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If whatever the NGO has tried finding funds has proved to be impossible, the option of returning to the status of action group could be considered.
Funding and the lack of funding is an overwhelming burden for NGO's and its members. As long as NGO's depend on funding, the presence of funding can mean the survival or death of the organisation. The choice to go on without funding, returning to the status of action group, is not always easy. Maybe the attitude of the members of the organisation has changed over time, maybe people are dependent of their income earned in the organisation and other paid work may be scarce.
The quality of the output of the organisation is sometimes dependent on the expertise of paid staff members and on housing (shelters for instance), matters that have to be paid for.
Nevertheless, some organisation would do better if they changed their identity back to being a volunteering action group.
Many differences exist between being an action group or a labour organisation. Being an pressure group means: the freedom of choosing political angles, a high level of autonomous decision making, the necessity to be ahead of the mainstream ideas and opinions, cherishing a fighting spirit, the possibility to take ideology as the main or even only guiding principle, and maybe above all: the freedom of not compromising, of no adaptation, of no moderations of pretensions.
Some pressure groups gradually change their identity. Sometimes because developing and offering alternative services is one way to realise one's goals. In this way some pressure groups become voluntary service providers. If the services are successful and funding is available, then the next step often will be to be funded for the operational work.
In this gradual way some pressure groups lose their original status and become NGO's with proposals, paid staff, policy plans, accountability procedures and funders, So far so good. Some NGO's are doing quite good, are successful in their new identity and develop a natural growth. In those cases the development from activist to paid staff member is a desirable one.
But for other activists the situation is different. Some of them are unhappy with the developments. They just do not fit in this new situation. Some even may define the actual situation as being enclosed by capitalist manoeuvres, bereft of their vitalising political work. Even if the NGO succeeds combining being an action group with being a labour organisation. (Read: the fan of mainstreaming.)
In some cases the organisation should no longer strive for funding, but return to a former phase, accepting the fact that its real identity is in being a pressure group.
If they persist in their preference, maybe splitting up the organisation would be a more realistic option. (Look at solution 7: splitting up the organisation.)