Evaluating the impact of frequent policy reviews on the liquidity of non-profit welfare organisation in South Africa

Examining the impact of the frequency of policy reviews on the liquidity levels of welfare non-profit organisations (NPOs) in South Africa. The study followed a research survey methodology and was confined to welfare NPOs in all nine provinces of South Africa. An electronic survey was implemented due to the vast area of coverage. A quantitative approach was used because of the financial and policy-based nature of the research hypothesis which aimed to test the theoretical literature. The study revealed that majority of organisations follow a formal policy review approach which is managed by the finance committee. The results show that 90.4% of the finance committees meet annually. That’s also the time when most policy reviews take place. At the same time, the financial statements are due for approval, which is a statutory requirement. The results indicated that organisations which have more frequent policy reviews have improved liquidity levels. It is recommended that NPOs need to increase the frequency of their policy reviews to improve their liquidity levels. The following conclusions emanated from the data analysis: more emphasis needs to be placed on adopting the correct policy approach and the frequency of policy reviews needs to increase and be more adaptable to result in improved liquidity for NPOs. Limiting the running of organisations only to compliance with statutory requirements is impractical and does not achieve performance. The creation of sustainable NPOs whose added value can contribute to society within the country is necessary based on the basic services these organisations offer.