The Influence of Leadership Competencies on Sustainable Funding of Local Non-Governmental Organizations in Uganda

Abstract

Introduction: When a leader with a vision launches a Local Non-Governmental Organization (LNGO or NGO), the NGO’s motivation and decision-making often become intertwined with the leader’s personality and character to the effect that it may collapse when the NGO leader departs. Uganda has a higher percentage of NGOs inactivity and mortality due to unsustainable funding. Therefore, this study investigated the influence of NGO leadership competencies on sustainable funding of NGOs. Methods: This study utilized a descriptive correlation design. A proportionate stratified sample of 103 NGOs was obtained and their leaders were interviewed using self-administered questionnaires. Records reviews were conducted to obtain data on NGO funding. Results: This study found a 90.1% to 100% agreement by participants on possession of the various leadership competencies by the NGO leaders. A marked rise in incomes from all sources was recorded between 2010 and 2014, with external donors, local donors, and own income accounting for 67%, 13.5%, and 19.5% of the total funds, respectively. The average donor-dependency ratio and survival ratio over the 5-year period was 80.54% and 71.216 days respectively. The NGO leader/CEO understanding and working with whatever resources that are available (β=-9.802, P=.002) and spearheading the implementation of major investment decisions (β=15.720, P=.004) were the only competencies found to be statistically significant predictors of NGO financial sustainability. Recommendations: Government funding of NGOs, prioritization of Income Generating Activities and capacity building of NGO leaders in effective and efficient resource utilization and investment by NGOs, are key to NGO Survival.