Unfortunately access to "grant funding" by NPO's in South Africa has become a major challenge.
“Job Losses and Service Cuts” Survey (2012)
In a recent “Job Losses and Service Cuts” survey done by GreaterGood SA and the GivenGain Foundation to establish the extent of the funding cuts to NPO’s, the results were shocking.
The survey confirmed that 80% of the 695 respondents have experienced significant funding cuts, with almost half having up to 50% cuts. This has resulted in many services being stopped and 7,612 retrenchments, with devastating effects on the impoverished communities and the people retrenched. The National Lotteries cut back funding to NPO’s by 44%, Corporates by 39% and individual donors by 37%
The HRT Experience
In 2012 the HRT Board of Trustees were forced to retrench 64 people from our Health Department becuase of the reduction of "grant funding". (Fortunately negotiations resulted in them being absorbed into another NPO in the Overstrand)
However this was a "wake up" call for the Hermanus Rainbow Trust which resulted in the development of a comprehensive 3 year "Sustainability Strategy".
The main objective of the strategy is to enable the HRT to generate its own revenue to fund the "Social Purpose" programmes, our primary priority. It is essential for the HRT to become independent of “grant funding” over the next 3 years.
The HRT "Social Enterprise"
The HRT "Sustainability Strategy" is built around the establishment of a "Social Enterprise" in line with global trends.
What is a "Social Enterprise" ?
The following definition was adopted as a working definition for “Social Enterprise” in South Africa at a National Conference on the enabling environment for social enterprise development in South Africa, hosted by the ILO in October 2009.
“A Social Enterprise’s primary objective is to address social problems through a financially sustainable business model where surpluse revenues (profits) are mainly reinvested in the "Social Purpose" programmes".
The HRT "Social Enterprise" is currently implementing 3 integrated commercial business activities whose surplus revenue (profits) will be reinvested to support our existing "Community and Social Development" Programmes, which are our prime priority.
Implementation of the HRT "Social Enterprise" (2013 - 2015)
Here is an overview of the HRT "Social Enterprise" showing the 4 "Social Purpose" programmes and the 3 integrated commercial business activities that will fund the "Social Purpose" programmes over the next few years, making the HRT less dependent on erratic and unpredictable "grant funding' from government and business.