Revenue Diversification Strategies for Non-Governmental Organizations (original) (raw)
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2019
This paper aims at giving a perspective of the role that NGOs play in the society and economy, the financing opportunities that Romanian NGOs have and the way they take advantage of these opportunities in order to grow and have impact in society. The studies on financial behavior in Romania reveal that the income sources of the non-governmental organizations became diversified during the last years, the most significant financial incomes for NGOs remaining grants or contracts from the European Union and from foreign or international foundations. But in the same time, the analyzed data reveal that the changing legislation has a significant influence on the financing trends of NGOs.
Financial Sustainability of Local NGOs
Despite the rapid growth of Non Governmental Organizations (NGOs), NGOs face a great number of challenges. The presented research mainly concentrates on financial sustainability of Local NGOs (LNGOs), due to two reasons: the impact of financial sustainability on LNGOs as a whole, and the shortage of research on LNGOs alternative sources of funding. From this stand the research hypothesis is that LNGOs can increase their financial sustainability by the utilization of alternative sources of funding. The research starts by identifying NGOs, their current status, their need to be sustainable. Then it discusses LNGO sustainability challenges and provides an original compilation of tools and recommendations on LNGOs financial sustainability. This compilation is product of an in depth examination of three case studies (BRAC, Proshika, and Grameen Bank), along with a selection of financial sustainability concepts (Social Business) and tools. The research reveals that there is no magical formula on LNGO financial sustainability. Rather, it’s a combination of mindset, long term vision, hard work, and appropriate tools such as; diversification of funding, seed funding, crowd funding, initiation of social enterprise, acquisition of fixed assets, cost recovery schemes, cross subsidy among programs, strategic partnerships, growing into learning organization and utilization of reciprocity and local support.
Particularities of Non-governmental Organizations’ Financing.The Case of Romania
Procedia - Social and Behavioral Sciences, 2013
Nongovernmental non-profit organizations (NGOs) are becoming more and more prominent social actors in today's world. This coagulation and development of the nongovernmental sector, as an alternative to the market and public institutions, prompts the need for an analysis of the functionalities and eventual non-functionalities featuring their financing process. Our research method consisted of a combination of library and Internet searches for relevant materials, analysis of relevant information and of case study about Romanian situation. The results of our research described in this paper are the following, first an inventory of the main financial resource categories available to Romanian NGOs today. Second, we present an overview of the sources of financing accessible to these NGOs, including brief details of potential problems that might be encountered. Where relevant, we have included examples and data reflecting the current situation of these organizations in Romania, as the main country we have focused on. We have formulated the following conclusions referring to NGO's financing in relation to the assumed social task and their role in terms of coverage of social needs: first, though the need for funding, often they do not give enough importance to financial preparation of the proposed activities; second, NGOs have access to specific funding sources available just for NGOs. However, as in the case of public institutions or for profit companies, available resources are not sufficient to cover the assumed organizational task; third, they can address financing issues by specific methods, but methods used are not always adequate to pursue their funding objectives; fourth, NGOs act often in a rather emotional, intuitive manner, at the expense of a systematic planning process; fifth, they need a certain expertise in handling activities efficiently and effectively. However, we have identified that most of the time NGO's do not have sufficient internal resources or do not pay enough attention to developing necessary expertise by training their staff.
Financial Resources or Human Resources? The Real Obstacle for Developing NGO Activity in Romania
Challenges and Opportunities to Develop Organizations Through Creativity, Technology and Ethics (Silvia L. Fotea et al., Eds), 2020
In our hyper-connected and globalised world, the pace of change is exponentially increasing in the private sector, public administration and the civil society sector. Organisations and networks face ever more complex environments that present unique challenges and opportunities for their development. This rings even more true for non-profit organisations, which work under ever-changing funding cycles or hostile political environments that make it difficult to attract and retain staff or grow. The aim of this paper is to answer the following questions: Are financial or human resources the greatest obstacles for growth and success of NGOs? How is large-scale emigration of young Romanians, potential NGO staff, affecting the recruitment and retention of staff? Are there less financial resources available for non-profit organisations? How do financial resources affect human resources, that is, how are NGOs able to recruit qualified, motivated staff that is creative and able to respond to fast-changing environments? Is there an ideal point where financial and human resources are in balance? We try to answer these questions through an exploratory survey administered to 129 national and international NGOs operating in Romania, providing a reasonable statistical base. We also conducted an additional eight interviews with Romanian non-profit leaders.
The business model canvas of NGOs The business model canvas of NGOs door Judith Sanderse
2014
In 1999 the global non-profit sector had a turnover of over $1 trillion with 19 million fully paid employees. It was the equivalent of the eighth largest economy (Sustainability 2003). Despite this, it was poorly understood. In 2008 Lambell, Ramia, Nyland and Michelotti concluded that non-governmental organisations (NGO) are still relatively absent from the mainstream scholarly management and broader business studies literature. On the other hand, business models and business model canvas is a subject that has been discussed and much researched since the publication of Osterwalder’s dissertation in 2004. The importance of the NGO sector and a desire to better understand their business models was the inspiration for this research - the creation of a tool useful for NGOs, academics and practitioners. Hence, the main objective is the development of a specialized business model canvas for NGOs. The central research question of this study is defined as ‘how is a NGO business model canvas structured?’ A business model canvas for NGOs was conceptualised utilising Osterwalder and Pigneur’s (2010) third party funded model as the foundation. The building blocks and definitions were initially based on literature review sources (business, social business and NGO management literature). Following interview responses and analysis of annual reports of NGOs both the building blocks and definitions were adapted to align better to NGO terminology. These are presented below. This conceptual business model canvas for NGOs was tested through interviews with four NGO experts and leaders of two Foundations and five International NGOs (INGO) using the case study method. This testing led to the development of two separate business model canvases. The canvas for Foundations is a slight adaption from Osterwalder and Pigneur’s third party funding business model (2010). The other canvas is applicable for INGOs with multiple streams of income. This is made up of two sections, one for programmatic and the other for fundraising/ marketing and financing activities. This division is the result of a desire to maintain clarity and hence the usability of the business model canvas as a tool for communications, visualization of business models and analysis. The interviewees confirmed the practical relevance and utility of the business model canvas. In addition, it has academic relevance due to the business model canvas’s specific usage for NGOs. This provides a basis for further research, such as, comparative analysis and historical analysis of NGO business models and so forth.
A profile of the non-profit sector in Romania
Voluntas, 1997
With the revolution of December 1989, citizens of Romania gained the right to form non-profit organisations for the first time in 40 years. Since then, Romania has begun to explore the frontiers of private initiative through the introduction of non-profit, non-governmental organisations as well as profit-making businesses. In this article we review the historical development and legal framework of Romania's emerging non-profit sector. We also provide the first empirical snapshot of that sector by applying the international Classification of Nonprofit Organizations (ICNPO) developed by Salamon and Anheier to 499 organisations identified in the Soros Catalogue of Nongovernmental Organizations in Romania: 1991-92. Finally, we speculate on the future development of the Romanian non-profit sector by considering alternative scenarios involving the relationships between indigenous nonprofits, international NGOs and the Romanian government.
Outlooks for NGO network self-financing
2004
The purpose of this thesis is to outline and evaluate self-financing models for environmental NGO electronic networks in South Eastern Europe. It addresses issues related to NGO financing in general, diversifying financial sources and selffinancing as opposed to traditional donor funding in particular.