Global Financial Crisis Impact on Funding Agencies Support to NGO ~ Nanang Public Area

18 November 2008

Global Financial Crisis Impact on Funding Agencies Support to NGO

Have you ever thought whether global financial will brings an impact to funding agencies to support NGO, especially from northern funding agencies to southern NGO? the answer is: yes in most possibility! how come? let me tell you briefly base on my experiences on NGO source of their resource (money).

We know that a funding agency as a nonprofit institution should survive and gain financial support from philanthropist as much as possible. The more money they get, the more support for their program in developing country will be helped. Besides, some of official state policy in assist overseas country, also provide the funding agencies the resources to implement the development assitance in overseas developing or underdeveloped country. In other way, developed state's fund for the overseas assistance is also addressed by funding agencies. Otherwise, the states will address their fund directly based on government to govenrmnet partnership.

Another way to gain money for funding agency is by involve in stock exchange. In once time, a funding agency officer told that their institution will not support their grantee as much as in the past since they were suffer a financial lose in stock exchange. What does that statement means? it mean the funding agency involve in stock exchange to get profit, then their asisstance for grantee (NGOs) is taken from the profit. Above statement is released about 2007 years and in a normal economic condition.

Now, in the end of 2008, financial cricis strike whole the world. If you an NGO board and getting used to supported by agency in northern or developed country, you should ready to face a difficult phase to get the support. Perhaps, this cricis will not affect grant opportunity in the next short time, but we will face it after the funding agencies correct their budget. Please do an observation to proof this possibility until 2-5 next years.

Do you aware what a lessons learned from this situation are? If you agree with me, I suggest you to reduce you dependency to funding agency to support your NGO existence. Gain support from your neighbourhood people, constituen community or philanthropist. Or do your NGOself fundrising effort. In order to get support from community, you should manage your NGO properly, good in governance, practice the transparency and accountability principles, guarantee their participation in your programs. If you disregard this effort while you got the finacial support from funding agencies easily, it is not too late to reduce your NGO dependencies to funding agencies and be a strong NGO financially even financial crisis strike more full tilt whole the world.

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