NONPROFIT ORGANISATIONS
Nonprofit organisations
Nonprofits are critical partners in the CSI ecosystem, acting as implementers, innovators, and connectors that help businesses achieve sustainable social impact in communities. Their role extends beyond funding recipients – they provide expertise, local insights, and accountability in deliveringcorporate-funded initiatives.
Nonprofits are capable of:
- Implementing CSI programmes on the ground. Many companies lack the capacity, expertise or infrastructure to execute CSI programmes directly, but nonprofits are good at designing and running projects, providing on-the-ground information about community needs and challenges, and ensuring that the right communities are served safely and effectively.
- Acting as knowledge and innovation hubs. Nonprofits are often good at piloting new models before scaling with corporate funding, using data and research to refine their impact strategies, and advocating for policy changes.
- Strengthening community trust and engagement. Companies are not always trusted in new environments, but nonprofits have longstanding relationships with communities and can make sure that CSI projects align with local priorities. They can also ensure that communities are involved in programme design and decision-making.
- Helping to measure and report impact. Corporate funders increasingly want evidence-based results, and nonprofits are well equipped to collect and analyse social impact data, provide progress reports, and assist with sustainability reporting and ESG compliance.
- Leveraging public-private partnerships. Nonprofits often convene a variety of stakeholders to align CSI efforts with national development priorities, secure co-funding from multiple sources, and advocate for policy changes that support sustainable development.
Challenges for nonprofits
Nonprofit organisations play a vital role in addressing social inequalities, but they face several challenges, from financial pressures and regulatory changes to shifting donor priorities and operational difficulties.
Many have to cope with:
- Funding shortfalls and shifts in donor focus (political change, war, the climate crisis and pandemics, to name a few).
- Short-term funding, which leads to uncertainty and makes long-term planning difficult.
- Increased competition for skilled staff and talent.
- An increase in regulatory and compliance burdens.
- Political and social challenges, including a shrinking civil society space and political interference.
- Rising operational costs, which lead to budget constraints.
- Crime and security risks.
- The recent shift from philanthropy to impact investing and social enterprises, which puts pressure on nonprofits to show financial sustainability and measurable returns.
- Limited digital skills and infrastructure.
- Cybersecurity risks.
Despite these challenges, the sector is innovative and resilient. Most nonprofits are learning to diversify their funding streams, strengthen governance and compliance to meet regulatory demands, use digital tools to improve efficiency and engagement, and build cross-sector collaboration.
Explore our nonprofit topic, which showcases inter alia:
- An overview of nonprofit income in South Africa
- Viewpoints on sector-relevant topics
- Capacity building for nonprofits
- Case studies on collaboration
- Fundraising tips
NPO RESILIENCE COURSE: START LEARNING
Non-profit leaders can gain the tools to strengthen and futureproof their organisations with this in-depth course on the Trialogue Academy, offered free through sponsorship from Nedbank Private wealth
NPO DIRECTORY: START COLLABORATING
Search the NPO Directory to connect with non-profit organisations working across various development sectors and regions.
