THE EFFECT OF FINANCIAL PLANNING ON FINANCIAL PERFORMANCE OF NON-GOVERNMENTAL ORGANISATION IN UGANDA
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Date
2024-10-11
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Abstract
Finding out how financial planning impacted the financial performance of non-governmental organizations in Uganda was the primary objective of the study.
The purpose of the study is to ascertain how budgeting procedures affect non-governmental organizations' (NGOs') financial performance in Uganda. It also aims to investigate the connection between financial monitoring and the financial performance of non-governmental organizations in Uganda, as well as to assess the impact of financial practices on that relationship.
To determine the link between the independent and dependent variables, a cross-sectional design was used. The target population for the study was made up of 76 FIDA workers working in different departments. The sample size, sixty-three, was selected using a stratified sampling approach.
Primary data for this study were gathered through the use of semi-structured, self-administered questionnaires. Means, frequencies, and descriptive statistics were used in the data analysis process.
According to the study, budgeting is a component of planning since it entails estimating projected expenses and the amount of money that must be raised; an organization cannot advance until it is able to locate funding sources for its activities. Diversifying their sources of income is the only way for FIDA to have an appropriate flow of funds, which is necessary for their operational performance.
Thus, the study demonstrated that financial monitoring, financing, and budgeting procedures all have a favorable and substantial impact on FIDA's performance.
This result allowed the study to conclude that budget planning and FIDA's financial performance are positively and significantly correlated. As a result of the study's findings, financial managers should always plan the organization's ideal capital structure, all departments should prepare budget plans ahead of time, and the organization should use funds generated outside of its own walls to finance its operations.