Financial Sustainability Of Non-Profit Organizations (Npos): An Empirical Study Of Select Npos In North East India

Abstract

Sustainability is the ability of administrators to maintain an organization for a long period. Financial sustainability refers to the resources that enable for-profit and nonprofit organizations to grab opportunities and respond to unexpected risks while preserving the organization's core operations.However, depending on the business, the manner of revenue generation, and the organization's objectives, the concept of financial sustainability may differ significantly between for-profit and nonprofit organizations. This article investigated the various factors affecting the financial sustainability of non-profit organizations (NPOs) operating in North East India. Using random sampling method, 51 NPOs operating in North East India were selected. A structured questionnaire consisting of an assessment of NPO’s sources of revenue, their relationship with the donors, and other practices that lead to the longevity of the organization was used to collect the data. The analysis of the data revealed the following: 1) Donor relationship and income diversification have a significant effect on the financial sustainability of NPOs in North East India. 2) Variable income diversification is significantly correlated to donor relationship. 3) Financial management and financial sustainability are significantly correlated to income diversification. 4) Management competencies are significantly correlated to financialmanagement.