NGOs cautioned to embrace new innovative business strategies to adjust to a more diverse funding environment


Tuesday 27 February marks World NGO Day, which is about celebrating the successes and achievements of non-governmental organisations and to showcase the important work that they do. There are 280 329 NGOs registered with the Department of Social Development in South Africa, and this sector is facing a bleak future with ever-decreasing financial support from governments. The 2024 national budget cuts threaten the very existence of these invaluable services.

The National Coalition of Social Services (NACOSS) chairperson, Adrie Vermeulen, provided a thought-provoking report at the annual general meeting held on Wednesday 21 February. The message is clear; the role of NGOs is changing. Vermeulen referred to a newspaper article published almost 10 years ago regarding the relevance and role of NGOs 20 years after the new democracy. The article predicted that there would be increased lack of funding. Now, 30 years later with a sense of dread and disbelief, NGOs are facing the same situation. For the past three decades, the NGO funding crisis has been a frequent topic of discussion and debate. The NGO sector’s role has evolved from advocating during the apartheid era to working with the government to develop policies that would help our new democracy restore a just and equal society based on fundamental human rights. The collaboration or relationship between the government and NGOs is shifting yet again, as the value and continued existence of non-profits are being called into question and government is taking over more and more services from them.

The results of a 2020 literature review demonstrated the value of NGOs by pointing out that they provide a variety of services in the areas of human rights, education, health, social assistance, environmental conservation, and disaster relief. Secondly, they help the government reach more residents who would find it difficult to use government services. Thirdly, by providing a wide range of necessary goods and services, sustaining NGOs boosts the economy (Choto, Iwu, and Robertson, 2020). Fourthly, NGOs connect the most disadvantaged with resources, expertise and skills. NGOs fill in the gaps left by the government or work to address issues that could otherwise be disregarded as a fifth value. NGOs assist the government to fulfil its Constitutional and statutory duties to the people of this nation.

A shocking event occurred at the start of the previous year when the Gauteng province’s Department of Social Development experienced a sharp reduction in funding, which forced some of NACOSS’s member organisations to close essential services. The Gauteng Crisis Care Committee (GCCC) was established as a ray of hope emerging from this tragedy. This committee has reclaimed the NGO sector’s advocacy role and turned into a voice of reason and optimism for all of us. NACOSS has witnessed first-hand the disastrous results of political and bureaucratic choices that infringe upon the rights of member’s beneficiaries. The harm brought about by these careless decisions continued even after the subsidies were restored. When new service level agreements need to be signed in the upcoming weeks in order to decide NGOs’ future this coming financial year, the next section of this chapter will become clear. With the anticipated reductions in subsidies, a dismal future appears to be lurking in several of the provinces in South Africa.

Amid the turmoil and fear of the unknown, the NGO sector still manages to provide services to vulnerable populations and keeps on being resilient. Vermeulen warned that without the NGO sector, the welfare system will collapse, and less people will have access to good quality and reliable professional services.

The chairperson was adamant that NGOs must embrace new innovative business strategies to adjust to a more diverse funding strategy, such as crowd funding, social enterprise and impact investing to increase income streams for organisations. At the same time this would allow NGOs to move away from government-based funding as the main source of income for NGOs and at the same time make government more accountable. The business mindedness must prevail over a welfare mentality to survive the next 10 years.

Vermeulen acknowledged the excellent work done by NACOSS as a networking structure; for being a source of information; representing twelve national organisations, two provincial organisations and their hundreds of affiliates or branches throughout the country. NACOSS represents these organisations on various platforms and structures to influence policies and decisions. She congratulated the members of NACOSS that despite all the challenges they have continued under tremendously stressful circumstances to care for the vulnerable and marginalised citizens of South Africa. As chairperson she asked for a new movement of change and stated that “more can be achieved when we stand together to create a new future for our NGOs.”

You need to be Logged In to leave a comment.

Gift this article