Utilization of donor funding and its effects on economic development of the intended beneficiaries

Abstract

This research study was carried out to examine the utilization of donor funding by Non-governmental organizations within a contractual period, identify the contributing factors and the effects on economic development of the intended beneficiaries. In order to achieve its objectives, this research used a descriptive research design and a survey of fifteen NGOs with a total of forty five projects implemented in the last six years, the response rate in terms of organizations was 73% and 64% of the projects. The data used is primary and secondary which were collected through structured questionnaires. Once the pertinent data was collected, the researcher carried out editing for errors and omission before analyzing the date. The analysis of the same was done through frequency and percentages calculation and presented in tables and charts. The study established that there is 59 % underutilization of the funding as per budget level usage, 91% of the sampled organizations requested for a no-cost extension period to enable them complete the activities and a further 27% returned the fund balance to the donors. This means beneficiaries were unable to receive the services/goods as intended and or if they do, it is at a high cost during the no-cost extension period; hence impact negatively in their economic development.