The role of NPO boards in funding sustainability

Abstract

Purpose: The purpose of this exploratory research study was to gain a deeper understanding of the lived experiences of South African non-profit boards, thereby contributing to the evolving discourse on non-profit board strategies aimed at achieving financial sustainability. It focused on three objectives. understanding funding perceptions, exploring governance frameworks’ impact on sustainable funding strategies and examining strategic intent in strategy development. Through this exploration, the study aimed to illuminate the pivotal role of NPO boards in enhancing funding sustainability. Research relevance: The volatile funding landscape in the non-profit sector globally amplifies its vulnerability. As the primary governing body, NPO boards bear substantial responsibility for steering the organisation's economic sustainability. However, there remains a significant gap in understanding the strategies used by NPO boards to secure funding and enhance organisational sustainability. Design/methodology/approach: The use of an inductive approach facilitated a monomethod qualitative study involving 14 participants interviewed in a semi-structured format. The search for rich and in-depth data mandated this methodological choice. Key findings: NPO boards’ role is to embrace innovative strategies to ensure long-term financial sustainability and cultivate organisational resilience. Implications: The findings furnish NPO boards and policymakers with invaluable insights into the dynamic capabilities and challenges influencing the development of funding strategies within NPO boards strengthening financial sustainability. These insights guide the formulation of pertinent learning experiences and support mechanisms, adding to managing expectations and demands for organisational sustainability.