NGOs need proper back office funding, says Humentum

Development organizations need more funding for back-office functions if they are to deliver their work as effectively as possible, according to the leader of a membership organization dedicated to building skills in the nonprofit sector. In an interview for Devex World, Christine Sow, CEO at Humentum, said that the sector needs to be realistic about how much it costs to run an organization. “We operate within the global development sector based on some myths around how much it costs to run a proper, robust, accountable organization — the idea that really you can run things on a starvation cycle, on a very lean framework, and still get quality work,” she said. “In fact, we know that when organizations don't have enough money to cover their operational costs they cut corners, they rob from Peter to pay Paul, and end up not being able to have the quality staff that they need to do the work that they want to do.” She said the result was often money wasted because staff did not have the training, the time, or the technology to do the work. She said these problems were baked into the funding structure. “It is the funders who can make decisions around how much they are going to give to those organizations,” she said. “It's not necessarily giving loads of money for luxury. It's recognizing how much it takes to do quality work and actually funding that work. I would encourage funders to look at the true costs of their grantees and to fully fund them. It's that simple.” On top of more funding for back-office costs, she also encouraged funders to look at standardizing reporting requirements and increasing the length of grants, in order to reduce time wasted and help organizations plan for the long term. Watch the full interview below.