NGO Sustainability
Challenge
It is now a generally accepted principle that non-governmental organizations
(NGOs) have a prominent role to play in advancing national and local
social development goals. Nevertheless, each year thousands of NGOs
close their doors or make dramatic cuts to their programs due to a
rapid reduction in their traditional funding source: donor grants
and donations. When the costs of an NGO’s core activities exceed
the inflow of grants and donations, it is forced to either reduce
the quantity and/or quality of its work or to find new sources of
funds to cover the difference. Initiative
Reaching out to new donors with innovative fund-raising approaches
is usually the first step. Redesigning program activities to include
cost-recovery components is a second approach. A more recent alternative
is for the NGO to “make money” through commercial ventures.
The hallmarks of PDI - PDA’s work have been the innovative solutions
it has found to solve problems of rural poor and the creativity of
its leaders to finance and sustain its operations. By establishing
businesses, PDI - PDA has found sustainable solutions to reduced donor
funding. Because cooperation is a key to NGO successes globally, PDI
- PDA offers international training programs on NGO Sustainability
through the Asian Center for Population and Community Development
(ACPD). Results
We have achieved a certain level of sustainability through its capacity
to mobilize resources through business activities such as its world
famous Cabbages & Condoms restaurants and resorts, rural factories,
real estate, manufacturing, and medical services. At present, 70%
of PDA’s operational costs are covered through the profits of
its 16 businesses. PDA’s experience has proven that Asian NGO
Sustainability has a profound impact on its ability to operate. |
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Additionally, PDA’s efforts
to expand the results of NGO Sustainability, through training programs
with the ACPD, 18 countries and 65 NGOs globally have been trained
on how to respond to reduced donor funding: through the establishment
of business.

Cabbages and Condoms Restaurant - Bangkok, Thailand |