An analysis of factors influencing the level of fundraising for Non-Profit Organisations (NPOS) of the Khomas region of Namibia
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Date
2020
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University of Namibia
Abstract
Like the NPOs sector globally, the number of NPOs in Namibia has been increasing yearly.
Most NPOs depend on government subsidies or local and international donor agencies to
finance their operations. This scenario has been threatening their survival and ability to attain
their aims and objectives for social transformation. Donor agencies have reduced their support
for Namibian NPOs owing to the global economic crisis and financial headwinds facing the
Namibia economy.
As a result local NPOs have limited access to funding from both local and international
donors, as well as private philanthropic organisations. This is attributed to factors such as:
global financial crisis, economic recession, the re-classification of Namibia to an upper
middle-income country, the downgrading to junk economic status, and the increase in the
number ofNPOs in Namibia.
Therefore, the purpose of this study is to analyse factors influencing the level of fundraising
for NPOs in Khomas Region. Based on the study, this paper explores the influence of sources
of funding on the financial sustainability ofNPOs. A quantitative research design was used as
the principal research methodology for the study. The target population was six hundred and
ninety six (696) NPOs registered with Business and lntellectual Property Authority (BIPA) under
Section 21 of Company Act No. 28 of2004 of the Republic ofNamibia. One respondent per
NPO was selected as per their role in the organization either: managements, administrative or
financial personnel. The study made use of a random sampling methodology of which the, a
total of forty ( 40) of NPOs were sampled each per year from 1950 to 2018. For the purposes
of this study, a quantitative research method was employed and quantitative data were
collected using a questionnaire. Data was processed using Stata software and the coded data
I d t the SiQllificance level of .05% using an ordered logistic regression model
was ana yse a o · ·
I
Significant variables to the study were identified and interpreted accordingly and where
possible compared to the literature review to gain a full understanding from both primary
research data and secondary research. The chi-square test was done to test the model and it is
statistically significant as it has a chi-square value below the 5% level.
The findings of the study showed that there are factors influencing the level of fundraising in
NPOs. These are gender, years of working experience, number of staff members, fund raising
procedures, number of student interns, fundraising through electronic media, local and
international donor's agency and partnership or joint projects with other organizations.
Therefore, this situation has left Namibian NPOs with no options, but to develop alternative
fundraising strategies to access new sources of funding in order to increase the level of
funding to finance their operations.
Jt is recommended that the NPOs should move from being dependent on government subsidies
and local donor agencies for self-sustainability and have a more international outlook and
indeed focus on establishing income generating activities and venture into multiple sources of
funds for their projects. This would improve their financial sustainability. It is further
recommended that there is a need to create and develop alternative fundraising strategies in
order to increase the level of funding and remain competitive in the markets. Furthermore, it is
recommended that NPOs should engage individuals, corporate sectors, government and local
and international donors to develop interest in their activities for future donations.
Alternatively, NPOs should give timely reports, thank you letters, issue donation certificates
and offer a free luncheon for donors even once a year. With regard to media, it is advisable for
NPOs to partner up with the media for marketing purposes as well as forming joint ventures
with business and universities
Description
A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration Finance
Keywords
NPOs in Namibia, Government subsidies, International donor agencie, Social transformation, Khomas, Namibia, University of Namibia