Effect of Donor Funding and Internal Control on Financial Sustainability of Non-Governmental Organizations In Jos Metropolis of Plateau State

Catherine Iye Jimmy-Akinpitan
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Catherine Iye Jimmy-Akinpitan: Controller GIZ-SKYE Nigeria., No 20 Haile Selassie Street, Asokoro, Abuja Nigeria.

International Journal of Research and Innovation in Social Science, 2023, vol. 7, issue 1, 1524-1555

Abstract: Financial sustainability is a measure of an organization’s ability to meet all its resource and financing obligations, whether these funds come from user charges or budget sources and fulfill its mission and serve its stakeholders over time. This study seeks to address the impact of donor funding and internal control on the financial sustainability of NGO’s in Jos Metropolis. The study was guided by the main objective; examining the extent of donor funding on sustainability of NGOs in Jos metropolis, self-administered questionnaire was used while the collected data was based on 285 respondents from five NGOs in Jos metropolis. The SAQ were distributed within the Finance and Accounting department, Human resource department, Administrator and Field officers. Data was analyzed using frequency table, charts and graphs, three hypotheses were formulated and tested using Statistical Package for the Social Sciences (SPSS) analysis tool with Multiple Regression, one way ANOVA and Krukal statistical tools were employed to test the hypothesis, The result of the study revealed that poor management of financial control, the inconsistency of donor funding, and poor community involvement are among factors that affect the sustainable funding of NGOs in Jos. The study concluded that funding in NGO’s is a challenge and that proactive community involvement, diversification of income sources, good donor relationship management, capacity building, and government involvement are among the best practices to ensure sustainability of NGOs in Nigeria. Theoretical Implication goes in line with the role of donors as a mechanism in impacting on the NGOs especially in financial sustainability of their projects as a mechanism to explain this relationship covers the knowledge gap hence a contribution to the body of literature exploring this relationship. The empirical evidence in this study form the basis of reference to future researchers.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:bcp:journl:v:7:y:2023:i:1:p:1524-1555

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