THE

COMMUNITYCHESTOF THE WESTERNCAPE DIRECTORS’ REPORT FORTHEYEARENDED31MARCH 2022

Nature Of Business

TheCommunityChest ofthe Western Cape (“The Chest”)is aphilanthropic organisation which was founded in CapeTown in 1928 as a conduit for philanthropy in response to a poverty problem in the Western Cape. Funding was directed to organisationsproviding social relieftothoseaffected bypovertyandthoseliving withmentalor physical disabilities.Over time The Chest became the first point of call for funding in social welfare and has funded many hundreds oforganisations. The Chest also develops and facilitates philanthropy through partnerships with a wide range of donors and social developmentofdonorresources. TheChest acts as anobjective and professional communitypartner toensure accountability for utilisation of donor resources.

TheChest provides services and advice to enhance the management, financial and skills capacity of Non-Governmentaland Community based organisations in the Western and Southern Cape that are engaged in social development.

As The Chest has been approved as a public benefit organisation interms of Section 30 ofthe Income Tax Act its receipts and accruals are exempt from income tax in terms of Section 10(1)(cN).

The Chest operates in conjunction with its sister body, The Community Chest of the Western Cape S18A. Donors to the S18A entity enjoy tax relief on their contributions.

Operating Review And Financial Performance

The leadership ofThe Chest has embraced the mandate to transformthe organisation into a leading centre of philanthropy. The key objective of The Chest is to make grant funding available to vetted and approved non-profit organisations and in turn the fulfilment of this objective must lead to a safer, prosperous and growing South African society. Therefore, the upholding ofthis mandate has become the foundation ofthe criticaldesignchanges withinTheChest. TheChest isdedicated to adding increased value to the grant making process by moving from a broadly defined charity mind-set to a deeper and more structured business mind-set based on intentional development of more meaningful education, health, income generation and communitydevelopment solutions and impact measurement. This transformation strategy is both costly and necessaryto enable the organisation to meet itsconstitutionallyenshrined obligationsto non-profit organisations.

Duringthisreportingperiod,totalrevenueincreasedbyapproximatelyR5.2million(2021:R5milliondecrease).Thisincrease is largely due to new Government grants. Decreases in partnership income is due to projects ending. Decreases in Trusts income is due the timing of income received and delays as a result of COVID-19.

Direct expenditure and administrative overheads decreased by R5.5 million (2021: R5.7 million decrease). This decrease is mainly due to the organisation undergoing cost-cutting excercises, retrenchment of staff & restructuring within the organisation due to COVID-19. Community Investment expenses amounted to R41.8 million (2021: R44.3 million). This resulted in a deficit for the year of R5.8 million (2021: deficit of R13.6 million).

The total investments into Communities of R41.8 million (2021: R44.3 million) for the year, represents a decrease of 5.68% over the previous year. The decrease is largelydue to The Community Chest putting on hold the distribution of unfunded grants & projects. The Chest’s long termcommitment is to see strategic changes in Education, Income Generation, Health and Community Development which will allow our targeted communitiestobreak free from the restricting povertycycles that they have been in for generations.

The firm resolve of The Chest is to ensure that it remains committed to its task of providing funding to non-profit organisations toimpact strategically selected projects in order to combat the devastating consequences ofpoverty.

The Chest leadership team and staff are aligned to ensuring that the mission and the mandate drive the outcomes of The Chest. The Chest will represent its funders and their interests in a professional and accountable manner. And the needs of communities will be upper most when considering grant applications.

The Chest staff and Board are deeply grateful to those who help support our work of combatting poverty and helping to rebuild human dignity. Our partnerships withgovernment, business and communities are the essential elements of why we have survived yearon year. Evenintougheconomic climates as experiencedinthelast few years, we have not stepped back from increasing our commitments to those we serve.

South Africa will need a brave and robust philanthropic sector in order to impact poverty. The Chest will seekto lead that sector with continued bravery, good governance and accountable and professional service.