Financial sustainability strategy for a not-for profit drug supply Organisation: the case of Catholic Drug Centre, Ghana

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The World Bank defines NGOs as "private, not-for-profit organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, or undertake community development" (Hecht and Tanzi, 1993 cited in Waters, 1995). The catholic Drug Centre (CDC) which is an important unit of the Catholic Church's Department of Health (DOH) is a not-for-profit organization. CDC supply pharmaceuticals through wholesale to catholic hospitals and other mission hospitals and clinics as well as other NGOs who provide healthcare. « The past few years have witnessed CDC experiencing some financial difficulties. One area is CDC's inability to pay suppliers on time even when agreements have been signed to that effect. The aim of the work was to study the financial sustainability of the Catholic drug centre and come up with strategies that will sustain the non-profit drug supply unit. A thorough study was done on the various activities of CDC as a non-profit drug supply organization with emphasis on financial activities and sustainability issues. Questionnaires and interviews to address issues in the various objectives were prepared and distributed to the appropriate quarters to serve as a foundation for the design of a financial sustainability strategy model for the Catholic Drug Centre. Financial performance appraisal of CDC was undertaken through the use of ratio analysis. EPI-INFO and Microsoft Excel were employed to analyze the quantitative data. The study concluded that the Catholic Drug Centre is not sustainable in its current financial status. Some urgent measures are needed to be taken in order to salvage CDC from collapse.
A thesis submitted to the KNUST School of Business; Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfilment of the requirements for the degree of Master of Business Administration, 2006