NGOs Feeling the Pinch, May Have to Close. 21/03/09

Non-governmental organisations are feeling the pinch as the country teeters on the brink of a recession. Many will have to close many of their branches - especially in poor communities - if they don't receive substantial funding in the next few months.

The Southern African NGO Network (Sangonet) says although a "crisis" is a few months away, scaling back services and resources are a definite reality.

"Funders are not able to assist the organisations anymore because they themselves aren't coping. It is going to have a major impact on welfare organisations - either they will close down or their staff will be forced to leave the NGO sector," said Sangonet's executive director, David Barnard.

Ashley Theron, National Executive Director of Child Welfare SA (CWSA), whose monthly operational costs amount to about R1.5 million running 10 offices including its nine provincial offices, envisions that the charity will have to drastically limit or cease altogether the services they provide to more than 2 million children if funds are not received soon.

"If we do not receive urgent financial assistance, we will have to curtail some very essential services - especially in deep rural areas where our provincial staff have trained and are supporting the volunteers who are helping us to manage the projects.

"There is a shortage of social workers and social auxiliary workers in SA and we, with our limited resources and the government's inadequate financial support, struggle to find professionals willing to work in these underdeveloped areas for the low salaries we pay volunteers."

Theron says subsidies received from the government account for 18 percent of CWSA's expenditure. The rest of the money is sourced through donor funding and fundraising activities. Due to the economic downturn it only managed to raise a quarter of its income target.

He says, however, government officials are sympathetic and have indicated that they will do everything possible to prevent CWSA closing down.

Theron says it would be unfair to name the individual offices facing closure but says that out of its 245 organisations and outreach programmes, 222 receive intensive developmental, support and other services from CWSA as a national body.

"We believe that they will find it difficult to survive and their communities will no longer receive services.

"It will be a tragedy if these services are curtailed or CWSA suspends their operations, the children, families and communities being served will be left completely destitute.

"The Department of Social Development will not be in a position to replace Child Welfare South Africa's services.

"Just rebuilding the infrastructure which Child Welfare South Africa and its members have built up over almost a hundred years will take decades to re-establish," said Theron.

Joan van Niekerk, National Co-ordinator for Childline South Africa, says the organisation has already been told by several donors that there is less money available for distribution to good causes this year.

"This includes charitable collections, as well as social responsibility programmes of some companies - so we are preparing for a year of more limited resources," she said.

"It is sad because our staff around the country work long hours, for low rewards with a great deal of dedication and love for children.

"It is also sad that despite the fact that children are considered the future of our country, our investment in children's welfare services is one of the areas being cut back," said Van Niekerk.

Recently the Treatment Action Campaign announced that it would retrench 20 percent of its staff owing to a funding shortfall.

TAC's general secretary Vuyiseka Dubula said the shortfall was largely due to several million rand of its global fund grant not being paid.

"We have no choice but to retrench approximately 20 percent of our staff and to end our treatment literacy bursary programme."

Dubula said the TAC had 98 permanent staff and 350 bursary holders. The organisation, she said, needed to reconsider its structure due to the change in the country's political climate.

Christine Kuch, spokesperson for the National Council of Society for the Prevention of Cruelty to Animals, said although the organisation had reserves and still operated effectively, the credit crunch will affect SPCA's country-wide.

"We are affected in two ways: difficulty in generating income but also people handing in animals because they can no longer keep them financially.

"Some leave it too late - animals are starving. The best thing to do in these circumstances is not leave it too late."

With 98 SPCA's in the country, Kuch said strict budgetary controls are going to be essential.

“We also want to warn people to not consider breeding and selling puppies as a means of generating income. There is already an over-population and this is simplistic thinking."

This article was originally published on page 9 of The Star on March 21, 2009