Financial Sustainability of Local Non-Governmental Organizations in Tanintharyi Region, Myanmar

Abstract

This study is aimed to achieve two objectives. The first objective is to explore the financial sustainability and second is to analyze the effect of factors influencing financial sustainability of local NGOs in Tanintharyi region, Myanmar. The current study is guided by resource-based theory and key factors influencing financial sustainability discussed in this study are donor relationship management, income diversification, financial management practices, and management competency. To achieve these objectives, a quantitative methodology employing surveys was utilized, including 105 respondents across five local NGOs. Findings reveal that donor relationship management, income diversification, and management competency significantly enhance financial sustainability, while there is no significant positive effect of financial management practices on financial sustainability. The results highlight the importance of managerial competency, robust donor relations, and diversified revenue streams to mitigate financial vulnerabilities. Practical recommendations are proposed, including capacity-building programs, transparent accountability frameworks, and innovative funding strategies to foster long-term resilience and operational efficacy. This research contributes to the theoretical understanding of financial sustainability and offers actionable insights for local NGOs in resource-constrained environments.