- Findings from a follow-up to the NPO Funding Cuts and Job Losses survey, conducted by GreaterGood South Africa in October 2013 show that while things are better for nonprofits in South Africa many are still challenged by funding cuts, resource constraints and an uncertain financial position.
Although fewer organisations report funding cuts - and the scale of the cuts has reduced - the overall funding environment does not appear to be significantly better for most nonprofit organisations (NPOs) we surveyed. Over half (54 percent) of the 467 organisations that took the survey reported significant funding cuts in the previous year which is significantly down from 80 percent in the 2012 survey.
“It's a low long slog – there are no magic solutions. You have to build a loyal support base of individuals.”
Things are no better
But organisations also reported an average of R4 million in cuts per organisation. Almost half (46 percent) said that although the funding environment had worsened, they were surviving; 26 percent said the situation had stayed the same; and 13 percent said it was getting better. An equal amount (13 percent) said it is much worse.
Funding cuts were reported from all funding sources, with the National Lotteries Board topping the list again (40 percent), followed by the corporate social investment (CSI) departments (39 percent) and individuals (34 percent). Only 17 percent said cuts had come from international donors.
“Although it might look as if our financial situation became stable, it is because of the retrenchment of three staff members, so it looks more stable because of reduced core costs, but the remaining skeleton staff is battling to keep our commitments.”
Qualitatively, it seems that the cuts reported in the 2012 survey have forced organisations to become more agile and better able to adapt their strategies in response. This has resulted in fewer job and services cuts. 33 percent reported retrenching staff (a total of 2 078 people) which equates to an average of six permanent staff and 17 volunteers per organisation and 38 percent reported having to cut services to beneficiaries as a result, down from 64 percent in 2012.
But the job losses are still significant, especially among volunteers, many of whom rely on stipends to survive. The sector is a major employer and the shedding of jobs remains a concern.
“We are struggling to cope as personnel do not have the time to do fundraising. The subsidy from the government is not enough to pay salaries. The salaries are way less than that of the same posts in government.”
Perhaps most concerning is the fact that the immediate financial position of organisations has not improved with 34 percent having enough cash to cover operating costs for six months (36 percent in 2012) and 16 percent reporting no operating cash at all (17 percent in 2012). While sustainability planning and well-managed finances with provision made for saving are crucial to survival, it seems that few organisations have the breathing space that reserves can provide.
More needs to be done, therefore, to support and encourage organisations and donors to make provision for reserves that can see them through unforeseen funding cuts.
Organisations are using a wide variety of tools to address funding shortfalls with the majority still submitting proposals (76 percent), 58 percent using networking and 48 percent fundraising events. Most organisations reported making significant changes to their structure, financial management and staffing to survive in the current funding climate.
Collaborative working and the building of networks and partnerships has gained ground as a strategy to survive the cuts, which highlighted the need to save for an uncertain future:
“The sustainability of today is the result of a deliberate strategy over the past 10 years to make our organisation not dependant on donors or government.”
Click here to download a summary of the key findings.
This article first appeared on the GreaterGood South Africa website.
The International Organisation for Migration (IOM) has obtained a final court order to freeze the bank accounts and assets of a former financial assistant who allegedly defrauded it with over R2.6 million.
The money Sinovuyo Ziyanda Mjali allegedly stole was intended for use in the organisation’s medical humanitarian work among migrants.
The North Gauteng High Court granted a final order freezing the bank accounts and assets of Mjali, pending the finalisation of a sequestration application against her.
The Swiss-based mission’s chief in Pretoria, Erick Ventura, says in court papers Mjali’s actions could have far reaching consequences, not only in the organisation, but also its relationship with South Africa.
To read the article titled, “Intern fleeces NGO of R2.6m,” click here.Source:The Citizen
A study conducted by the Lancet medical journal has reported that gains in fighting malaria in sub-Saharan Africa have left the highest risk for the disease concentrated in ten countries.
According to the study, countries such as Nigeria, Democratic Republic of Congo, Uganda, Ivory Coast, Mozambique, Burkina Faso, Ghana, Mali, Guinea and Togo account for 87 percent of areas that have the highest prevalence of malaria.
The study further shows that financial support has risen from US$100 million annually to about US$2 billion since the launch of the Roll Back Malaria initiative in 2000.
To read the article titled, “Malaria: High risk focused in 10 African countries,” click here.Source:Times Live
Having been labelled a ‘rape apologist’, David Bullard tried to make peace by starting a donation drive for the Rape Crisis Centre, but the organisation rejected his money.
The controversial columnist started his attempt at donating with this tweet: “Followers, please donate to @RapeCrisis and I’ll start the ball rolling with R3 000. Bank details please.”
The Rape Crisis Centre responded by saying: “@RapeCrisis will not be party to @lunchout2’s whitewashing his actions through associating himself with us. We decline his donation.”
To read the article titled, “No thanks, rape NGO tells Bullard,” click here.Source:IOL News
The Department of Water and Environmental Affairs has announced that two international lotteries have pledged R232.2 million to the Peace Parks Foundation to fight rhino poaching.
Molewa further adds that, this is the largest single contribution made by the private sector to combat rhino poaching and crime in wildlife.
She explains: “We welcome this public-private partnership to help ensure the survival of the species.”
To read the article titled, “Molewa welcomes rhino saving grant,” click here.Source:The Citizen
President of Malawi, Joyce Banda, is under pressure from foreign aid donors and is facing a tough re-election battle.
Banda has promised forensic audit of suspected government corruption over the last decade.
She says the audit, which is backed by Britain and the European Union, will help reveal the extent of corruption in the impoverished southern African state.
To read the article titled, “Malawi promises forensic audit as donors freeze funds,” click here.Source:The Citizen
The United Nations (UN) states that most sub-Saharan African countries will not meet the Millennium Development Goal of ensuring that all children receive a primary school education by 2015, partly because of a shift in donor focus towards security and governance.
The UN Educational, Scientific and Cultural Organisation’s Pauline Rose, points out that South and West Asia have the fastest rise in numbers in primary schools, contributing more than half the rise in primary school pupils.
Rose highlighted the disproportionate cut in aid to education as a key reason for the lack of progress in reaching the goals.
To read the article titled, “Donors cut aid to basic education, focus on future trade – UNESCO,” click here.Source:All Africa
The challenge by former Women for Change executive director, Emily Sikazwe, for the police to investigate leaders of non-governmental organisations (NGOs) accused of abusing donor money deserves serious attention.
Sikazwe made the call when she featured on one of the ZNBC TV interview programme, stating that, “We are cognisant of the fact that the NGOs play an important role in supplementing government efforts in the delivery of services to the people across the country.”
She states that currently, some of the NGOs have refused to register with the Ministry of Community Development, Mother and Child Health in accordance with the provisions of the Act.
“It is difficult to understand why the NGOs are not comfortable with the government knowing the sources of their funding.”
To read the article titled, “NGOs should be transparent, accountable,” click here.Source:Daily Mail
Child Line and other organisations in the Northern Cape have remained silent after the recent rape of a six week-old baby, allegedly by a relative.
The organisations are also quiet after the murder of a one-year old boy, allegedly killed by his father.
However, Child Line's Naomi Edwards says they are in dire financial straits, adding that, “With the lack of financial resources NGOs [non-governmental organisations] are finding themselves in a very tight position.”
To read the article titled, “Child rights organisations in dire financial straits,” click here.Source:SABC News
The Bill and Melinda Gates Foundation has announced multimillion-rand partnerships with South African institutions to develop new medicines and vaccines for HIV, tuberculosis (TB) and malaria.
The foundation partnered on two multi-year programmes, one with the Medical Research Council's Strategic Health Innovation Partnerships (SHIP) unit and the other with the University of Cape Town's Drug Discovery and Development Centre (H3-D).
The council would receive R125 million over three years to lead and fund research aimed at developing AIDS and TB vaccines, adding to the R130 million from the Department of Science and Technology and R60 million from the Department of Health.
To read the article titled, “Gates Foundation, SA link to combat HIV, TB, malaria,” click here.Source:Mail and Guardian