Why Cafda forced to sell property
THIS is being issued to clarify the position regarding the property of the Cape Flats Development Association (Cafda)in Grassy Park.
The property which Cafda currently occupies and utilises to render services and social welfare and development programmes to various communities is owned by the association.
The association and its activities are governed by a constitution. Cafda’s constitution was vetted and approved by the non-profit organisation or the NPO Directorate and Cafda had in turn received communication from the NPO Directorate where it stated it was satisfied with the current affairs of the association as well as the financial and narrative reports to date.
A duly elected governing board meets regularly and has a fiduciary responsibility to act in the best interests of the association.
The association renders social welfare services, to the various communities, in terms of a Transfer of Payment Arrangement (TPA), which was entered into with the Department of Social Development (DSD) in the Western Cape. The TPA expires in March 2018, and Cafda is committed to continuing to render these services to the local communities until this time.
As an NPO, Cafda is dependent upon donor-funding, which is becoming increasingly more difficult to secure. Donors and potential funders do not regard Cafda to be a developing but a developed organisation and their funding is therefore directed to new organisations. Cafda has significant monthly operating expenses and the property, buildings and expenses associated therewith, amount to approximately 70% of the monthly operating expenses of the association.
Although funds are provided by the DSD, these simply cover the salaries of the social workers, whose further expenses must be borne by the association.
In an endeavour to reduce the operating expenses, Cafda was forced to reduce certain staff members, but this was not enough to cover its deficit. While the previous sale of a property owned by the association (Mary Atlee Centre), resulted in capital being generated, which money was invested, but some of these funds have been eroded by the need to fund the deficit between the monthly income and expenditure of the association.
In light of the financial difficulties, all relevant factors were taken into account to dispose of the property, and the property was placed on the open market for sale during October 2016.
A buyer has been found for the property, although the sale thereof has not been finalised. The decision to sell the property was not taken lightly, but the Cafda management, along with the governing board, strongly believe it was the most judicious option to adopt in order to ensure the continued existence of the association, so as to enable it to continue to render services to the local communities.
Various options have been explored so as to enable the association to continue to render the services such as social welfare.
While we appreciate that the sale of the property of the association has stirred a lot of emotion in the communities, there has also been a great deal of rumour mongering going on and misinformation being spread by various persons.
We trust this communication will clarify the position with regard to the possible sale of the property.