Determinants of Financial Sustainability for Local Non-Governmental Organisations in Arusha, Tanzania

Abstract

This study explores the factors influencing the
financial sustainability of local NonGovernmental Organizations (NGOs) in
Arusha, Tanzania. The research used
descriptive survey design, collecting data from
262 respondents working in local NGOs,
utilizing both questionnaires and interviews.
The findings reveal that external donors are the
dominant source of funding, contributing
significantly to the financial sustainability of
NGOs, while other sources such as
crowdfunding and self-generated income play
supporting roles. Despite this, many NGOs
struggle to maintain long-term donor
relationships, and a heavy reliance on restricted
funding hinders their flexibility to respond to
emerging issues. The study also found that a
limited percentage of NGOs have access to
unrestricted funding, which further impacts
their ability to adapt to changing circumstances.
The study concludes that diversifying funding
sources, strengthening donor relationships, and
improving financial management practices are
essential for enhancing the financial
sustainability of NGOs in Tanzania. The study
provides recommendations for NGOs to create
a more resilient and financially sustainable
NGO sector, emphasizing the need for a
supportive policy framework and capacitybuilding initiativ