FINANCIAL MANAGEMENT PRACTICES AND FINANCIAL SUSTAINABILITY OF LOCAL NON-GOVERNMENTAL ORGANIZATIONS

Abstract

The role of Local Non-Governmental Organisations as actors in development, the issue of theirs Financial Sustainability has been of concern. The study was conducted to assess the effects of the Financial Management Practices on the Financial Sustainability of Local Non Governmental Organizations operating within Wa Municipality. Survey research design was adopted, Cluster and Simple Random Sampling Technique was employed. Data on the phenomenon was collected both quantitative and qualitative and analysed through content analysis it also employed the use of SPSS V.17. Questionnaire was used as a means of collecting the data for the analysis. The findings revealed the financial management practices has a positive effect on local NGOs financial sustainability, the findings also show that Donor Relationship Management, Funding Diversification and Strategic Financial Management has a positive influence on the Financial Sustainability of Local Non Governmental Organizations operating within Wa municipality. The study recommended that Local Non-Governmental Organizations should establish well organized Financial Management Systems, limit over-dependence on donor funds there by diversify their funding sources in order to enhance their financial sustainability.