Financial Sustainability of NGOs: A Case Study of FELM
Rai, Rajendra (2026)
2026
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2026051913646
https://urn.fi/URN:NBN:fi:amk-2026051913646
Tiivistelmä
The Finnish Evangelical Lutheran Mission in short FELM is a mission established in 1859 and present in 24 countries. This thesis assesses the financial sustainability of FELM based on the theories of resource dependency and income diversification using mixed methods, combining a quantitative analysis of the 2023 and 2024. Annual Reports with a qualitative interview with the Director for Development Finance.
The results suggest that approximately 60% of FELM’s income relies on institutional sources that lie outside its own control. Despite recording a surplus of € 1.04 million for 2024, this could solely be attributed to downsizing (cutting programs in four countries and closing programs in five countries), as revenue didn't actually increase. Variance analysis reveals massive fluctuation, e.g. A 43.75% fall in bequests compared to an 85.71% increase in revenue from corporations. The thesis identifies an existential challenge, where over many years a stability trap caused by secure funding from the Ministry for Foreign Affairs eliminated the need for a quick adoption of new solutions.
To survive the coming decade FELM is experimenting with a new business logic centered around training based on AI technology, fee-for-service, and impact investments. In the thesis, building systematically new structures for private fundraising and accelerating corporate engagement and creating adequate financial reserves for long term sustainability is recommended. Overall, FELM has the strategic mindset and operational adaptability needed but the crucial factor of survival in the next ten years is the rate of adaptation.
The results suggest that approximately 60% of FELM’s income relies on institutional sources that lie outside its own control. Despite recording a surplus of € 1.04 million for 2024, this could solely be attributed to downsizing (cutting programs in four countries and closing programs in five countries), as revenue didn't actually increase. Variance analysis reveals massive fluctuation, e.g. A 43.75% fall in bequests compared to an 85.71% increase in revenue from corporations. The thesis identifies an existential challenge, where over many years a stability trap caused by secure funding from the Ministry for Foreign Affairs eliminated the need for a quick adoption of new solutions.
To survive the coming decade FELM is experimenting with a new business logic centered around training based on AI technology, fee-for-service, and impact investments. In the thesis, building systematically new structures for private fundraising and accelerating corporate engagement and creating adequate financial reserves for long term sustainability is recommended. Overall, FELM has the strategic mindset and operational adaptability needed but the crucial factor of survival in the next ten years is the rate of adaptation.