Unpacking SA's homeless crisis | Funding challenges for organisations tackling homelessness
Funding is a huge issue when it comes to helping South Africans off the streets, especially in today’s challenging economic and political climate — both locally and globally.
On the other side of the world, the United States government recently undertook a round of federal spending cuts, and one of the agencies affected by the budget reductions was the United States Agency for International Development (USAID). For U-turn, that’s had a real impact.
Detailing the challenges they face with funding, Stephen Underwood of U-turn said the unpredictability of income is a constant struggle.
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“Sometimes the government will fund us, and the next year it drops, and we’re struggling,” said Underwood. “And because we’ve built our programme based on the funding from the previous year, we end up having to close centres. That’s the biggest challenge — the variability of funding.
“We had a grant from USAID that was cancelled at the start of this year. It’s things like that you don’t foresee. Suddenly, you’re stripped of funding.”
Fortunately, the organisation has a network of private individuals who offer financial support.
“We also get money from grants and trusts, and we do fundraisers. Our social enterprises bring in revenue, which helps as well. We run a chain of shops that sell pre-loved clothing. That’s where our clients work during their work-readiness phase, and it raises about 50% of our income each year. So that means we don’t have to rely solely on donations in phase three.”
Dylan Groep of New Hope SA says they rely on donations from private individuals — some giving as little as R120 — as well as support from the city.
“Every little bit goes towards sustaining our programme. It’s expensive. If you look at what homelessness costs, it’s a lot. To reintegrate someone into society, to help with their medical bills, feed them, house them — it’s costly. And we have passionate staff who also need to be paid. They need to eat, their families need to eat.”
To truly reduce homelessness, Groep believes more needs to be done at the national level.
“Building safe spaces doesn’t address the issue. What is the cause? Why are people homeless? The countries that have successfully reduced homelessness have tackled it at that level. I don’t think we’ve adequately addressed it — not at a national or local level. There is some movement, but I don’t think it’s enough. If you look at the safe spaces in Cape Town, they’re definitely in need of an upgrade.”
While U-turn and New Hope SA continue to change lives with limited resources, their efforts highlight a deeper truth: the fight against homelessness cannot be left to non-profits alone. It requires consistent, long-term investment from both government and the private sector, as well as policy shifts that address root causes like mental health, addiction, and inequality.
Without a coordinated national strategy and stable funding, even the most successful interventions risk being undermined. As the stories of transformation show, real change is possible — but only if South Africa commits to making it a collective, sustained priority.
IOL