The World’s Indigent Population’s socio-economic status has drawn the attention of the entire world for more than three decades. The Not-for-Profit Human Development Institutes (NPHDIs), aiming to serve this segment, faces Financial Sustainability as one of the major issues, as they are usually dependent on donors’ funds especially to run and finance their operations. If there is a shift in the donors’ donation preferences, then there is uncertainty in the fund generation forcing these organizations to get into turmoil, and this not only hampers their ability to serve but also challenges their survival and existence.
This study has been conducted in a two-fold research approach. Firstly, NPHDIs operating in Pakistan have been studied to evaluate their Financial Sustainability through Ratio Analysis based on Donor Dependent Ratio (DDR) and then, a FinTech integrated Financial Sustainability Model for NPHDIs has been proposed using Constructive Grounded Theory.
Findings of the first phase shows there is a heavily reliant on donors funding with the DDR ranging from 100% to 91.73% based on a sample of ten randomly selected NPHDIs operating in Pakistan. Whereas, four main themes have been identified during the second phase, which has been articulated together to form FinTech-integrated Endowment – A proposed Financially Sustainable Model.
The values of NPHDIs’ DDR are not less than 25%, so they are considered to be Financially Unsustainable. FinTech-enabled-Endowment is one main alternative to donors’ dependent funds, which can provide sustainable revenue streams for these NPHDIs based on Social Finance Theory.