Aligning Purpose with Practice: Strategic Resource Allocation for Enhancing Sustainability and Social Impact in Nonprofit Organizations

Abstract

Nonprofit Organizations (NPOs) fill in the gap that governments and other organizations struggle to deliver in some specific social cause and welfare. NPOs often Operate in challenging environments. The challenges that impact NPOs to produce long-lasting social impact are mostly resource limitations, donor expectations, and accountability requirements. Long-term organizational sustainability depends mainly on strategic resource allocation. This, in turn, guarantees that limited and precious resources are used to support operational efficiency and mission priorities. This study employs a mixed methods study by primarily using qualitative interviews with nonprofit leaders to identify the variables and its attributes. Next, through quantitative analysis by using partial least squares structural equation modelling (PLS-SEM) on the survey data, investigate the link between resource allocation decisions and operational performance sustainability in NPOs. Data show that resource allocation decisions significantly and positively influence operational performance and sustainability. This implies that well-informed and strategically aligned resource allocation improves sustainability outcomes as well as results in a good social impact. Reliability and validity numbers revealed strong measurement properties. The Cronbach's alpha values were surpassing 0.80 for all constructs. The results highlight the fact, that nonprofit organization leaders to connect with purpose-driven strategy with real-world decision-making in order to provide evidence-based suggestions for enhancing operational resilience and social value creation. This study helps to improve both the academic knowledge of strategic nonprofit organizational management and the practical resources accessible to nonprofit leaders.