Abstract

Author:
Ramat, Reivel Burgos

Doi: 10.26480/jtwe.01.2025.37.46

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

This study examined the relationship between budgeting practices and financial performance in a selected non-governmental organization (NGO) in Laguna Province. It focused on three core budgeting dimensions—preparation, implementation, and monitoring & evaluation—and assessed their impact on financial indicators such as fundraising efficiency, working capital, and program service delivery. Employing a descriptive-correlational design, the researcher collected data from 27 finance personnel at the International Rice Research Institute (IRRI) using a validated Likert-scale questionnaire. The results indicated consistently high levels of budgeting practices and financial performance. Budget preparation showed the strongest correlation with fundraising efficiency, while budget implementation had a significant influence on both fundraising and working capital. Monitoring and evaluation demonstrated a moderate but positive effect across all financial indicators. The findings highlighted the importance of strategic, participatory, and transparent budgeting processes in enhancing financial sustainability and operational effectiveness. Based on these insights, the study recommended strengthening staff training, improving cost-effectiveness assessments, and integrating data-driven monitoring tools to enhance overall effectiveness. Overall, the research contributed to the broader discourse on NGO financial stewardship and provided practical recommendations for organizations seeking to optimize their budgeting systems and enhance financial outcomes.