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However, securing adequate funding can be a daunting task as donors may have different priorities or may not be willing to support certain causes or projects. Moreover, funding sources can be unpredictable and subject to change at any time. Therefore, NGOs need to diversify their funding sources and develop sustainable fundraising strategies that can ensure long-term financial stability. Another challenge faced by NGOs is accountability and transparency. As they operate outside government structures, NGOs are often seen as unaccountable and lacking transparency in their operations. This perception can undermine public trust in NGOs and make it difficult for them to secure funding or partnerships with other organizations. Therefore, NGOs need to adopt transparent practices such as publishing annual reports on their activities and finances to demonstrate accountability. NGOs also face challenges related to governance structures and leadership. Many small-scale NGOs lack formal governance structures or have weak leadership that can lead to conflicts of interest or mismanagement of resources. Moreover, many NGO leaders lack the necessary skills or experience required for effective management of complex organizations with diverse stakeholders. Therefore, it is essential for NGOs to establish robust governance structures that promote transparency and accountability while ensuring effective leadership.

Groups of people are competing for funding. Competition of projects for grants and financial support