ROLE OF NONPROFIT ORGANIZATIONS IN SOCIOECONOMIC DEVELOPMENT OF VULNERABLE FAMILIES IN RWANDA

Abstract

Nonprofit organizations (NPOs) are key players and partners of different governments and states in the social domain through various interventions that contribute to the wellbeing of society. Salamon (2013), defined the nonprofit sector as a "collective of organizations that provide voluntary contributions of time and money expected to meet professional standards of performance and efficiency" (p.3). This study aimed to analyze the role of NPOs in the socioeconomic development of vulnerable families in Rwanda. A case study of Caritas Rwanda (a local nonprofit organization) USAID Gimbuka Program in Rubavu District. The specific objectives that guided the study are : (1) to understand the role of USAID Gimbuka program interventions on the health improvement of vulnerable families, (2) to analyze the extent to which microcredit (economic strengthening) services contribute to the economic development of USAID Gimbuka program beneficiaries and (3) to identify the contribution of USAID Gimbuka program to the job creation of vulnerable families supported by the program in Rubavu District. I used a mixed methods design approach with descriptive research design and correlation design to evaluate both quantitative and qualitative aspects. The study population was program staff, volunteers, stakeholders, and beneficiaries actively involved in the implementation of the USAID Gimbuka Program in Rubavu district. From this population, Caritas Rwanda shared a list of 58 potential research participants, from which I randomly sampled 30, including 4 program staff, 8 volunteers, 4 stakeholders, and 14 beneficiaries. Quantitative data were collected through questionnaires/surveys, whereas qualitative data were collected through open-ended semi-structured interviews. Prior to data collection, I tested the questionnaire's reliability and consistency, ensuring the research is measuring what it intends to measure with a p-value <5 % (p<0.05). The efficiency and effectiveness of the data collected determined the validity measure. Quantitative data collected were analyzed using SPSS version 21 to produce some tables and graphs, whereas qualitative data analysis was done by analyzing respondents' opinions using in-VIVO coding. Both quantitative and qualitative data were then brought together to deeply examine the role of NPOs in the socioeconomic development of vulnerable families. The research findings revealed that nonprofit organizations have contributed to socioeconomic development through health improvement, economic development, and job creation for vulnerable families. The majority of respondents (92%) agreed that social/health education and services provided to beneficiaries enhanced their health improvement. Also, 96% of respondents agreed that receiving economic strengthening and microcredit services promoted the culture of savings and running small and medium income generating activities that helped them cover their families’ basic needs. Lastly, 93% of respondents agreed that the vocational training and business development services provided to vulnerable families have allowed them to get employment, whether employed by others or starting their own. The relationship between nonprofit organizations and socioeconomic development was established through multiple regression analysis. As indicated, research findings showed that nonprofit organizations and socioeconomic development had a coefficient of 0.450 with a R square of 0.068, which is positive. Therefore, nonprofit organizations led to and socioeconomic development of vulnerable families. The study therefore concluded that beneficiary capacity building, strong community volunteer structures, adequate stakeholder engagement, positive government/donor policies, and institutional management practice resulted in the success of USAID Gimbuka Program in Rubavu District in Rwanda. The study recommends government, policymakers, and project donors closely work and support nonprofit organizations in delivering community services to achieve the common goal of positive social change in society.