Business sustainability challenges experienced by philanthropic non-governmental organisations in the Capricon District Municipality

Abstract

Non-Governmental Organisations (NGOs) are regarded as valuable role players and partners in the development of communities. The aim of this study was to seek, and unpack business sustainability challenges faced by the philanthropic NGOs operating in the Capricorn District Municipality. This study also attempted to evaluate the possible solutions to the current challenges and to assess the compliance levels of the NGOs with the Directorate of the NPOs, to identify distinguishing qualities possessed by successful NGOs, to evaluate the role of affiliation and the support structures available for the NGOs in CDM and to make possible recommendations to improve their sustainability. The study employed qualitative evaluation as this research tool allows for interpretative research. The key findings of this study include lack of support for the NGOs, lack of resources, lack of visionary leadership, poor remuneration, greed and selfishness, competition for funding, lack of income generation and fundraising skills, education and financial illiteracy, wrong establishment motives, lack of passion for the sector and self-enrichment. The study recommends that the NGOs should appoint skilled Project Managers and governors who can provide clear directions; application forms for funding should use simple and understandable language so as to accommodate less privileged groups; diversify funding sources, and create mutual partnerships. The NPO Directorate together with the Department of Social Development should assist in the screening of motives to establish NGOs, the NGOs be assisted with the training of Management and Board members and NGOs be assisted financially with bookkeeping and auditors.