Investigating the economic sustainability of Social Welfare Non-Governmental Organizations: A Multiple Case Study Approach

This study investigates the economic sustainability of social welfare NGOs in Lusaka, Zambia, addressing a critical gap in understanding the challenges these organizations face. Despite their pivotal role in supporting vulnerable populations, many social welfare NGOs struggle with financial viability, leading to operational inefficiencies and closures. While existing literature identifies financial sustainability as a major hurdle, it lacks a comprehensive analysis of the specific economic challenges confronting these organizations. Through thematic analysis, the study explores organizational structure, financial management, human resources, program delivery, partnerships, and external factors affecting sustainability. Key findings highlight that NGOs face limited funding sources, rising operational costs, competition for resources, regulatory barriers, and external pressures such as economic instability and political unrest. In response, NGOs adopt diverse strategies, including diversifying funding through grants and partnerships, enhancing financial management, advocating for supportive government policies, and fostering collaborations with stakeholders. The study concludes that achieving economic sustainability requires a multifaceted approach tailored to the unique needs of each NGO and the socio-economic context. Recommendations include capacity-building programs for NGO staff to improve financial literacy and management skills, creating an enabling policy environment, and encouraging donors to adopt flexible funding models. This research provides valuable insights for policymakers, donors, and NGOs, enabling them to address structural barriers, align funding strategies, and refine operational practices to enhance their impact on vulnerable populations.