NPOs in trouble: Social services institute

2012-01-31 21:30

Johannesburg - Many non-profit organisations (NPOs) are in deep financial trouble, the Johannesburg Institute of Social Services (JISS) said on Tuesday.

Organisations providing community-based social services were under threat and could close down if the situation did not improve, spokesperson Jackie Loffell said.

"The funding system is not based on the reality of delivering the services. Another major problem are [sic] subsidiaries [sic] that are not adjusted for inflation, so they stay at the same level for years on end."

NPOs struggling included the Johannesburg Parent and Child Counselling Centre, Kids Haven, as well as some old age homes and children's homes.

Loffell said the JISS was calling on the national and provincial treasuries to budget sufficiently so non-profit organisations could deliver services. At the moment, both budgets were inadequate for this.

"We are talking about the most vulnerable sections of the community and it's urgent," she said.

Although the government provided many social services, the bulk of social welfare services came from NPOs, and not enough was being done to help them function, Loffell added.

"We will continue to fundraise, but the core cost must be carried by government."

Loffell said these services were required to be carried out under the Bill of Rights and other social legislation.

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