Funding modalities for non-profit organisations in Mpumalanga Province

Abstract

There is a significant increase in the number of non-profit organisations registered in South Africa each year. By the end of September 2022, 266,531 NPOs were registered. This number increased from 248,902 in 2021 to 228,822 in 2020. Studies have shown that NPOs contribute enormously to solving social problems where the state cannot provide society with the most needed support. To this end, funding is crucially important for NPOs to function effectively in their service delivery drive. This study examined the relationship between the challenges and funding arrangements for NPOs in South Africa, focusing on NPOs in Mpumalanga Province. The number of donors is decreasing while charitable organisations that need support to sustain their organisations and programs are increasing. Using qualitative methods of data collection and analysis, the study identified financing options for NPOs in the Province and explored different routes and methods of raising funds for financing the activities of the NPOs. With data from indepth interviews, the study noted the disparities in funding and the implications for the activities of the NPOs. The study recommends the primacy of awareness programs and capacity-building forums for NPOs in Mpumalanga Province, where NPOs discuss challenges and share ideas about what works and how to improve when it comes to raising funds.