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When donors see that an organization is unable to achieve its goals or misuses funds, they may lose faith in the organization’s ability to make a difference. This loss of trust can have long-term effects on an NGO’s ability to secure funding and carry out its mission. In conclusion, the lack of funding is a significant challenge facing NGOs worldwide. The causes range from economic downturns, donor fatigue, competition for limited resources, among others. The effects are far-reaching and include limiting an NGO’s capacity to implement programs effectively and sustainably, hindering sustainability efforts, affecting an NGO’s ability to attract and retain qualified staff, and leading to a loss of public trust in NGOs. To address this challenge effectively, there is a need for increased collaboration between governments, donors, and NGOs themselves towards sustainable funding models that ensure long-term impact within communities they serve.

Concept of financial, economic problems and inflation