Scholarlink

<p>Nonprofit organizations (NPOs) in Saudi Arabia are expected to play a central role in Vision 2030, yet little is known about whether governance reforms actually improve their financial resilience. This study addresses this gap by examining the link between governance quality, as measured by the Makeen index, and financial sustainability, captured by the operating revenue ratio (FS1) and the number of funders (FS2). Drawing on agency, stakeholder, and resource dependence theories, panel data from 112 NPOs (2021–2023) are analysed using OLS with year and sector fixed effects and System-GMM. Results show that organizational size and beneficiary reach consistently predict sustainability, while governance scores do not exhibit a statistically significant direct effect. Nonetheless, the positive coefficients suggest governance may operate indirectly—by fostering donor trust or efficiency—and require longer horizons to be observed. By providing the first panel-based evidence from Saudi Arabia, this study clarifies the distinction between short-run and mediated governance effects and offers actionable insights for policymakers and donors seeking to strengthen nonprofit financial resilience.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

The determinants of financial sustainability in non-profit organisations: Does governance matter?

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2026年8月4日

查看全文
  • Hend Alregab

摘要

Nonprofit organizations (NPOs) in Saudi Arabia are expected to play a central role in Vision 2030, yet little is known about whether governance reforms actually improve their financial resilience. This study addresses this gap by examining the link between governance quality, as measured by the Makeen index, and financial sustainability, captured by the operating revenue ratio (FS1) and the number of funders (FS2). Drawing on agency, stakeholder, and resource dependence theories, panel data from 112 NPOs (2021–2023) are analysed using OLS with year and sector fixed effects and System-GMM. Results show that organizational size and beneficiary reach consistently predict sustainability, while governance scores do not exhibit a statistically significant direct effect. Nonetheless, the positive coefficients suggest governance may operate indirectly—by fostering donor trust or efficiency—and require longer horizons to be observed. By providing the first panel-based evidence from Saudi Arabia, this study clarifies the distinction between short-run and mediated governance effects and offers actionable insights for policymakers and donors seeking to strengthen nonprofit financial resilience.