An impact assessment of the global financial crisis on donor funding to Zimbabwean non-governmental organisations and recommended strategies for sustainability

Abstract

This study assesses the impact of the global financial crisis on the inflow of donor funding to non-governmental organisations (NGOs) in Zimbabwe. NGOs have been instrumental in improving the livelihoods of many needy people in Zimbabwe. A variety of interventions have been made by NGOs in Zimbabwe. The financial woes that bedevilled the country from the late 1990’s have ushered in tremendous hardships in Zimbabwe and NGOs mostly funded by donors from Western countries have brought some kind of relief to some communities. Over the years NGOs in Zimbabwe have been dependent solely on aid. In the wake of the global financial crisis, most Western economies are experiencing economic difficulties as well, resulting in diminishing donor funding to NGOs in Zimbabwe. The study sought to explore the mitigating measures that NGOs can adopt in order to not only ‘weather the storm’ but invent self-sustaining initiatives that could ultimately reduce donor dependence. From primary data of NGO funding in Zimbabwe between 2007 and 2012, it was established that there has been a significant reduction in donor funding inflows to the NGO sector in Zimbabwe as a result of the global recession. Almost all but one NGO heavily rely on donor funding for their operations. The study further revealed that only five of the respondents engage in some local fundraising efforts otherwise the rest are deeply entrenched in the ‘begging bowl’ dependency syndrome. While there is no evidence of recovery from the recession in the Western World, the Eastern bloc where economies such as China, India and Japan appear to be less affected by the economic crisis. China for example boasts the fastest growing economy and arguably slowly overtaking the United States in becoming the world biggest. However, the study reveals that there is no donor funding emanating from the economic giant. The study recommends that NGOs are managed the same as conventional businesses. They should have strategies to raise revenue. This can be by way of ‘selling’ consultancy services, setting up retail and manufacturing businesses, farming and enhanced fundraising from individuals and the corporate sector.