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NPO Funding Model NOT Sustainable

by Musa Marwana | Posted in Business Centre | No comments yet. | 699 views on this post

Most NPO's in South Africa are totally dependent on "grant funding" to support their "Social Purpose" programmes.
 

The Hermanus Rainbow Trust, like many other NPO’s / NGO’s, is threatened by the current "grant funding" models in South Africa, where most NPO’s are totally dependent on "grant funding" from Government, Funding Agencies, Business, Individual Donors, Sponsors and fund raising events. Unfortunately in the current global economic slump and the mismanagement of Government finances, these funding practices are no longer sustainable and will result in many NPO’s closing down over the next few years, with devastating effects for the social development of disadvantaged communities.

Unfortunately there have been extensive reductions in "grant funding' over the last few years, causing many NPO's to reduce services and support, retrench staff and in some cases NPO's have been forced to close completely This has had devastasting effects on the communities where the services have been curtailed.

The Hermanus Rainbow Trust has also been severely affected and has responded by developing a "Sustainability Strategy" which entails the transition to a "Social Enterprise" in line with global trends.

Find out more about the "Sustainability Strategy".

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