Essential service organisations under financial strain

Non-profit organisations (NPOs) are feeling the pinch.

Times are tough for organisations, following a decision by the Department of Social Development (DSD) not to increase contributions to NPOs this year.

It is believed this is due to many NPOs becoming reliant on Government.

The economic whiplash of this decision has been borne by Newcastle organisations too, including Nil Desperandum, which houses close to 30 residents.

Eleanor van der Weshuizen expressed her dismay.

“The money stays the same and we still have to run the home.”

Ruth Lovelock, the face of Thembelihle Shelter at Ingagane, said the notice of no increase was communicated to all organisations.

“Of course it affects us. If the grants are late, we can’t pay. Food and electricity are our biggest priority.”

More clarity was provided by Rajesh Ramdaw, representing Newcastle Organisation for the Aged (Nofta) and the provincial NPO board. He stated the regular increase of R16 per member was halted, due to budget constraints. However, he had been informed organisations with an NPO number could generate their own funding in lieu of Government upping its contributions.

“The trend among the businesses is to plough back into the community.”

Mentioning a meeting last month in Pietermaritzburg, Mr Ramdaw said a tabled item dealt with the survival of NPOs and the need for bigger organisations to help smaller entities.

NPOs have been urged to apply for alternative funding too.

“From Nofta’s side, we survive through the service centre and use donations to sustain ourselves. We host these events to survive.”

The DSD was contacted at a national level for an explanation of the status quo, although queries were unanswered at the time of going to print.

What are your views about this story?