Global Policy Forum

Local NGOs Develop Creative Financing Strategies

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One World
January 15, 2003


Reducing Costs and Increasing Value for the Disabled Association for Persons with Disabilities and the Deaf (APD): Free State
APD-Free State is an organization of and for persons with disabilities and other marginalized groups such as those affected by HIV/AIDS. Recently, the APD has developed an innovative strategy to reduce costs and increase the value added to their service to persons with disabilities. They are revamping their approach to make it a more client-oriented system in order to achieve this goal.

Their new strategy focuses on three main areas: an emphasis on project-related financing to create a client-contractor relationship where possible, expanding the volunteer program to include more positions at managerial and strategic levels, and forging mutually beneficial relationships and partnerships with key private sector companies by contracting services both in and out of the organization. Each of these components will have a substantial impact on the sustainability of the organization in the future.

Vibrant Theatre Requires Independence Victory Sonqoba Theatre Company: Guateng
The post-apartheid era has witnessed a shift in international donor support away from South Africa, which has affected the survival of community theatre troupes, such as the Victory Songoba Theatre Company, who were responsible for catalyzing the dialogue necessary for healing and constructive social change in the country. The Victory Songoba Company recently launched the Community Theatre Stokvel Initiative to promote financial independence for community theatre groups and build a stable audience for the art, among other objectives.

Most importantly, the Stokvel is establishing itself as a membership organization. This will generate much of the income required to sustain the organization, through joining fees, compulsory monthly fees, and requiring members to sell a quota of tickets for every performance. Partnerships with local radio stations have helped to increase media coverage of their events, as well as with tour operators that encourage tourists to buy tickets for performances. The Stokvel is well on the way to solidifying its own self-reliance, and is envisioning the development of a sustainable network of community groups.

The Working Unemployed are Getting it Together Men on the Side of the Road Project (MSR): Cape Town
Each day they gather, an estimated 18,000 males aged 15-60, at roughly 180 sites throughout South Africa. Always at the same major intersections come rain or shine, these are the men on the side of the road, waiting expectantly for contractors, homeowners anyone who cares to offer them a day's casual labor. Launched in 1999, the Men on the Side of the Road (MSR) Project aims to build unity amongst this group of individuals.

MSR hopes to provide them with the knowledge, tools and voice to facilitate their fight for a better life. MSR will build shelters with ablution facilities, provide education on the rights enjoyed by these workers, and build partnerships with government agencies, unions and human rights organizations to give the workers greater access to resources and funds to improve their standard of living. MSR is also coordinating a national public marketing campaign to call for the donation of old and broken tools, which can then be repaired and used by the day laborers. This project will provide funding for MSR as well as go directly to the men.

Walking into the Sunset The Social Change Assistance Trust (SCAT): Cape Town
SCAT is an independent grantmaking and human rights NGO. It was established in 1985 to fund and support organizations providing paralegal service and support during the anti-apartheid era. With the freeing of political activity in 1990, there was a radical shift in funding patterns—services such as SCAT became less important, and threatened the existence of SCAT itself.

Today, SCAT provides rural organizations with financial and institutional support, enabling them to manage and account for their financial and human resources. SCAT is positioning a new resource mobilization strategy that will encourage and enable local development agencies to fundraise within their own communities—a strategy called Fund Raising Incentive Scheme (FRIS). Often called a sunset-strategy, the initiative will allow for the sustainability of SCAT's benefits, even if SCAT should cease to exist. SCAT will match every Rand raised by a community organization through local events and creative fundraising schemes, lending a sense of community ownership and involvement in the organization for constituents. As local sustainability builds, SCAT will gradually reduce the amount of fund-matching.

Flying Free, No Strings Attached Cape Mental Health Society: Cape Town
The Cape Mental Health Society provides counseling, education and support services to people faced with mental illness, intellectual disability, and emotional problems. Its goal is to enhance and maximize the independence of children and adults with mental disabilities. Today, the organization combines disability services, community development, and poverty alleviation in a strong business model.

During the apartheid era, it enjoyed a high level of support from international donors. However, there was a noticeable reduction after democratic elections, and the Cape Mental Health Society responded with a series of integrated local resource mobilization schemes. The strategies are as multi-faceted as the organization—including income generation, cost recovery, and local fundraising. For example, every year the organization hosts the Cape Town International Kite Festival and an auction, held in April, to raise awareness of and funds for Cape Mental Health. Through these locally-based strategies, Cape Mental Health Society is generating 59% of its operating budget, and solidifying its sustainability.


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FAIR USE NOTICE: This page contains copyrighted material the use of which has not been specifically authorized by the copyright owner. Global Policy Forum distributes this material without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. We believe this constitutes a fair use of any such copyrighted material as provided for in 17 U.S.C § 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond fair use, you must obtain permission from the copyright owner.