Challenges of effective fund utilization in Humanitarian organization in the Case of Catholic Relief Service (CRS) Ethiopia

Abstract

Effective fund management and utilization ensures that organizations projects are administered with proper stewardship and guided by humanitarian and educational principles. It confirms that projects meets the needs of the beneficiaries, fulfill project objectives, by safeguarding of available funds. Every organization is responsible to follow and control how the granted funds are used by its members and needs to be ensured those funds are properly managed. If a misuse of funds occurs, it will be the liability and responsible of implementing organizations for rectifying the situation. Fund is a key for non-governmental organization as a means of Planning, utilizing and controlling scarce resources so as to attain their goals efficiently and effectively. With this study the research identified challenges of effective fund utilization. The researcher used both primary and secondary data which collected through questioner and from different secondary data source. Data analysis involved preparation of the collected data - coding, editing and cleaning of data in readiness for processing using SPSS version 20. SPSS is preferred because it is very systematic and covers a wide range of the most common statistical and graphical data analysis. To better understand the characteristic of each variable, descriptive statistical analysis was used. Presentation of information was done with the aid of frequency tables and percentages. The information was presented and discussed as per the objectives. The study found that challenges associated with project Implementation through partners and Managerial factors, are the major challenges for the effective utilization of fund by humanitarian organizations followed by Technical factors and donors’ behaviors are another for fund effectiveness. The study recommended that to ensure effective utilization of fund, Transparent and Complete Information has to put at the donors’, primary fund recipients and direct project implementer. In addition capacitating building activities on direct project implementer agents should be done by identifying major gaps on challenges associate with Managerial factors, technical factors and donor’s related behavior. Lastly by Increasing the responsibility and accountability of fund recipient organization, donors should reduce the funding burecracys which subject funds to pass through different layers.