Mashiloane urges NGOs to seek alternative ways to make money during difficult times

Mashiloane states that many of these organisations struggle with raising funds for the work they do.

“Lack of funds for an NGO could mean a total standstill of operations. Lack of funding is worse now more than ever due to the Covid 19 Pandemic as well as the current economic climate. As a result most donors are reducing their CSR budgets leading to NGOs suffering project, organisational and financial sustainability challenges.

“The other common challenge NGOs face is that of lack of effective governance created by not seeing the importance of establishing a Board of Directors. A donor wants to contribute to an organisation that has a proper structure with adequate internal financial controls in place.”

Mashiloane advises organisations to come up with income generating initiatives in order to increase their revenue.

“NGOs with assets can use them to help generate income. Renting out buildings, offering training, providing consultancy, creating and selling products are just a few examples in which additional income may be generated.

Having an independent Board of Directors provides a basis for successful governance and management of any NGO. Every NGO must have Board members who will have oversight over the affairs of the organisation. The Board must be made up of people who have an interest in the mission of the NGO. The Board must be diverse in terms of age, gender and skill.

Mashiloane states that when appointing a Board, people who are not professionals, such as a parent of a child your NPO serves or a volunteer who is heavily involved in your work, must not be overlooked.

“Passion and commitment are of utmost importance. The members of the Board must also have strong ties to the community which the non–profit will be serving and they must be willing to raise funds.  Serving on a non-profit Board has serious fiduciary, legal, and ethical responsibilities. Board members can be held accountable for dereliction of their duties and must therefore avoid conflicts of interest and take an active part in decision making.

Mashiloane believes that the lack of understanding of responsibilities of board members and staff can cause conflict between all parties involved.

“The Board is responsible for strategic oversight while management is responsible for the day to day operational functions of the organisation. Under no circumstances is the Board or its Chairperson to micromanage the staff or interfere in their duties in any way.”