Economic crisis hits NPO sector

NACOSS urges government to come to the table and pay NPOs.

 

NON-PROFIT organisations (NPOs) countrywide are battling to survive and as a result are struggling to provide life-saving services to those who need it most.

This is according to Marieta Kemp, Chairperson of the National Coalition for Social Services (NACOSS), an umbrella coalition for prominent welfare organisations.

Kemp says children, families and communities are suffering because government is not paying NPOs on time or subsidies are so low that they are forced to stop service delivery.

Some children’s homes have no funds for food, a home for pregnant teenagers closed down and social workers are reportedly forced to withdraw child protection services from some areas.

A number of NPOs have reportedly received no funding from the Department of Social Development for the 2015/16 financial year.

Kemp says subsidies for social welfare services do not cover the actual cost of services by any stretch.

‘Some provinces pay far less for services than others, while some have received no annual increase in subsidies this year or previous years.

‘Non-payment, combined with a 77% social worker shortage and lower salary scale for NPO social workers, worsens the situation.

‘Social workers and other personnel receive salaries and benefits far lower than Government employees.

‘Our services are extremely cost-effective for taxpayers, but are not adequately supported by Government,’ says Kemp.

Partnership model

‘We are concerned that with the many demands on the fiscus, NPOs are seen as a soft target and funds for essential services will be further decreased.’

According to the National Development Plan, the State has adopted a partnership model of service provision and almost 75% of all services are currently provided by NPOs.

Local NPO employees confirmed that subsidies are often paid late.

‘It is difficult to budget if November’s subsidy is only received in December, especially if there are children to feed and salaries to pay,’ one says.

‘Funding for NGOs is always problematic and it is getting worse in the current economic climate.

‘Funders do their best, but they are also stretched to the limit.

‘Funders are also often willing to sponsor projects, but not running costs, but we cannot run projects without paying salaries, maintaining vehicles and paying for fuel.’

Meanwhile, Kemp urged Government to come to the table and uphold their end of the bargain by treating their partners in service delivery equally and with respect.

 

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