An alternative model for the financial sustainability of social services sector NGOs in the Eastern Cape, South Africa
- Authors: Kagande, Albert Tafadzwa
- Date: 2023-12
- Subjects: Non-governmental organizations -- South Africa , Accounting -- Social aspects , Sustainability
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10948/65644 , vital:74217
- Description: The work of Non-Governmental Organisations (NGOs) is traditionally deemed “unprofitable”, yet they provide valuable services to communities. With an exponentially growing NGO sector of more than 270 000 NGOs, of which 40% are social service sector NGOs, and an increased demand for NGO services, a decrease in government and donor funding has heightened the debate on the need for financial sustainability of NGOs in South Africa. NGOs are important development actors, and their financial sustainability is crucial as it ensures that the sector continues to be relevant and effective in ensuring that social needs are met. Using a mixed methods sequential explanatory research design, the study focused on the social services sector NGOs in the Eastern Cape with the aim of understanding their financial challenges and strategies being employed to address such and, in the process, develop an alternative model for the financial sustainability of these NGOs. A conceptual framework was developed from six theories which were used to explore the concept of financial sustainability drawing insights from the internal and external environment of the participating NGOs. These theories were used together to emphasise that no one theory could single-handedly and holistically explain the concept of the financial sustainability of social service sector NGOs. The use of multiple theories also came from the realisation that NGOs in South Africa, in general, are struggling to survive owing to a myriad of factors which include increased competition for resources and reduced funding from their traditional source. Furthermore, donor dependency, staff and organisational capacity, management practices and values, and the interplay of an NGO with its stakeholders and environment all have a bearing on financial sustainability. Being the poorest province in South Africa heightens the need for social services in the Eastern Cape. From the study, it was established that 48% of social services sector NGOs depended on government funding while only 16% had the capacity to generate their own income. However, depending on government funding was not sustainable and this was crippling the social services sector. The study also established that “young” NGOs struggled to secure funding when compared to their “mature” counterparts. In addition, staff capacity and the values of an organisation affected income generation and how funds were sourced. Lack of capacity to fundraise and/or implement commercial activities had affected the financial sustainability of the social sector NGOs. The interplay of an NGO and its stakeholders and environment also had a bearing on the financial sustainability of the sector. The study provides a multipronged approach and perspective to financial sustainability. The proposed financial sustainability model challenges social services sector NGOs to consciously reflect on their internal and external environments as well a come up with strategies that positively affect their financial sustainability. From the study, the strategies that were being implemented to realise financially sustainability included, retaining current donors, reaching out to new donors, innovative fundraising approaches, redesigning programme activities to include cost-recovery components, collaborating with other NGOs as well as commercial ventures. This study concludes that social services sector NGOs need all these approaches in addition to improving staff capacity and adopting a culture that enhances organisational performance. There is need to build a system where NGOs are adequately supported to do their work without worrying about income and where well-designed financial sustainability components help NGOs, funders, government and communities identify where change is needed. , Thesis (DPhil) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2023
- Full Text:
- Date Issued: 2023-12
- Authors: Kagande, Albert Tafadzwa
- Date: 2023-12
- Subjects: Non-governmental organizations -- South Africa , Accounting -- Social aspects , Sustainability
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10948/65644 , vital:74217
- Description: The work of Non-Governmental Organisations (NGOs) is traditionally deemed “unprofitable”, yet they provide valuable services to communities. With an exponentially growing NGO sector of more than 270 000 NGOs, of which 40% are social service sector NGOs, and an increased demand for NGO services, a decrease in government and donor funding has heightened the debate on the need for financial sustainability of NGOs in South Africa. NGOs are important development actors, and their financial sustainability is crucial as it ensures that the sector continues to be relevant and effective in ensuring that social needs are met. Using a mixed methods sequential explanatory research design, the study focused on the social services sector NGOs in the Eastern Cape with the aim of understanding their financial challenges and strategies being employed to address such and, in the process, develop an alternative model for the financial sustainability of these NGOs. A conceptual framework was developed from six theories which were used to explore the concept of financial sustainability drawing insights from the internal and external environment of the participating NGOs. These theories were used together to emphasise that no one theory could single-handedly and holistically explain the concept of the financial sustainability of social service sector NGOs. The use of multiple theories also came from the realisation that NGOs in South Africa, in general, are struggling to survive owing to a myriad of factors which include increased competition for resources and reduced funding from their traditional source. Furthermore, donor dependency, staff and organisational capacity, management practices and values, and the interplay of an NGO with its stakeholders and environment all have a bearing on financial sustainability. Being the poorest province in South Africa heightens the need for social services in the Eastern Cape. From the study, it was established that 48% of social services sector NGOs depended on government funding while only 16% had the capacity to generate their own income. However, depending on government funding was not sustainable and this was crippling the social services sector. The study also established that “young” NGOs struggled to secure funding when compared to their “mature” counterparts. In addition, staff capacity and the values of an organisation affected income generation and how funds were sourced. Lack of capacity to fundraise and/or implement commercial activities had affected the financial sustainability of the social sector NGOs. The interplay of an NGO and its stakeholders and environment also had a bearing on the financial sustainability of the sector. The study provides a multipronged approach and perspective to financial sustainability. The proposed financial sustainability model challenges social services sector NGOs to consciously reflect on their internal and external environments as well a come up with strategies that positively affect their financial sustainability. From the study, the strategies that were being implemented to realise financially sustainability included, retaining current donors, reaching out to new donors, innovative fundraising approaches, redesigning programme activities to include cost-recovery components, collaborating with other NGOs as well as commercial ventures. This study concludes that social services sector NGOs need all these approaches in addition to improving staff capacity and adopting a culture that enhances organisational performance. There is need to build a system where NGOs are adequately supported to do their work without worrying about income and where well-designed financial sustainability components help NGOs, funders, government and communities identify where change is needed. , Thesis (DPhil) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2023
- Full Text:
- Date Issued: 2023-12
The socio-economic impact of urban renewal projects in South Africa townships
- Authors: Kagande, Albert Tafadzwa
- Date: 2017
- Subjects: Urban renewal -- South Africa City planning -- South Africa , Economic development -- South Africa Land use -- South Africa South Africa -- Social conditions
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10948/17756 , vital:28451
- Description: Urban areas have become strategic locations where many throng to for a better life. However, wealth and economic opportunities are not evenly distributed in these urban spaces. South Africa is a fairly young democracy whose urban landscape has been largely shaped by the colonial apartheid system. The apartheid system segregated and relegated the black majority to the fringes of the cities into crowded communities characterised by poor living conditions, exclusion from the mainstream economy and limited urban amenities. Townships epitomise the harsh reality of the urban poor and how underdevelopment has been perpetuated. South Africa came up with different policies to redress the historical imbalances and inform urban development strategies. Urban renewal has been implemented as a development strategy in various cities across the world in an attempt to revive and improve the social, economic and environmental state of derelict urban spaces. Townships in South Africa have been the target areas for urban renewal with 8 presidential nodes having been initially identified for such in 2001. Eventually, Helenvale was added to the mix as a prime node in 2006 and the Helenvale Urban Renewal Project (HURP) was birthed - Helenvale and HURP being the identified site and project for this research respectively. An evaluative approach was adopted in assessing the socio-economic impact of urban renewal in South Africa townships and more specifically the socio-economic impact of HURP. Helenvale, like most townships in South Africa, is characterised by a high density settlement pattern, poverty, high unemployment, high rate of violence and crime, drug trade and substance abuse as well as a high rate of school dropouts. The Helenvale Urban Renewal Project (HURP) was implemented by the Nelson Mandela Bay Municipality (NMBM) and eventually the Mandela Bay Development Agency (MBDA) with the intention to rejuvenate the community on the social, economic and environmental front. The study findings showed that Helenvale, like all urban renewal nodes in South Africa had a number of socio-economic issues which prompted HURP. These include high unemployment (was 53.5% in 2013); alarming levels of violence and crime; drug trade and substance abuse and high rate of school dropout. Between 2007 and 2014, different projects were implemented under HURP, focusing mainly on physical development and community building. Study respondents had mixed reactions and perceptions of the impact of HURP. On one hand, the project saw the community benefit from the constructed public facilities like recreational parks and resource centre as well as capacity development and created employment opportunities. On the other hand, unemployment has persisted with only a small proportion of the population benefiting from the created jobs; crime remains unabated; drug trade has persisted leaving parents fearing for their young and gang violence has rendered the provided safe public physical features ineffective and the housing challenge has also not been resolved. By and large urban renewal and in this particular study, HURP has made great strides in improving the social and economic standing of the township community despite the challenges that are still lurking. A number of recommendations were proposed for similar studies and for urban renewal initiatives in South Africa. For the latter the study recommended having a robust policy that speaks to urban renewal directly and informs such. Other propositions include allowing the community to own and be stewards of urban renewal initiatives; allocating enough resources, both human and financial; and tailoring the project to respond to the needs of a particular community and not a one size fits all approach. In terms of similar studies the study recommends using a mixed methods approach to evaluate the impact of such ventures as well as evaluating more than one urban renewal initiatives for comparison and to allow for the generalizability of the findings.
- Full Text:
- Date Issued: 2017
- Authors: Kagande, Albert Tafadzwa
- Date: 2017
- Subjects: Urban renewal -- South Africa City planning -- South Africa , Economic development -- South Africa Land use -- South Africa South Africa -- Social conditions
- Language: English
- Type: Thesis , Masters , MA
- Identifier: http://hdl.handle.net/10948/17756 , vital:28451
- Description: Urban areas have become strategic locations where many throng to for a better life. However, wealth and economic opportunities are not evenly distributed in these urban spaces. South Africa is a fairly young democracy whose urban landscape has been largely shaped by the colonial apartheid system. The apartheid system segregated and relegated the black majority to the fringes of the cities into crowded communities characterised by poor living conditions, exclusion from the mainstream economy and limited urban amenities. Townships epitomise the harsh reality of the urban poor and how underdevelopment has been perpetuated. South Africa came up with different policies to redress the historical imbalances and inform urban development strategies. Urban renewal has been implemented as a development strategy in various cities across the world in an attempt to revive and improve the social, economic and environmental state of derelict urban spaces. Townships in South Africa have been the target areas for urban renewal with 8 presidential nodes having been initially identified for such in 2001. Eventually, Helenvale was added to the mix as a prime node in 2006 and the Helenvale Urban Renewal Project (HURP) was birthed - Helenvale and HURP being the identified site and project for this research respectively. An evaluative approach was adopted in assessing the socio-economic impact of urban renewal in South Africa townships and more specifically the socio-economic impact of HURP. Helenvale, like most townships in South Africa, is characterised by a high density settlement pattern, poverty, high unemployment, high rate of violence and crime, drug trade and substance abuse as well as a high rate of school dropouts. The Helenvale Urban Renewal Project (HURP) was implemented by the Nelson Mandela Bay Municipality (NMBM) and eventually the Mandela Bay Development Agency (MBDA) with the intention to rejuvenate the community on the social, economic and environmental front. The study findings showed that Helenvale, like all urban renewal nodes in South Africa had a number of socio-economic issues which prompted HURP. These include high unemployment (was 53.5% in 2013); alarming levels of violence and crime; drug trade and substance abuse and high rate of school dropout. Between 2007 and 2014, different projects were implemented under HURP, focusing mainly on physical development and community building. Study respondents had mixed reactions and perceptions of the impact of HURP. On one hand, the project saw the community benefit from the constructed public facilities like recreational parks and resource centre as well as capacity development and created employment opportunities. On the other hand, unemployment has persisted with only a small proportion of the population benefiting from the created jobs; crime remains unabated; drug trade has persisted leaving parents fearing for their young and gang violence has rendered the provided safe public physical features ineffective and the housing challenge has also not been resolved. By and large urban renewal and in this particular study, HURP has made great strides in improving the social and economic standing of the township community despite the challenges that are still lurking. A number of recommendations were proposed for similar studies and for urban renewal initiatives in South Africa. For the latter the study recommended having a robust policy that speaks to urban renewal directly and informs such. Other propositions include allowing the community to own and be stewards of urban renewal initiatives; allocating enough resources, both human and financial; and tailoring the project to respond to the needs of a particular community and not a one size fits all approach. In terms of similar studies the study recommends using a mixed methods approach to evaluate the impact of such ventures as well as evaluating more than one urban renewal initiatives for comparison and to allow for the generalizability of the findings.
- Full Text:
- Date Issued: 2017
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