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.