THE ROLE OF FINANCIAL MANAGEMENT IN THE SUSTAINABILITY OF NON-PROFIT ORGANIZATIONS
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Abstract: THE ROLE OF FINANCIAL MANAGEMENT IN THE SUSTAINABILITY OF NON-PROFIT ORGANIZATIONS
This research explores the critical role of financial management in ensuring the sustainability of non-profit organizations (NPOs). The study's objectives are to assess the financial management practices of NPOs, determine the relationship between financial management and organizational sustainability, and identify challenges faced by NPOs in financial management. A survey research design is adopted to collect quantitative data from NPO financial managers. A sample size of 300 NPOs, derived using Taro Yamane's formula, provides a robust dataset from organizations based in Abuja, Nigeria. The case study focuses on NPOs in the health sector, given their reliance on financial sustainability to deliver services. The survey instrument achieved a reliability coefficient score of 0.88. Findings reveal that robust financial management practices, including budgeting, financial reporting, and cash flow management, are critical to NPO sustainability. Recommendations include the adoption of comprehensive financial management systems and regular financial training for NPO staff to ensure long-term viability.
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