Effective Financial Management Practices for Non-Governmental Organizations in Ethiopia: A Case Study of Save The Children
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Date
2025-12-02
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A.A.U
Abstract
This study investigates the effectiveness of financial management practices implemented by non-governmental organizations (NGOs) in Ethiopia, with a particular emphasis on Save the Children as a case study. The research explores core components of financial management, including budgeting, financial reporting, internal controls, and financial planning, which are essential for promoting financial efficiency, transparency, and organizational sustainability. To achieve these objectives, the study employs a mixed-method research design that integrates both qualitative and quantitative approaches. Qualitative data are collected through semi-structured interviews with finance staff, program managers, and compliance officers in order to capture experiential insights into organizational financial practices. Quantitative data are obtained from financial reports, budgets, audit findings, and performance records spanning multiple fiscal periods. The data are analyzed using descriptive statistics and thematic analysis to assess the extent to which financial management practices influence program delivery, donor confidence, and overall organizational performance. Furthermore, the study identifies common challenges faced by NGOs in Ethiopia, such as resource constraints, stringent compliance requirements, and capacity limitations, and proposes practical strategies to mitigate these issues. The findings are expected to serve as benchmarks for other NGOs operating in similar contexts, offering actionable recommendations for strengthening financial governance, accountability, and risk management. In addition to its practical implications, the study contributes to the academic literature by bridging theoretical frameworks with real-world applications, thereby deepening understanding of effective financial management within the NGO sector. Ultimately, this research provides valuable insights for practitioners, policymakers, and donors seeking to improve financial systems and ensure the long-term sustainability of development programs in Ethiopia.
key Words: Financial Management, Budgeting, Internal Controls, Fund utilization, financial system and staff development IPSAS.