The Impact of Governance in the Nonprofit Sector on Financial Sustainability and the Efficiency of Financial Investment Management (Published)
This study aimed to know the effect of governance in the nonprofit sector on financial sustainability and the efficiency of financial investment management. It also aimed to know the challenges that face the application of governance. The study used the descriptive analytical method. It used a mixed method by questionnaire and interviews. The questionnaire sample was 59 persons from nonprofit organizations. The interview sample was 13 persons. The results showed a high level of governance application in the organizations of the study. The results also showed a positive effect of governance on financial sustainability and on the efficiency of financial investments. Transparency, financial disclosure, and internal control were among the most applied elements. Governance helped to increase the confidence of donors and supporters, improve the stability of financial resources, make investment decisions better, and reduce investment risks. The study found some challenges. The main challenges were weak awareness of governance, lack of specialized people, and the need to improve risk management and control systems. The study recommended more training, activation of audit and internal control committees, better transparency, development of digital systems, and diversification of income and investments.
Keywords: Financial Sustainability, Governance, Internal control, Saudi Arabia, financial investments, nonprofit sector