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===Challenges to legitimacy=== {{anchor|Challenges to legitimacy}} Legitimacy, an important asset of an NGO, is its perception as an "independent voice".<ref>{{cite journal | last1 = Weber | first1 = N. | last2 = Christopherson | first2 = T. | year = 2002 | title = The influence of non-governmental organizations on the creation of Natura 2000 during the European policy process | journal = Forest Policy and Economics | volume = 4 | issue = 1| pages = 1β12 | doi=10.1016/s1389-9341(01)00070-3| bibcode = 2002ForPE...4....1W }}</ref><ref name="2002aHD">Edwards, M. and Hulme, D. (2002) NGO Performance and Accountability: Introduction and Overview. "In Edwards, M. and Hulme, D., ed. 2002." The Earthscan Reader on NGO Management. UK: Earthscan Publications Ltd. Chapter 11.</ref> Neera Chandhoke wrote in a ''[[Journal of World-Systems Research]]'' article, "To put the point starkly: are the citizens of countries of the South and their needs represented in global civil society, or are citizens as well as their needs constructed by practices of representation? And when we realize that INGOs hardly ever come face to face with the people whose interests and problems they represent, or that they are not accountable to the people they represent, matters become even more troublesome."<ref>{{cite journal | last1 = Chandhoke | first1 = Neera | year = 2005 | title = How Global Is Global Civil Society? | journal = Journal of World-Systems Research | volume = 11 | issue = 2| pages = 326β327 | doi = 10.5195/JWSR.2005.388 | doi-access = free }}</ref> An NGO's funding affects its legitimacy, and they have become increasingly dependent on a limited number of donors.<ref name="1996HD">Edwards, M. and Hulme, D. (1996) Too Close for comfort? The impact of official aid on Non-Governmental Organisations. "World Development." 24(6), pp. 961β973.</ref> Competition for funds has increased, in addition to the expectations of donors who may add conditions threatening an NGO's independence.<ref>Ebrahim, A. (2003) "Accountability in practice: Mechanisms for NGOs". ''World Development'' 31(5), pp. 813β829.</ref> Dependence on official aid may dilute "the willingness of NGOs to speak out on issues which are unpopular with governments",<ref name=2002aHD /> and changes in NGO funding sources have altered their function.<ref name=2002aHD /> The scale and variety of activities in which NGOs participate have grown rapidly since 1980, and particularly since 1990.<ref>Avina, J. (1993) The Evolutionary Life Cycles if Non-Governmental Development Organisations. "Public Administration and Development." 13(5), pp. 453β474.</ref> NGOs need to balance centralization and decentralization. Centralizing NGOs, particularly at the international level, can assign a common theme or set of goals. It may also be advantageous to decentralize an NGO, increasing its chances of responding flexibly and effectively to local issues by implementing projects which are modest in scale, easily monitored, produce immediate benefits, and where all involved know that corruption would be punished.<ref>Anheier, H. and Themudo, N. (2002) Organisational forms of global civil society: Implications of going global. In: Anheier, H. Glasius, M. Kaldor, M, ed 2002.</ref> [[Embezzlement]], [[fraud]] and [[financial mismanagement]] reduce credibility of NGOs.<ref name="b987">{{cite journal | last1=Gibelman | first1=Margaret | last2=Gelman | first2=Sheldon R. | title=A Loss of Credibility: Patterns of Wrongdoing Among Nongovernmental Organizations | journal=VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations | volume=15 | issue=4 | date=2004 | issn=0957-8765 | doi=10.1007/s11266-004-1237-7 | pages=355β381}}</ref>
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