At its core, sound financial management entails developing comprehensive budgets, ensuring proper allocation of funds, maintaining accurate and up-to-date financial records, and implementing robust internal controls to prevent fraud and misuse.

Furthermore, effective financial management empowers NGOs to plan and withstand uncertainties. By diversifying funding sources, building reserve funds, and aligning financial strategies with their mission, organizations can enhance their ability to deliver on social and developmental objectives even in the face of changing funding landscapes.