Economic Recession, NGOs Affected

Economists have warned that nonprofit organisations that rely on corporate funding will need to brace themselves for a reduction in cash over the next two years at least.

Economist, Tony Twine, points out that this is because larger companies usually donate a percentage of their after-tax profit to corporate social investment which assists in development in the country.

In the same vein, SANGONeT executive director, David Barnard, describes the situation is “unfortunate” because the harsh economic situation means charitable organisations will not be able to help those in need as much as they would like.

The comments come a few months after the Treatment Action Campaign announced that it is feeling the pinch of the global economic recession.

To read the article titled, “Charities feel financial squeeze,” click here.