THE EFFECTS OF THE 2008/9 ECONOMIC RECESSION ON NGO SUSTAINABILITY AND FUNCTIONING IN THE SOUTH AFRICAN SOCIAL SERVICES, HEALTH AND EDUCATION SECTORS

  • Eyesus Gebreselassie-Hagos Social Science (Social Policy and Management), University of Cape Town
  • André de V Smit Social Development, University of Cape Town, Cape Town, South Africa.

Abstract

The economic crisis of 2008/2009 first emerged in the developed economies in 2008 and spilled over into developing countries and economies in transition through international financial and trade channels. This is the greatest financial crisis the world has faced since the Great Depression (Hanfstaengl, 2010; Sandra, 2008). At the height of the recession many feared that it would change into a depression. Banks were “unwilling to lend, credit spreads had widened sharply, stock markets had plunged and economies everywhere were stumbling” (Bustillo & Velloso, 2009:7). Some of the immediate effects of the economic recession on society included higher food prices and other living costs. Furthermore, corporations experienced reductions in their profit margins. It could reasonably be assumed that the NGO sector would suffer significantly as corporate donors and philanthropists typically contribute less during economic downturns.

References

AJAM, K. 2009. NGOs feel the pinch of recession. IOL news, 23 March, 2009. [Online] Available: http://www.iol.co.za/news/south-africa/ngos-feel-the-pinch-of-reces-sion-1.437963#more [Accessed: 01/04/2010].

ALLIANCE FOR NONPROFIT EXCELLENCE. 2009. Downstream and in demand: Mid-South nonprofits and the economic crisis. [Online] Available: http://www. npexcellence.org/documents/DownstreamReportFINAL.pdf [Accessed: 01/04/2010].

BUSTILLO, I. & VELLOSO, H. 2009. The global financial crisis: what happened and what next? ECLAC- Studies and Perspectives Series Washington, No. 4. [Online] Available: http://www.ilo.org/public/libdoc/igo/2009/431716.pdf [Accessed: 20/06/2011].

CALGARY CHAMBER OF VOLUNTARY ORGANISATIONS (CCVO). 2009. Stretched to the limit: Economic Impact Survey. Alberta’s Non-profits and charities. Calgary Chamber of Voluntary Organisations. Calgary. [Online] Available: http://www.calgarycvo.org/sites/default/files/resources/Economic_Impact_Survey_Release_Nov_2009_0.pdf. [Accessed: 20/06/2011].

FIELDING, N., LEE, R.M. & BLANK, G. (eds) 2008. The SAGE Handbook of online research methods. Thousand Oaks: SAGE Publications Ltd.

FOSTER, W., PERREAULT, G. & SABLE, S. 2009. Managing in tough times: May 2009 non profit leaders survey update. The Bridgespan Group. Inc. [Online] http://socialwork.journals.ac.za/

Available: http://www.bridgespan.org/nonprofit-managing-in-tough-times-survey-update-may-2009.aspx [Accessed: 20/06/2011].

HANFSTAENGL, H.E.M. 2010. Impact of the global economic crisis on civil society organisations. [Online] Available: http://ngosocdev.files.wordpress.com/ 2010/01/full-study-on-impact-of-global-crises-on-csos-2-25-10.pdf [Accessed: 20/06/2011].

KALIS, A. 2000. Government – NGO Partnerships for Social Service Delivery. Poverty, Social Welfare and Social Development Challenges for 21st Century: 29th ICSW International conference on Social Welfare. Cape Town, 23-27 October 2000. [Online] Available: http://www.icsw.org/global-conferences/gov-ngo-partnership.htm [Accessed: 15/06/2011].

KANITHI, N. 2010. A comparative global study of the impact that information and web technologies have on the sustainability and growth potential of non-profit organizations in developed and developing countries. Cape Town. University of Cape Town. (MA thesis)

KILBEY, B. 2010. The state of fundraising within the non-profit social service sector: a study to determine how and to what level of success South African NPOs are managing and operating their fundraising functions. Cape Town. University of Cape Town. (MA thesis)

NAIDOO, Y. & NKUNA, B. 2009. NGOs face cash crunch due to financial crisis. West Cape News, 6 March 2009. [Online] Available: http://westcapenews.com/?p=468 [Accessed: 10/12/2010].

PETER, M. 2008. Charities, NGOs funds ‘drying up’. IOL News November 9 2008. [Online] Available: http://www.iol.co.za/news/politics/charities-ngos-funds-drying-up-1.423572 [Accessed: 28/02/2011].

PHILIP, R. 2009. Charities going burst as recession hits: warning that cash crisis will have ‘catastrophic impact’. Sunday Times. [Online] Available: http://www.timeslive.co.za/sundaytimes/article82559.ece [Accessed: 20/02/2011].

RAPOO, T. 2010. Funding Crisis for Research NGOs in South Africa Looming Larger Than Ever. SANGONeT, NGO News and Views Friday, July 23, 2010. [Online] Available: http://www.sangonet.org.za/article/funding-crisis-research-ngos-south-africa-looming-larger-ever [Accessed: 23/02/2011].

REPUBLIC OF SOUTH AFRICA. 1978. Fundraising Act, 1978 (Act 107 of 1978). Government Gazette, 156, No. 6099 (30 June). Pretoria: Government Printer.

REPUBLIC OF SOUTH AFRICA. 1989. Disclosure of Foreign Funding Act, 1989 (Act 26 of 1989). Government Gazette, 285, No.11779 (23 March). Pretoria: Government Printer.

REPUBLIC OF SOUTH AFRICA. 2003. National Health Act (Act 61 of 2003). Government Gazette, 469, No. 869 (23 July). Pretoria: Government Printer.

SALAMON, L.M., GELLER, S.L. & SPENCE, K.L. 2009. Impact of the 2007-09 Economic Recession on Nonprofit Organizations. Listening Post Communiqué No. 14. http://socialwork.journals.ac.za/

Johns Hopkins Institute for Policy Studies, Baltimore, MD. [Online] Available: http://ccss.jhu.edu/wp-content/uploads/downloads/2011/09/LP_Communique14_2009 .pdf [Accessed: 20/02/2013].

SALGADO, I. 2010. Recession may alter priorities but real philanthropists still give freely. Business Report (National). Thursday 8 April: 7.

SANDRA, A. 2008. The Great Recession 2008-2009. (What are we going to do about it?). [Online] Available: http://www.aflcio-hit.com/userassets/Documents/Economic_ analysis/2008_great_recession.pdf [Accessed: 20/06/2011].

SMIT, A. 2005. Funding strategies: surviving imperial intentions, protean policies and ruthless reality. Social Work/Maatskaplike Werk, 41(4):349-360.

SOCIAL PLANNING NETWORK OF ONTARIO (SPNO). 2009. Hard hit: impact of the economic downturn on non-profit Community Social Service in Ontario. [Online] Available: http://socialplanningtoronto.org/wpcontent/uploads/2009/ 10/HARD_HIT_Impact_of_the_Economic_Recession_on_Nonprofit_Community_Social_Services_in_Ontario.pdf [Accessed: 20/06/2011].

SOCIAL PLANNING COUNCIL OF CAMBRIDGE AND NORTH DUMFRIES. 2009. Responding to the economic downturn: Nonprofits in Cambridge and North Dumfries. [Online] Available: http://nonprofitsectormanitoba.ca/resources/master-resource-file/ Financial%20Strains.pdf [Accessed: 22/06/2011].

SOUTH AFRICAN NGO NETWORK (SANGONet). 2011. Prodder Directory Online. Available: http://www.prodder.org.za/about-prodder [Accessed 10/06/2011].

SOUTH AFRICAN HISTORY ONLINE (SAHO). 1989. The many faces of Apartheid repression. History Matters Blog. [Online] Available: http://www.sahistory.org.za /article/many-faces-apartheid-repression [Accessed: 17/07/2011].

SWILLING, M. & RUSSELL, B. 2002. The size and scope of the non profit sector in South Africa. Johannesburg and Durban: Graduate School of Public and Development Management, University of the Witwatersrand and the Centre for Civil Society, University of Natal.

THAW, R. 2009. NGOs Struggle to find Funding due to credit Crunch. EWN. [Online] Available: http://www.ewn.co.za/articleprog.aspx?id=7879 [Accessed: 22/06/2011].

VANCOUVER FOUNDATION. 2009. Weathering the storm: a survey of non-profit organisations and charities in British Columbia. [Online] Available: http://www.-cccabc.bc.ca/res/pubs/pdf/

Published
2014-05-27
How to Cite
Gebreselassie-Hagos, E., & de V Smit, A. (2014). THE EFFECTS OF THE 2008/9 ECONOMIC RECESSION ON NGO SUSTAINABILITY AND FUNCTIONING IN THE SOUTH AFRICAN SOCIAL SERVICES, HEALTH AND EDUCATION SECTORS. Social Work/Maatskaplike Werk, 49(1). https://doi.org/10.15270/49-1-79
Section
Articles