Covid-19: Non-profits bear the brunt of lockdown

Although much has been said about the impact of the Covid-19 pandemic on business, very little attention has been given to non-profit organisations (NPOs).

Dr Armand Bam, head of social impact at the University of Stellenbosch Business School (USB) said that although it’s too early to determine the total effect locally, globally the impact has been severe.

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“In a recent survey conducted by Non-profit Quarterly of the 284 respondents, 20 per cent indicated they had moved to limited hours or laid off staff. Globally the International Labour Organisation predicts that Covid-19 could cause the equivalent of 195-million job losses across sectors.

“In South Africa I think we can expect a greater impact due to the downgrading and poor performing economy.”

Bam said there are over 220 000 NPOs registered with the Department of Social Development in South Africa and it’s now more than ever that the important role of these mission driven organisations become evident.

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“NPOs act in communities where government and businesses are not able to reach.

“They are accessible and agile to attend to the current crises and need our support.

“While government can rely on our taxes to stay operational and well-resourced businesses tap into financial reserves, NPOs primarily rely on donations and personal fundraising to ensure service delivery.

“Many of these organisations are now facing the threat of downsizing and retrenching staff while the need for their services increases.”

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Communicate with clarity

With a range of stakeholders, it is important for NPOs to maintain communication, stay informed of what is happening and share relevant information.

Bam advised NPOs take the opportunity to revitalise the commitment to their cause.This includes:

Web-based communication which is cost-effective and can reach large audiences.

Websites are effective public relations platforms to reach donors.

NPO’s can also develop a digital presence through mobile optimisation.

There is a global shift to transacting this way and fundraising can now occur in the palm of a smart phone user.

Take the time to cultivate new donors and donor-relations.

Re-evaluate your operations and budget

He said with the prospect of a reduction in donations immediate attention should be given to prioritising how finances are managed.

“The continuity of services needs to be maintained and this means revisiting a business plan.

“Scaling down and assessing operations on a weekly and monthly basis will become part of what everyone will need to do.

“Fixed costs require a plan and the management thereof is essential to ensure NPOs continue to deliver services and that programmes are implemented.”

Bam said funding remains the lifeblood of any NPO and should form part of the core operations while under lockdown.

“NPOs whether directly or indirectly involved in fighting Covid-19 should explore the opportunities that are available locally and globally to alleviate expected funding constraints.

“There will be an increase in funding directed by corporates and government alike to partner in addressing the impact of the pandemic.”

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