The NDA provides grants to CSOs to implement sustainable community driven projects that create employment and income generation. The grant making strategy and priorities are informed by the cabinet Lekgotla resolutions on poverty eradication, government programme of action on poverty, provincial growth development strategies, municipal Integrated development plans, five government priorities, 12 government outcomes, Government-wide programme of action and the millennium development goals. Over the years , the NDA focused primarily on identified poverty pockets, particularly the ISRDP nodes and urban renewal programmes .

The NDA grants funds to CSOs through two approaches:  Request for proposal ( R FP ) which is a competitive grant funding approach that targets well -established community based organisations.  Programme formulation, this involves reaching out to identifying deserving communities, and undertaking activities that build “ social capital ” at community level. In essence, this approach targets specific areas and sectors based on the primary research on priority poverty pockets.