| Abstract: | The study was conducted on fund management in the case of local NGOs in Addis Ababa. Fund
management practice has got vital benefits for NGOs because it enables them to realize the main
factors that hinders effective and efficient fund management practices which needs to be
reduced. . The objective of this study was to assess fund management by the local NGOs
operating in Addis Ababa. Descriptive research method was conducted for the study.
Accordingly, 267 local NGOs were selected from total 900 target population using convenience
sampling method. The main instrument for collecting primary data was questionnaire; while
secondary data was collected from published document, of CSOs’ and selected local NGOs.
Validity of the questionnaire was established based on external pilot study and the questioner
tool showed a reliability index of 0.788 Cronbach’s alpha. Analysis of the data was conducted
using Statistical Package for Social Science (SPSS version 20) and Microsoft Excel. The results
of the study analysis revealed gap like Budget submission is usually made without work plan it
becomes difficult to achieve the balanced budget of the organization, Budget was generally
underutilized because underutilization of allocated budget prevails, increasing bench time of the
project and frequently missing project deadline, lower productivity level, in addition Capacity
limitation during resource mobilization the impact is, not timely budget or fund approval. finally
the gap identified show that there Donors transfer fund not timely as per the original plan in the
implementation of projects has challenges during implementation of the among them is delay
receipt of funds. Based on the findings it was recommended that involvement of management at
every level of fund management is required as strong finance department for monitoring
solutions on time to adjust misalignment of planned fund, to avoid unplanned activities and it
was strongly recommended that there should be promoting local resource mobilization to reduce
dependence on foreign fund based on the study findings to adopt local resource mobilization
approach using alternative means of generating fund locally through consultancy, arranging
concerts, great run and advocacy activities and business closely linked to their main work |
