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So far Michelle Davidson has created 23 blog entries.

Retrenchment Provision

Every NPO, at some time, will have to restructure and possibly retrench a staff member.  It’s vital that you hold enough funds to meet the legal requirements for retrenchment. Here’s a quick summary of the key things you need to know.

In South Africa, retrenchment packages (sometimes called severance packages) are governed by the Labour Relations Act (LRA) and the Basic Conditions of Employment Act (BCEA).

Under Section 41 of the BCEA, an employer must pay retrenched employees:

– At least 1 week’s remuneration (salary or wages, allowances, benefits and any other regular payments) for every completed year of service
– Accrued leave pay i.e. payment for any outstanding annual leave they have not taken

Employees are also entitled to notice of termination. If retrenchment is immediate, he/she is entitled to payment in lieu of notice as per their contract or the BCEA:

– 1 week if employed for 6 months or less
– 2 weeks if employed more than 6 months but less than 1 year
– 4 weeks if employed for 1 year or more

Lastly, employees are entitled to payment of any other contractual benefits as per their contract (medical aid contributions, pension or provident fund payouts, pro-rata bonus entitlements, other perks).

What does this look like in practice?

Let’s say John receives a monthly salary of R12,000 and has worked for your organisation for 5 full years. He has 10 days of outstanding leave. Here’s the calculation:

John’s minimum statutory benefits = R31,383.55

Severance pay (1 week per completed year) = R13,846.15

Notice pay (4 weeks) = R12,000

Accrued leave (10 days) = R5,537.40

Planning ahead

A wise NPO ensures it has funds in reserve should the worst happen. It’s best practice to put this money into an investment account that earns more than inflation. Every year, when salaries are increased, the calculations need to be updated to stay current.

Retrenchment is not nice, but preparing for the possibility mitigates disaster and turns it into a more positive outcome for both your employee and your organisation.

7 July 2025

By |2025-12-17T13:20:27+02:00July 7th, 2025|Financial Management, Uncategorized|0 Comments

Building Relationships with Donors

In the world of fundraising, it’s tempting to think of applications and proposals as purely transactional. But the truth is, relationships matter just as much as numbers. When you’re building partnerships with donors, remember: real, lasting support is rooted in trust and mutual understanding.

Donors aren’t faceless funding machines. Behind every grant, there’s a real person who cares about making a difference. They want to know who you are, what drives your mission, and why they should believe in your cause.

Start by doing your homework. Ask yourself: What does the donor gain by funding you? How do their values align with your organisation’s? Do they prefer in-kind donations or multi-year commitments? Understanding their priorities helps you tailor your approach and show how your work directly speaks to their mission.

Equally important is letting them get to know you. Don’t just introduce your projects — introduce your people, your community impact, and your passion. Attend networking events, conferences, or even informal meetups. A warm introduction or friendly chat can go a long way in making your application stand out from the stack.

Finally, don’t wait until you’re ready to hit “submit” to start connecting. Proactively reach out and share your story. Building genuine relationships over time sets the stage for more meaningful collaborations and turns your proposal from a faceless piece of paper into a true partnership.

19 June 2025

By |2025-12-17T13:18:09+02:00June 19th, 2025|Donors, Financial Management|0 Comments

The Real People Behind Donor Organisations

It’s easy to think of donors as large institutions, with rigid guidelines and layers of bureaucracy. But at the end of the day, donors are real people who care about creating impact. They’re just like you: driven by passion, motivated by purpose, and eager to see real change.

When preparing your proposals, remember that the person reading your application isn’t just ticking boxes. They’re looking for projects and partners who inspire them — initiatives that align with their own hopes and beliefs. They want to see the heart behind the work.

So, before you send that final proposal, take a moment to consider who’s on the other end. Can you connect with them directly, perhaps through a phone call, an email, or even a brief meeting at an event? Can you show them your story, your team’s commitment, and the human impact of your work?

Don’t underestimate the power of a personal connection.

Knowing the decision-makers, understanding their backgrounds and motivations, and engaging with them authentically can turn a standard application into a conversation. It transforms your project from an abstract idea to a relatable, human story that resonates deeply.

This approach takes effort, but it’s worth it. Because when you build relationships with the real people behind donor organisations, you’re not just chasing funds — you’re building partnerships grounded in shared vision and lasting impact.

And that’s how you move from faceless paper to funding that changes lives.

By |2025-12-17T13:19:06+02:00June 10th, 2025|Donors, Financial Management|0 Comments