KZN NPOs in funding crisis

NON-PROFIT organisations in Kwazulu-Natal are under extreme financial strain as the Department of Social Development plans a 30% cut in their funding to reduce costs.

DA KZN Social Development spokesperson, Rishigen Viranna, said the NPO sector has been in dire crisis for years.

Viranna said the last tariff increase that the sector ever got was a six percent increase in the 2015/16 financial year, which also came after three years with no increase.

He said this has caused a huge crisis in the NPO sector because with increased inflation, the cost of living has even led to some NPOs being forced to shut down.

He said a justification document by Social Development will allegedly announce a further 30% cut in the department’s spending in the NPO sector.

The department argues that the majority of NPOs are in urban areas and that cutting their spending is an attempt toward transferring funds to social services helping more rural areas.

KZN Department of Social Development spokesperson Ncumisa Fandesi denied there was an NPO crisis in the province.

Gender expert Lisa Vetten said the neglect of social welfare services, was a longstanding issue.