Financial Management Practices and Financial Performance of Non- Governmental Organizations in Uganda: A Case of Nakere Rural Women Activist Narwoa

Abstract

The study investigated the effect of financial management practices on financial performance in Non-Governmental Organizations in Uganda, the case of NARWOA. The study objectives comprised of: to determine the effect of fundraising on the financial performance of NARWOA, Kotido; to assess the effect of budgeting on the financial performance of NARWOA, Kotido and to establish the effect of internal controls on the financial performance of NARWOA, Kotido.The study population was 60 respondents from which a sample of 52 was selected using Krejcie and Morgan(1970). Simple and purposive sampling was the main techniques used in the study for selecting respondents. Data were collected mainly using questionnaires, interview guides, and documentary reviews.The study findings indicated that internal controls are the biggest contributor to financial performance with beta values = 0.486, P values = 0.001. Correlation findings indicate a significant moderate positive relationship between internal controls and financial performance in NARWOA given by (r = 0.628, P = 0.000, N = 46). Also, fundraising is the second contributor to financial performance with beta values = 0.246, P values = 0.041. Correlation results indicate a significant moderate positive relationship between fundraising and financial performance in NARWOA given by (r = 0.427, P = 0.003, N = 46). Budgeting is the least contributor to financial performance with beta values = 0.140, P values = 0.263. Correlation findings indicate a significant weak positive relationship between budgeting and financial performance in NARWOA given by (r = 0.339, P = 0.021, N = 46).The study recommends that; the management of NARWOA puts more emphasis on encouraging fundraising drives as these are critical sources of finance for the organization. These funds help put the organization in a good financial standing hence improving its financial performance. The management of the organization also needs to draw more attention to ensuring that better budgeting practices are followed to help improve the financial performance of the organization. More emphasis should be put on building strong internal control systems to minimize fund wastage and also ensure timely accountability of funds.