Financial Management and Sustainability of Nonprofit Organizations in Selected Local Non-Governmental Organizations in Mogadishu, Somalia

ABSTRACT 

This study set out to establish the extent to which financial management affect sustainability of nonprofit organizations in selected local NGOs in Mogadishu, Somalia; specifically the study intended to establish the (I) profile of the respondents, (ii) extent of which financial management, (iii) level sustainability, (iv) whether there is a relationship in the extent of which financial management and the level of sustainability of nonprofit organizations in selected local NGOs in Mogadishu, Somalia. The study used a survey design; specifically descriptive correlation and descriptive comparative; the target population was 210 and the data was collected from 138 respondents using self administered questionnaires as the key data collection instruments, it was also used purposive sampling and simple random sampling techniques to select the respondents The study findings revealed that there was a high level of which financial management; there was also high level of sustainability. The study concluded that financial management in the selected local NGOs was significantly correlated with sustainability of nonprofit organizations in Mogadishu, indicating that the high extent of financial management in the selected local NGOs in Mogadishu is significantly responsible for a high level of sustainability in this area. Recommendations from the study were (I) Local NGOs should state their goals clearly efild ensure that they achieve their goals by ensuring that they fully understand why they wish to achieve them and what has been stopping them from achieving their goals and objectives. (ii) Local NGOs should develop sustainability plan implemented and monitored; goals are being met and adjustments made and work towards the achievement of this plan. (iii) Local NGOs should develop clearly defined fundraising goals based on the organization’s financial strategic plans; share responsibilities among several individuals as part of a systematic process.

TABLE OF CONTENTS

Page

Declaration A

Declaration B ii

Approval Sheet 2 — iii

At AMPUS

Dedication iv

Acknowledgment v

List of Abbreviations and Acronyms vi

Table of Contents viii

List of Tables xi

Abstract Xii

CHAPTER

ONE THE PROBLEM AND ITS SCOPE 1

Background of the Study 1

Statement of the Problem 7

Purpose of the Study 8

Research Objectives 8

Research Questions 10

Null Hypothesis 11

Scope of the study 11

Significance of the Study 12

Operational Definitions of key terms 13

TWO REVIEW OF RELATED LITERATURE 15

Concepts, Ideas and Opinions from Authors/Experts 15

Theoretical Perspectives 36

Related Studies 37

THREE METHODOLOGY 42

Research Design 42

Research Population 42

Sample Size 43

Sampling Procedure 44

Research Instrument 45

Validity and Reliability of the Instrument 45

Data Gathering Procedures Data Analysis 46

Ethical Considerations 48

Limitations of the Study 48

FOUR DATA PRESENTATION, INTERPRETAITION AND ANALYSIS 50

Profile of the respondents 50

Extent of financial management 52

Level of sustainability 56

Five FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 66

Introduction 66

Summary of Findings 66

Conclusions 67

Recommendations 67

REFERENCES 69

APPEN DICES

Appendix IA: Transmittal Letter from CHDR 73

Appendix IB: Transmittal Letter for respondents 76

Appendix II: Clearance from ethics committee 77

Appendix III: Informed consent from the respondent 79

Appendix 1VA: Profile of respondents 80

Appendix IVB: Questionnaire of financial management 81

Appendix IVC: Questionnaire of sustainability 83

Appendix V: Budget Description 87

Appendix IV: Time Frame 88

Researcher’s Curriculum Vitae 89