Poor funding practice is trapping locally led NGOs in a “starvation cycle,” according to a critical report released Monday by Humentum.
Humentum, an organization focused on improving how nonprofits operate, researched whether grants from international donors typically covered the costs of their grantees. The answer? Usually no.
Humentum worked with 81 NGOs, based in 10 countries, to understand their costs and funding. A more detailed survey was conducted with a smaller subgroup of 38 NGOs, whose median income was below $1 million annually. The work focused on administration costs, including those related to finance, fundraising, human resources, safeguarding, premises, and information technology.
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About the author
David Ainsworth@daveainsworth4
David Ainsworth is business editor at Devex, where he writes about finance and funding issues for development institutions. He was previously a senior writer and editor for magazines specializing in nonprofits in the U.K. and worked as a policy and communications specialist in the nonprofit sector for a number of years. His team specializes in understanding reports and data and what it teaches us about how development functions.
