Social sector organizations, which aimed to help people navigate the Covid crisis, have also been affected by the sudden disruptions triggered by the pandemic. The funding available to them has been drastically reduced, and lockdown and social distancing protocols have affected their own staff and programs, forcing them to adopt new ways of doing business.
A study to assess the situation, carried out over a period of five months during January-May 2021, shows that the future of several organizations in the social sector appears uncertain due to the changes induced by the pandemic. Organizations have been unable to implement their existing programs due to various constraints ranging from physical distancing standards to fundraising and adapting to an online way of working.
7% of organizations surveyed said there had been no change in their program, while 31% adapted all programs to the Covid-19 situation.
54% have blocked a few programs and adapted the rest to the Covid-19 situation.
42% saw a reduction in funding, 35% reallocated funds for relief work and 33% saw no new funding.
54% of the 107 organizations responded by saying that they had received new funding during the period April-December 2020.
In addition to the pandemic-related issues, most small organizations have faced fundraising issues as a result of the changes introduced by the Foreign Contributions Amendment Bill (Regulation), 2020. 53% of organizations respondents predict a reduction in funding over the next two to three years. .
Over the next few years, as these organizations respond to the needs of those severely affected by the pandemic, there is a need for upgrading technology and skills. According to the study, there is also a need to raise funds from a diverse set of sources.
While large organizations have the capacity to meet regulatory, reporting and compliance requirements, small, local organizations struggle to meet the needs, which can put their survival in question.