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.