boy in gray tank top

Myth #2: “Local NGOs Can’t Be Trusted With Funding”

Where will the money go?

Katie Barron

4/23/20251 min read

boy in gray tank top
boy in gray tank top

The Reality: Local Organizations Demonstrate High Accountability

Concerns about the financial management of local NGOs are often unfounded. Research indicates that many local organizations exhibit strong accountability practices, driven by their close connections to the communities they serve.​

Community-Based Accountability

A study published in the Nonprofit Management & Leadership journal found that small NGOs often employ informal, relational forms of downward accountability, maintaining transparency through direct community engagement Wiley Online Library.​

Challenges Faced by Local NGOs

Despite their strengths, local NGOs often encounter barriers when accessing funding, including:​

  • Inflexible Reporting Requirements: Standardized reporting structures can be challenging for small organizations to navigate PMC.

  • Limited Access to Donor Networks: Smaller NGOs may lack the connections that larger organizations have, hindering their fundraising efforts.​

Conclusion

Local NGOs are not only capable of managing funds responsibly but often do so with greater transparency and community involvement than larger organizations. Supporting these entities can lead to more effective and sustainable aid delivery.​