NGO Crisis: BOCONGO Calls For Tax Incentives For Private Sector Donors

As foreign aid cuts and dwindling donor funds threaten the sustainability of civil society organisations in the country, BOCONGO has called on the government to introduce tax incentives and benefits to encourage private sector investment in NGOs. Staff Writer TEFO PHEAGE reports

 

The Executive Director of Botswana Council of Non-Governmental Organisations (BOCONGO), Kagiso Molatlhwa, has highlighted the urgent need for sustainable funding mechanisms and emphasised that the private sector plays a crucial role in supporting NGOs but requires incentives to enhance their contributions.

 

“This comes after dwindling donor funds and the US cutting foreign aid,” she said in an interview.

 

“While some private sector entities recognise the valuable role that NGOs play in national development and have corporate social investment (CSI) initiatives in place, there is a need for long-term and sustainable investment.”

 

Key development areas

 

Molatlhwa explained that many private sector entities already support NGOs through foundations, capacity-building initiatives, technical expertise, and donations targeting key development areas such as health, education, child protection, and ICT.

 

However, she added, sustained investment is necessary to ensure NGOs continue making a meaningful impact.

 

Feedback from the private sector indicates that while companies are willing to support civil society organisations (CSOs), they often seek policy and legal reforms to provide more tangible benefits for their contributions.

 

“Visibility is also a key factor”

 

Stakeholders in the private sector have expressed interest in incentives such as tax breaks and rebates, which they believe would encourage more businesses to invest in social development programmes.

 

“The private sector has been as supportive as possible, but many companies want recognition for their contributions and a return on investment,” Molatlhwa stated.

 

“Visibility is also a key factor, as it helps market their services while simultaneously promoting social good.”

 

According to BOCONGO, government intervention in the form of tax incentives and other supportive policies would not only enhance private sector engagement but would also secure the long-term sustainability of NGOs.

 

This, in turn, would ensure that civil society continues to contribute meaningfully to Botswana’s national development agenda.

 

On the edge of collapse 

 

NGOs entrusted with driving key government programmes have raised alarm over their worsening financial situation, warning that many are teetering on the edge of collapse.

 

In a recently released report, they revealed that severe funding shortages and sustainability challenges have already forced some to shut down while many others are struggling to stay afloat.

 

The crisis, they say, threatens to derail critical social and developmental initiatives, raising concerns about the long-term viability of these organisations and their ability to support national priorities.