Strategic financial management and financial sustainability of Non- Governmental Organisations in Uganda: A case of Hope for Batwa Children.

Abstract

The purpose of the study was to examine the relationship between strategic financial management and financial sustainability of Non-Governmental Organizations in Uganda: A case of Hope for Batwa Children. Specifically the study examined the relationship between financial management and financial sustainability of Hope for Batwa Children. The study used a cross-sectional study design using a mixed method of qualitative and quantitative approaches. Data were collected from a population 84 employees who comprising of one ED, one project coordinator, three liaison officers, three donor representatives, 15 field staff, one finance manager, one project accountant and 59 other partner project staff using a questionnaire and interviewing methods. The study found a moderate positive significant relationship between financial planning and financial sustainability (r = 0.401** ,p = 0.001). The study confirmed the hypothesis that there is a significant positive relationship between financial planning and financial sustainability of NGOs in Uganda was confirmed. The study found a high positive significant relationship between fundraising and financial sustainability (r = 0.530**, p = 0.000). Confirming the hypothesis that there is a significant positive relationship between fundraising strategy and financial sustainability of NGOs in Uganda. The study found a moderate positive significant relationship between internal controls and financial sustainability of the NGO (r = 0.443**, p = 0.000) confirming the hypothesis that there is a significant positive relationship between internal control and financial sustainability of NGOs in Uganda. To enhance financial sustainability of Hope for Batwa Children and related NGOs this study recommends that the board should task management conduct a comprehensive external environmental analysis using the PESTEL and SWOT framework and base on the result to develop strategic project financial plans, use participatory project financial planning approaches. Management should also create a fundraising unit with a key results areas for resource mobilization using different forms of fundraising campaigns to solicit for donor funding. It is also recommended that the management should strengthen the internal control system through regular management by demanding for monthly performance reports and taking of appropriate actions. The NGO should adopt risk based auditing.