January 2013
No time for complacency in 2013
The global economic cloud won’t shift just yet. Expect more of the same and prepare for sunnier days in three years time!
A crisis, which crisis?
2012 was a year of revelations! A funding crisis based on public perceptions and image, not a lack of money. The media exposed a few high profile NPOs in dire straits; racking-up debt, alleged fraud, mismanagement, unfair dismissals, verbal punch ups, costly suspensions, ruined reputations that besmirched the sector. Donors are reluctant to support organisations that have dysfunctional, dishonest leaders, so be smart and protect your brand and reputation this year.
A recent online questionnaire; “NonProfit Job Losses and Service Cuts Report’, conducted in collaboration with several financial sustainability specialists, revealed that of 695 respondents eighty percent experienced a significant cut in funds and were now exploring new approaches including social enterprise ideas to address funding gaps and strengthen their organisations’ sustainability. Although this is a positive step it depicts an inherent lack of diversification in fundraising practice.
Philanthropic Spirit in decline
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Unspent funds will impede poverty goals
Development money sits in bank accounts around the world, including South Africa, tagged as unallocated, undistributed, under-spent and unspent or as earmarked funds that can’t be touched! It runs into billions of Dollars.
Africa remains the poorest region in the world according to the World Bank yet through inept planning, poor grant management, lack of donor consultation and administrative blunders funds for development remain stuck in treacle.
We are led to believe that the root cause of poverty in Africa is not necessarily inequality in economic freedom but corrupt political leadership, lack of educational opportunities, limited health services and even climate change that perpetuates the cycle of poverty. Goof ups, foul ups and mess ups are never mentioned as contributing factors to grinding poverty triggered by the very same machinery empowered to address the tragedy.
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Contact: Ann Bown, Email: annbown@telkomsa.net, cell: 083 271 0572
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