The state of fundraising within the nonprofit social service sector : a study to determine how and to what levels of success South African NPOs are managing and operating their fundraising functions

ii Abstract This study sought analyse the state of fundraising within the South African nonprofit social service sector at the end of the 2007/2008 financial year. The overall aim of the study was to evaluate the fundraising capacities of social service organisations, in order to ascertain whether organisations were proficient in their fundraising-related activities. Research objectives included the identification of organisations’ levels of engagement with fundraising monitoring and evaluation procedures, the ranking of organisations in terms of their respective fundraising efficiencies, the description of methods, sources, staffing and strategies that comprised organisations’ fundraising functions, the exploration of respondents’ perceptions of funding-related issues, the identification of factors influencing respondents’ funding-related perceptions, and the suggestion of a fundraising structure as a potential solution to overcoming fundraising difficulties. A quantitative approach to the study was adopted due to the study’s focus on financial and numeric data, which would be used to evaluate organisations’ fundraising abilities and associated organisational characteristics. A purposive national population was used, based on the criteria of organisations employing at least one social worker and belonging to a national body within their respective fields of service. Data was collected by sending electronic questionnaires that consisted primarily of multiple choice questions and Likert-scale statements to 186 organisations. Ninety-six organisations responded, eight of which were national bodies, resulting in a response rate of 51.6 percent. Audited financial statements for the 2007/2008 financial year were also received from respondents as secondary data for analysis. Data was analysed primarily by calculating descriptive statistics, and in some cases correlations were calculated to assess whether any significant relationships existed between variables. Reported financial data was compared to data extracted from audited financial statements to ascertain the degree of accuracy of respondents’ reported data. It was found that data was in most cases inaccurate and therefore could not be used for the purpose of meaningful analysis. It was suggested by the researcher that organisations had generally engaged very minimally or not at all with fundraising-related monitoring and evaluation procedures, and that the inaccuracy of reported data was indicative of this lack of engagement. The researcher identified four key findings that emerged from the study: organisations had not been managing their fundraising functions sufficiently; there is a desperate need for strong leadership within the field of fundraising; organisations should change the way in which they view state funding, and; a more business-like approach to fundraising should be adopted. Finally, the researcher suggested an organisational structure that could be utilised by smaller organisations to improve their fundraising performances, in which organisations would form into clusters and set up umbrella structures that handle collective fundraising matters. Un ive rsi ty of Ca pe To wn Table of