NPOs facing burden of financial survival in the midst of increasing and overwhelming need

Non-profit organisations (NPOs) play a vital role in trying to resolve the challenges and inequalities within communities and society at large.

The important role they play in South Africa cannot be underestimated.

Tshikululu Social Investments, the country’s leading social investment fund management and advisory firm, has undertaken a survey of over 170 NPOs around South Africa to assess the effect that Covid-19 has had on this crucial sector.

The twin burden

“We are keenly aware of the twin burden of financial survival in the midst of increasing and overwhelming need within the NPO sector.

As part of our role in supporting these organisations, we wanted to understand the nuances of how the Covid-19 pandemic has specifically impacted NPOs during this time,” said Graeme Wilkinson, Social Investment Specialist at Tshikululu.

“We also wanted to give these organisations an opportunity to share with us, and the broader social investment community, how they were coping with the challenges that Covid-19 presents,” he said.

The significant impact of Covid-19

Unsurprisingly, the results of the survey confirm the significant impact that the pandemic has had on NPOs, with the subsequent lockdown further perpetuating many of these challenges.

Some 66% of respondents have experienced a decline in income since lockdown and anticipate things to remain difficult over the next 18 months.

In terms of impact on staff, 35% of those interviewed had already taken steps, such as the temporarily laying off of staff or reducing working hours, in order to reduce their monthly salary costs (with 10% reporting that they had to retrench staff).

Despite these challenges, approximately 60% of organisations reported that they did not apply for relief funding from either the public or private sector.

Some were unaware that relief funding was available while others benefited from relief in the form of social investment (budget allocations and grant conditions) or top-up funding from donors. In fact, 67 organisations surveyed were awarded funding for Covid-19-specific interventions to the value of R37 305 062.

The full report can be accessed by clicking here.

Notice: Coronavirus reporting at Caxton Local Media aims to combat fake news

Dear reader,
As your local news provider, we have the duty of keeping you factually informed on Covid-19 developments. As you may have noticed, mis- and disinformation (also known as “fake news”) is circulating online. Caxton Local Media is determined to filter through the masses of information doing the rounds and to separate truth from untruth in order to keep you adequately informed. Local newsrooms follow a strict pre-publication fact-checking protocol. A national task team has been established to assist in bringing you credible news reports on Covid-19.
Readers with any comments or queries may contact National Group Editor Irma Green (irma@caxton.co.za) or Legal Adviser Helene Eloff (helene@caxton.co.za).