PKF hosts NGO Forum on Financial Sustainability for Impact
Non-governmental organisations (NGOs) have been challenged to embrace transformational relationship as opposed to transactional relationship with their target beneficiaries and donors to achieve financial sustainability for impact.
The clarion call was made during the annual forum for non-governmental organisations (NGOs) from across the country which was hosted by PKF Kenya. The forum mainly focused on strengthening capacities and preparedness in embracing new relationship models to achieve financial sustainability for impact.
Speaking during the Forum at Park Inn by Radisson in Westlands, Mission Director of USAID for Kenya and East Africa Mark Andrew Meassick challenged the NGOs to think about being self-sustainable and stated that Kenyans need to solve problems of Kenyans. Sadly, his confidence on the government to do so is wishful thinking and therefore put it upon the NGOs to focus on the social problems and how to solve them with minimal donor funding reliance.
Meassick further noted that it is important for NGOs in Kenya and Africa at large to depart from transactional relationship that focus on money exchange and embrace transformational relationship that focuses on beneficiaries and donors working on more social impact that is sustainable.
“We have reached a stage where as NGOs we need to challenge the prevailing orthodoxy of the transactional aid system and create transformational relationship by working together as NGO’s at all levels of project execution to achieve even a bigger voice in realizing our objectives. From a donor point of view, where transformational relationship exists, that particular NGO is able to strengthen their journey to self-reliance”
Meassick added that full participation by key stakeholders, will create an open environment for financial audit hence winning the donor confidence.
Esther Mutuma, Managing Director Central Kenya Komaza Forestry Limited while speaking on social impact- on sustainability journey, said that the existing pattern of support for NGOs, which is largely based on foreign funding, is not sustainable and urged NGOs to also consider the concept of social enterprise to sustain their projects.
“As the donor funding appear to gradually dry up at a time when most non-governmental organisations are donor driven, NGOs need to build positive relations with the people and communities you have assisted for the many years you have been in existence and that way you will be able to pursue innovative social enterprise opportunities and even help; you mobilize resources locally”
Esther Mutuma further added that social enterprise concept integrates into programme activities an income generation and business model, creating complete transformation and sustainable processes.
William Makatiani the CEO of Serianu Limited (an-African based Cybersecurity and Business consulting firm) spoke on cyber security urged the NGOs to set aside budget for their organisations network security audit citing system compromise as the biggest challenge with major NGOs. He urged organisations to consider cyber insurance as a sustainable measure in case of cyber-attack.
Among the speaker during the forum PKF’s Nahashon Mathenge covered the topic on Tax emerging issues for NGOs where he urged the NGO’s to ensure compliance with tax laws which would always be a leverage to use in seeking exemptions.
The forum comes at a time when funding from International donors and development partners continues to see significant decline therefore affecting sustainability of organisations and envisaged impact to targeted communities and people.
Kenya’s classification as a middle-income country was also cited as one reason that led to multiple donors pulling out funding and focusing their interventions on poorer countries.
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