Greater Good South Africa

Regular contributor, Kerryn Krige, gives us her top 6 survival tips to help your organization come out fitter, stronger and more focused by 2014.

It’s been a tough year for civil society. Those funding cuts that we’d been warned of since the crash in 2008, were keenly felt. Pepfar wrapped up its second five year programme, the Europeans curtailed their investments, DfiD restructured. The retraction in international funding was exacerbated by instability in local funding as the National Lottery in trying to get its house in order, struggled to deliver on its grant mandate. Government too continued to frustrate rather than support, being slow to pay and with large underspends on its welfare budgets. Business plodded along, on hold as it waited for the new BBBEE Draft Codes to be published.  

The result is that the country may not be in recession, but it feels as if the non-profit sector is.

The reality of this picture was brought to life by a recent survey by GreaterGood SA, which interviewed over 600-plus organisations. Eighty percent of those surveyed have lost significant funding this past year, 20% have enough money to last another month, 17% have no operating cash at all. Published a month ago, the report confirms my instincts: that the tough times are real, and life for civil society isn’t going to improve in the near future.

Looking forward
But I’ve had a forced rethink, after attending the Looking Back, Looking Forward forum at GIBS, which hosted visionaries whose crystal balls are a whole lot more informed than mine: strategist Clem Sunter, constitutional expert Roelf Meyer, City Press’s Ferial Haffajee, civil society’s Neville Gabrielle, economist Adrian Saville and Rand Merchant Bank Chair Sizwe Nxasana.

Hosted at the business school – the home of sharp suits, expensive cars and lengthy debates on profit and loss, the forum took an a-typical turn when the panel from their various areas of expertise agreed that the area of positive growth for 2013 wasn’t financial services, or mining, or media.

But Civil Society.

Where real change lies
This is exciting, as it means that the work being done in social development is finally integrating into mainstream thinking. The commentary was fascinating: that civil society’s cross cultural mobilization of citizenry is is connecting people more than anything (think of anti-toll group OUTA). That the non-profit sector is where real change lies – for employment, skills development, entrepreneurship and of course, social development. That government and business have to engage if they want to move forward – and civil society is the key to that action.

To hear development debates making their way onto business school panels marks a significant change in thinking. It is an opportunity we cannot miss.

So. Although I believe that 2013 will be tougher than 2012. I am heartened by the way the work of non-profits and activists is being viewed. Jim Collins writes about the importance of gaining momentum to achieve change. I like to think that the years of consistent and persistent pushing are starting to gain traction. We don’t have momentum yet, but we’re starting to see the extra spin. And that’s heartening.

So rather than predictions for 2013 I have written instead a few survival tips to ensure that your organization comes out fitter, stronger and more focused by 2014. Together these Six Steps to Surviving 2013, create a well connected approach that will strengthen your relevance and contribution to social development, creating a solid foundation for the more stable years that sit tantalizingly close on the 2014 horizon.

#1 Look beyond the of jobs jobs jobs mantra

Jobs. Jobs. Jobs. It was the mantra of 2012 which resulted in a flurry of activity because it came with access to sizeable sums of money, and is a neatly measurable indicator.

I hope that we have learnt from the HIV-years, when everyone ended up with an HIV project regardless of whether it was relevant to their work or not. And in chasing the easy funding, non-profits neglected the local options which is part of why we’re facing financial difficulties today.

My advice for 2013 is then let’s not focus on jobs, but rather on the more sustainable approach of building business. It’s the entrepreneurs who will create work for those in their communities. We have to move away from the thinking that institutions will create more work. They won’t – the financial pressure that we are already under means that many of us are cutting not creating employment. So it is common sense to think away from the traditional institutional framework. We need to broaden the base of people in employment. We need to focus on improving the systems they work in. And we need to make instill a strong sense of social focus in our entrepreneurship, so that they are a contact point of positive development.

#2 Accountability – getting our house in order

With 80% of non-profits not submitting their annual financial statements and narrative reports to the Department of Social Development, we have no foundation for criticizing the other sectors of democracy, business and government. 2013 must be a year where non-profits commit to Codes of Good Governance and then follow them.

Only with an accountable, robust civil society can we attain the moral high ground and hold others to account.

Business and government are making concerted efforts to improve their accountability as evidenced in King III, and the work of the Public Protector, Auditor General and legislative framework of the Public Finance Management Act. We cannot afford to cruise along with a misplaced arrogance that because we do good, we are good.

If anyone is to survive 2013, accountability and transparency has to be central to their ethos.

#3 Monitoring and Evaluation

If you don’t have monitoring and evaluation systems in place, 2013 is your year to get it going. If you fail to get basic measurement in place, chances are, your organization will be obsolete by 2015.

Not only is measurement an important part of being more accountable, but it’s needed so that non-profit leaders can challenge their assumptions of what works and what doesn’t.

I believe that as we all focus on monitoring and evaluation, so partnerships will become easier to manage leading to a natural consolidation in the sector When you realize your areas of expertise you  begin to share knowledge, and so begins a positive cycle that leads to improved, more professional services.   

#4 From programmes to activism

There is a growing voice that is calling for a move away from programme funding to donor support of activism and rights based movements. The argument is that civil society’s role is not to provide services that government should be delivering (eg: like HIV care), but rather to hold government to account to provide these services.

It’s a good argument, and even better because it is rattling our rather traditional approach to development. I think that 2013 will see more money being available in building accountability, and growing the rights-driven voice of civil society. The success of Section 27, The Right to Know campaign, even OUTA in Gauteng, adds credence to this movement. This is moving the flywheel significantly, and I like it.  Watch out for more activism in 2013, and even more for 2014.

# 5 Rise of the CBO

We can’t keep ignoring CBOs. Just because they don’t have the institutional structures that our funding models demand, doesn’t mean that they are irrelevant. We cannot continue channeling funding for communities via national organisations just because they comply structurally to the needs of the donor.

I would like to see a concerted effort by the larger non-profits to bring in CBOs, and to help them build up their institutional structures, securing accreditation, developing financial statements, creating annual narratives.

I think that national organisations will find that the role they can play as mentor and guide is part of their survival strategy: as it is through the CBOs that they will maintain their relevance.

#6 Making profits out of non-profits

A key survival strategy for 2013  is to grow the profit base of your non-profit. Usually a sacrilegious word in social organizations it is important that we start to professionalise the work that we do by increasing the surplus of funding. And this doesn’t mean going out to raise more grant funding, but rather taking a longer term view on what type of funding you need to survive.

Research by the Stanford Social Innovation Review shows that America’s top non-profits have funding stability as their common denominator. This is difficult in South Africa where government and donor funding is erratic. But what must happen is a focus on building a surplus into the organization, by doing what you do well. Whether that funding stream is grant, or entrepreneurial it must be a surplus and it must provide the type of funds that you need to grow.