Funding orphanages on donations and gifts: Implications for orphans in Ghana

Sub-Saharan Africa is experiencing a growth in the number of children who need formal alternative care. One of the principal factors contributing to this is orphanhood. While most orphans live with their extended families, many end up in privately-run orphanages that operate outside of the government's regulation and funding. Without government assistance and being the most costly care option, the orphanages have to come up with mechanisms to get the finances that they need. However, relatively little evidence exists on the funding streams of orphanages in sub-Saharan Africa. Drawing on the literature from Ghana and other low-income countries, the study explores the funding of orphanages and its implications for orphans in Ghana. The evidence from the literature shows that the funding for most orphanages comes from donations by private organisations and individuals, mostly from the developed world. This funding system is generally unsustainable and carries negative ramifications for the social-emotional progress and rights of orphans residing in orphanages, such as abuse, unnecessary institutionalisation, and stigma. Policy and practice recommendations include increasing government's subsidy to the orphanages, regulating donations to and volunteering in orphanages, and helping unlicensed orphanages to transition to the provision of family-strengthening services.