For the civil society organizations to become suitable, they must have unrestricted reserve funds that they can use when there are no projects and foreign financing, considers Ludmila Ungureanu, team leader at the Rule of Law Institutional Strengthening Program (ROLISP), IPN reports.
In a cluster club meeting, Ludmila Ungureanu said that all the nongovernmental organizations of Moldova face and will face situations when many of the costs are not covered by donors. The donors have the right to say that certain categories of costs cannot be covered. For such cases, the NGOs must have reserve funds, besides those provided by donors.
“Any organization is restricted because of the policy pursued by the donors. As a result, organizations’ employees do not receive salaries because the donors do not allocate such resources. Many of the donors refuse to cover internal audit costs or costs incurred to inform the beneficiaries. Therefore, the NGOs need unrestricted funds,” stated Ludmila Ungureanu.
The specialist in NGO development also said that the lack of reserve funds is one of the greatest problems experiences by the nongovernmental organizations of Moldova. As they do not have the necessary financial resources, the NGOs do not have the power to take decisions as regards certain costs.
According to Ludmila Ungureanu, the reserve funds can be created if the NGOs provide certain services. This will also facilitate the employment of beneficiaries.
The event was organized by the Center for Organizational Consultancy and Training in partnership with the Moldova Civil Society Strengthening Program that is implemented by USAID and FHI360.
