Factors Affecting Financial Sustainability of Non-Governmental Organizations (Ngos) In Uganda: A Case Study of Compassion International Funded Programs in Kampala District.

Abstract

The purpose of the study was to analyze factors affecting financial sustainability of NGOs focusing on Compassion International Funded programs in Kampala-Uganda. Three factors were considered significant in influencing financial sustainability. These included the size of the financial base, financial controls in place and capacity building. This was a case study research utilizing both qualitative and quantitative methods of data collection. The study was located in Kampala district and 48 respondents participated in the research. Questionnaires, interviews and documentary review were used as methods of data collection. The qualitative data was analyzed by coding, summarizing using charts and graphs, interpreting findings while quantitative data was analyzed using ANOVA tables and SPSS. Findings indicated that much as guidelines to safe guard the finances were in place, and all staff received orientation training in financial management prior to being recruited into the programs. Concerning financial controls, the research results indicated that all programs are audited and graded annually and are required to implement the financial controls. However, many gaps were established for instance the respondents claim that the orientation trainings were inadequate, many CPC members are semi literate, beneficiary involvement is limited so there is still need for capacity building. Further still, Compassion International funding is increasingly becoming insufficient yet most CDCs rely on it entirely for their funding. The study recommended refresher, fund raising and resource mobilization training. Investment in beneficiary sustainability, capacity building all stakeholders, and implementing the financial controls.