The invaluable role of NPOs in South Africa

A NON-PROFIT organisation (NPOs) identifies and meets the needs of a broader community - and normally does so within a bureaucratic system where its response to issues can be faster and more creative than those of government.

There are many NPOs operating and working in South Africa. Most have played a critical role in delivering community-level as well as national-level services during the Covid-19 pandemic, helping to alleviate some of the unprecedented challenges it has brought.

According to TechGiant, an NPO is an organisation that is not driven by profit, but by dedication to a given cause. This caused is the target of all income beyond what it takes to run the organisation.

NPOs are often used for trusts, co-operatives as well as advocacy, charity, environmental and religious groups.

NPOs are formed voluntarily by citizens and fall into three broad categories:

• Formed out of concern to assist the needy or disadvantaged people;

• Formed on the basis of common interest in and/or to take action on a particular subject or issue;

• Organisations through which people engage in a common pursuit.

The terms NPO and NGO (nongovernment organisation) are often used interchangeably, but they are different.

NGOs are separate from government structures but may depend on the government for funding. However, most NGOs are also non-profit organisations.

Many NPOs face a uncertain future with increasingly limited funding and support within a fragile economy. These organisations attempt to resolve challenges and inequalities prevalent in South African society and rely on sponsorships, donations and non-state funding to stay afloat.

A survey conducted in 2013 revealed 467 NPO funding cuts from all funding sources, with the National Lotteries Board and corporate social investment (CSI) departments topping the list. Fast forward to 2021, the pandemic has crippled many businesses and has created an even greater need for the assistance of NPOs and NGOs.