Trends in the NPO sector
1. Fewer resources, growing demand
Significant loss of funding and ongoing disruption of operations due to Covid-19 have restricted African NPOs’ ability to meet demands for their services. Epic-Africa and AfricanNGOs surveyed over 1,000 African civil society organisations (CSOs) between June and July 2021. Of those, 68% experienced a loss of funding since the start of the pandemic, with only 8% having received any funding support from a government emergency relief fund in their country.In the report, African CSOs acknowledge that the sector needs to be better organised, encourage collaboration and build more robust networks and platforms.
2. Managing risk
The pandemic has been a timely reminder of the importance of risk assessment and management. NPOs operate in a constantly changing environment and along with new opportunities come new dangers.
We anticipate greater focus on regulatory compliance among well-governed NPOs. This also helps an organisation stay on top of issues that could derail intended outcomes and in the process inspires confidence among funders, in turn, contributing to attracting resources.
3. Virtual training
Organisations involved in capacity building and training have realised both the benefits and limitations of online learning. Virtual learning means training need no longer be location-bound, and it is more accessible as transport, accommodation and event locations are no longer included in budgets.
However, there are limits to online education. To be effective, it requires an understanding of how learning occurs. Non-profits involved in knowledge production and sharing will need to ensure that they actively engage with clients on their learning preferences and that pedagogy and curricula are designed and adapted to online and contact learning platforms.
4. Community philanthropy
South Africa has a widespread tradition of community or horizontal philanthropy where under-resourced people help others who also face tough conditions. In the wake of the pandemic, we have seen initiatives such as the Community Action Networks (CANs) in Cape Town, which are self-organising, neighbourhood-based hubs.These started as a rapid response to the pandemic and now form a broad network of some 170 community action groups. We could see more formalisation, registration and focus on governance issues by such organisations, while others will wish to remain fluid and focused on grassroots. At the start of the pandemic, there were links between more affluent and under-resourced neighbourhoods, such as the Gugulethu-Seaboard alliance. Such collaborations appear to be declining, possibly because donors are under more economic pressure or possibly consider the need less urgent.
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