Business Sustainability Challenges Experienced by Philanthropic Non-Governmental Organisations: The case of the Capricorn District Municipality, South Africa

Abstract

This article unpacks the sustainability challenges faced by the philanthropic NGOs in the Capricorn District Municipality of South Africa. The study employed a qualitative approach using an interpretative paradigm. Many NGOs are hamstrung by 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 article 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, there is need to diversify the funding sources and the creation of mutual partnerships. The NPO Directorate together with the Department of Social Development should assist in screening NGOs before establishment to ascertain the motive an scope of work; NGOs should be assisted with the training of Management and Board members as well as supported financially and with bookkeeping and the services of auditors. This article posits a typology of successful philanthropic NGOs as NGOs which allow stakeholders to participate in the formulation of their vision and mission; are able to plan and to mobilise resources; attract and retain skilled workforce; and have the ability to remunerate them. As such, for NGOs to thrive, there must have adequate human and material resources including financial and management skills; dedicated leadership; visionary management and leadership; and be able to pay decent remuneration.

DOI: 10.5901/mjss.2014.v5n23p711