An analysis of the financial sustainability challenges faced by non-profit organisations in the health sector in Namibia
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Date
2023
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Publisher
University of Namibia
Abstract
This study explored the financial sustainability challenges faced by Non-Profit
Organisations (NPOs) in the health sector in Namibia. The objectives of the study were
to determine challenges faced by selected NPOs, determine the main source of funding
for NPOs in Namibia after the reclassification as an upper middle-income country and
finally, examine the impact that sole reliance on external donor funding has on
programmes of the selected NPOs. The study mostly used a mixed methodology, and
descriptive analysis was done. The targeted population was 100 drawn from five NGOs
whose objectives are in collaboration with the Ministry of Health and Social Services.
The five NGOs are The society for Family Health (SFH), Namibia Planned Parenthood
Association (NAPPA), HIV Clinicians Society, Mister Sister and Namibia Red Cross
Society. The study found that reduced annual operational budgets and delayed program
implementation are the current challenges NPOs are facing because of the economic crisis
and COVID-19. Others listed the difficulties faced as a decline in the number of donors,
financial crises, technology gaps, and management control. The research revealed, among
other findings, that assistance from local governments is necessary for the financial
sustainability of the programs and the continuity of NGOs. Additionally, it was
recommended that the Government of the Republic of Namibia Incentivise NPOs'
effectiveness, transparency and accountability. More NPOs discuss about gauging and
marketing an organisation's social impact need to shift. Due to the difficulty of assessing
social impact and the fact that it is still a relatively new idea in the industry, this is
particularly tough. Most donors and foundations have the bad habit of viewing an NPO's
overhead as the primary barometer of that organisation's success. NPOs are not
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challenging this notion enough. They should instead try to offer alternative measures that
might reflect on the efficiency of their organisation
Description
A thesis submitted in partial fulfilment of the requirements for the degree of master of science in accounting and finance
Keywords
Financial sustainability challenges, Non-profit organisations, Health sector, Namibia