Hashtag Nonprofit is thrilled to launch a 5-episode podcast series that dives deep into the real, complex, and often unspoken challenges facing South Africa’s nonprofit sector. Inspired by questions from our nonprofit community, each episode explores a different theme, from funding and sustainability to leadership, collaboration, and resilience. 

But this is more than just a podcast. Each episode will include a toolkit, summarising the salient themes and insights, as well as resources and materials that will help your organisation translate these learnings into action.

🎧 Listen to the full conversation on The Nonprofit Matters Podcast

Episode 1: The impact of international funding cuts on South African nonprofits

When the USAID and PEPFAR funding cuts hit, they shook the South African nonprofit sector to its core, highlighting just how problematic some our funding models really are, and exposing vulnerabilities of so many organisations reliant upon these funds.  In our first episode of the Nonprofit Matters Podcast, three powerhouse experts — Audrey Elster (Raith Foundation), Nyasha Njela (Revolutionise International), and Louise Driver (Independent Philanthropy Association of South Africa) — joined us to unpack what this moment means for our sector and how we can chart a new way forward.

It’s time to rethink how we’re funded

Audrey Elster didn’t mince words — “Yes, it’s time to rethink. I understand that it is overwhelming, but I do also think that the best approach to feeling overwhelmed … is to just launch in”. She pointed out that indeed, foreign funding has been declining for years, yet many organisations haven’t faced that reality. Audrey believes South Africa can fund its own work through local philanthropy, individual giving, business support, and earned income models. To this end, she urged nonprofits to stop looking outward and start building locally rooted funding ecosystems, supported by better infrastructure and government incentives.

When it comes to looking to expand funding sources, Nyasha Njela offered that diversification isn’t just a strategy, it’s a behaviour -- a cultural shift that starts with organisational leadership and board commitment.

Louise Driver reminded us that crisis preparedness isn’t optional anymore — “One has to have systems, processes in place in order to be able to respond effectively to crisis.” Louise pointed out that the sector has talked about reducing dependence on the global north for years, but now perhaps, circumstances will force us “to walk the walk.”

Pushing back on donor demands

When it comes to exhausting grant application processes and buzzword-driven proposals, Nyasha spoke of the frustration organisations who have been running successful programs for years, but get overlooked by funders who may be “disconnected from the realities on the ground.” The question becomes, “how do we provide a bridge between NPOs and donors so that they can meet in the middle and understand the challenges that they are facing?”.

Her message to nonprofits: go back to your why. Reconnect with your mission and stop bending your work to fit donor trends. Innovation doesn’t have to mean fancy tech — sometimes, the most effective “innovation” is an SMS that reaches the right person at the right time. She also called for collective advocacy, that is: nonprofits joining forces to educate funders about what real, context-driven impact looks like.

From the donor side, Audrey acknowledged the imbalance, agreeing funders are often disconnected from the day to day NGO realities. Her advice? Communicate, negotiate, and teach. Many donors want to listen, and they don’t always know what the reality is on the ground.

If the USAID pull-out can shake our whole system, then our system wasn’t strong in the first place.

Beyond the crisis: Who gets funded when emergencies dominate?

Louise compared the USAID cuts to the early days of COVID-19, but with one crucial difference. COVID sparked immediate, collaborative action. The USAID cuts, by contrast, are seen as a long-term systemic change, not a short-term crisis . This means the response has been slower and more fragmented.

Local philanthropies are willing to step up, but they can’t fill billion-dollar gaps alone. They need nonprofits to work together, not compete, and to present coordinated solutions that address complex, intersectional issues like gender, climate, and justice.

Nyasha warned that too often, nonprofits operate in silos. Instead, they need to talk to one another: “We've got the solutions, but because we're not talking to one another, those solutions are lost. We see each other as competitors in this game, rather than collaborators.”

Speaking to this point Audrey suggested moving even beyond collaboration, to a new, admittedly a bit of a buzzword, Collective Action: “I think Collective Action by donors, Collective Action by or NGOs, it strengthens us all. It's not easy, which is why it's not done enough, but it definitely is the future.”

Final thoughts: building resilience and courage

As the conversation wrapped up, our three guests offered a shared message of hope mixed with a healthy dose of realism.

Audrey: spoke about the “5 Cs”: Community, Calm, Clarity, Collaboration, and Collective Action.

Nyasha: emphasised courage — courage to push back from donor driven agendas, to reimagine funding models, and to believe in local power.

Louise: called for resilience — the ability to prepare for uncertainty and view change not with fear, but with opportunity.

Because as Nyasha put it so succinctly: “If the USAID pull-out can shake our whole system, then our system wasn’t strong in the first place.”

🎧 Listen to the full conversation on The Nonprofit Matters Podcast, brought to you by Hashtag Nonprofit and supported by the LV and Ivy Middleton Charitable Trust.

We’ve also created a complementary Toolkit for this episode — packed with resources, templates, and further reading to help you navigate funding challenges, donor engagement, and organisational resilience. Download it now and use it to help your organisation turn insights into action.