Effects of the global financial crisis on the financing of non-governmental organizations in Kenya
Financial crisis is a situation where the money demanded quickly rises relative to the supply. Some financial institutions or assets suddenly loose large part of their value. A financial crisis may be caused by leveraged investments. This means borrowing to finance investments. When a financial institution (or an individual) only invests its own money, it can in the very worst case lose its own money. Financial crisis have been prevalent phenomena throughout history. NGOs in Kenya were affected in their provision of services during the 2008 and 2009 when the effects of the Global Financial Crisis (GFC) were felt. It is expected that number of NGOs in Kenya will report a substantial reductions in their funding in the wake of the global financial crisis, and this is expected to threaten their ability to deliver the services and activities that are required. The objective of this study was to investigate the effects of the global financial crisis on financing of NGOs in Kenya. This study employed descriptive research design. The study relied mostly on primary data sources. Basing on the study findings, the study concluded that financial crisis increases affected the financing of NGOs in Kenya. The study reveals that during the global financial crisis, most of the NGOs rely mostly on their budgets and saving from their accounts since financier could not meet financial needs during this period. On expenditure of NGOs during the global financial crisis, the study concluded that financial crisis that was experienced during the year 2009-2010 resulted to employment of more international staffs with experience and professionalism in handling disasters as a way of delivering effective services to the community. To staffing, the study concluded that NGOs were staffing gradually from each year to the other while only during 2012 when decrease of staffing was experienced in almost all the organizations.