WSP for NPO – How much of the training applied for in WSP is subsidized? 16


Good morning,

I trust you are all well. I am a newbie in this business. Currently finalizing the WSP for the NPO where I work. This may be a blond question however I would like to know how much of the WSP is subsidized for NPO if in corporate I gather it ranges from 50%.

Does anyone know how the funding is based and decided? Should we as an organisation have the financial capacity to carry out the training if it happens that we do not get approved.

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16 thoughts on “WSP for NPO – How much of the training applied for in WSP is subsidized?

  • Ian Webster

    THe WSP and ATR include all training accredited or not. Discretionary grants depend on the SETA, but usually apply only to accredited, credit-bearing courses.

    B-BBEE scorecards are more fussy and must be looked at very carefully if that is your plan with the training. 

    I don’t think corporates would gain on their training score if they included your employed learners, but they might get points for enterprise development. I don’t know. It’s not my field of expertise. But they would get tax relief if you have 18A status (or whatever it is now called).

  • Nthakoana Maema Post author

    Thank you Ian. I actually did not think of that because that is what companies include in their training spend.

    So if I understand you correctly we could include the leadership workshops (must they be all accredited) as we are still in the process of finding a partner for the skills development project. Or would this only apply next years WSP with the skills development (qualification) training.

    In fact we are exploring possibilities of partnership with these high turnover companies to partner with our skills development strategy. Hence when asking for increasing a BB-EEE scorecard, would be in view of the corporate. So would the corporate gain any points by including training spend (of employed learners not in company) under skills development spend as we know that they do for black unemployed learners. If this is the case, this would definitely open up an avenue for our staff training and development.

  • Ian Webster

    Another thought, training and developing the unemployed (especially youth) is also an acceptable use of your training spend to go onto your WSP. If I understand you correctly you don’t have money to spend on your employees outside of any discretionary grant. So, put the unemployed youth training interventions (including workshops and work experience programmes) onto your WSP and then follow the rules for applying for a discretionary grant for longer-term, qualification-based training of your staff.

    By the way, Sylvia, you raise an interesting point about the differences among in-service training, internship and work experience. The SETAs are not always clear about the differences, and we have received funding for what is essentially work experience under the umbrella of internship.

    The B-BBEE scorecard, however, is very clear about the difference, so if you are pursuing one of the three in the hopes of an increased B-BBEE score, make sure you consult carefully first.

  • Nthakoana Maema Post author

    Thank you all. Pierre as PBO we are exempt from TAX and SDL. And I am not sure if you are aware of the funding environment not all NPOs are government funded. The big question here is that most of our funds are going directly implementation for the projects and the social development (which is not an issue) however there is a necessity to professionalize and upskill the sector so that we meet objectives. In this case we need to find different ways of sourcing training. So really in our case the WSP is an ideal, at the moment, as there are no funds allocated there yet and I am getting a little panicky about the requirements and having to implement the WSP and training plan even in absence of those funds. And on the other hand the question of the WSP comes because we would like an opportunity to apply for discretionary grants. Our focus is youth development. As we all know 60% of youth are unemployed hence we have added skills development as a priority in order to effect in the communities we work in.

  • pierrewepener

    WHY, WHY WHY? NPO’s are exempted from TAX and SDL! Remember most of your funding likely comes from Government, and you still need to pay for training UPFRONT.

    Just apply at SARS and get exempted, 1,2,3 just like that!! and all the PAIN is gone!

  • sylvia hammond

    Thank you to everyone for adding to the clarification of this question.  I realise that what I said in my first posting was not accurate.  There is a difference in that if the NPO doesn’t contribute to levies, then there isn’t a 20% to come back.

    But what I understand from the latest Regulations is that you now must comply with the Skills Development Report (WSP) & PIVOTAL Plan to be able to access discretionary funds.

    The SETA is also instructed by DHET to disburse 80% of their discretionary funding to PIVOTAL programmes.  So that is programmes that lead to a qualification or part qualification. So most short courses don’t meet this requirement.  That’s why there is mention of AET (only level 4 is regarded as a qualification), Learnerships, apprenticeships, internships, and in-service training (which is often incorrectly called internship or work experience).  

    The SETA is also required to draw up a Sector Skills Plan (SSP) and you should get hold of that to see whether the skills you require are included in that SSP, as that would assist you to motivate for discretionary funding.

    On your question on B-BBEE – I can’t see how that would help access funding – unless you could on the whole scorecard achieve a high rating – and so attract funding. 

  • Nthakoana Maema Post author

    Thank you Nwabisa for the information. This is what makes NGO dependency model so unsustainable because funders do not want to pay for administration costs yet it is necessary to continuously professionalize the industry and build human capital. As an organisatios we are exploring ways of generating our own income so that we may have the flexibility to upskill our staff. Do you think with the new Skills Development pillar for the new BB-EEE we could apply for funding in that regard in the meantime (slightly off topic)?

  • Nthakoana Maema Post author

    Thank you Nwabisa. If the training needs of the organisation fit the call for the discretionary grants can the staff trainings then be added to the application for discretionary/skills programmes/pivotal grant when the time comes?

  • Nwabisa Mbewana

    Hi, yes Ian is right.  We also with the HWSETA. As NPOs we don’t get the Mandatory grant.  The benefit to submitting is that you can be able to apply for discretionary/ pivotal grant/ skills programme grants

    You need to fund raise for your own trainings. 

  • Ian Webster

    Hi Nthakoana, I don’t think that the mandatory grant will apply. This is an automatic payment of 20% of one’s levy as long as you supply your WSP. If you are a non-levy-paying member, there is nothing to base the 20% on.

    As I understand it, SETAs will allow you to apply for discretionary funding (the Discretionary/Pivotal grant) if you submit your WSP.

    As for your question to Sylvia (although she would be able to answer better than I) the discretionary and pivotal funding is intended specifically for credit-bearing training/qualifications.

    So, yes, do call the SETA. Good luck.

  • Nthakoana Maema Post author

    Thank you for the response. I apologise that I did not repost this in the forum.

    And I see I did not clarify that I am talking about the mandatory grant for now!

    As a PBO we are a non-levy paying institution however the H&W SETA and sometimes some other setas make provision for non profit organisations to submit the WSP to apply for mandatory grants.

    Where I am confused is that because we are not paying the levies how is determined the amount that will be granted as per the WSP. Also in the event that we do not get mandatory grant funding, are we as organisation obliged to follow through with the WSP as submitted regardless of whether it falls out of our budget.

    I suppose the best would be to call the seta actually. I did not think of that. I think because I have been hearing horrors about the setas yet they always seem so resourceful on the phone. I have been a bit sceptical of the information relayed. However I will call anyway.

    Also Sylvia because of the nature of our work and having just enough staff (lack of capacity) it is difficult to have myself and colleagues going for training as we work on a tight schedule with the facilitation, psychosocial support etc…Most documents seem to only mention AET, learnerships, internships…is there a likelihood in the case of short skills courses. With the aim of building up to a qualification in the following years?

  • Ian Webster

    I have, since the beginning, argued with training providers who advertise that, since they are registered with a SETA we can claim our training spend back from our SETA. That has never been the case.

    As Sylvia says, the 20% Mandatory Grant comes back whatever training you do as long as you do some and submit the WSP/ATR.

    For the rest, any grant is an agreement between you and the SETA, depending on the particular hurdles your SETA puts in the way of obtaining a Discretionary Grant. Usually you have to apply in advance for a discretionary grant to cover the particular training you want the SETA to pay for. Then, if they agree, depending on their policies and the amount they have available, they will pay anything from a percentage to the full amount.

    Get in touch with your SETA, attend their ‘roadshows’ and find out what is available and how to access it. You might find that they treat SMMEs differently and offer easier routes to funding.

  • sylvia hammond

    Hi Nthakoana,

    There is no difference for NPOs – the Mandatory grant amount – for submitting a Skills Development Plan (WSP) and a PIVOTAL Plan is 20% of the levies paid.

    Then depending on your SETA and what discretionary projects they have – that will determine how much you get for each intervention they accept – AET, learnerships, in-service training (Work Experience) and so on.