South Africa

Country Overview

The history of South Africa is replete with various forms of philanthropic expressions. Both anecdotal and scientific evidence have documented the societal sense of belonging as a unique driving force for giving behavior in South Africa. This has been expressed in various forms including through in-kind and monetary giving. In South Africa, the spirit of philanthropy is closely linked to the values and practices of ‘Ubuntu’ which ties people together to the larger community and environment through their authenticity and humanity.

This study seeks to explore emerging giving trends in South Africa, with keen attention to the developments of new ways of giving during the height of the COVID-19 pandemic. “Black Tax” (giving to family members), crowdfunding, mobile giving, pay-as-you-earn (payroll giving), retail giving, and virtual volunteering shapes the philanthropic landscape of South Africa. Therefore, when the COVID-19 pandemic struck, a few observations mirroring the established patterns became bold. For instance, a 19th century system of resource mobilization known as “stokvel” is plausibly similar to the crowdfunding system which has flourished due to advancements in technology and internet connectivity. The other vectors of giving were also crucial for resource mobilization to charity organizations during the height of the lockdown due to the COVID-19 pandemic. The report shares insights learned from a roundtable discussion comprising of four stakeholders of the philanthropic sector in South Africa. Further insights were drawn from an interview with a representative of a South African company known for their heavy commitment towards corporate social responsibility (CSR).

View full South Africa country report

Charities Aid Foundation Southern Africa

“Black Tax” (giving to family members) continues to shape the philanthropic landscape of South Africa.

In South Africa, Black Tax is seen as a daily reality that helps to build homes for families (Mholongo, 2019). Despite the effectiveness of the Black Tax in helping the family at home, it is seen as a way of weakening the financial stability of young professionals. A lot of people perceive the Black Tax as a social burden that does more harm than good on individuals supporting the family. On the other hand, Black Tax may have a politically stabilizing effect by assisting beneficiaries’ economic advancement. A lot of people would be worse off if not for the Black Tax.

Although crowdfunding has existed in South Africa for many years, the study observed that its uptake by the voluntary sector was mainly accelerated by the COVID-19 pandemic.

The crowdfunding platforms in South Africa supporting the voluntary sector include Backabuddy, JustGiving, Islamic Relief, Feenix, GivenGain, and WeBenefit, among others. Together, these platforms witnessed between 30 and 70 percent increase in uptake and use during the pandemic.

Retail giving also experienced exponential growth in the early stages of the pandemic but began to slowly wane as the lockdown restrictions subsided.

In the heat of the pandemic, individuals mainly donated part of their shopping baskets to designated relief collection points in various shopping malls and stores. There was also an increase in the number of individuals opting to increase their donations through loyalty cards. The same trend was also experienced in mobile giving, payroll giving, and virtual volunteering.

A roundtable discussion with stakeholders in the philanthropic sector revealed that COVID-19 presented mixed fortunes for the donors and organizations.

The discussion discovered that some organizations experienced high volumes of donations from new donors, which included small donors using social media and online platforms. The demographic characteristics of this new group is comprised of individuals aged between 25 to 40 years old. Organizations dealing with protection of children and school feeding programs collected over 40 percent above their usual fundraising targets, with one organization reporting exceeding their target by up to 3 million rands. The funds collected during this time did not face the usual tight bureaucratic processes. Therefore, some organizations are still unsure and unable to determine the total funds collected. Participants in the roundtable also highlighted that retail companies played a major role in distributing donated grocery items using their networks.

At the same time, tight regulatory processes hindered businesses’ involvement in responding to COVID-19 relief efforts. In particular, some companies’ efforts to distribute COVID-19 vaccines using mobile clinics in rural areas was critically slowed down by somewhat ambiguous protocols.