Managerial Competences and Financial Performance: A Study on NGOs in Central Division-Fort Portal City

Abstract

Democratic Governance Facility (DGF) still remain the biggest funder of most NGOs in the region, however most NGOs still face challenges in not only obtaining funds but also managing them. This study was carried out to examine the relationship between managerial competences and financial performance of NGOs in Fort Portal Tourism City. A quantitative research design was adopted to achieve the research objectives. Out of a total population of 320 employees, 183 respondents were selected using simple and stratified random sampling techniques. The study used structured questionnaires to collect data from managers, accountants, field officers, office assistants and secretaries. Apparently, one hundred eighty three copies of the questionnaire were administered to respondents but only one hundred seventy three were properly filled and returned constituting response rate of 94.50%. Construct and content validity were adopted and the reliability co-efficient of the items in the instrument ranged between 0.70 and 0.78. Descriptive and inferential statistics (simple and multiple linear regression analyses) were used to analyze data. The study findings reveal that managerial competences have a significant effect on financial performance of NGOs in Fort Portal Tourism City (Adj. R2 = 0.375; F (4, 427) = 61.906, p<0.05). The conclusion drawn by this study is that managerial competences affect financial performance of NGOs in Fort Portal Tourism City. The study recommends that management of NGOs in Fort Portal City should make extra effort in investing in their managerial competences in order to improve their financial performance. Management of NGOs should constantly review the managerial competence profile for better managerial decisions and performance improvement.