Original Research

The financial sustainability challenges facing the South African non-profit sector

Mmabatho Maboya, Tracey McKay
The Journal for Transdisciplinary Research in Southern Africa | Vol 15, No 1 | a693 | DOI: https://doi.org/10.4102/td.v15i1.693 | © 2019 Mmabatho Maboya, Tracey McKay | This work is licensed under CC Attribution 4.0
Submitted: 04 April 2019 | Published: 19 November 2019

About the author(s)

Mmabatho Maboya, Gordon Institute of Business Science, University of Pretoria, Pretoria, South Africa
Tracey McKay, Department of Environmental Science, University of South Africa, Pretoria, South Africa

Abstract

Non-profit organisations (NPOs) operating in South Africa are financially weak and the sustainability of their organisations is often at risk. Post-2008, large numbers have ceased to operate, in part, because of the weak state of the South African economy. This study sought to determine the financial conditions NPOs operate under, to establish why they are so vulnerable and present recommendations as to how they can become more financially resilient. In-depth interviews with 10 senior managers in the sector, representing organisations working in education, health and social welfare, were conducted. The results indicate that the legislative environment-governing NPOs are restrictive and may be inhibiting their ability to raise funds. The results of the interviews showed that the NPOs under study rely heavily on a few large donors; placing them at great risk, should they lose this revenue stream. Donor dependence is such that some even tailor their mandates to suit donors, whilst others dedicate a significant proportion of their resources to fundraising. Consequently, donor relations management and finding new or additional donors preoccupy the minds of NPO leadership. This is notably different to NPOs in the Global North where many have embraced social enterprise and commercialisation.

Keywords

financial sustainability; donor relations; non-profit organisations; funding challenges; policy.

Metrics

Total abstract views: 7076
Total article views: 18651

 

Crossref Citations

1. Nonprofit organisational resilience: Proposing a conceptual adaptive capacity framework
Shanitha Singh, Ana Martins, Orthodox Tefera
Acta Commercii  vol: 22  issue: 1  year: 2022  
doi: 10.4102/ac.v22i1.1077

2. Механізм забезпечення фінансової стійкості як сукупність заходів та інструментів підтримки фінансового стану сільськогосподарських підприємств
Світлана Андрос, Світлана Черемісіна
Food Industry Economics  vol: 18  issue: 1  first page: 46  year: 2026  
doi: 10.15673/fie.v18i1.3446

3. A Strategic Integrated Communication Framework for Child Protection Organizations in South Africa
A. Degenaar, L.M. Fourie, L. Holtzhausen
International Journal of Strategic Communication  vol: 16  issue: 5  first page: 700  year: 2022  
doi: 10.1080/1553118X.2022.2093204

4. Towards a framework for transforming nonprofits into social enterprises: a structured literature review
Suné Schoonwinkel, Sara S. Saartjie Grobbelaar, Marjolijn Dijksterhuis
Management Review Quarterly  year: 2025  
doi: 10.1007/s11301-025-00566-w

5. Health nonprofit organizations use of social media communication and marketing during COVID-19: A qualitative Technology Acceptance Model viewpoint
Rodney Graeme Duffett, Shaun Thomas
Social Sciences & Humanities Open  vol: 10  first page: 101042  year: 2024  
doi: 10.1016/j.ssaho.2024.101042

6. Green human resource management and Sustainable Development Goals in non-profit organisations
Shanitha Singh, Ana Martins, Orthodox Tefera
SA Journal of Human Resource Management  vol: 23  year: 2025  
doi: 10.4102/sajhrm.v23i0.2780

7. An exploration of growth strategies for a career guidance organisation in South Africa
Sihle Shabangu, Favourate Y. Mpofu
Cogent Education  vol: 12  issue: 1  year: 2025  
doi: 10.1080/2331186X.2025.2546233

8. From Survival to Sustainability: A Qualitative Event History Analysis of a Non-Profit Organisation’s Transition to Social Enterprise
Suné Schoonwinkel, Marjolijn Dijksterhuis, Sara S. (Saartjie) Grobbelaar
Journal of Social Entrepreneurship  first page: 1  year: 2026  
doi: 10.1080/19420676.2026.2644276

9. Strategizing for survival – enablers of South African not-for-profit organization sustainability
Ingrid Vorwerk Marren, Annemarie Davis, Charmaine M. Williamson
Cogent Business & Management  vol: 11  issue: 1  year: 2024  
doi: 10.1080/23311975.2024.2323775

10. Social Enterprise Performance in South Africa: The Role of Strategic Planning and Networking Capability
Willie Chinyamurindi, Motshedisi Mathibe, Progress Hove-Sibanda
Journal of Social Entrepreneurship  vol: 16  issue: 3  first page: 771  year: 2025  
doi: 10.1080/19420676.2023.2212672

11. Does Nonprofit Commercialization Affect Public Donation Intentions: An Experimental Study on Public Trust and Organizational Signaling
Siya Zhang, Kegao Yan
Nonprofit Management and Leadership  year: 2025  
doi: 10.1002/nml.70020