DGMT Institutional Investment

Project details

Partner(s):

The fields of education and welfare currently constitute the majority and the principal beneficiaries of the DG Murray Trust (DGMT) annual donations. Amongst other causes supported, DGMT enables schools in rural and urban areas as well as informal settlements to use information technology. DGMT also has a track record of supporting high impact adult learning community programs operated by Community Based Organisations (CBOs) and other Public Benefit Organisations (PBOs) and Non Governmental Organisations (NGOs). An independent private charitable trust, The DGMT was established by the late Douglas George Murray and was initially capitalized from his personal financial resources.

Our Involvement:

SAIE seeks to break the vicious cycle of unpredictable availability of funds that has traditionally afflicted NGOs. In an attempt to bring financial sustainability SAIE has established an Institutional Strengthening Fund that supports operating costs since donors generally prefer to sponsor projects directly over operational or institutional development support. SAIE has approached the DGMT for an investment in this Institutional Fund which will be invested on the money market such that the interest will be used for SAIE’s operating costs.

Project Progress:

The DG Murray Trust has approved a grant for SAIE's Insitutional Strengthening for three years. The Trust will be receiving progress reports from SAIE on the utilisation of the grant, the performance of the fund in the money market and the viability of the funding mechanism.

Funder:

DG Murray Trust

Product:

Institutional Strengthening

Location:

Western Cape



 

Project Completion:

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Institutional Strengthening

Over the years, from a funding perspective, NGOs have not only battled to balance their cash flow but also tend to live from feast to famine – with many falling by the wayside in their attempts to meet their social objectives while also attempting to be financially sustainable. SAIE is no exception – however it has managed this juggling act for over a decade. Donors’ traditionally only prefer to fund the direct costs of project leaving NGOs with the challenge of scrounging for their running costs. This leaves little room for growth, innovation and organizational strengthening. Because of this, SAIE has established an Institutional Strengthening Fund. Donations to this fund will be invested into a money market environment, and as such will earn interest. Only the interest will be used from the fund to support operational overheads. As the fund grows, so too will the interest and at a point in the future the value of the fund will be able to generate the interest required to support the organization on a month-by-month basis.

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