A research report submitted to the School of Social Sciences, Faculty of Humanities of the University of the Witwatersrand in partial fulfilment of the requirements for the degree of Master of Arts in Political Studies / “South Africa’s democracy is faced with a clear and immediate threat”. In a nutshell this is the narrative developed and adopted by countless activists and political commentators who believe that to move forward as a nation legislation regulating private funding of political parties must be introduced. The key objective is transparency – without it the fear is that donors will essentially be able to buy influence within the government. The constant insinuations and reports of adverse donor influences have not done anything to allay these fears. This research paper will examine the legitimacy of these claims. Is it indeed imperative that we regulate private funding? If we are to determine whether there is a need to adjust South African law to safeguard the democratic values that the nation has held dear for over 20 years, then we must answer a set of subsidiary questions, such as what alternatives do we have? Is transparency really a goal that should be fought to achieve? To what extent to South Africa’s political parties rely on funding from private sources? To answer these questions this research paper will develop a thorough understanding of the financial and the political climate political parties find themselves in and ultimately determine whether the country’s democracy is faced with a legitimate threat and if so what can be done to avert it.