Investigating factors hindering access to funding opportunities of newly established non-profit organisations in the Nkangala District of Mpumalanga

Abstract

Non-profit organisations work to address social problems and meet the needs of the public. Unlike private businesses, non-profit organisations depend largely on donations and other sources of funding, as opposed to profit-generation. However, they face a huge challenge in attracting funding to sustain their activities. Newly formed non-profit organisations are most affected by funding issues and resultantly fail in their first few years. This study investigated factors which impede access to funding opportunities by newly formed non-profit organisations. The study adopted a qualitative approach and followed an exploratory research design. Data was collected using interviews and was analysed thematically with the aid of Atlas Ti version 8.1. Results revealed twelve broad themes under which the funding challenges faced by non-profit organisations could be classified. The results suggested that internal and external factors hinder access to funding by newly formed non-profit organisations. Internal barriers are the most common and are closely related to external factors. The results of the study showed that it is ideal to address the internal barriers before attempting to solve the external challenges.