Why Some NGOs and CBOs Struggle to Get Funding

Why Some NGOs and CBOs Struggle to Get Funding – And It’s Not Always the Proposal

Patience Khasoa

Across Africa, many community-based organisations (CBOs), NGOs, and civil society organisations (CSOs) are working tirelessly to solve real problems – from food insecurity to girls’ education, climate resilience, and community health.

Yet a common question keeps coming up:

“Why are we not getting funded?”

Most organisations immediately assume the problem is the proposal.

But in many cases, the issue runs deeper than the application.

1. The Invisible Team Problem

One challenge that donors increasingly notice is what I call the “invisible team.”

Some organisations list impressive leadership structures on paper – executive directors, programme managers, finance officers, monitoring and evaluation specialists – yet in reality, the organisation is run by one or two individuals handling everything.

While passion and commitment are admirable, donors today want to see institutional capacity, not just individual effort.

A strong organisation is built on a real team with defined roles, accountability systems, and governance structures.

When a donor conducts due diligence and realises the team exists only on paper, trust quickly erodes.

2. Governance Matters More Than Ever

Funders today are looking beyond project ideas. They are asking:

  • Who sits on your board?
  • Does the organisation have financial oversight systems?
  • Is there a separation between leadership and financial management?
  • Are there clear policies and accountability mechanisms?

Organisations with weak governance structures often struggle to attract funding, even when their ideas are excellent.

3. The Funding Landscape Has Changed

The global funding ecosystem is shifting rapidly.

Recent restructuring and reductions in major donor programmes, including those historically supported through agencies such as the United States Agency for International Development (USAID), have made funding more competitive than ever.

Donors are now prioritising organisations that demonstrate:

  • Strong institutional capacity
  • Transparency and accountability
  • Partnerships and networks
  • Proven impact with measurable results

In short, funders are investing in systems, not just projects.

4. From Passion Projects to Institutions

Many impactful organisations begin as passion-driven initiatives responding to urgent community needs.

However, to access sustainable funding, organisations must gradually evolve into structured institutions.

This means:

  • Building a functional board
  • Recruiting committed team members
  • Establishing financial and monitoring systems
  • Documenting impact and lessons learned

Without these elements, even the most powerful community initiatives can remain underfunded.

5. What Organisations Can Do Differently

To become more fundable, CSOs and CBOs should start by strengthening their internal foundations:

  • Build a credible and active leadership team.
  • Establish clear organisational structures
  • Invest in monitoring, evaluation, and learning (MEAL)
  • Demonstrate community ownership and impact
  • Be transparent about capacity while showing a plan for growth

Donors are not only funding ideas – they are funding organisations capable of delivering change sustainably.

Final Reflection

Funding is not only about what you propose to do, but also who you are as an organisation.

Strong governance, credible teams, and clear systems signal to donors that your organisation is ready to manage resources responsibly and deliver lasting impact.

For many CSOs and CBOs, the journey toward funding success begins not with the proposal, but with building the organisation itself.

(Patience Khasoa is a Kenyan fundraising specialist and resource mobiliser, and Grants Programme Manager at Grants Research Advisory Capacity Enhancement)

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