Institutional Strengthening
Institutional Strengthening and the need for core operational costs
There is a common view that social profit organisations should be resource-poor, almost as a kind of proof that they are responsibly channeling donations to their beneficiaries and practicing austere cost-saving measures… While it goes without saying that governance and control are necessary, this mindset still yields a multitude of negative impacts on social profit organisations, including: constant vulnerability to the failure to cover operational costs; inability to expand and bring the organisation and its activities to a more meaningful scale; lack of opportunity to implement better practices and improvements (SA Social investment Exchange Strengthening Programme Overview).
The Indispensible Work of the NGO Sector
Non-profit organisations are mostly admired for their passionate commitment to mission and their inventive approaches to addressing urgent social problems. Across the country and around the world, non-profits implement programmes that improve the quality of life for tens of millions of people. So much so that, in many instances, NPOs have replaced governments as communities’ principal service providers for a range of human needs. And their success in addressing social issues has increased demand for their services from all quarters, including governments which increasingly turn to them as potential service providers and partners to tackle pressing social challenges.
The Problem: Investing in NGO's Development
The problem is that many NPOs struggle to deliver against these growing expectations, because they are constrained by insufficient resources, are under-capitalised, and are typically funded via a single financial instrument: the charitable donation. Almost without exception, non-profits operate on a ‘pay-as-you-go’ basis or receive their funding per project, which significantly curtails their ability to build the intrinsic value and long-term organisational capacity of the NPO itself...
Overview of Institutional Funding progress
- Total: R2 650 200 received
- Target: R30 million
- Still to raise: R27 349 800
Institutional Strengthening Funders
Wesbank
Wesbank has supported the institute through the improvement of its educational materials, namely Business VENTURES.
With more than ten years of experience in materials development, the SAIE has remained committed to its mandate of providing world-class, quality materials in EMS and Business Studies that would facilitate optimal learning and provide educator support. To maintain the products accessibility and relevance at all times, the SAIE continually undertakes educator surveys to consider whether and what product upgrades are necessary.
Through this exercise, it has become apparent that there is a critical need for ongoing product upgrading and the additional supplementation in various areas through all grades from Grade 2 to Grade 12. Specifically, feedback has been collated through extensive interviews and research of the schools utilizing BusinessVENTURES, as well as the Department of Education and Ikhwezi Training College in KwaZulu Natal and this feedback indicates the need for the following additional product development:
South African Airways
SAA supported SAIE both with funding for the development of the Tourism: Wings of Welcome training programme, but also made a contribution to its Institutional Strengthening Fund.
DG Murray Trust
The Institute received funding from the DGMT for a period of three years as a contribution to the core operational and running costs in order to enable the management and staff of the institute to focus strongly on the future sustainability and programme enhancement activities.
