Nation Builder, the not for profit trust established by investment company, the Mergon Group, explains the financial sources for non-profit organisations have all but ceased as a result of the coronavirus outbreak and subsequent lockdowns worldwide. The organisation’s executive trustee and founder, Keri-Leigh Paschal, says while this current phenomenon is not unique to non-profit organisations, they are experiencing a sharp increase in the demand for assistance from the public during this crisis. This may be in the form of additional space at shelters, psychosocial support, as well as more food and clothing. Not forgetting the additional expenditure brought on by the procurement of protective gear in the form of masks, gloves and sanitisers for staff and residents. Paschal tells OFM News the diversification of sources of funding is the answer to these organisations’ financial concerns at this time. 

The founder of Nation Builder stresses sustainability comes from diversified income streams, i.e. self-generated income, government funding, foreign aid and donations from the general public and businesses’ corporate social investment spend. She says this will enable non-profit organisations to have access to revenue, should all  economic activities come to a halt like it has during the lockdown. “Try to spread you risk, so that if the economy closes down again – which is what we least expected – then you will still have other income streams to keep you going,” advises Paschal.

Nation Builder’s sentiments on the matter have already been shared by some non-profit organisations like the Saartjie Baartman Centre for Women and Children in Cape Town. Director for the Centre, Bernadine Bachar, told OFM News in April that they are in need of urgent assistance. “Our traditional fundraising initiatives are no longer available to us. Traditionally we would use golf days, entertainment days and high teas to bring in further funds. Obviously we can’t use those anymore during the lockdown and the social distancing era. What we’re saying is we need additional funding to make up the gap,” says Bachar. The Director of the Cape Town-based centre says every year she has to raise R 6 million herself to keep the centre going, a task that she says is difficult at the best of times and “herculean” when the economy is sluggish, like it has been in recent years. 

Paschal says the country’s ailing economy, mixed in with less money being diverted to businesses’ social corporate investment spend and a 40% rise in the number of non-profits that have been established in recent years, have pushed centres like the one Bachar runs to self-generate their income – something that is not traditional for non-profits. 

Nation Builder says there are organisations that have managed to raise between 40-80% of their annual income without donors, a step that proved to be effective, until the coronavirus outbreak kicked into gear. 

OFM News