How Covid-19 has affected NPOs
PARKTOWN – An advisory firm based in Parktown conducted a survey to reveal the effects of Covid-19 on the NPO sector in South Africa.
Non-profit organisations (NPOs) play a vital role in trying to resolve the challenges and inequalities within our communities and society at large.
The important role they play in South Africa cannot be underestimated. Tshikululu Social Investments, the country’s leading social investment fund management and advisory firm based in Parktown, has undertaken a survey of more than 170 NPOs around South Africa to assess the effect that Covid-19 has had on this crucial sector. One of these NPOs was the Johannesburg Holocaust and Genocide Centre, based in Forest Town. The centre honours the memory of the victims of genocide in the 20th century and teaches about the consequences of prejudice and hate speech so as to prevent the recurrence of mass atrocities and genocide in all its forms.
The significant impact of Covid-19
Sixty-six per cent of respondents have experienced a decline in income since lockdown and anticipate things to remain difficult over the next 18 months. In terms of impact on staff, 35 per cent of those interviewed had already taken steps, such as the temporarily laying off of staff or reducing working hours, to reduce their monthly salary costs (with 10 per cent reporting that they had to retrench staff). Despite these challenges, about 60 per cent of organisations reported that they did not apply for relief funding from either the public or private sector. Some were unaware that relief funding was available while others benefitted from relief in the form of social investment (budget allocations and grant conditions) or top-up funding from donors.
Using resilience to respond
“The world has changed fundamentally. The change has been rapid and ubiquitous, and it has required new levels of resilience from individuals, communities, companies and organisations alike,” said Mandisa Diza, a monitoring and evaluation specialist at Tshikululu. As one of Tshikululu’s core values, Diza said resilience referred to the ability to respond to competing priorities with mindfulness, optimism and energy.
Tshikululu’s resilience index
Based on the survey results, Tshikululu developed a resilience index that summarises the overall state of respondent NPOs. “While the pandemic and subsequent lockdown have had more negative impacts on organisations than positive ones, our resilience index demonstrates that most respondents are encouragingly categorised as either strongly or moderately resilient, and are doing their best to ensure that the impact on their organisational sustainability and their beneficiaries is minimised,” said social investment analyst Tamika Mtegha.
Optimism prevails
What this research has also revealed is that despite the negative impact on the NPO sector in South Africa, a sense of optimism prevails. Many organisations also reported embracing innovation and/or adjusting to new ways of working to continue serving their beneficiaries.
Recommendations going forward
Having analysed all of the findings, Tshikululu has drafted seven recommendations to build the resilience of both NPOs and social investors. Some of these recommendations include focusing on real partnerships and prioritising the retention of existing donors, especially during an economic downturn. Communicating with these donors is essential and NPOs need to keep them abreast of challenges and successes.
Details: The full report can be accessed here
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Call for social investors to participate in Covid-19 research
https://www.citizen.co.za/rosebank-killarney-gazette/lnn/1040954/npos-left-high-and-dry-after-being-sidelined-by-government/
