Some charities and NGOs in South Africa have closed down because of the global downturn, and others face a tough few years with funds drying up.
GreaterGood South Africa's community networking website - www.greatergoodsa.co.za - which has over 1 300 South African non-profit organisations registered, warned that members were feeling the pinch.
Founder Tamzin Ratcliffe said: "There is no doubt that increasing food and living costs, as well as interest rate hikes, are generally making things tough for people in South Africa. Many in the development sector have watched with concern as the financial systems of its biggest donors have wobbled and crashed.
"If America can't service its own debt, what will this mean for the billions of dollars it spends in aid to Africa each year? When consumers in the West can't make their own bond repayments, how motivated will they be to give to social development projects?"
She said non-profit organisations had been affected in two ways.
First, they were concerned about a drop-off in donations from the general public and from corporates and trusts and foundations, particularly international ones.
Second, organisations that work directly with the poor are dealing with the consequences of high food and fuel prices.
"We have noticed a few causes shutting their doors. In the last two months, three Western Cape-based causes registered on our site have been forced to shut their doors."
She said these organisations - particularly rural- and community-based organisations - were vital to the development of the country.
And, according to the South African NGO Network's David Barnard, the stock market crash would definitely affect available funding over the next one to three years.
"Funders (especially endowment-based foundations paid for by Ford, Mott, Kellogg and others) will be affected as less money will be available from investments and endowments for distribution.
"At the same time, as company profits decrease or internal spending patterns are adjusted, less money will be available for NGOs and community development initiatives."
He said the role of the NGO sector was important and relevant as the government was under severe pressure in terms of service delivery and development needs, but without sufficient skills and capacity to respond properly. NGOs often filled the gap where government delivery was insufficient or non-existent.
Andy du Plessis from the Peninsula School Feeding Association, which feeds 155 000 school children daily in more than 600 primary schools, secondary schools and special needs schools across the Western Cape, said the hard times were already starting to bite.
"We budgeted for moderate increases in the cost of food but the unexpected, huge price increases are affecting us negatively. The cost to feed a child has increased by more than 20 percent and we will have to increase our fundraising efforts to ensure that our school feeding programme continues unhindered."