ASSESSMENT OF FUND MANAGEMENT OF SELECTED LOCAL NGOs IN ADDIS ABABA, ETHIOPIA

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