Abstract:
Purpose
Non-governmental Organizations (NGOs) play a valuable and unique role in the
development and growth ofthe developed and developing states. The NGOs sector is majorly
dependent on donations, which raises a big question on their strategic and financial
sustainability. To understand the status of financial sustainability of NGOs in Pakistan the
following research has been conducted. The purpose ofthis study was to find out the factors
affecting the financial sustainability ofLocal NGOs in Pakistan.
Methodology & Design
The quantitative method was used in this study for the data collection and research is based
on secondary data which was collected from the financial reports of the local NGOs. The
research design that is adopted in this study is explanatory research that is used to define the
cause-and-effect correlation between the two variables. This research makes the use of panel
data procedures in the dataset. The sample size of this research encompasses on 13 local
NGOs in Pakistan.
Findings
The findings ofthe study are that local NGOs in Pakistan are not financially sustainable and
depended on donor funding. The study shows that income diversification and donor
relationship management are statistically significant with each other expect own income
generation.
Limitations
There are some limitations ofthe study is that there are also many more sub factors through
which we can measure financial sustainability oflocal NGOs more precisely such as consider
number ofincome sources to measure more exactly income diversification, strategic alliance
generation, and number ofreturn donors and donors funded projects in donor in own income
relationship management.
Recommendations
in Pakistan should take crucial steps to diversify The study recommended that local NGOs
their income sources, expand different resources of own income generation and are being
capable of under the priorities of donor’s and regulate their foundation procedures, systems,and activities in such a way that enable them to attract more benefactors and become
sustainable
