English: South Africa’s economy tells a daunting story of poverty, economic inequalities, unemployment statistics that have reached an all-time high and the increased threat of receiving a “junk” rating by grading agencies. These realities result in the mounting social and economic ills of society that are amplified by the repercussions of government’s poor record in service delivery. Social services are on the verge of a collapse because they are not properly supported by the government. The insufficient subsidies provided by government, as well as the significant delay or non-payment of subsidies, result in subsidy crises to many social organisations. The aftereffect of the subsidy crises is that some old-age homes, children’s homes, orphanages, kids’ shelters, welfare homes, care havens, homes for orphaned HIV/AIDS, to name but a few, are battling to survive. This is an untenable situation as millions of vulnerable South Africans, particularly children and elderly people, are dependent on social organisations for their survival. The shrinking economic resources, the social needs of communities that are left unfilled by government, as well as the reigning subsidy crises, provide fertile soil for churches to be involved in these social challenges. As South Africa is a developing country, the provision of social services by churches are imperative and the government cannot afford to lose the wide range of contributions to social services by churches. The future of some churches are, however, affected by the unprecedented decline in membership, as well as the negative impact of secularisation and migration. Many churches are facing aging members, youth leaving the church and several church buildings are sold due to the battle for financial survival. The challenges faced by churches are amplified by the media being flooded with reports of scandals ranging from 1) alleged financial misconduct amongst some of the most well-known televangelists in the United States of America, the 2) controversial sex scandals in the Roman Catholic Church and 3) many instances of misconduct in church finances. These challenges impose significant threats to the financial sustainability of some churches. In addition, it threatens the sustainable involvement of churches in the provision of social services. The root of all these challenges can be traced back to the concept of corporate governance. As soon as churches have a significant presence and influence in their community, stakeholders will normally take on a role of encouraging and demanding the illustration of sound corporate governance principles by churches. The term corporate governance has evolved to become a mainstream concern amongst all stakeholders in various industries and across the different sectors of the economy. The King Reports have provided, not only in South Africa, but also internationally, the lead in good governance and is generally accepted as the source document for what constitutes sound governance. The abovementioned challenges surrounding churches arouse the concern as to what extent churches should implement sound corporate governance principles, as prescribed by the King Reports. This study consists of a literature component and an empirical component. The aim of the literature study was to provide 1) an overview of the development of corporate governance, with specific reference to the King Reports, 2) a regulatory framework of non-profit organisations and churches and 3) an overview of the relevance of the principles of corporate governance from the King Reports to all types of organisations, and for the purpose of this study, specifically churches. The empirical research component was conducted by means of a semi-structured interview. The principles of good governance as prescribed by the King Reports have been used as the main source in the development of the interview schedules. The aim of the empirical study was primarily to analyse the extent to which corporate governance guidelines are implemented by a selected sample of congregations. The congregations were selected from two denominations, namely the Dutch Reformed Church and the Apostolic Faith Mission Church, in the Free State region. The interviews were used to obtain insight from important role players of the respective congregations. The answers provided by the interviewees enabled the researcher to reach conclusions and make recommendations regarding the implementation of corporate governance principles. The results of this study should assist congregations in enhancing and improving the implementation of corporate governance principles. This should therefore assist congregations in maintaining financial sustainability and in taking up their rightful place in playing an indispensable role in the provision of, amongst others, social services in South Africa. The study is set out in 5 chapters. Chapter 1 provides the introduction to the study, sketching a few of the scandals that the world and churches are currently faced with as a means to illustrate the importance of corporate governance. This is followed, in Chapter 2, by an overview of the development of corporate governance. The chapter also discuss the development of the different sectors in the economy, with specific focus placed on the non-profit sector, of which churches form part. The chapter concludes with a discussion on the importance and relevance of corporate governance in the non-profit sector. Chapter 3 provides an overview of the history and establishment of the two denominations as mentioned, in South Africa, coupled with an overview of the governance structures of the denominations. This is followed by an analysis of the findings gathered from the interview schedules in Chapter 4. Chapter 5 finally consists of the conclusions and recommendations for improvement of corporate governance by churches and further research possibilities.
Afrikaans: Suid-Afrika se ekonomie vertel 'n uitdagende verhaal van armoede, ekonomiese ongelykhede, die ergste gegewens tans oor werkloosheid en die verhoogde bedreiging om ŉ "rommel" gradering van graderingsagentskappe te ontvang. Hierdie realiteite lei tot toenemende sosiale en ekonomiese euwels wat vererger word deur die regering se swak diensleweringsrekord. Maatskaplike dienste is op die rand van 'n ineenstorting aangesien dit nie behoorlik deur die regering ondersteun word nie. Die onvoldoende subsidies wat deur die regering voorsien word, sowel as die beduidende vertraging of nie-betaling van subsidies, lei tot ŉ subsidiekrisis vir baie maatskaplike organisasies. Die gevolg van die subsidiekrisis is dat ouetehuise, kinderhuise, weeshuise, welsynshuise, huise vir hawelose mense, huise vir weeskinders van MIV/vigs, om maar 'n paar te noem, sukkel om te oorleef. Dit is 'n onuithoudbare situasie aangesien miljoene kwesbare Suid-Afrikaners, veral kinders en bejaardes, van maatskaplike organisasies vir hul oorlewing afhanklik is. Die krimpende ekonomiese hulpbronne, die maatskaplike behoeftes van gemeenskappe waaraan nie deur die regering voldoen word nie, sowel as die heersende subsidiekrisis, bied vrugbare grond vir kerke om in hierdie sosiale uitdagings betrokke te wees. Die rol van die kerk het oor die afgelope aantal jaar sodanig verander dat dit nie meer net oor die verkondiging van die Evangelie gaan nie, maar ook oor aktiewe betrokkenheid by die burgerlike samelewing. Aangesien Suid-Afrika 'n ontwikkelende land is, is die verskaffing van maatskaplike dienste deur kerke noodsaaklik en kan die regering dus nie bekostig om die wye verskeidenheid bydraes tot maatskaplike dienste deur kerke, te verloor nie. Die toekoms van sommige kerke word egter deur die ongekende afname in lidmaatskap, sowel as die negatiewe impak van sekularisasie en migrasie beïnvloed. Baie kerke word deur verouderende lede en die jeug wat die kerk verlaat, in die gesig gestaar, en verskeie kerkgeboue word verkoop in die stryd om finansiële oorlewing. Die uitdagings wat kerke beleef, word verder vererger deur die vloed van mediaberigte van skandale wat wissel van 1) die beweerde finansiële wangedrag onder sommige van die bekendste tele-evangeliste in die Verenigde State van Amerika, die 2) omstrede seksskandale in die Rooms-Katolieke Kerk en 3) baie gevalle van wangedrag in kerkfinansies. Hierdie uitdagings hou beduidende bedreigings vir die finansiële volhoubaarheid van sommige kerke in. Dit bedreig verder ook die volhoubare betrokkenheid van kerke in die verskaffing van maatskaplike dienste. Die wortel van al hierdie uitdagings kan na die konsep van korporatiewe beheer teruggevoer word. Sodra kerke 'n beduidende teenwoordigheid en invloed in hul gemeenskap het, sal belanghebbendes normaalweg die rol opneem om die implementering van gesonde korporatiewe beheerbeginsels deur kerke, aan te moedig. Die term korporatiewe beheer het tot 'n hoofstroomkommer, onder alle belanghebbendes in verskeie industrieë en oor die verskillende sektore van die ekonomie, ontwikkel. Die King-verslae neem nie net in Suid-Afrika nie, maar ook internasionaal, die voortou in goeie korporatiewe beheer en word algemeen as die brondokument vir wat goeie korporatiewe beheer uitmaak, aanvaar. Die uitdagings wat kerke beleef, wek kommer ten opsigte van die mate waarin kerke gesonde korporatiewe beheerbeginsels, soos deur die King-verslae voorgeskryf, implementeer. Hierdie studie bestaan uit 'n literatuurkomponent en 'n empiriese komponent. Die doel van die literatuurstudie was om 1) 'n oorsig van die ontwikkeling van korporatiewe beheer, met spesifieke verwysing na die King-verslae te bied, 2) 'n regulerende raamwerk aan nie-winsgewende organisasies en kerke te verskaf, en 3) die toepaslikheid van die beginsels van korporatiewe beheer van die King-verslae in alle vorme van organisasies, en vir die doel van hierdie studie, spesifiek kerke, te oorweeg. Die empiriese navorsingskomponent is deur middel van semi-gestruktureerde onderhoude uitgevoer. Die beginsels van goeie beheer, soos voorgeskryf deur die King-verslae, is as die belangrikste bron in die ontwikkeling van die onderhoud- skedules gebruik. Die doel van die empiriese studie was om die mate waarin korporatiewe beheer beginsels deur 'n geselekteerde steekproef van gemeentes geïmplementeer word, te ontleed. Die gemeentes is uit twee denominasies in die Vrystaat streek, naamlik die Nederduitse Gereformeerde Kerk en die Apostoliese Geloofsending Kerk, gekies. Die onderhoude is gebruik om insig vanaf belangrike rolspelers van die onderskeie gemeentes te verkry. Die terugvoer wat vanaf die onderhoude verkry is, het die navorser in staat gestel om gevolgtrekkings te maak en aanbevelings oor die implementering van korporatiewe beheerbeginsels, te verskaf. Die resultate van hierdie studie behoort gemeentes te help om die implementering van korporatiewe beheerbeginsels te verbeter. Dit behoort gemeentes verder te help om finansieël volhoubaar te wees en hul regmatige plek, om ŉ onontbeerlike rol in die voorsiening van maatskaplike dienste in Suid-Afrika te speel, in te neem. Die studie word in 5 hoofstukke uiteengesit. Hoofstuk 1 verskaf die inleiding tot die studie, waarin 'n paar van die skandale wat die wêreld en kerke tans konfronteer, geskets word met die doel om die belangrikheid van korporatiewe beheer te illustreer. Dit word gevolg, in Hoofstuk 2, deur 'n oorsig van die ontwikkeling van korporatiewe beheer. Die hoofstuk bespreek ook die ontwikkeling van die verskillende sektore in die ekonomie, met spesifieke fokus wat op die nie-winsgewende sektor geplaas word, waarvan kerke deel vorm. Die hoofstuk word afgesluit met ŉ bespreking van die belangrikheid en relevansie van korporatiewe beheer vir die nie-winsgewende sektor. Hoofstuk 3 bied 'n oorsig van die geskiedenis en die vestiging van die twee denominasies soos genoem, in Suid-Afrika, tesame met 'n oorsig van die strukture van die denominasies. Dit word gevolg deur 'n ontleding van die bevindinge van die onderhoudskedules in Hoofstuk 4. Hoofstuk 5 bestaan uit die gevolgtrekkings en aanbevelings vir die verbetering van korporatiewe beheer deur kerke, asook verdere navorsingsmoontlikhede.