Additional NPC Documents

Additional discussion documents: POLITICAL FUNDING AND ANC FINANCIAL SUSTAINABILITY

organisation on a monthly basis. 23. In this regards the ANC must develop a ‘stop order campaign’ to encourage members to contribute and make donations on a monthly basis. Funding Opportunities from ANC Membership 24. The following are the opportunities that could be mined from the membership of the organi sation: A. Insurance 25. The ANC membership has a critical mass that can be utilized in the provision of life, endowment and funeral insurance products to its members. This opportunity could be undertaken in a venture with an established insurance underwriter. B. Loyalty Programme 26. Loyalty Programmes are used in a va riety of retail environment. Typically, a retailer would use Loyalty Cards to identify the purchaser and to reward that purchaser with an incentive in a form of a discount, points, that could be used for future purchases. Large retail outlets like Pick and Pay, Woolworths, Makro, use these loyalty cards to reward their cus tomers. An opportunity exists for the ANC to use its membership base to extract value from these programmes. C. Pre-Paid Airtime 27. The pre-paid vouchers are widely used in the mobile phone industry, as well as by distributors of certain services like pre-paid electricity. Through venture with the service providers in these industries, huge fundraising opportunities exist for the organisation. D. ANC Merchandise 28. The ANC merchandize is yet another opportunity that the organisation should look at very closely, exploiting the ‘brand’ that is already a hit in the market place. E. Other Opportunities 29. The ANC may want to consider setting up provincially-managed business ven tures in areas the following areas: a) Conferencing b) Hotel and accommodation

c) Transportation, e.g. bus and car hire. d) Catering e) Posters, pamphlets and t-shirts printing, etc. f) These opportunities could be housed in wholly or partially owned private businesses where the pro vincial structure has a stake. In con sidering all these funding avenues, care should be taken in respect of the following threats, concerns and constraints all of which have to be adequately addressed.

Threats a) Poor management of the membership data base of the organisation. b) Unscrupulous and dishonest members who are entrusted with the fortunes of the organi sation. c) Conflict of interest within the structures of the movement with regard to business opportuni ties. Concern a) In establishing entities and business ven tures, the ANC should consider the impact thereof on the small to medium enterprises, who are also supporters of the organisa tion: Reputational/Political risk (labeling, e.g. Chancellor House issue, etc).. PRINCIPLES AND PRACTICES FROM INTERNATIONAL EXPERIENCE 30. South Africans must develop a model of party financing which is tailored to our own needs. Nevertheless, there is much we can learn from other countries. The scope, function and quantity of public financing political par ties vary considerably in different countries. In some cases public funding does not exist, while in others the taxpayer covers all party expenses, with private donations banned out right. 31. In general we can distinguish the following activities that are publicly funded either in part or in full in modern democracies: a) Party operational expenditure including offices and personnel at national and sub-national level.

19