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Funding for NGOs
NGOs rely on funding from individual donors, foundations, corporations and governments. Critics charge that funding sources can seriously affect NGO policy, making these organizations potentially the creatures of special interests. Such charges challenge NGO legitimacy especially when funds come from "outside" - including rich foreign governments, corporations or foundations.
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Credibility and Legitimacy of NGOs | NGOs and States
Articles
2008 |2007 |2006 | 2005 | Archive 2008
The Global Links Initiative Story (March 11, 2008)
There are numerous NGOs in urban areas in China, but none can acquire non-profit status due to the lack of a legal framework. Without access to domestic funding, Chinese NGOs must rely on international aid. But as the Chinese economy develops, donor countries and foundations are decreasing their financial support. The absence of NGO help during the heavy 2008 snow storms in Southern China is a tragic consequence. This article by the executive director of Global Links Initiative looks to the emerging class of “new rich” Chinese philanthropists to remedy the domestic funding dilemma. (Policy Innovations)2007
Silences in NGO Discourse: The Role and Future of NGOs in Africa (2007)
This collection of essays argues that NGOs are Africa’s new missionaries. They dispense services in a spirit of “charity and pity” as puppets of “neo-colonial” powers. NGOs rely on their funding partners in a paternalistic relationship where foreign “true friends” – as one US ambassador termed donors – treat the poor as recipients of aid and exclude citizens from policy-making. The author recommends that NGOs in Africa stop pretending neutrality and engage in political activism. (Fahamu)2006
Does Foreign Funding Make NGOs into Puppets? (October 11, 2006)
In light of a debate among Turkish NGOs on the subject of credibility, this New Anatolian article examines the sometimes obscure relationship between NGOs and their sources of funding. By stipulating conditions for the use of funds, foreign donors can strongly influence recipient groups, which raises questions about the NGOs’ accountability to the communities they serve. Therefore, legitimate NGOs must display openness about – and independence from – their financial supporters to maintain their “honor” and credibility with the citizenry.Strengthening Democratic Governance: The Role of Civil Society (September 21, 2006)
This Wilton Park report delves into the challenges that grassroots organizations face in their efforts to promote government accountability and citizen participation. In their intertwined activities of advocacy, monitoring and providing services, NGOs often encounter government interference, unreasonable donor demands and questions about their own legitimacy. The report encourages NGOs to focus on attaining sustainable results and to “not be diverted” in their operations by such obstacles.Managing Globalization: Bad News Traveling Faster, But So Is Aid (August 22, 2006)
As technological developments allow news to travel faster, aid groups can better alert potential donors. Furthermore, international aid agencies have begun to solicit donations from individuals and groups on a global scale, rather than just in the wealthiest countries. However, although widespread coverage may benefit aid collections, it may also endanger aid workers who wish to remain inconspicuous in conflict-ridden zones. (International Herald Tribune)How Genuine Are NGOs? (August 7, 2006)
According to this New Times opinion piece, western donors, particularly the US, have historically used NGOs to exploit economic opportunities in poor countries or to counter hostile political ideologies. Citing US-led wars and the ensuing relief efforts in Vietnam, Afghanistan and Iraq, the author strongly criticizes what he calls the “mockery of humanitarian aid.” This occurs when donor nations use NGOs to provide humanitarian assistance in countries occupied by their troops. The article concludes that government-dependent NGOs work more to attract funds than to strengthen democracy.All (Reasonably) Quiet on NGO Front- For Now (June 21, 2006)
The NGO community in South Africa fears that Pretoria’s threat to introduce laws to prevent whistleblowing will discourage NGOs from voicing their concerns about government policies. NGOs that actively lobby for policy change also tend to receive less funding than NGOs which only provide services. This TerraViva article draws attention to the limits that financing problems and conservative legislation can impose on NGOs’ activities.Aid Harmonization: Challenges for Civil Society (May 2006)
This newsletter from the International NGO Training and Research Centre (INTRAC) looks at how the Paris Declaration on Aid Effectiveness affects NGOs as providers of international aid. The declaration urges governments to transfer aid directly into the budgets of poor countries, rather than funding their own development projects. While this could prevent rich countries from using aid as a tool to achieve their own political and economic interests, INTRAC warns that Northern NGOs could lose much of their funding and political influence. Southern NGOs, although benefiting from poor countries’ increased aid budget, could lose their political independence since national governments would fully decide which NGOs to fund.2005
Do Donors and NGOs Speak the Same Language? – Part II (April-June 2005)
While the influence of large and wealthy international NGOs continues to grow, governments and donors still tend to regard small, local grassroots groups as less important and less “legitimate” actors. Citing trends in Lesotho, this article criticizes the seemingly paternalistic attitude of foreign donor organizations, which sometimes “drastically” change their funding schemes without consulting recipient NGOs. The author urges greater financial and strategic support for NGOs, saying a lack of funding could “cripple the democratic function of civil society.” (Lesotho Council of NGOs)Do Donors and NGOs Speak the Same Language? – Part I (April-June 2005)
This article discusses the issue of foreign donors channeling funds for NGOs through local governments, focusing specifically on Lesotho. The author suggests that due to the often underdeveloped administrative capacity of fledgling democracies, funds may not trickle down to the groups that most need financial support. Additionally, those organizations that monitor government policymaking risk losing their credibility if they receive state-controlled aid. Therefore, donors must establish “deeper partnerships” with NGOs in order to better understand and strengthen their work. (Lesotho Council of NGOs)NGOs Tiptoe through Africa’s Political Minefields (October 11, 2005)
Spurred by fears of neocolonialism, many African governments view NGOs as “Trojan horses for Western governments.” Many Northern NGOs receive a large amount of funding from their own governments, and are thus inclined to support that government's foreign policies on the ground. Countries like Eritrea, Zimbabwe and the Sudan have passed laws limiting the functionality of foreign-funded NGOs within their borders. Critics of these new policies accuse the African governments of espousing undemocratic values, and attempting to conceal human rights abuses. (Reuters)Russia: Putin 'Foreign Funding' Remarks Draw Civil Society Concerns (July 21, 2005)
Russian President Vladimir Putin accused foreign-funded NGOs of serving “dubious group and commercial interests,” and instead offered financial support from the Kremlin. While some experts applaud Putin’s proposal, it seems very unlikely that a “not free”-rated country would support groups that monitor human rights abuses and that criticize the stifled political atmosphere. (Radio Free Liberty/Radio Europe)Stop Sending Us Money, French Aid Group Says (January 4, 2005)
Medecins Sans Frontieres (MSF) has angered some NGO community members by asking donors to send money to the medical aid agency’s general funds rather than specifically for Asian tsunami relief. The unprecedented move was to ensure “honesty” for MSF donors about where their funds go. But other NGOs claim MSF’s report was “irresponsible” because it failed to clarify that other organizations, which focus on long term assistance rather than emergency relief, still want and need funding. (MSNBC)
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