Donor funding has irreplaceable role in alleviating multilayered problems of developing countries, especially sub-Sahara Africa. Meanwhile, it is so paradoxical to see researches remarking “after half a century of channeling resources to the Third World, little development has taken place”. It is not as such difficult to note, in almost all of sub-Saharan Africa, there is a high degree of indebtedness, high unemployment, absolute poverty and poor economic performance. The average per capita income in the region has fallen since 1970 despite the high aid flows. The researcher attempted to indicate possible challenges for the occurrence of such a paradox by taking United Nations Children's Fund (UNICEF) Ethiopia as a case for the research. The study tried to look at factors affecting donor fund allocation and utilization at UNICEF. Meanwhile, the finding might be a great input to many such organizations as there is highly similar trend and phenomena in other donor based NGOs.
Key words: UNICEF, NGO, donor fund allocation and utilization, Samuel Tilahun, Ethiopia.
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