Written by Christiana Charles-Iyoha
Non governmental organizations are non
profit organizations that most often are donor dependent. Projects, staffing,
quality office space and equipment are largely dependent on the generosity of
donors and where donor generosity stops, the life span of the NGO most probably
comes to an end. Having worked in the sector for close on twenty five years, I
have seen many great NGOs with huge potentials for contributing immensely to
human, national and global development close shop because they could no longer
access donor funds, a function of donor fatigue coupled with dwindling AID and
donor funding. This calls for creative means of achieving financial
sustainability in the sector so that in the long run, NGOs can exist without
donor support. A rather tall dream for people and organizations who are known
as non profits, unschooled in raising cash flow from assets because they have
always being schooled in raising grants and donations. Though a rather tall
dream, what is required is a mental and institutional paradigm shift from donor
dependence to organisation’s cash flow from assets dependence implying that non
profit organizations must learn to build assets. This is critical because
grants will continue to dwindle and donor fatigue will increase. Secondly, you won’t
need to work at pleasing donors; conform to their agenda to work at their pace
at the risk of displeasing your constituency. You will work at your own pace,
follow your own agenda and actually implement projects that are relevant to the
needs of the constituency or communities you serve.

Assets however do not drop from the sky.
Money is required to build and maintain assets. How then do organizations who
do not earn income from business transactions suddenly acquire assets? Several ways if you adopt the business approach
to NGO management. Though NGOs are non
profits, they can also participate in profit making ventures that earn income
for the organization and not the Trustees of the organization. Therefore NGOs
should actively engage in business activities that do not detract from the vision
of the organization but earn and adds income to the organization. This way,
NGOs become social enterprises that both serve their constituencies’ interests
as well as generate income to remain afloat in providing social development
services.