Budget constraints impact on NGO funding

2015-09-24 06:00

WITH South Africa’s unstable economy some KZN non-profit organisations may not, from next year, get funding from the Department of Social Development because of the implementation of cost-cutting measures.

KZN Department of Social Development spokesperson Ncumisa Fandesi said due to financial challenges that affect all government departments there have been no tariff increases for the NPO sector this year, so the department is working on a rationalisation policy, which involves looking at services offered by NGOs to communities in order to determine whether there is any duplication.

“The department is discussing a policy of rationalisation and relevant stakeholders will be informed about the outcome when it’s finalised. We have in the meantime started a consultation process with the NPO sector on a possible revised system which will hopefully ease the current cash flow challenges.

“They will be advised on the new payment systems and terms before it is implemented,” said Fandesi.

DA KZN spokesperson for Social Development, Dr Rishigen Viranna, said they are concerned that while Finance MEC Belinda Scott announced at the beginning of the year there will be a six percent tariff increase, there is no money to pay any kind of increase for KZN NGOs.

“The future looks bleak for KZN NGOs and with another announcement that the department will be undertaking a rationalisation plan, this could result in such organisations being consolidated or closed.

“At the end of the day it is the poor and vulnerable people of province who will suffer as the consequences of a lack of additional funding bring a reduction of services rolled out by some NGOs and the complete closure of others.”

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