Challenges facing non-governmental organizations in financial resource mobilization in Kisumu central sub-county, Kenya.
Abstract
The main motive of this study was to research on the challenges faced by NGOs in
financial resource mobilization in Kisumu Central Sub-county. This study purposed
to address the main research objectives which were: Challenges faced by NGOs in
raising financial resources? And Sources of financial resources for NGOs? This
research work embraced a descriptive survey research design to collect data that was
primary. This design is where a population sample is examined to establish its
characteristics and then inferred that the population has the same characteristics.
(C.R.Kothari, 2004). The target population for this research was composed of all the
NGOs which are located within Kisumu Central Sub-county registered with the NGO
Coordination Board. The whole population of 58 NGOs was selected as it was a
census study. When the important role that NGOs play in the community is
considered, their long term survival becomes evidently critical. Resource mobilization
is a key component for all NGOs. NGOs that are successful in their resource
mobilization initiatives tend to find it easy to survive and sustain their projects in the
long run compared to those that do little or nothing on resource mobilization to
diversify their pool of income. With this study, a framework is provided and
awareness which will in the future offer solutions to the challenges/problems facing
NGOs in financial resource mobilization. The findings divulged that there had been a
negative relationship between key sources of financial resources of the NGOs and
challenges of the NGOs (R= -0.354). This implied that the challenges of funding
negatively influence the sources of funding. The study supposes that the NGOs get
funds from the private sector and also receive grants from local and international
donors which greatly assist in service delivery for the NGOs. NGOs receive goods
and services as donations from individuals and institutions for program execution.
Donations come in the shape of both cash and in-kind items provided free to
beneficiary NGOs getting donations or for example school fees for beneficiaries
being supported at a subsidized cost. When it comes to challenges facing NGOs in
financial RM in these organizations, most employees concurred that taxation issues
and the changing donor priorities influence the availability of funds for NGOs when
appealing for the monies the most, they do not know what precisely the donor will be
focusing on. The rules which apply in accessing government funds and resources are
another challenge making it hard for organizations to get these resources for NGOs
and the increased rivalry between NGOs for funds particularly against larger,
established NGOs that are known by international donors’ owing to their great
participation in relief activities during disasters. The study suggests that on the first
objective that they ought to increase the number of successful IGAs as a remedy to long
term sustainability. Secondly, the study recommends that the NGOs ought to explore the
idea of hiring both local and international volunteers as a move to cut down on HR costs
which also increases their visibility and access to grants from international donors. On the
second objective, the study recommends that NGOs apply for tax exemption certificates
to avoid feeling victimized by KRA. Secondly, the study also recommends that NGOs
should make wise decisions with regards to GGR as to which donors to work with both in
the short and long term. Lastly, the study recommends that NGOs should be flexible to
meet changing donor criteria to be able to capitalize on their gains from them. On further
studies, the research recommends that a similar study should be replicated to other subcounties
or counties in Kenya. The study might look into other aspects such as the
strategies to ensure long term sustainability and self-reliance for the NGOs. The study
xi
also recommends looking at new emerging current gaps caused by Covid – 19 to NGOs
funding as it may have substantial negative impacts.
Publisher
UoN
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1411]
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