A survey of the impact of the global financial crisis on the 2008-2011 funding of the NGOs in the health sector in Nairobi County
Shuria, Hashim Abdirahman
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The purpose of the study was to assess the impact of Global financial crisis on the funding of the NGOs working on the heath sector in Nairobi' County. Local and international non-governmental organizations (NGOs) playa crucial role in the health sector and contributing to MDGs in Africa including Kenya. The global financial crisis and its anticipated effects have created difficulties on both the supply and demand sides for these NGOs. Since the start of the economic downturn in late 2007, charities worldwide are facing an uncertain future. The current global recession has spread beyond banks and businesses to impact giving to philanthropic organizations. The study adopted descriptive research method. The population consisted of all NGOs registered with NGO Coordination Board as at January 2012 that were physically located in Nairobi County. There were 1051 in number. One hundred and sixteen organizations were selected as the sample size for this research using simple random sampling method. The data was collected using structured questionnaires administered on the selected NGOs. The data was analyzed using descriptive statistics, whereas the analysis was done using SPSS and Excel as tool of analysis. Findings were presented in tables, charts and regression Tables. The response rate for the study was 69% out of which 63.5% of the respondents were National NGOs whereas 36.5% of the respondents were International ﾷNGOs. The finding also shows that 81 % of the organizations fundraise from International NGOs. The findings show that the NGOs have different sources of funding where funding from International NGOs was the Highest while Government agencies were the second highest in all years. The list income came from Self-generating income. It was also noted that the year 2011 had the highest average funding while 2008 had the lowest average of funding. This means that the financial crisis has affected these organizations in 2008 and gradually improved over years. In the year 2008 and 2009, majority (62% and 55% for 2008 and 2008 respectively) of organizations did not meet its annual Budget whereas the Majority (54% and 62%) of the Organizations did met to fundraise for annual budgets for the year 2010 and 2011 respectively. According to the findings, forty (56%) of the respondents indicated that that number of health programmes in their organization has not t;.eQuced over the 2008-2011 whereas Twenty nine (40%) of the respondents indicated otherwise. The majority respondents gave; Awareness and training, Environment, Health and Sanitation, FGM, Family Planning, Child Education, Community and HIV Awareness, HIV and AIDS, Reproductive health , Nutrition and TB Programmes as the Pfogrammes affected for the four years. In conclusions, Since the Majority of the Organization identified to have fundraised from External Organizations, the impact of the Global Financial Crisis has been felt by these organizations. The impact of the Global financial crisis was severer on year 2008 while there Gradual Improvement. These organizations could not sustain their annual Budget for 2008 and 2009 whereas there was improvement for 2010 and 2011 where Majority of the organizations had met their annual budgets. Although, the financial crisis have affected some of the NGOs and have reduced some of their programmes, Majority ofNGOs in Kenya have not reduced their programmes. It's recommended that NGOs must adopt funding mix that has fewer restrictions. Therefore NGOs in Kenya should also strive to fundraise from Local Stakeholders including individual donors. By sustaining its funding, Organizations always strive to sustain themselves through different strategies. Organizations should accomplish this through fundraising .. In managing its financial sustainability, NGOs in Kenya strive to develop and maintain strong stakeholders Relationships while obtaining a range of types of funding and strategically managed and financed overhead cost.