Determinants of financial sustainability of the Presbyterian Church of Ghana (PCG)

Abstract

This study sought to examine three main determinants of financial sustainability of the Presbyterian Church of Ghana (PCG) in view of the fact that the Church is grappling with serious financial challenges regarding funding administrative overheads, scholarships, and social services. The PCG is a major contributor to the socio-economic and spiritual development of Ghana since 1828 in areas like health, education, agriculture, etc. It was guided by three objective predictors of financial sustainability, namely; income generation, income diversification and donor support/ relationship management. The study engaged a descriptive research design with the target population comprising members of the governing body, programme leaders, national finance committee members, etc. The sample consisted of 60 respondents out of a population of 115 technocrats of the Church. The instruments for data collection included questionnaire, personal interviews and PCG annual financial reports. The primary data collected through the administered questionnaire was processed using a computer application known as Statistical Package for Social Sciences (SPSS). The research findings based on the given predictors of financial sustainability were analysed and interpreted in order to draw useful conclusions by establishing an appropriate roadmap. Equity balance, low administrative costs, operating margins, concentration of income streams and accounting ratios were mentioned as good measuring rods for financial sustainability. The study concluded that, income diversification and income generation could significantly influence financial sustainability of PCG. The study therefore recommended that the church intensified fund raising strategies by diversifying sources of income through income generating projects and strategic partnerships, cost reduction, and then increase in monitoring and evaluation processes.