Too many social impact or non-governmental organisations (NGOs) live from hand-to-mouth and have less than three months operating capital in reserve, despite the critical role they play in South Africa, says the Resource Alliance, which works globally to strengthen the social impact sector.

Research[i] conducted 20 years ago valued the South Africa NGO sector at R9.3 billion (620 miljoen euro) or 1.2% of GDP. A major employer, with an estimated 650 000 full time employees, at the time it was larger than many major sectors (i.e. mining and construction).

“Today there are 190 893 registered NGOs employing between 3 to 3.5 million people, so the value of the sector is likely to be even more significant – perhaps around R35 million,” says Sarah Scarth, Africa Director for the Resource Alliance.

According to Scarth, the danger is that in a country where social impact organisations make a substantial contribution to filling service delivery gaps, advancing the well-being of communities, defending our democracy and protecting our environment, we can’t afford for these organisations to fail.  Yet the pressure on local non-profit or social impact organisations to survive these challenging economic and political times couldn’t be greater.

“Too many NGOs are stretched beyond their means and rely too heavily on grants from one or two funders to deliver on their mission,” she says.  “If the NGO sector is to move from surviving to thriving, organisations need to diversify their income sources and be more creative and innovative in their fundraising practice,” says Scarth.

• The Resource Alliance has partnered up with one of Europe’s most acclaimed fundraising experts, Alan Clayton, to bring his Great Fundraising Masterclass to Gauteng on 28 and 29th May at GIBS in Illovo, Sandton. For more information: http://resource-alliance.org/events/gfm.
• Another way to improve your financial sustainability is taking the free e-course Local Fundraising: https://www.changethegameacademy.org/online-courses/local-fundraising
• Next year, Change the Game Academy will be offering classroom courses in Local Fundraising for small NGOs and CBOs. Interested? Send an email to info@changethegameacademy.org.

[i] Swilling, M & Russell, B. 2002.The Size and Scope of the Non – Profit Sector in South Africa: Graduate School of Public and Developmental Management (University of Witwatersrand) and The Centre for Civil Society (University of Natal).