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Funding Mobilization Strategies of Nongovernmental Organizations in Cambodia

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Abstract

The objectives of this paper are to map strategies for resource mobilization of nongovernmental organizations (NGOs) in different sectors in heavily aid-dependent Cambodia and analyse the past and future trends of each of the evolving strategies. The data used is the product of a national survey revealing NGOs’ key funding sources and trends in a 10-year period from 2006 to 2016. Foreign grants and donations are still dominant, but one out of five NGOs surveyed engage in earned-income activities, and this trend is expected to increase in the next 5 years. This study contributes to the on-going academic and development debate about the struggles non-profit organizations face and the ensuing strategies for mobilizing funding. It also raises questions about the potential effects of different strategies for resource mobilization, social and ethical dilemmas, and the trade-off between different choices of funding resulting in a diversification strategy.

Résumé

Cet article vise à répertorier les stratégies de mobilisation de ressources mises en œuvre par les organisations non gouvernementales (ONG) dans différents domaines au Cambodge, pays qui dépend fortement des aides. Il analyse également les tendances passées et futures d’évolution de chacune des stratégies. Les données utilisées sont issues d’une étude nationale qui révèle les sources de financement principales des ONG ainsi que les tendances sur une période de 10 ans, entre 2006 et 2016. Bien que les subventions et dons provenant de l’étranger dominent toujours, une ONG étudiée sur cinq s’engage dans des activités génératrices de revenus et cette tendance va probablement s’accroître dans les cinq années à venir. Cette étude contribue au débat en cours, tant académique qu’appliqué, à propos des difficultés que les associations à but non lucratif rencontrent et des stratégies de mobilisation de fonds qui en résultent. Elle pose également des questions sur les effets potentiels des différentes stratégies de mobilisation de ressources, les dilemmes sociaux et éthiques ainsi que les compromis nécessaires entre différents choix de financement, qui induisent une stratégie de diversification

Zusammenfassung

Ziel dieses Beitrags ist die Ausarbeitung von Strategien für die Ressourcenmobilisierung nicht-staatlicher Organisationen in verschiedenen Bereichen in Kambodscha, einem Land das stark auf Hilfeleistungen angewiesen ist, sowie die Analyse der vergangenen und zukünftigen Trends dieser entstehenden Strategien. Die verwandten Daten sind das Produkt einer landesweiten Befragung, aus der die wichtigen Finanzierungsquellen und Trends der nicht-staatlichen Organisationen über einen Zeitraum von 10 Jahren von 2006 bis 2016 hervorgehen. Ausländische Subventionen und Spenden dominieren noch immer; doch eine von fünf befragten nicht-staatlichen Organisationen führt Einnahmen bringende Tätigkeiten aus. Es ist davon auszugehen, dass dieser Trend in den nächsten fünf Jahren weiter zunimmt. Diese Studie ist ein Beitrag zu der anhaltenden akademischen Diskussion und Entwicklungsdebatte über die Probleme der Nonprofit-Organisationen und die sich daraus ergebenden Strategien zur Mobilisierung von Geldern. Zudem werden die möglichen Auswirkungen unterschiedlicher Strategien auf die Ressourcenmobilisierung, die sozialen und ethischen Dilemmas und die Zielkonflikte zwischen verschiedenen Finanzierungsmöglichkeiten, die zu einer Diversifizierungsstrategie führen, hinterfragt.

Resumen

Los objetivos del presente documento son diseñar estrategias para la movilización de recursos de organizaciones no gubernamentales (ONG) en diferentes sectores en Camboya, país sumamente dependiente de la ayuda, y analizar las tendencias pasadas y futuras de cada una de las estrategias evolutivas. Los datos utilizados son el producto de una encuesta nacional que revela las fuentes claves de financiación de las ONG y las tendencias en un período de 10 años de 2006-2016. Las subvenciones y las donaciones extranjeras siguen siendo dominantes, pero una de cada cinco ONG encuestadas emprenden actividades para obtener ingresos, y esta tendencia se espera que aumente en los próximos cinco años. El presente estudio contribuye al debate académico y sobre el desarrollo en curso sobre las luchas a las que se enfrentan las organizaciones sin ánimo de lucro y las subsiguientes estrategias para movilizar financiación. También plantea cuestiones sobre los efectos potenciales de diferentes estrategias para la movilización de recursos, dilemas sociales y éticos, y el equilibrio entre las diferentes elecciones de financiación que dan lugar a una estrategia de diversificación

摘要

本篇论文旨在描绘严重依赖援助的柬埔寨国内各部门中的非政府组织(NGO)的资源动员策略,分析每一个策略的过去和未来趋势。文中使用的数据来自国家调查,这一调查披露了NGO的主要融资来源和2006-2016年这10年内的趋势。外国援助金和捐赠金仍然是主要资金来源,但是接受调查的NGO中有1/5参与营利活动,这一趋势预计会在未来五年中增长。本文为当前关于非营利组织面临的挑战及后续资金动员策略的学术和发展辩论做出贡献。关于不同资源动员策略、社会和道德困境以及导致多元化策略的不同融资选择的取舍的潜在影响,本文提出了若干问题。

ملخص

أهداف هذا البحث هي رسم إستراتيجيات لحشد الموارد للمنظمات الغير حكومية (NGOs) في مختلف القطاعات في كمبوديا التي تعتمد بشكل كبير على المساعدات وتحليل الإتجاهات في الماضي والمستقبل من كل الإستراتيجيات المتطورة. البيانات المستخدمة هي نتاج دراسة إستطلاع رأي وطني يكشف عن مصادر التمويل الرئيسية للمنظمات الغير حكومية (NGOs) والإتجاهات في فترة 10 سنوات من 2006-2016. المنح الأجنبية والتبرعات لا تزال مهيمنة، لكن واحد من كل خمسة شملهم إستطلاع رأي المنظمات الغير حكومية (NGOs) إشتركوا في أنشطة ذات دخل ٬ يتوقع هذا الإتجاة أن يزداد في السنوات الخمس المقبلة. تساهم هذه الدراسة في النقاش الأكاديمي والتطور حول الصراع الذي تواجهه المنظمات الغير ربحية والإستراتيجيات التي تلت ذلك لجمع التمويل. فإنه يثير أيضا تساؤلات حول الآثار المحتملة لإستراتيجيات مختلفة لحشد الموارد، والمعضلات الإجتماعية والأخلاقية، والمفاضلة بين الخيارات المختلفة للتمويل مما أدى إلى استراتيجية متنوعة.

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Notes

  1. The sampling design does not permit the findings to be representative all the NGOs in Cambodia. However, it is still significant because the sample represents five largest regions in which NGOs are most active. NGOs in these five regions represent about 80 % of all NGOs in the country.

  2. Latest NGO census, conducted with the Cooperation Committee of Cambodia (CCC) in tandem with this study, indicates that approximately 1,350 NGOs are currently operating in Cambodia.

  3. Lists from the Ministry of Interior were not included in the sampling frame because they were not updated. Also many of NGOs in the list lack details contact information such as email, phone or physical address.

  4. Main sectors are the result of a recode of 20 types of activities in the survey questionnaire into meaningful synthesis. For example, Democracy, right-based and advocacy is a result of the recoding of (4) Child welfare and rights, (11) Gender and women issues, (1) Advocacy and policy dialogue, and (7) Democracy and human rights into one major sector. Details categories, which were adapted from CCC’s standard categorical identification of civil society organizations, are listed below: 

    figure a
  5. This section discusses NGOs funding trends without differentiating between INGOs and LNGOs due to the nature of the secondary database that limits such detailed analysis.

  6. Social entrepreneurship is a recent but increasingly popular approach to solving social and development issues among some NGOs in Cambodia. Most of the social enterprises are NGOs or former NGOs that try to self-finance by selling their goods and services. Their programmes usually benefit impoverished community members, and disadvantaged groups like women, disabled persons and drug users. The earned-income activities of these organizations could also have huge potentials to reduce dependence on foreign aid, gain organizational autonomy and programme sustainability.

  7. Commune/Sangkat Fund (CSF) is a fund that is transferred from the Royal Cambodian Government to the Commune/Sangkat Councils. The Fund includes both tax revenues and development partner contributions. The Fund includes a “General Administration” component for administration of the C/S Council and a “Local Development” component for local development expenditures (Source: National Committee for the Management of Decentralization and Deconcentration Reform 2009).

  8. For instance, Taiwan’s tax deductibility is allowed up to 10% for corporations and 20% for individuals, while China’s tax deduction limit is up to 3% for corporations and 30% for individuals (Simon 2006).

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Acknowledgments

The author owes great gratitude to Prof. Dr Heidi Dahles for her constructive comments in several revisions of this paper. He also thanks Prof. Dr Gerd Junne, Dr Willemijn Verkoren, Dr Chanrith Ngin and Dr Kimsun Tong for useful feedbacks in earlier versions of this paper. This project is funded by the Netherlands Organization for Scientific Research (NWO).

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Correspondence to Sothy Khieng.

Appendix

Appendix

Table 8 A nonparametric equality-of-medians test

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Khieng, S. Funding Mobilization Strategies of Nongovernmental Organizations in Cambodia. Voluntas 25, 1441–1464 (2014). https://doi.org/10.1007/s11266-013-9400-7

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