Alternative-based Funding Model and Resource Dependency Theory: Perspectives of Malaysian Non-Government Organisations

Azzarina Zakaria, Nurliana Zahira Zaharrudin
Faculty of Business and Management, Universiti Teknologi MARA


Many Non-Government Organisations (NGOs) are primarily dependent on grants and donations; they faced the constant threat of their money resources drying up. To sustain the ability to do good for the long term, the NGOs must challenge themselves to be self-sustainable. They need to redefine their funding streams and blaze forward with ingenuity and business acumen to maximise funding opportunities. This study offers an alternative-based funding model that emphasises internal embeddedness that would reduce the NGOs’ dependence on traditional funding. The model entails diversifying income streams that would encourage independence to explore more routes to self-sustainability. This study is essentially qualitative and will be adopting interpretivism as its philosophical stance as it is believed to suit the unpredictability nature of NGO’s environment. Semistructured interviews will be planned with the selected organizational leader of NGOs registered with Registrar of Society following the purposive sampling procedures. The interview data will be subjected to a thematic analysis. This study will advance the Resource Dependency Theory (RDT) through the development of alternative-based funding model in response to resource dependence principles of RDT. The model would drive NGOs to perpetuate and championing social well-being and most important supporting the mandate of national sustainable development goals.

Keywords: Alternative-based Funding Model, Resource Dependency Theory, Sustainability, Non-Government Organisations, Malaysia