Abstract:
The purpose of this study was to assess the donor fund utilization practice in the case of
Menschen fuer Menschen Foundation Ethiopia. This study adopted a descriptive research design
and used a mixed research approach with a combination of qualitative and quantitative
approaches. Structured questionnaires, in depth-interviews and document review, were used as
data collection from all targeted population of 44. Interviews were conducted with top and
middle level leaders from Menschen fuer menschen and its sub-grantees. The target population
comprised of respondents from MfM Ethiopia by applying convenience (purposive/judgmental)
sampling techniques, this involves identification and selection of individuals or groups of
individuals that are proficient and well-informed with my phenomena of interest. In addition to
knowledge and experience, and note the importance of availability and willingness to
participate, and the ability to communicate experience and opinion in an articulate, expressive,
and reflective manner (American Journal of Theoretical and Applied Statistics 2016). data
obtained from survey was analyzed using SPSS and presented through means, standard
deviation, percentages and frequencies. The data was presented through tables and figures. The
major findings of the study indicate that; there are different kinds of internal and external factors
influencing effective and efficient utilization of allocated fund. The findings of the study show
that the organization is not financially sustainable because it is highly depending on one source
of financing which is foreign donation, lack of monitoring & evaluation system, it utilizes its fund
as proclamation 621/2009,1113/2019 and donor requirements. In addition, the findings of the
study indicated that there is positive, moderate and significant relationship between utilization of
MfM fund and financial management practice. However, financial sustainability had negative,
weak and insignificant relationship with MfM fund utilization and fund management. Besides the
study recommends that the organization the organization emplace a system for continuous
monitoring evaluation system for the proper utilization of fund and continue its fund utilization
practice as per the proclamation number 621/2009,1113/2019 and donor requirements and in
addition the organization continue its fund management practice based on budget specification
and as per financial grant agreement.
