Resource Mobilization Environment

Dear Colleagues,

I'm concerned that funding for NGOs is getting harder and harder to get. I was wondering if we could share our views. I'll start and see if there is any appetite for this proposed forum discussion. I'm on the Board of CECI, one of the largest Quebec-based NGOs, the Centre d'étude et de coopération internationale - see http://www.ceci.ca. We have been in existence for 53 years and core funding has traditionally come from generous catholic religious communities. Program funding has been, until recently, from aid agencies, bilateral notably like the Canadian International Development Agency. There is a shift to the right in countries like The Netherlands and Canada and aid budgets are squeezed while NGOs are considered suspect, or at least, come under closer scrutiny. Interestingly, both right and left leaning governments in both the global North and South have targeted NGOs to receive the blunt of their policies. The tragedy is that NGOs are at the vibrant centre of civil society, where poverty is concentrated. Where do these policy makers come from? In itself, there is nothing wrong of course with better accountability for aid delivery bodies. What bothers me is that program aid budgets are cut and the NGO community is losing expertise as a result of key individuals losing their jobs. But poverty is still rampant, imequity is rising in most economies, and I ask: "what is replacing the good work of these worthy and efficient NGOs"?. I have some ideas how the future of fundraising is evolving, but will wait to hear about other experiences and viewpoints to share any further views.

Tags: Aid policies, Fundraising, NGOs

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Replies to This Discussion

Permalink Reply by Klaus Stoll on January 12, 2012 at 10:57pm

Dear Alain, Dear Friends

Thanks Alain for starting this important discussion. The contribution I would like to make is that the world of resource mobilization for development has or is changing fundamentally. Whilst in the past we where basically relying on the funding of large, in the end government based, organization with a little bit of corporate and private funding on top of it, most of the resources today are coming from other sectors and the rules of the games have shifted. Resources today rarely come from just one sector, resources today are mostly based on multi-sector partnerships where at least two organizations from the private, public and governmental sector come together. Even more important, resources are not given just to some however deserving course, resources are made available because they generate for those who make these resources available something they need. For example, a company will not give resources in order to support your cause, they will make resources available because they see that your cause will open up new markets for them or helps them to sell their product. Corporate social responsibility is one of the main topics of resource mobilization, but we have to be aware that CSR is a legitimate part of every private sector companies business plan. This does not have to be a bad thing. I think that declaring real interests and looking for win win situations is more honest then making resources available but not declaring real intentions. The result is also there are no poor beggars and rich uncles anymore but we are all on the same level as one needs the other in the same way.

Finally, I would like to point out that GKPF was one of, if not the first, global development organization that recognized the importance of multi-sector partnerships and we will do anything possible to support and implement win-win partnerships for and with our members. One of the main role of GKPF is to enable its members to participate in the new opportunities for resource generation. GKPF is at the service of its members and I encourage you all to use the networking tools, as this discussion forum, and services, as the online resource mobilization tool that will come online for GKPF members on the new GKPF www site very soon, to become better resourced and more effective agents for just development. If we take resource mobilization through knowledge exchange serious as one of the main roles and functions of the new GKPF and if we learn to exchange and cooperate on this level between multiple sectors, I can not see any major reason that the GKPF member organizations should not prosper even in these hard times.

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Permalink Reply by Michael Roberts on January 13, 2012 at 8:56pm

Hi Alain,

Its true there is this shift. I think what's changing a lot in the NGO sector is that NGOs are becoming a bit more like businesses, and likewise businesses with a social interest, are becoming a bit more like an NGO. There is a big rise in hybrid business models of organizations that have both a for-profit and not-for-profit side. The for-profit provides funding for the not-for-profit. As well I've come across many for-profits that act and work in the not-for-profit space, providing services and so forth but with a for-profit business model. There are negatives to the change that is happening, but as well, we are seeing new forms of sustainability models within the NGO community that make them less dependant on donors who change programmatic interests regularly.

Lastly we are seeing the rise of online donations. Kiva and Kickstarter are two great examples. There are dangers to this type of funding as well, but with the rise of social media, it is becoming a great way for citizens to become more directly engaged in what they fund. Likewise, with this new form of funding, citizens are demanding accountability in a way never seen before. We are now seeing the rise of standards like IATI (International Aid Transparency Initiative) and groups like the Open Spending. We are near the point where the stakeholders themselves will have a direct dialogue with the citizens that fund them. This is new and creates a type of accountability never seen before rather than recipients hiring the evaluation teams themselves, it will be the beneficiares who tell the story of project success or not.

NGO funding is in a period of change, but or those who innovate, there are many opportunities ahead.

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Permalink Reply by Michael Gurstein on January 15, 2012 at 5:23pm

I certainly agree with Alain's overall delineation of the problem but I'm less sure of the overall response and where/how GKP might situate itself.

I discussed the quite parallel situation concerning academic and research funding in a recent blogpost and I guess my overall analysis and conclusions here concerning ODA and the role of NGO's would be the same as I discussed in that post concerning academic funding and the role of (community informatics) researchers http://gurstein.wordpress.com/2012/01/12/evolving-relationships-uni...

Mike

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Permalink Reply by kubwimana Venuste on January 16, 2012 at 5:18pm

Yes its really funding for NGO's is hard more than enough...we just have to sacrifice our own living to sustain our NGO's ...its about humanitarianism

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Permalink Reply by Alain Berranger on January 19, 2012 at 6:33pm

Michael, what a great and comprehensive blogsite about community informatics! I will consult it in more detail in the weeks to come. Could we think of linking your blog to the GKPF website and vice-versa? We can increase traffic on both sites that way, no?

As to GKPF's positioning on Resource Mobilization for our members, we have already taken an early stand with SDR projects (Scaling-up, Dissemination and Replication) and with the AKVO online fundraising place for our members. Indeed, these are early tools and as membership of both the website and the network increases, these tools will become more sophisticated, more functional and experience more frequent use. The Board of Trustees has already approved in principle the creation of an US-based Endowment Foundation (at its San Franciso meeting in 2011), in order to raise long term social capital for the GKPF network' sustainability to continue servicing the GKPF network members.

Alain

Michael Gurstein said:

I certainly agree with Alain's overall delineation of the problem but I'm less sure of the overall response and where/how GKP might situate itself.

I discussed the quite parallel situation concerning academic and research funding in a recent blogpost and I guess my overall analysis and conclusions here concerning ODA and the role of NGO's would be the same as I discussed in that post concerning academic funding and the role of (community informatics) researchers http://gurstein.wordpress.com/2012/01/12/evolving-relationships-uni...

Mike

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Permalink Reply by Alain Berranger on January 19, 2012 at 6:35pm

Kubwimana,

Can you please share more about the funding challenges of your NGO? Please tell us how you handle it? Others may learn from you and vice versa. Thanks for taking the time to do that!

Best regards, Alain Berranger

kubwimana Venuste said:

Yes its really funding for NGO's is hard more than enough...we just have to sacrifice our own living to sustain our NGO's ...its about humanitarianism

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Permalink Reply by Alain Berranger on January 19, 2012 at 6:39pm

Yes, absolutely fascinating how social entrepreneurship is changing the philanthropy scene! How do you handle environments where connectivity and banking are sub-par? This is part of the digital divide and the poor business environment...

Michael Roberts said:

Hi Alain,

Its true there is this shift. I think what's changing a lot in the NGO sector is that NGOs are becoming a bit more like businesses, and likewise businesses with a social interest, are becoming a bit more like an NGO. There is a big rise in hybrid business models of organizations that have both a for-profit and not-for-profit side. The for-profit provides funding for the not-for-profit. As well I've come across many for-profits that act and work in the not-for-profit space, providing services and so forth but with a for-profit business model. There are negatives to the change that is happening, but as well, we are seeing new forms of sustainability models within the NGO community that make them less dependant on donors who change programmatic interests regularly.

Lastly we are seeing the rise of online donations. Kiva and Kickstarter are two great examples. There are dangers to this type of funding as well, but with the rise of social media, it is becoming a great way for citizens to become more directly engaged in what they fund. Likewise, with this new form of funding, citizens are demanding accountability in a way never seen before. We are now seeing the rise of standards like IATI (International Aid Transparency Initiative) and groups like the Open Spending. We are near the point where the stakeholders themselves will have a direct dialogue with the citizens that fund them. This is new and creates a type of accountability never seen before rather than recipients hiring the evaluation teams themselves, it will be the beneficiares who tell the story of project success or not.

NGO funding is in a period of change, but or those who innovate, there are many opportunities ahead.

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Permalink Reply by Michael Gurstein on January 19, 2012 at 7:03pm

I'll certainly be delighted to link to the GKPF site... and look forward to the reciprocal link. Tks for the suggestion Alain!

Mike

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Permalink Reply by Ulrich Burkhard on January 22, 2012 at 11:04pm

Hi Alain,

I understand your self-questioning. Let me give you a learning from myself. For the last 15 years I supported rural development not based on funding. Once there was no single idea inside me to ask or even to demand for fundraising. I was coming from the village level without no overview in that matter.

The only way to follow my personal passion was to start up a business and selling convincing products improving the economic situation in a rural area in Germany (covering ca. 150.000 households).

I therefore learned what it meant to convice the smallest firms (shopkeepers, craftmen etc) for good ideas (in contrast the big firms in my area had never interest to join in).

What can I take from that experience in the business of fundraising in our "hard time", as you was questioning?

I would say: WE have to change OUR way of thinking. That means "not asking for funding but asking to do a good business based on good concepts and products".

I like business as it is honest toward creating win-win situation for all sides.

Right now I am officially invited by a small German village to promote them toward innovations within their devasted village center (many emty premesis).

And they like the idea that professional marketing and creating a good business atmosphere will attrac attention of all sectors toward their affair. That means we do not bring money-seeking in the frontline but the marketing of a convincing and facination idea. That is how business is working for me. Fundraising is then only a part within the whole concept.

Uli

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Permalink Reply by kubwimana Venuste on January 22, 2012 at 11:13pm

Dear Uli,

I really agree with your idea of win-win! However that's what many people misunderstood and started saying that NGO's have became business. They ignore that nobody in this business oriented world will give you funds to implement your charitable activities! they simply ask you what will i get in return! so that's our responsibilities (NGO) to establish activities that also business companies will benefit from so that they will also support us.

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Permalink Reply by Alain Berranger on January 27, 2012 at 4:57pm

Thanks for sharing Ulrich!

I understand your argument... I think you are in sync with the social enterprise movement or doing business with the triple bottom line: financial-social-environmental... well done!

Ulrich Burkhard said:

Hi Alain,

I understand your self-questioning. Let me give you a learning from myself. For the last 15 years I supported rural development not based on funding. Once there was no single idea inside me to ask or even to demand for fundraising. I was coming from the village level without no overview in that matter.

The only way to follow my personal passion was to start up a business and selling convincing products improving the economic situation in a rural area in Germany (covering ca. 150.000 households).

I therefore learned what it meant to convice the smallest firms (shopkeepers, craftmen etc) for good ideas (in contrast the big firms in my area had never interest to join in).

What can I take from that experience in the business of fundraising in our "hard time", as you was questioning?

I would say: WE have to change OUR way of thinking. That means "not asking for funding but asking to do a good business based on good concepts and products".

I like business as it is honest toward creating win-win situation for all sides.

Right now I am officially invited by a small German village to promote them toward innovations within their devasted village center (many emty premesis).

And they like the idea that professional marketing and creating a good business atmosphere will attrac attention of all sectors toward their affair. That means we do not bring money-seeking in the frontline but the marketing of a convincing and facination idea. That is how business is working for me. Fundraising is then only a part within the whole concept.

Uli