Non-profit organisations and socio-economic development in South Africa: a literature analysis

Abstract

Purpose of the study: This paper is an analysis of the role of NPOs in addressing the challenges of society and communities they operate in. This is with the intention to understand the value of a non-profit organization to any society and their significant contribution to socio-economic development. Methodology: In order to carry out this analysis, the researchers adopted a systematic literature review, relying prominently on secondary data. Main Findings: This review highlights a number of very important lessons. Firstly, non-profit organizations are involved in a range of activities such as health and wellness, socialization, and education. Secondly, they assist governments to reach out to citizens who may not easily access government services. Thirdly, sustaining non-profit organizations is vital to any economy owing to the diverse range of essential goods and services they offer. This review also notes that more research needs to take place to further unpack the place of non-profit organizations in South Africa. Applications of this study: This review can be beneficial to Non-Profit Organisations, the Government, and the funders who support these NPOs. An understanding of the significance of NPOs in socio-economic development will be helpful in developing policies and support mechanisms that will necessitate their existence, continuously deliver social value and contribute to socio-economic development. Novelty/Originality of this study: The authors confirm that this is the first known literature review of its kind especially with reference to South Africa and therefore, accomplishing such an arduous task required a careful assembly of pertinent reference materials. Our position is that if who and what non-profit organizations have become clearer, issues of sustainability - marketing, finance, government/private sector relations - will be better understood.