FINANCIAL SUSTAINABILITY STRATEGIES FOR NON GOVERNMENTAL ORGANIZATIONS (NGOS) IN UGANDA: CHALLENGES AND OPPORTUNITIES

Abstract

Non-governmental organizations (NGOs) play an essential role in Uganda’s social and economic development, providing critical services in areas such as healthcare, education, environmental conservation, and poverty alleviation. However, these organizations face significant challenges related to financial sustainability, primarily due to heavy reliance on donor funding, inefficient financial management practices, and limited revenue diversification. As donor priorities shift and economic constraints reduce available funds, many NGOs struggle to maintain their operations, leading to program cuts and organizational instability. This study explores the financial sustainability of NGOs in Uganda by analyzing existing financial challenges and evaluating alternative strategies for long-term viability. A mixed-methods approach was used, combining qualitative and quantitative data collected through surveys, interviews, and secondary data analysis of NGO financial reports. The findings reveal that financial instability in Ugandan NGOs is largely driven by an overreliance on external donors, poor financial planning, and an absence of sustainable revenue-generating models. However, NGOs that have implemented revenue diversification, private-sector partnerships, and social enterprise models have demonstrated higher financial resilience. This study examines how executive policies, such as the Trump administration’s reinstatement of the Mexico City Policy, impacted NGO funding in Uganda. The research concludes with recommendations for NGOs to enhance financial sustainability, including adopting hybrid financing models, strengthening financial management training, and engaging in government-private sector collaborations.