Overview of NPO income in South Africa 2023

Non-profit organisations (NPOs) are a critical partner for companies to deliver on their social aims. In 2023, most companies surveyed (84%) channelled funding to NPOs, which received almost two-thirds (63%) of corporate funding on average. In this article, Trialogue draws on data from 89 NPOs surveyed online between May and August 2023. Of the 89 NPOs that participated in the 2023 research, only 19% or 17 organisations also participated in the 2022 research.

Number and type of non-profits

According to the Department of Social Development (DSD), there were 280 329 registered NPOs in South Africa at the end of September 2023, up from 266 531 in September 2022 and 248 902 in September 2021.

In Trialogue’s sample, the most common forms of registration were as an NPO registered with the DSD (67%) and as a public benefit organisation (PBO) with Section 18A status with the South African Revenue Service (SARS) (62%).

NPO income

The NPO sample was relatively evenly distributed in terms of total income, although weighted towards medium to large organisations with an annual income of over R2 million (54%). Fifteen percent of the sample had annual incomes of more than R20 million.

Encouragingly, in 2023, around two-thirds of NPOs (65%) reported that their income had increased from the previous year, while almost a quarter (24%) reported a decrease, in line with 2022 results.
Just over half of the NPOs (53%) predict that their organisation’s income is likely to increase in the next two years, down from 70% in 2022.

Sources of NPO income

The average number of income sources across the sample was 4.5, with the most common being five. The maximum number was ten, reported by one organisation.
Three-quarters of NPOs in the sample (75%) received income from South African companies, with corporate funds accounting for an average of 27% of NPO income in 2023. Just over half (52%) reported that funding from companies had increased in the past year, while 28% reported a decrease from this source.
NPOs had funding relationships with a median of ten South African companies, with responses ranging from two to 200 companies.
Thirty-nine percent of NPOs receiving corporate funding said they received funding for one year or less, while 30% received funding for two or more years and 16% for more than five years at a time.
Two-thirds of NPOs (66%) received support from South African individuals, accounting for 14% of NPO income on average. Only 27% of these NPOs said that income from this source had increased.
The number of funding relationships with South African private individuals ranged from two to 5 000 with a median of 30.

More than half of NPOs (57%) received income from South African trusts/ foundations, which accounted for 13% of NPO income on average. Forty-three percent of these NPOs reported an increase in funding from local trusts/ foundations.
NPOs reported receiving support from between one and 174 South African trusts/foundations, with a median of five.
There was a significant increase in the number of NPOs that received funding from foreign private donors (49% compared to 19% in 2022), although only a small increase in average income from this source. Half of the NPOs who received income from foreign private donors reported an increase in funding from this source.
NPOs reported receiving an equal amount of funding from government compared to the funds they self-generated in 2023 (12% on average).
Forty percent of NPOs received investment income in 2023, although this was a small percentage of the overall income (3% in 2023).
Two NPOs reported using debt, but its percentage of overall income was only 0.2%.

Non-cash contributions

In line with previous years, most NPOs (65 organisations, 83%) received non-cash donations in 2023 (products, services and/or volunteering time). Of these, 41 organisations quantified the value and percentage of their non-cash donations.
The rand value of non-cash donations ranged from R1 000 to R43 million, with a median of R200 000 and an average of R1 902 183.
The non-cash donations as a percentage of NPO revenue ranged from 0.1% to 100% (higher for organisations with an annual income of less than R500 000), with a median of 3% and an average of 17%.

Reserves

Worryingly, more NPOs had no or low reserves in 2023. Over a third of NPOs (36%) did not have any cash reserves, and 16% had less than three months of operating costs in reserves.
Only one-fifth of NPOs (19%) had reserves equivalent to more than one year of operating costs.

Fundraising

Most NPOs (60%) had at least one part-time internal staff member to manage fundraising. Most of the rest (39%) had no staff to manage the function, up from 35% in 2022. Only 1% used external resources to manage fundraising.
Around half of the NPOs (41 organisations, 53%) had a budget for fundraising in 2023. Of those NPOs that provided detailed budget information (24 organisations), 38% allocated less than 5% of their budget to fundraising and one-fifth (21%) allocated between 6% and 10%. Twenty-nine percent of NPOs allocated more than 20% of their budget to fundraising, up from 9% in 2022. The median allocation to fundraising was 7% of the organisation’s budget.
Sending solicited proposals (95% of NPOs) and unsolicited proposals (58% of NPOs) remained two of the most popular methods of fundraising and contributed the highest share of NPO income, accounting for 47% and 13% respectively.
The proportion of NPOs using fundraising events decreased from 67% in 2022 to 45% in 2023. However, the average contribution of these events to NPO income increased to 12% in 2023.
Around half of NPOs (49%) generated income through the sale of products and services, accounting for 11% of NPO income on average.
Digital fundraising campaigns are becoming more popular (61% of NPOs), with an average contribution to income of 10%.
More NPOs used face-to-face canvassing and peer-to-peer fundraising in 2023, accounting for a combined contribution of 11% of NPO income, up from 8% in 2022.

Source: The original version of this article was published in the Trialogue Business in Society Handbook 2023 (26th edition).

Funding for impact: A new playbook for partnerships

State of employee volunteering 2025

SME development needs M&E commitment

Filling the funding gap: How South African nonprofits can thrive

Nonprofit M&E considerations

Overview of nonprofit income in South Africa

Company and nonprofit reputations

VIEWPONT | Adult literacy – a neglected enabler

VIEWPOINT | Is nonprofit deregistration South Africa’s silent crisis?

VIEWPOINT | Between risk and reform: A shifting regulatory landscape for nonprofits

CONTACT US

Overview of NPO income in South Africa 2023

Number and type of non-profits

NPO registration status

Registered NPO: 67%

Section 18A PBO registered with SARS: 62%

NPC registered wwith the CIPC: 46%

Registered trust: 17%

Voluntary association: 6%

Local baranch of international NPO: 2%

Social enteprise: 1%

% NPO respondents 2023 n=89

NPO income

Total annual income

% NPOrespondents 2023 n=76

9% Less than 500 000

9% 500 000 – R2 million

18% R2 million -R5 million

21% R5 million – R20 million

15% More than R20 million

28% Don’t know

Changes in NPO icome

2023 n=89

2022 n=88

2021 n=117

2020 n=115

2019 n=119

Sources of NPO income

NPO income by source

% NPO respondents 2023 n=89 | 2022 n=88

South African companies

South African individuals

South African trusts/ foundations

South African government

Self-generated

Foreign private donors

Foreign government donors

Investment income

The National Lotteries Board

South African intermediary NPOs

Debt

Other

Average % NPO income 2023 n=68 | 2022 n=71

South African companies

South African individuals

South African trusts/ foundations

South African government

Self-generated

Foreign private donors

Foreign government donors

Investment income

The National Lotteries Board

South African intermediary NPOs

Debt

Other

Durarion of corporate support

% NPO respondents 2023 n=77 | 2022 n=84

Less than one year or once-off

Once a year

Two to three years

More than three years, less than 5

More than five years

Don’t know

Changes in source of NPO income

The National Lotteries Board n=7

Foreign government donor n=8

Self-generated

South African companies n=58

Foreign private donors

Debt n=2

Investment income n=31

South African government n=36

South African trusts/foundations

South African private individuals n=55

South African intermediary NPOs n=20

Other n=2

Non-cash contributions

Non-cash donations received

2023 n=78

2022 n=83

2021 n=117