Challenging Operating Environment

South African non-profit organisations (NPOs) face a severe funding crisis, which threatens their ability to deliver essential services and champion social justice issues. With dwindling international funding, competition amongst NPOs is fierce, with many vying for the same support. Economic pressures and internal priorities constrain corporate social investment (CSI) funding, while government funding remains inconsistent and bureaucratically challenging to access.

This financial strain limits NPOs’ capacity to address critical issues, including poverty alleviation, education and healthcare, while hampering their ability to retain skilled staff. The funding gap has led organisations to scale back or cease operations, exacerbating socio-economic inequalities and leaving vulnerable populations without crucial support.

At the end of October 2024, the Department of Social Development registered 295 052 NPOs, of which 167 103 were classified as non-compliant. NPOs’ failure to comply risks undermining public trust and the sector’s integrity, further impacting their ability to attract funding.

Despite this challenging situation, NPOs’ role in addressing South Africa’s historical and current development backlogs remains critical. However, to stay relevant and become more sustainable, overcoming reputational issues, diversifying their funding base and attracting new individual and institutional funders must be priorities for everyone associated with the NPO sector.

The Power of Technology and the Potential of Crowdfunding

Digital technology, including artificial intelligence, continues transforming how society operates, interacts and transacts. It presents NPOs with another set of challenges regarding the required skills and infrastructure, as well as many opportunities to strengthen their operations, increase transparency, cultivate relationships, and unlock new funding sources. In terms of fundraising, it is a critical tool for researching and identifying potential funders, raising awareness about organisations’ work, and facilitating donations and payments.

Crowdfunding is a mechanism for raising money from many people (“the crowd”) via online platforms. It uses the Internet to harness the power of social sharing and personal networks for greater reach and exposure. Crowdfunding has been used primarily to launch start-ups and finance new businesses, but in recent years, it has gained momentum as a powerful and alternative mechanism to mobilise financial support for NPOs, projects and individuals.

The global crowdfunding market size was valued at US$19.86 billion in 2023 and is expected to grow to US$72.88 billion by 2032. The African crowdfunding market was valued at $182 million in 2016 and is projected to reach US$2.5 billion by 2025. Kenya, Nigeria, and South Africa are the leading crowdfunding markets in Africa.

Although most of the funds raised are still earmarked for African business ventures, crowdfunding‘s potential value and significance to NPOs remain untapped.

Potential Benefits of Crowdfunding for South African NPOs

There are various compelling reasons why South African NPOs should consider incorporating crowdfunding into their fundraising strategies. Some of the potential benefits include the following:

Reach – crowdfunding platforms connect NPOs to a global audience, enabling them to diversify their funding and access donations beyond local sources and supporters, including South Africans living abroad looking for ways to contribute to causes back home.

Cost – compared to organising in-person fundraising events or campaigns, crowdfunding requires a relatively low upfront investment, making it accessible to small NPOs or those with limited budgets.

New audiences – crowdfunding aligns with the digital habits of younger, tech-savvy South Africans, who are more likely to engage and donate through online platforms.

Increased awareness – a well-executed crowdfunding campaign will not only raise funds for an NPO, but also increase awareness about its mission, potentially attracting long-term supporters. In the absence of a comprehensive online directory of South African NPOs, crowdfunding platforms are also critical information sources about the local NPO sector.

Transparency and trust – crowdfunding platforms provide tools to show funders and supporters how funds are used, enhancing trust and encouraging future contributions.

Fundraising for emergencies – crowdfunding provides a quick and efficient way to raise funds for disaster relief or emergencies, where the urgent mobilisation of resources is crucial. All South Africa’s leading crowdfunding platforms reported an increase in new fundraising campaigns, the number of donations processed, and total funds raised during the COVID-19 pandemic (2020/2021), compared to the period before that.

Given the diversity of the South African NPO sector and its unique funding challenges, the potential benefits of crowdfunding for individual organisations will be different. Furthermore, unrealistic expectations or poor planning can undermine the relevance and success of NPOs’ crowdfunding efforts.

South African Opportunities and Challenges

Various factors influence the uptake and impact of crowdfunding in South Africa in general, and for NPOs specifically.

# Online environment

According to the Digital 2024: Global Overview Report, 5.35 billion people, or 66% of the global population, are now connected to the Internet, with more than 5 billion active social media identities. GSMA estimates that 4.6 billion people access the Internet on their mobile phones. 

South Africa has an overall Internet penetration rate of 74.7%, representing 45.3 million people with 26 million active social media identities. With the cost of Internet access in South Africa decreasing, and given the existing and expected future growth in Internet and mobile penetration rates, the potential for crowdfunding to leverage this growth is significant.

However, reliable Internet connectivity and access to digital tools remain uneven, particularly in rural areas, limiting the reach of campaigns and the ability of NPOs to connect with potential supporters.

# Generous citizens

South Africa is a nation of givers. Despite challenging economic conditions and being rated as one of the most unequal countries in the world, a culture of giving remains deeply embedded in our society.

The 2024 CAF World Giving Index, which highlights generosity behaviours across 142 countries, ranked South Africa 91st compared to 21st in 2021. However, despite an ailing economy and high levels of poverty and unemployment, which all contributed to the change in the country’s ranking, 65% of people surveyed helped a stranger in the past thirty days, 20% donated money and 27% volunteered. According to the 2019 South Africa Giving Report, 80% of South Africans donated money to an NPO or religious organisation or sponsored someone in 2018, with most donations going to helping the poor (55%), while two-thirds volunteered during this period. Most of those surveyed believe NPOs have positively impacted their local communities and South Africa.

The number of South African NPOs looking for funding or considering crowdfunding increases competition for funder attention. Crowdfunding campaigns often attract one-time funders. As a result, compelling storytelling, consistent communication and ongoing relationship-building are critical for NPOs to stand out from others, attract attention, or convert occasional contributors into long-term supporters.

# Crowdfunding infrastructure

NPOs in South Africa are fortunate that 15 locally-based crowdfunding platforms support their fundraising efforts. These include  10BucksOnly, BackaBuddy, Brownie Points, Click ‘n Donate, Different.org, Feenix, forgood, Fundnation, GivenGain, High Five Fund, Jumpstarter, MySchool MyVillage MyPlanet, Pledge-a-Portion, Quicket, and ShopDonation.

(Profiles of the 15 crowdfunding platforms are listed below.)

Some of these platforms are well-established, while others emerged post-COVID-19. They offer various benefits to NPOs, fundraisers, and funders linked to their unique functions and features. Most platforms provide not only a place for NPOs to receive direct donations, but their functionality enables fundraisers and supporters to mobilise donations on their behalf (peer-to-peer fundraising), often linked to national and international days such as Mandela Day (18 July) and Giving Tuesday (first Tuesday in December), and popular sporting events such as the Comrades Marathon. Others facilitate volunteering opportunities, or generate financial support or savings for NPOs linked to shopping and procurement-related activities. The start-up and ongoing administrative costs, including transaction fees, vary from platform to platform. 

In addition, some crowdfunding platforms headquartered outside South Africa, such as Global Giving, GoFundMe and JustGiving, also facilitate donations for local NPOs.

Many NPOs are unfamiliar with crowdfunding as a viable fundraising option, or lack the skills to navigate digital platforms effectively. This lack of awareness or experience limits their ability to launch and sustain successful campaigns. NPOs interested in crowdfunding or those already actively involved, should familiarise themselves with the differences between the various platforms and engage those best suited for their fundraising requirements.

Way Forward

Crowdfunding offers South African NPOs a practical and alternative option for raising funds in an increasingly competitive environment. However, it entails much more than listing an NPO or project on an online platform. NPOs need to view crowdfunding not as a stand-alone activity or to replace existing fundraising activities, but as an integral part of their overall fundraising strategy.

There are no guarantees for fundraising success, but crowdfunding can assist NPOs in reaching new audiences, stimulating interest in their work, providing feedback to supporters, amplifying their impact, and unlocking new opportunities to increase their financial resilience and sustain their work.

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South African Crowdfunding Platforms

The following 15 South African crowdfunding platforms support the fundraising efforts of local NPOs (listed in alphabetical order):

 (The profile information was provided by the respective organisations and not generated from any other sources.)

#  10BucksOnly

10BucksOnly is an innovative fundraising and donations platform aimed at simplifying and streamlining the donation process for South African NPOs. Operating since June 2024, its mission is to enhance NPOs’ fundraising capabilities, providing them with a platform to showcase their work. It enables donors to easily find and donate directly to NPOs, while minimising administrative burdens and ensuring compliance with tax regulations via fully automated IT3(d)-compliant 18A receipting. This is complemented by an 18A receipting module with easy-to-download IT3(d) data files for submission to SARS and donor reporting. 10BucksOnly charges no commission on donations, but NPOs pay a fixed tiered month-to-month subscription fee for using the platform based on the number of 18A receipts issued.

#  BackaBuddy

BackaBuddy has grown to be Africa’s leading crowdfunding platform for individuals, helping to raise funds for both personal causes and charities. BackaBuddy NPC was founded in 2015 by Patrick Schofield and Catherine Du Plooy, taking forward the vision of the platform’s founder, the late Allan Beuthin. The platform enables people to come together and support causes they are passionate about. On BackaBuddy, individuals raise funds for people in critical need and for personal causes they believe in.

The most popular campaigns on BackaBuddy are those for medical fees, student fees, sporting tours, or carrying out a random act of kindness. Individuals (“Cause Champions”) also raise funds to support a cause or NPO of their choice by participating in various sporting events, pledging their birthday or climbing a mountain. Individuals are also able to raise funds for a variety of personal needs for themselves or a loved one. Since 2015, more than R550 million have been raised from more than 500 000 global donors for over 44 000 causes, showcasing the generosity of South Africans and the adoption of crowdfunding as a powerful tool for alternative financing.

Creating a crowdfunding page or registering a cause is free. As of 2023, BackaBuddy introduced a 0% platform fee for registered non-profit organisations, a route that aims to revolutionise crowdfunding in Africa. Whether donors contribute R10 or R1 million, the third-party payment gateway fee is the only amount NPOs will be charged. While there is a flat 7% platform fee for individual campaigns, donors are given the option to cover this fee, and over 75% of donors do so. 

#  Brownie Points 

Brownie Points is an online platform and network that empowers, tracks and celebrates good deeds. Established in 2015, Brownie Points enables everyone to become a changemaker by supporting and sharing causes they are passionate about, while maximising awareness, collaboration, engagement and insights for NPOs, companies and activism groups. It enables businesses to showcase the good things they do for their communities and preferred NPO partners. Brownie Points covers more than 500 NPOs and facilitates donations, volunteering and in-kind donations. The platform has already facilitated over R525 000 in donations. NPOs register directly with their preferred payment provider, and Brownie Points then integrates the payment mechanism with their accounts. Brownie Points charges a fee of 3.5% per donation.

#  Click ‘n Donate

Click ‘n Donate is a fundraising platform launched in August 2017. It facilitates donations for non-profit organisations and social causes in South Africa, and will ultimately extend its services to other parts of the world. Click ‘n Donate connects campaigns and stories to people, allowing everyone to be a philanthropist, irrespective of who they are, where they are situated in the world, or the size of their donation. It makes pay-outs to beneficiaries weekly. Click ‘n Donate charges a publishing fee of R197 to upload a campaign to the platform, an administrative fee of 6% and an online payment gateway fee of 5.4% on the donations received, but only if the campaign successfully raises funds. It also charges a forex fee of 6.3% for international donations received.

#  Different.org

Different.org is an online crowdfunding platform that facilitates donations for NPOs in South Africa. It was established in March 2015 and is owned and operated by Different Life (Pty) Ltd, a financial services provider. Instead of paying a premium, the Different.org business model allows policyholders to allocate the first payment each year as a donation to an NPO of their choice via the platform. Different Life covers all transaction costs, and as a result, 100% of donations go to the NPO beneficiaries. More than R24 million (R1.95 million in 2022) have already been donated to over 90 NPOs since inception by more than 17 000 Different.org members. 

#  Feenix

Feenix was launched in June 2017 as a response to the #FeesMustFall movement that spread across university campuses in South Africa during 2015 and 2016. Feenix – the name is a portmanteau of fees and the Afrikaans word “niks” – is a public benefit organisation that serves and assists higher education students with removing their debt through a secure crowdfunding platform and a skills development bursary programme with businesses. Donated funds go straight to students’ university accounts. Feenix raised R167.6 million and has impacted 3 803 students since its inception. In 2022, Feenix raised R48.7 million, assisting 1 006 students across South Africa’s 26 public universities. Feenix charges 7.5% of each donation to cover its administrative cost, which is paid by the funder, not the student.

#  forgood

forgood is a social impact marketplace that connects more than 530 verified South African NPOs and social causes to citizens and corporates. It enables South Africans to volunteer time and skills, donate goods and money, and create personalised offers that are matched to NPOs near them. forgood also provides over 20 of South African corporates (56 000 employees registered so far) with technology to create, manage, scale and measure their employee volunteering programmes. In the past five years, forgood has facilitated almost 76 000 connections between people and causes in South Africa. The vast majority of these have been skills-based giving experiences, ranging from mentoring to web design, from executive coaching to tutoring maths, and painting educational murals. forgood has also facilitated donations of more than R5.8 million since 2018 and provides a Rand-for-Rand matching programme on behalf of its clients. It uses Payfast as its payment gateway, which ensures that the money donated via the platform reaches NPOs in real-time. The platform is free for NPOs and volunteers. NPOs only pay a 6% fee on any money raised over the amount of R2 000, which is invoiced quarterly.

#  Fundnation

Fundnation is a start-to-finish crowdfunding solution for South African NPOs. Established in 2020, its services include a donation platform, payment facilitation, marketing and design support, and tailor-made strategic guidance in all aspects of a peer-to-peer and crowdfunding campaign. It helps NPOs grow their existing donor network and reach new donors by using innovative crowdfunding technology solutions. Fundnation makes accepting donations easy, simple and quick for donors worldwide, and includes full multi-currency and auto-currency conversion support. From 2022 to 2024, Fundnation processed almost R350 million for close to 400 South African NPOs. Its fees range from 0% per donation with a single flat fee for the entire platform to some campaigns with a 5% fee. Credit card fees are charged separately and range from as little as 1.8% to 3%.

#  GivenGain

GivenGain is an online fundraising platform that enables charities (NGOs, NPOs, NPCs, trusts, foundations, etc.) to receive donations in multiple currencies, wherever they are. More than R1.8 billion (R495 million in 2023) has been raised via the platform, serving more than 5 750 registered charities in 99 countries, including 3 500 from South Africa, 41 000 individual fundraising champions, donors from 193 countries, and event organisers on five continents. Charities create campaign pages and invite their supporters to donate or fundraise, individual fundraising champions create fundraising projects for their chosen charity and invite friends to support and share it, and donors worldwide donate to fundraising projects and charities of their choice. More than 50 000 fundraising projects have been created on GivenGain since its inception. Various sports events (e.g. Totalsports Two Oceans Marathon, Virgin Active 947 Ride Joburg, Cape Town Cycle Tour, Sanlam Cape Town Marathon, and Absa Cape Epic MTB race) use GivenGain to add a charity angle to their events, and thereby make them more meaningful for participants. All donations to projects listed on GivenGain are managed by the GivenGain Foundation in Switzerland, established in 2001 in South Africa. Transaction fees are charged at 5% of the donation value plus a processing fee to cover bank, credit card and other associated costs. Over 82% of donors cover these fees on behalf of the charities.

#  High Five Fund

The High Five Fund is a crowdfunding platform that fosters positive change by enabling collective giving. Operating since October 2023, it focuses on five key pillars, namely animal welfare, children’s well-being, sustainability, sports and culture, and social impact. By pooling resources from individual donors, it aims to support credible and impactful organisations within these areas. The High Five Fund promotes transparency, accountability and community engagement through public voting and detailed impact reporting. Since its inception, the platform has raised more than R20 000 for various causes. It strives to keep the platform accessible and transparent, with the maximum amount of donations directly benefitting the supported causes. It has not yet charged any fees on the donations received.

#  Jumpstarter

Jumpstarter is a rewards-based and award-winning crowdfunding platform established in 2015. It supports the creative projects of individuals, NPOs and businesses powered by a unique 100%-or-nothing funding method where projects must be fully funded or no money changes hands. Everything listed on Jumpstarter must be a project with a clear goal, such as producing an album, a book, or a work of art. A project will eventually be completed, and something will be created as a result. Following Jumpstarter’s crowdfunding guidelines, the project creator sets the project’s funding goal, donation rewards and deadline. If people (the crowd) like the project, they pledge to donate money to make it happen. If the project succeeds in reaching its funding goal in the allocated timeframe (1-60 days), the project creator is paid out and the backers receive their project rewards. Jumpstarter has already facilitated more than R1.3 million in donations with for-profit projects, NPOs and social causes since its inception (over R50 000 in 2022). It charges 5-7% of each pledged donation for administrative costs and a processing fee of 1.5-4% on payouts to project creators.

#  MySchool MyVillage MyPlanet

MySchool MyVillage MyPlanet is a community fundraising programme. It was established in 1997 and rolled out nationally in 2003. It supports personalised giving, and people can choose up to three beneficiaries (schools, social causes, etc.). Every time they shop at a participating partner, a percentage of the transaction value is donated by the partner on their behalf at no additional cost. The partner donation per member card swipe varies. MySchool focuses on education, MyVillage on social causes, and MyPlanet on the environment and animals. Since its inception, the programme has already given back more than R1 billion to its over 8 500 beneficiaries via member card swipes at Woolworths. The programme is acknowledged as a sustainable and impactful fundraising initiative in South Africa. It is based on the principle that we can make a sustainable impact together. MySchool My Village MyPlanet won two awards at the 2023 South African Loyalty Awards during the Truth Leaders Loyalty Summit in Cape Town. It received its fifth consecutive win in the Best Loyalty Programme of the Year – Open Category and was also awarded Best Loyalty / Community or Environmental Initiative / Campaign.

#  Pledge-a-Portion 

Pledge-a-Portion is a crowdfunding platform that allows people to take a pledge by browsing through the NPOs, causes, schools, and projects listed on the site, and regularly contributing through a secure online payment system. Established in 2010, Pledge-a-Portion spearheaded the “embedded giving” concept in which a percentage of the purchase price of a product or service goes to an NPO, while it also assists various NPOs and causes with a range of other fundraising initiatives. More than 20 NPOs have already benefitted from the platform. Pledge-a-Portion charges an administration fee of 5% on all funds raised through the platform, and as a registered non-profit and public benefit organisation, distributes the donations to the respective causes and NPOs.

#  Quicket

Quicket is a pan-African self-service ticketing and fundraising platform. Established in 2011, it allows anybody with an event or fundraising project to quickly and seamlessly sell tickets and merchandise, and collect donations and data from their audience. There is no charge for set-up or withdrawal of donations. While many crowdfunding platforms require the fundraising entity to specify a threshold for raising funds, Quicket provides weekly payouts to all fundraisers, regardless of the level of funding reached. It automatically deducts commission and payment gateway fees of 4.9% ex VAT from donations, which is final and all-inclusive. This fee is reduced to 4.5% for NPOs. Donors pay a small transaction fee of R3 per donation.

#  ShopDonation

ShopDonation is a platform that generates recurring donations for non-profit organisations and social projects by leveraging e-commerce activity in South Africa and beyond. People donate to NPOs by shopping online. Shoppers choose an NPO on the ShopDonation platform and then shop online at selected retailers who pay referral commissions. NPOs earn a percentage of the sale at no extra cost to them or the shoppers, with the brand covering the donation cost. Once shoppers use the platform and see that it works, they continue using it. It was introduced in South Africa in 2022 and has already raised around R14 000 for 35 causes. ShopDonation is part of an international franchise, and South African NPOs can also register on other countries’ platforms (e.g. Netherlands, Switzerland, United Kingdom, etc.) and receive donations from shopping in these countries.