Hands in the pockets of mercurial donors: NGO response to shifting funding priorities
Abstract
The NGO–donor relationship is especially volatile. NGOs in developing countries heavily rely on foreign donor funding and donor dominance is evident. This article explores the relationship at times when donors revise funding priorities and partner NGOs try to adapt. The article draws on qualitative research of multiple observations to study the decisions of four NGOs in response to several shifts in donor funding. The analysis reveals variation in NGO responses to such shifts: suspend the relationship, reach common ground, automatically execute the donor’s interests, and voluntarily and deliberately adapt to the situation. Building on Hirschman’s typology, four modes of NGOs’ response are identified: exit, voice, loyalty, and, a newly proposed mode, adjustment. Additional interpretation of NGOs’ responses and possible implications for NGO management are discussed.
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The CSOs represented in this study were typically dependent on international rather than national and short-term rather than long-term funding, which made building lasting capacity and effective coalitions difficult.
“In line with the literature on LMIC-based CSOs47–49 public health50–52 and tobacco control,53 54 the CSOs represented in this study were typically dependent on international (rather than national) and short-term (rather than long-term) funding, the latter in particular made building lasting capacity and effective coalitions difficult.”
From Needs of LMIC-based tobacco control advocates to counter tobacco industry policy interference: insights from semi-structured interviews (2020) · cites this paper as [47]
Long-term partnerships between international organisations and local partners build greater capacity among advocates to successfully continue their work after the project ended.
“This concern resonates with the literature on LMIC-based CSOs, suggesting that long-term partnerships between international organisations and local partners build greater capacity among advocates to successfully continue their work after the project ended.47 55”
From Needs of LMIC-based tobacco control advocates to counter tobacco industry policy interference: insights from semi-structured interviews (2020) · cites this paper as [47]
Cites
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“Process tracing and discourse analysis are used to analyze processes, understand variations in interpretations, and assess causality (Capoccia & Kelemen, 2007; Checkel, 2008; Johnston, 2002; Neumann, 2008).”
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NGOs, States, and Donors Revisited: Still Too Close for Comfort?
Banks, N., Hulme, D., & Edwards, M. (2015) · World Development · doi:10.1016/j.worlddev.2014.09.028 · Cited by 772 · see citing works
“…downward accountability and commitment to beneficiaries, or more powerful NGOs that have some level of voice vis-àvis donors are more likely to suspend the relationship or try to negotiate a way to continue accessing funding without risking such change in organizational identity (AbouAssi, 2012).”
BackgroundInfluential“Creative Financing”: Funding Evidence-Based Interventions in Human Service Systems
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Financial sustainability of NGOs in rural development programmes
Shava, E. (2021) · Development in Practice · doi:10.1080/09614524.2020.1853059 · Cited by 22 · see citing works
Post-conflict democratization, foreign funding, and NGO-ization of civil society in Somalia
Marian, A. M., Farouk, A. F. A., Khelghat-Doost, H., & Jaafar, F. (2025) · Полис. Политические исследования · doi:10.17976/jpps/2025.04.06
- Authors
- AbouAssi, K.
- Affiliations
- Texas A&M University (US)
- Corresponding author
- AbouAssi, Khaldoun
- ORCID
- AbouAssi, Khaldoun
- Venue
- Nonprofit and Voluntary Sector Quarterly
- Publisher
- SAGE Publications
- Published
- 2012-04-03
- Volume
- 42
- Issue
- 3
- Pages
- 584-602
- ISSN
- 0094-0607 (ISSN-L)
- 0899-7640
- 1552-7395
- OpenAlex
- W2148689980
- Cited by
- 142
- References
- 2
- Citations by year
- 2026: 11 · 2025: 14 · 2024: 4 · 2023: 11 · 2022: 12 · 2021: 12 · 2020: 16 · 2019: 14 · 2018: 11 · 2017: 10 · 2016: 10 · 2015: 5 · 2014: 8 · 2013: 4
- FWCI
- 17.93
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Nonprofit and Voluntary Sector Quarterly (publishedVersion)
- Topics
- Social Sciences › Sociology and Political Science › Nonprofit Sector and Volunteering
- Social Sciences › Development › International Development and Aid
- Social Sciences › Arts and Humanities › History › Historical and Contemporary Political Dynamics
- Keywords
- exit, voice and loyalty, NGO management, developing countries
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