The Financial Sustainability of the Development Related Nonprofit Organizations

Authors

MARIANO HERRERA, Florida International UniversityFollow

Document Type

Dissertation

Degree

Doctor of Business Administration

Major/Program

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First Advisor's Name

Miguel Aguirre-Urreta

First Advisor's Committee Title

Committee Chair

Second Advisor's Name

Erica Harris

Second Advisor's Committee Title

Committee Member

Third Advisor's Name

Attila Hertelendy

Third Advisor's Committee Title

Committee Member

Fourth Advisor's Name

Jayati Sinha

Fourth Advisor's Committee Title

Committee Member

Fifth Advisor's Name

Chaitali Kapadia

Fifth Advisor's Committee Title

Committee Member

Keywords

Nonprofit Industry, Accounting, Financial Sustainability, Development, Nonprofit Organizations, Financial Management, Funding Sources, Donor Contributions, Grants, Program Expenses, Overhead Costs, Financial Reporting, Financial Analysis, Budgeting, Fundraising, Cash Flow, Endowment, Impact Assessment, Sustainability Strategies, Social Impact

Date of Defense

6-26-2023

Abstract

Purpose and Significance of the Study

Exploring nonprofit organizations' financial sustainability is paramount to the entire community due to their social responsibility and the associated burden. Furthermore, to ensure the preservation of these entities, it is crucial to understand and reveal the most significant factors that impact their financial sustainability to the government, nonprofit employees, and the community at large. In doing so, adequate planning can be established to improve the level of achievement within human development. Furthermore, this understanding would help to achieve better resource allocation, reduce economic inequality, and improve social welfare. In essence, this research will contribute significantly to developing and implementing public policies directly related to governmental and nonprofit accounting and protecting the resources intended to improve individuals' lives in society.

As components of society, nonprofit organizations pursue multiple objectives, but the most common goals are an individual's development and economic independence.

This research aims to gather detailed and factual knowledge that can identify and define elements of success for all nonprofit communities. By undertaking this task, we can create a comprehensive understanding of sustainable development within the nonprofit sector, both academically and practically. Furthermore, this research will allow us to develop effective strategies and approaches to support and enhance the capacity of nonprofit organizations.

Rather than relying mainly on private charities and volunteers, most nonprofit service organizations depend on the government for more than half of their revenues; for many small agencies, government support comprises their entire budget. Moreover, this governmental funding is obtained through taxpayers' dollars, and these resources are constantly under severe scrutiny for their use. Therefore, because nonprofits depend on several revenue sources to operate, in contrast to for-profit entities, these financial resources have specific commitments on most occasions. Consequently, inappropriate tracking of financial performance translates into incorrect executive judgment affecting the programmatic offering, unstabilizing the entity’s going concern, and by default, affecting the services offered to the community in need.

Nonprofit programs for preschoolers have been extensively studied and proven to enhance education, promote development, reduce crime, and optimize resource allocation. Therefore, safeguarding and investing in these vital programs is crucial for long-term societal betterment.

Identifier

FIDC011111

Recommended Citation

HERRERA, MARIANO, "The Financial Sustainability of the Development Related Nonprofit Organizations" (2023). FIU Electronic Theses and Dissertations. 5341.
https://digitalcommons.fiu.edu/etd/5341