(5), 29(5), 30(5) and 31(6)

7.1 Any application for a grant in terms of section 28(5), 29(5), 30(5) and 31(6) of the Act shall be made to the distributing agency on the Form 2010/1 in the Annexure.

Categories of Grants

(8) The National Lotteries Commission must categorise the grant funding as follows—

(a) small grants for application of funding not exceeding five hundred thousand rand (R500, 000.00);

(b) medium grants for application of funding for more than five hundred thousand rand (R500, 000.00) but does not exceed five million rand (R5, 000, 000.00); and

[Reg 8 ins by reg 3 of GoN R311 in G. 38687.]

(9) Irrespective of the amount applied for, the Distribution Agency shall in its discretion determine the amount to be made to each approved applicant, after duly considering the monies available for distribution, the number of applications received and government priorities.

[Reg 9 ins by reg 3 of GoN R311 in G. 38687.]

(10) An applicant to whom a small grant is made must, at such period as may have been imposed at the time when a grant is made submit to the National Lotteries Commission a report detailing how the grant funds were used, together with all supporting invoices and any other relevant documents for the purposes of financial accounting.

[Reg 10 ins by reg 3 of GoN R311 in G. 38687.]

(11) An applicant to whom a medium grant is made must, at such period as may have been imposed at the time when a grant is made, submit to the National Lotteries Commission an independently reviewed financial statement.

[Reg 11 ins by reg 3 of GoN R311 in G. 38687.]

(12) An applicant to whom a large grant is made must, at such period as may have been imposed at the time when a grant is made, submit to the National Lotteries Commission an audited financial statement in respect of the grant so awarded, provided that an applicant who has been awarded a grant amounting to not more than ten million rand (R10 000 000.00) is, subject to Regulation 13, only required to submit an independently reviewed financial statement.

[Reg 12 ins by reg 3 of GoN R311 in G. 38687.]

(13) Irrespective of the amount of grant made to an applicant, if that applicant is already required to submit an audited financial statement in terms of any other law, the said applicant must submit to the National Lotteries Commission an audited financial statement.

[Reg 13 ins by reg 3 of GoN R311 in G. 38687.]

(14) No applicant to whom a grant was made by the National Lotteries Commission shall be eligible to apply for another grant within a period of twelve (12) months from the date of receipt of that grant, irrespective of whether the project is different from the one previously applied for.

[Reg 14 ins by reg 3 of GoN R311 in G. 38687.]

Where an organisation submits an application for multi-year funding, the National Lotteries Commission in consultation with the Minister may, prior to approval of funds for a maximum period of three years, consider the availability of funds and government priorities, subject to these Regulations.

[Reg 15 ins by reg 3 of GoN R311 in G. 38687.]

(16) Notwithstanding the provisions of these Regulations the National Lotteries Commission may at any time conduct a site visit in order to verify any information and operations of the organisation which has applied for or received a grant from the National Lotteries Commission.

[Reg 16 ins by reg 3 of GoN R311 in G. 38687.]

General

These regulations shall be called Regulations Relating to Allocation of Money in National Lottery Distribution Trust Fund.

FORM 2010/1

APPLICATION FOR A GRANT IN TERMS OF THE LOTTERIES ACT (ACT 57 OF 1995)

INSTRUCTIONS

Please indicate (with a cross in the relevant box) if your application for a grant is in terms of—

◻ Charities (Section 28 of the Act)
◻ Sport and Recreation (Section 29 of the Act)
◻ Arts, Culture and National Heritage (Section 30 of the Act)
◻ Miscellaneous Purposes (any purpose other than the three categories above) (Section 31 of the Act)

This application form is in five parts—

In section A: Details of the organisation.

In section B: Explanation on the funding required.

In section C: Information of organisation finances.

In section D: Details of at least two contactable Referees.

In section E: Mandatory documents to be submitted with the application form.

NB: If there is not enough space on this form for your answer, please use and attach further sheets of paper
.......................................................................................................................................................................

SECTION A
DETAILS OF YOUR ORGANISATION

A1 Name of organisation ............................................................................................................

A2 Postal address: ......................................................................................................................

Postal Code: ...........................................................................................................................

A3 Street address: ......................................................................................................................

...................................................................................................................................................

Province: .................................................................................................................................

A4 Telephone number: A5 Fax number: .....................................

A5 E-mail address: .....................................................................................................................

A6 When was your organisation formed: ...............................................................................

A7 What kind of registered organisation are you? (E.g. Non-Profit Organisation, Section 21 Company, Public Benefit Trust): .......................................................................................

A8 When was your organisation registered? .......................................................................

A9 Registration number: ...................................................... (Please attach a copy of your registration certificate)

A10 Details of the main contact person with executive powers (e.g. Manage / Programme Director)

Name: ............................................................................. Position: .....................................

South African I.D. Number: .................................................. (Attach Certified Copy of ID)

Address: .................................................................................. Tel: .....................................

A11 Details of a second contact person (e.g. Chairperson):

Name: ............................................................................ Position: ..................................

South African I.D. Number: .................................................. (Attach Certified Copy of ID)

Address: .................................................................................. Tel: .................................

A12 Names and positions of the Members of the Management Committee: (Members are required to attach certified copy of ID):

Name: ................................................. Position: ...............................................