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An exploratory study of the Financial Sustainability of the Non-Profit Sector in Lesotho

The non-profit sector plays a significant role in development in Lesotho. The sustainability of the NPOs is important; however, there is limited research on Lesotho’s non-profit sector, in particular, on its financial sustainability. This study has explored the financial sustainability of the non-pr...

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Main Author: Malebo, Moroesi
Other Authors: Atmore, Eric
Format: Thesis
Language:English
Published: Department of Social Development 2020
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access_status_str Open Access
author Malebo, Moroesi
author2 Atmore, Eric
author_browse Atmore, Eric
Malebo, Moroesi
author_facet Atmore, Eric
Malebo, Moroesi
author_sort Malebo, Moroesi
collection Thesis
description The non-profit sector plays a significant role in development in Lesotho. The sustainability of the NPOs is important; however, there is limited research on Lesotho’s non-profit sector, in particular, on its financial sustainability. This study has explored the financial sustainability of the non-profit sector in Lesotho in particular, the factors that affect the sustainability of non-profit organisations. A qualitative methodology was adopted which used a semi-structured interview guide. The data was collected primarily through in-depth interviews with 20 Non-Profit organizations based in Maseru, Lesotho. The sample was selected from organizations, which were registered with the Lesotho Council of Non-governmental Organizations. Purposive sampling, which used a non-probability sampling method, was chosen to select the 20 NPOs that participated in this study. The data was analysed and presented thematically according to the main research objectives. The findings revealed that the financial sustainability of Non-Profit Organizations in Lesotho is severely challenged. NPOs depend on donor funding as a major source of funding. The NPOs founded locally had a greater struggle to get funding than the international NPOs which were guaranteed the support of their international organizations. The sustainability of these NPOs was threatened by several factors, however, Lesotho’s political instability was a threat to all Non-profit organizations’ sustainability because it resulted in the withdrawal of external donor funding. The findings revealed that donor funding has dwindled over the past couple of years. Nevertheless, international donors were still the most consistent sources of funding for the NPOs in Lesotho. All the NPOs in this study received international donor funding. Only a few that received government grants, which was also very unsatisfactory. The data also revealed that the NPOs struggled to raise sufficient funds and the majority did not have staff who were devoted to fundraising. Key recommendations are that: the NPOs in Lesotho need to explore other income generating activities to improve their financial sustainability; they also need to strengthen their fundraising capacity by training their staff in fundraising; and, lastly, they need to improve their online presence, as the internet has become an important fundraising tool.
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institution University of Cape Town (South Africa)
language eng
last_indexed 2026-06-10T12:32:27.580Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2020
publishDateRange 2020
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publisher Department of Social Development
publisherStr Department of Social Development
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spelling oai:open.uct.ac.za:11427/31551 An exploratory study of the Financial Sustainability of the Non-Profit Sector in Lesotho Malebo, Moroesi Atmore, Eric Social Policy and Management The non-profit sector plays a significant role in development in Lesotho. The sustainability of the NPOs is important; however, there is limited research on Lesotho’s non-profit sector, in particular, on its financial sustainability. This study has explored the financial sustainability of the non-profit sector in Lesotho in particular, the factors that affect the sustainability of non-profit organisations. A qualitative methodology was adopted which used a semi-structured interview guide. The data was collected primarily through in-depth interviews with 20 Non-Profit organizations based in Maseru, Lesotho. The sample was selected from organizations, which were registered with the Lesotho Council of Non-governmental Organizations. Purposive sampling, which used a non-probability sampling method, was chosen to select the 20 NPOs that participated in this study. The data was analysed and presented thematically according to the main research objectives. The findings revealed that the financial sustainability of Non-Profit Organizations in Lesotho is severely challenged. NPOs depend on donor funding as a major source of funding. The NPOs founded locally had a greater struggle to get funding than the international NPOs which were guaranteed the support of their international organizations. The sustainability of these NPOs was threatened by several factors, however, Lesotho’s political instability was a threat to all Non-profit organizations’ sustainability because it resulted in the withdrawal of external donor funding. The findings revealed that donor funding has dwindled over the past couple of years. Nevertheless, international donors were still the most consistent sources of funding for the NPOs in Lesotho. All the NPOs in this study received international donor funding. Only a few that received government grants, which was also very unsatisfactory. The data also revealed that the NPOs struggled to raise sufficient funds and the majority did not have staff who were devoted to fundraising. Key recommendations are that: the NPOs in Lesotho need to explore other income generating activities to improve their financial sustainability; they also need to strengthen their fundraising capacity by training their staff in fundraising; and, lastly, they need to improve their online presence, as the internet has become an important fundraising tool. 2020-03-11T10:50:29Z 2020-03-11T10:50:29Z 2019 2020-03-11T09:52:33Z Master Thesis Masters MSocSci http://hdl.handle.net/11427/31551 eng application/pdf Department of Social Development Faculty of Humanities
spellingShingle Social Policy and Management
Malebo, Moroesi
An exploratory study of the Financial Sustainability of the Non-Profit Sector in Lesotho
thesis_degree_str Master's
title An exploratory study of the Financial Sustainability of the Non-Profit Sector in Lesotho
title_full An exploratory study of the Financial Sustainability of the Non-Profit Sector in Lesotho
title_fullStr An exploratory study of the Financial Sustainability of the Non-Profit Sector in Lesotho
title_full_unstemmed An exploratory study of the Financial Sustainability of the Non-Profit Sector in Lesotho
title_short An exploratory study of the Financial Sustainability of the Non-Profit Sector in Lesotho
title_sort exploratory study of the financial sustainability of the non profit sector in lesotho
topic Social Policy and Management
url http://hdl.handle.net/11427/31551
work_keys_str_mv AT malebomoroesi anexploratorystudyofthefinancialsustainabilityofthenonprofitsectorinlesotho
AT malebomoroesi exploratorystudyofthefinancialsustainabilityofthenonprofitsectorinlesotho