The influence of accountability on financial sustainability: A case study of the Uganda Red Cross Society (URCS)

Abstract

This study was about the influence of accountability on financial sustainability in the Uganda Red Cross Society (URCS). The study objectives were to identify the relevance of accountability to stake holders, identify the influence of accountability on financial sustainability, identify root causes of poor accountability within URCS, and recommend measures to improve accountability.

The study adopted a case study research design where one organization, the Uganda Red Cross Society (URCS) was studied in order to obtain the relationship between accountability and financial sustainability. The researcher employed both quantitative and qualitative research approaches because they complement each other. Using Pearson correlation coefficient (from SPSS data base), there was a significant relationship between the various forms of accountability and financial sustainability. This finding is an indication that accountability significantly impacts on financial sustainability. The study shows that there exists strong interest amongst stakeholders particularly donors for greater accountability and the URCS strives to be accountable to all stakeholders especially the beneficiaries who are the most vulnerable in the community.

The management of Uganda Red Cross Society needs to strengthen the techniques of doing away with unproductive behavior that produces wasted effort and confusing distraction; this can help in sustaining finances. It is also important to note that financial sustainability, while critical, is only one aspect of an organization's overall sustainability; organizations must also build a broad range of organizational, technical, and human capacities. Therefore, there is need to develop financial sustainability through a broad based, interdisciplinary approach.