Financing Strategies and Sustainability of Donor Funded Non-Governmental Organizations

Abstract

The study was conducted in Infectious Disease Research Collaboration with its head offices located in Kampala, Uganda. The main purpose was to assess the relationship between financing strategies and sustainability of donor funded NGOs in Uganda. Specific objectives were; to examine the effect of donor funding on sustainability of NGOs in Uganda; to assess how government funding affects sustainability of NGOs in Uganda; to analyze the role of fundraising in the sustainability of NGOs in Uganda. Financing strategies were looked at from various dimensions including donor funding, government funding and fundraising, while sustainability was determined by fund growth and liquidity. The research design was a case study based on both quantitative and qualitative approaches in relation to cross section, correlation and regression as research designs. The methods used for data collection were questionnaires, observation and interviews. The sample study involved IDRC staff. Data was analyzed through the use of SPSS Version 20 for quantitative purposes and grouped into categories and themes for qualitative analysis. The conclusions were drawn from tables. Based on the data and research findings, there was a positive relationship between donor funding, government funding, fundraising and sustainability of donor funded NGOs in Uganda. The study, therefore, concludes with a call to the stakeholders in Infectious Diseases Research Collaboration to enhance financing strategies in form of donor funding, government funding and fundraising to enable financial sustainability since it enhances fund growth and liquidity. The researcher therefore, made recommendations such as; NGOs should always depend on donor funding, government funding and fundraising as one of the financing strategies that would lead to their financial sustainability in Uganda.