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Links between NGO’s Accountability towards the Beneficiaries and its Financial Independence

Sulakvelidze, Viktor LU (2013) UTVK03 20131
Sociology
Abstract
The purpose of the study is to find out linkages between NGO’s accountability towards its bene-ficiaries and its financial independence. The paper is highly empirical and draws on the experi-ence gained from a case study of an NGO in Georgia. It provides the illustration of how the quali-ty of NGOs work (which primarily targets the beneficiary population) is damaged by financial dependency on donor agencies. The study further provides an example of a business plan which the organization employs to take care of the dependency problem. Part of the organization’s busi-ness plan is to enter consulting and brokerage fields in order to create its own income. The paper argues that this move is more likely to take away a great amount of time and... (More)
The purpose of the study is to find out linkages between NGO’s accountability towards its bene-ficiaries and its financial independence. The paper is highly empirical and draws on the experi-ence gained from a case study of an NGO in Georgia. It provides the illustration of how the quali-ty of NGOs work (which primarily targets the beneficiary population) is damaged by financial dependency on donor agencies. The study further provides an example of a business plan which the organization employs to take care of the dependency problem. Part of the organization’s busi-ness plan is to enter consulting and brokerage fields in order to create its own income. The paper argues that this move is more likely to take away a great amount of time and resources from the NGO and this will result in reduction of attention that NGO needs to pay to its beneficiaries. The research finds that once this beneficiary-induced step to come up with a business plan to reduce donor influence is likely to result in NGO drifting away from its constituency-oriented course, thus leaving the beneficiaries in disadvantage. Interestingly enough the effort of the NGO spent on releasing itself from donor dependency and exercising its accountability towards the benefi-ciaries in a more efficient way is less likely to contribute to this goal.
This research adds on to a large literature of NGOs dependency on donors and provides a food for thought for further research about how this problem of dependency can be resolved, through what mechanisms and what possible consequences the utilization of these mechanisms might have. (Less)
Please use this url to cite or link to this publication:
author
Sulakvelidze, Viktor LU
supervisor
organization
course
UTVK03 20131
year
type
M2 - Bachelor Degree
subject
keywords
financial sustainability, beneficiaries, donors, CIC, accountability, NGO, business model
language
English
id
3810999
date added to LUP
2013-06-27 13:57:09
date last changed
2013-06-27 13:57:09
@misc{3810999,
  abstract     = {The purpose of the study is to find out linkages between NGO’s accountability towards its bene-ficiaries and its financial independence. The paper is highly empirical and draws on the experi-ence gained from a case study of an NGO in Georgia. It provides the illustration of how the quali-ty of NGOs work (which primarily targets the beneficiary population) is damaged by financial dependency on donor agencies. The study further provides an example of a business plan which the organization employs to take care of the dependency problem. Part of the organization’s busi-ness plan is to enter consulting and brokerage fields in order to create its own income. The paper argues that this move is more likely to take away a great amount of time and resources from the NGO and this will result in reduction of attention that NGO needs to pay to its beneficiaries. The research finds that once this beneficiary-induced step to come up with a business plan to reduce donor influence is likely to result in NGO drifting away from its constituency-oriented course, thus leaving the beneficiaries in disadvantage. Interestingly enough the effort of the NGO spent on releasing itself from donor dependency and exercising its accountability towards the benefi-ciaries in a more efficient way is less likely to contribute to this goal.
This research adds on to a large literature of NGOs dependency on donors and provides a food for thought for further research about how this problem of dependency can be resolved, through what mechanisms and what possible consequences the utilization of these mechanisms might have.},
  author       = {Sulakvelidze, Viktor},
  keyword      = {financial sustainability,beneficiaries,donors,CIC,accountability,NGO,business model},
  language     = {eng},
  note         = {Student Paper},
  title        = {Links between NGO’s Accountability towards the Beneficiaries and its Financial Independence},
  year         = {2013},
}