Sustainability strategies key to withstanding donor funding cuts in health sector –Expert

With the backdrop of dwindling donor funding and disruptions across the health sector, a public health finance expert, Olu Alabi, has advised health organisations to adopt strategies that would enable them to withstand such occurrences.

Alabi, who is an administrator at the Institute of Human Virology Nigeria (IHVN), gave the advice yesterday during an interview with Daily Trust in Abuja.

He said to survive disruptions, health organisations need sustainability strategies, diversified funding, operational agility, and strong collaboration with stakeholders.

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He said many health organisations were caught unawares with the US government’s funding freeze, adding that it however, serves as a wake-up call on government, non-governmental organisations, and private institutions alike to reduce the dependence on external funding.

He said, “It reminds us to look inward and develop programmes that we can fund locally to care for our people. That’s the positive takeaway. To manage such abrupt changes, organisations must have sustainability measures in place. It is risky to rely solely on one funding source.

“For example, organisations entirely dependent on USAID have had to shut down. At IHVN, sustainability is integrated into our operations. While we receive US government funding, we also access support from non-US donors, research institutions, and local organisations”.

Alabi said diversifying funding sources is critical, adding that “Health organisations must explore self-sustaining initiatives. Being registered as a non-governmental organisation (Limited by Guarantee) does not prohibit business operations, only profit-sharing is prohibited by law.”

He said non-profit organisations can carry out income generating activities within the public health space, reinvest surpluses, and remain compliant with the law.

He said, “Unfortunately, many NGOs shy away from income-generating activities, for fear of taxation non-compliance, and risk of deviation from their core mission.

“However, the law permits NGOs to plow surpluses back into their programs. These funds can cushion the impact of shocks like funding cuts. At IHVN, we apply this model effectively.

“Another key is agility. Organisations must be flexible and responsive. Some have closed; others downsized; some made minimal adjustments and survived. Having internal measures to quickly respond to funding changes is vital.”

He called for more incentivised tax policies for companies donating to public health initiatives.

According to him, while tax burdens are already high, the government could grant tax incentives to companies that donate to government-approved not-for-profits in the public health sector as a means of encouraging them to donate generously to public health initiatives.

“That way, companies can reduce their tax burden while supporting the government to provide health to her people by way of corporate social responsibility. This will go a long way in narrowing the public health funding gap,” he stated.

He said at IHVN, strategic financial planning is applied across all projects, adding, “In fact, we secured our largest grant because of our robust financial management systems, comprising efficient systems, trained personnel, and well documented processes.”

While saying the deployment of relevant technology plays a key role in the organisation’s effectiveness, he said one notable initiative is the scale-up of antiretroviral (ARV) therapy for people living with HIV in Nigeria.

“Through donor funding, we provided ARVs at no cost, ensured testing and counseling, and supported patients through community outreach programs,” he added.