Sustainable Investment Strategies for Orphanages and old age homes: Reducing Dependency on Donations

Orphanages and old age homes are essential social institutions designed to provide care, protection, and support to some of the most vulnerable members of society—namely, orphaned children and the elderly. These institutions often serve as a safety net for individuals who lack family support or have been abandoned due to various socio-economic, health, or political circumstances. Despite the critical role they play in society, many of these institutions face constant financial instability, primarily due to their heavy reliance on external donations and charitable contributions to sustain their operations.

For decades, donations from well-wishers, philanthropists, corporate sponsors, and government subsidies have been the primary source of funding for these homes. However, the sustainability of such funding streams has become increasingly uncertain. Economic downturns, donor fatigue, shifting philanthropic priorities, and increased competition from other nonprofit organizations have all contributed to a decline in the consistency and reliability of donations. This unpredictability threatens the quality of services provided to the residents of these homes and jeopardizes the long-term viability of the institutions themselves.

In light of these challenges, there is a growing need for orphanages and old age homes to adopt sustainable investment strategies that can generate reliable, long-term income. These strategies aim to diversify revenue streams, reduce dependence on donations, and create financial independence while ensuring that the primary mission of care and support is not compromised. Sustainable investments can range from small-scale income-generating projects, such as agriculture and artisanal production, to larger ventures like educational services, rental properties, or strategic partnerships with corporate entities. Successful implementation of these projects provides institutions with ongoing revenue to fund operations, improve infrastructure, and enhance the quality of care provided to their residents.

Moreover, sustainable investment strategies foster a culture of financial accountability, strategic management, and innovative thinking within these institutions. By investing in well-planned, mission-aligned ventures, orphanages and old age homes can not only meet their day-to-day operational needs but also reinvest surplus income into community outreach, staff development, and improved living conditions for their residents.

This research seeks to explore the various sustainable investment strategies currently being implemented in orphanages and old age homes, assess their effectiveness, and identify best practices that can be replicated across similar institutions. The study aims to provide practical insights into how these organizations can transition from dependency on unpredictable donations to self-sustaining operational models. Research like this adds to the ongoing discussion about how social care organizations might remain viable in the future and the sustainability of nonprofits.

Roy, A., Singh, P. (2025). A vast variety of commercial organizations have been working on various socially beneficial projects throughout the last several decades. These projects may range from something as basic as abstaining from unethical corporate practices to charitable work or aiding in the fight against global environmental problems. These businesses engage in these activities for a variety of reasons, including a sincere desire to help others, to satisfy mandatory corporate social responsibility obligations, or to establish positive consumer perceptions among potential customers and the broader public. Whether or if these activities are sustainable, and if so, how they are being incorporated into corporate operations to support sustainability, is another significant worry. Thus, the purpose of this research paper is to determine the justification for the same, the methods being used, the methods that may be used, and the possible advantages for society and all parties involved.

Majola, Minenhle & Thomas, Peta. (2024). In South African society, NPOs play a crucial role in ensuring the long-term viability of their community involvement initiatives via their policies. In an orphanage in the South African province of Mpumalanga, this study aimed to pinpoint some of the difficulties in the post-delivery strategic management of a NPO project. In order to promote the long-term sustainability of their initiatives, this study sought to assist the NPO in enhancing their post-project delivery. Purposefully chosen participants' opinions on the post-delivery management of an orphanage that was a project of this NPO were the focus of the qualitative study design. According to the results, there exist gaps in the NPO's present efforts to develop a project that would guarantee long-term viability. The findings and management suggestions that follow highlight how crucial stakeholder-inclusive practices are to any NPO project's long-term viability.

Abdul Muiz Bin Mustafa and Aishath Muneeza & Rassem Nouri (2024) This paper's main goal is to learn from Sri Lanka's experience with Orphan Care using Islamic social finance while also pointing out how Malaysia may create a long-lasting model for accomplishing a similar goal. The operational framework of Orphan Care in Sri Lanka and its possible lessons for Malaysia are examined in this research using a qualitative, exploratory methodology. Because secondary sources were few, Orphan Care officials were interviewed informally to get detailed information. In order to identify gaps and problems, the study is conducted in two stages: first, data is gathered from primary (interviews) and secondary (reports, literature) sources; second, content analysis is used to analyse the data. The Sri Lankan Orphan Care interview provides vital information for Malaysia's efforts to help orphans get access to higher education. Financial limitations and a lack of support systems are examples of challenges that fit with Malaysia's objectives to reduce inequality.

Parra-Ullauri, Andrea & Rodrigues, Lucelia. (2017). Because of the increased strain on public resources and the challenges of providing for these vulnerable members of society, the fast-increasing senior population is a global issue. In 2010, 10 million persons in the UK were 65 years of age or older; by 2020, that number is expected to rise to 19 million. More than two million families are thought to be living in substandard circumstances and in fuel poverty, with many of those individuals being elderly and unable to pay their energy bills. It has been shown that fuel poverty results in a decline in wellbeing, quality of life, and health. Features related to independent and assisted living are often taken into account independently of energy-efficient and sustainable design techniques. The authors of this article contend that because of the concepts' overlaps and advantages, they should be taken into account holistically when designing housing options for the elderly in order to incorporate all essential elements that promote health and wellbeing: energy efficiency, environmental comfort, adaptability, easy mobility, spatial quality, and smart technologies for monitoring home health care.

·         To examine existing investment strategies in orphanages and old age homes.

·         To assess the impact of revenue-generating projects.

·         To propose models for reducing dependency on donations.

This study adopted a descriptive survey design to gather detailed insights, explain patterns, and confirm findings that could be generalized. The focus of the research was on the managers overseeing operations within orphanages and old age homes. The target group consisted of 40 managers from 40 different orphanages and Old Age homes. Due to the manageable size of the population and ease of access, a census method was employed. This approach ensured that every individual within the target group had the opportunity to share their perspectives, resulting in comprehensive and conclusive findings rather than estimations based on samples. Utilizing data from the entire population enhanced the accuracy and reliability of the results.

Data collection was carried out using structured questionnaires, which were personally distributed by the researcher during weekdays when participants were most likely to be available. Pilot research was carried out to ensure the validity and reliability of the questionnaire before the major data collecting began. In order to make the final version of the instrument better and clearer, the feedback from the pilot participants was thoroughly examined and incorporated.

For data analysis, the study applied quantitative descriptive techniques. The results were summarized and presented in an understandable fashion using descriptive statistics like percentages, means, and standard deviations.

In order to determine how different sustainable investment options affected the efficiency of nursing homes and orphanages, multivariate regression analysis was used. To determine if these strategies were associated with improved organizational performance, researchers used a multivariate regression model. The significance of each variable will be tested using the F-Test.

The data was presented in a clear and systematic way for better interpretation and comparison via the use of tables, charts, and cross-tabulations, which grouped and illustrated the study's results.

Out of 40 managers from elderly homes and orphanages who were the subjects of the research, 27 (or 71% of the total) submitted questionnaires.

Table 1: Existence of Orphanage and Old Age Home

22.2% of respondents said that orphanages and old age homes had been in operation for less than two years, 29.6% said that they had been in operation for three to four years, 37% said that they had been in operation for six to eight years, and 11.1% said that they had been in operation for more than eight years. This demonstrates that the old age homes and orphanages have been around for a sufficient amount of time to give pertinent and trustworthy information on how sustainability techniques affected their orphanages' and old age homes' performance.

Table 2: Period Working in the Organization

The findings showed that while 44.4% of respondents had been with their firms for over four years, 14.8% had been with them for less than two years, and 40.7% for three to four years. Because of their extensive knowledge of the sustainability measures their firms had done, the respondents had been with their organizations for a long enough time to give relevant study data.

Table 3: Highest Level of Education

According to the replies, 14.8% of the participants had completed secondary school, 11.1% had earned a diploma, 44.4% had earned an undergraduate degree, and 29.6% had earned a master's degree. This suggested that the respondents were knowledgeable about the subject, thus they answered the questions with ease and gave the right answer.

Table 4: Impact of Collaboration Strategy

The findings showed that respondents were neutral on the matter of child welfare stakeholders working together, with a mean score of 3.07 and a standard deviation of 0.548. Furthermore, the results indicated that respondents were in agreement that their respective orphanages and old age homes had established strategic partnerships with corporate organizations, as evidenced by a mean of 4.41 and a standard deviation of 0.843. These results are consistent with the research conducted by Mestry and Grobler (2012), which demonstrated that the formation of strategic alliances strengthens organizations and improves their capacity to achieve established objectives. Additionally, the responses indicated that well-wishers are impartial with a mean of 3.28 and a standard deviation of 0.774 in regard to home programs. This lends credence to Apostolakis's (2012) argument that organizations should vetting their supporters thoroughly to make sure they share their strategic goals.

With a mean score of 3.58 and a standard deviation of 0.573, the findings revealed that respondents generally agreed with the method of including major stakeholders in strategy formation. Projects are created to benefit stakeholders, thus it's important to take their demands into account so they may reap the most advantages (Mestry and Grobler, 2012). These results are also consistent with the study by Omeri (2015), which emphasized that organizations aiming for long-term sustainability should establish collaborative partnerships with other institutions to leverage shared strengths. Furthermore, the mean scores across all related statements ranged from 1.93 to 4.40, demonstrating overall agreement among respondents regarding the application of collaboration strategies in their orphanages and old age homes. This aligns with Mutuku (2011), who noted that organizations engaged in collaborative initiatives, such as those aimed at enhancing food security, often face obstacles like insufficient resources for communication and coordination, as well as a lack of adequate training.

Table 5: Impact of Revenue Generation Strategies on Performance

Respondents generally leaned towards agreement with the statements regarding revenue generation strategies, although some areas showed neutrality, particularly on profit orientation and specific types of projects. The study revealed that most orphanages and old age homes had established various income-generating projects, as reflected by a mean score of 4.16 and a standard deviation of 1.322. These findings align with Edogbanya and Sule (2013), who identified a strong link between revenue generation and factors such as government development efforts, underdeveloped areas, limited social amenities, and insufficient funds to sustain existing infrastructure. Regarding whether the funds generated from these projects were sufficient to cover the orphanages and old age homes basic operational costs, the study reported a mean of 3.32 and a standard deviation of 0.785, showing that respondents were neutral on this matter. Glemarec (2012) supports this by noting that nonprofit organizations often face financial challenges due to the ever-growing societal needs they aim to address.

In addition, the results showed that orphanages and old age homes regularly assess their revenue-generating initiatives, demonstrated by a mean of 4.32 and a standard deviation of 0.918, indicating general agreement among respondents. This is consistent with Mwangi (2012), who highlighted the importance of evaluating potential projects to ensure they align with an organization's mission and objectives before implementation. Since making a profit is usually not the main objective of such homes, the fact that the mean was 2.96 and the standard deviation was 1.054 indicates neutrality with regard to whether these revenue projects were intended to do so. Again reflecting a neutral stance, the mean was 3.15 with a standard deviation of 1.098 when asked if the orphanages and old age homes operated learning institutions for children. With a mean of 4.43 and a standard deviation of 0.800, it was clear that many old age homes and orphanages ran profitable projects.

Aside from that, there were other endeavors, such as guesthouse operations (mean 3.17, standard deviation 1.110) and agricultural enterprises (mean 2.55, standard deviation 0.750). Overall, the mean values ranged from 2.54 to 4.43, indicating moderate to strong agreement regarding the implementation of these strategies. These results support the findings of Edogbanya and Sule (2013), which emphasized the importance of revenue generation in driving development, especially in areas with limited resources and infrastructure challenges.

Table 6: Strategic Leadership and Performance

The responses indicated varying perceptions regarding organizational management within orphanages and old age homes. While respondents leaned towards neutrality concerning the adequacy and experience of management, there was notable disagreement regarding the involvement of staff in strategy development and the consistent tracking of strategic implementation. As presented in Table 6, the statement that orphanages and old age homes had sufficient managers for various programs achieved a mean score of 3.28 with a standard deviation of 1.136, reflecting a neutral stance. This aligns with Jooste and Fourie (2012), who emphasize that having an adequate number of managers contributes to a well-structured management team, which is essential for informed decision-making and overall organizational growth.

Regarding whether the orphanages and old age homes had experienced managers capable of effectively overseeing their programs, There was disagreement over the level of involvement of other staff members in strategy development by management teams, as indicated by a lower mean of 2.36 and a standard deviation of 0.492. The significance of strategic leadership in ensuring that resources within an organization are properly directed is supported by Gary (2012). The standard deviation was 1.001, and the mean score was 3.17, again indicating neutrality. Supporting the necessity for more staff involvement in strategic processes, Nthini (2013) stresses the significance of team size balance in improving decision-making quality while keeping efficiency high.

The outcomes regarding the oversight of strategy implementation were varied. A mean score of 2.17 with a standard deviation of 0.556 signified disagreement, but a score of 3.21 with a standard deviation of 1.338 denoted neutral agreement about the frequent monitoring of activities. Overall, the mean values ranged between 2.17 and 3.28, suggesting that although there are systems in place for management and strategy implementation, there are noticeable gaps, particularly in staff participation and ongoing oversight. These findings are consistent with Jooste and Fourie (2012), who highlight that executing strategies effectively tends to be more challenging than their development, often resulting in high failure rates when implementation is weak.

Table 7: Impact of Relationship with Donor on investment

The results demonstrate a generally strong commitment by the orphanages and old age homes to comply with donor regulations and provide financial accountability, though there are notable areas of weakness in communication, stakeholder involvement, and overall donor engagement, highlighting opportunities for strengthening donor relationship management practices.

With a mean score of 4.28 and a standard deviation of 1.067, respondents strongly agreed with the assertion that the organizations comply with donor laws, according to the data. Similarly, with a mean score of 3.06 and a standard deviation of 0.956, maintaining tight connections with donors was deemed neutral. This confirms what Wiggill (2014) discovered: that South African NPOs, even when operating informally, adhere to well-established theoretical norms when it comes to donor relationship management.

A mean score of 2.95 and a standard deviation of 1.124 suggested that respondents were agnostic regarding the extent of donor participation in strategy design. With a mean score of 4.21 and a standard deviation of 0.846, the organizations demonstrated consistent accountability in financial reporting when it came to delivering regular reports to funders.

However, regular communication with donors was identified as an area of concern, with a relatively low mean of 2.24 and standard deviation of 0.445, indicating general disagreement on the adequacy of communication practices. Similarly, the statement regarding maintaining ongoing accountability to donors also received a neutral mean of 2.96 with a standard deviation of 1.054. These findings are supported by Van and Fourie (2015), who identified challenges in donor–NPO relationships, including power imbalances and insufficient transparency from NPOs, which can hinder long-term partnerships.

Furthermore, when it comes to the organizations' dedication to donor objectives, the average score was 2.66 with a standard deviation of 1.075, showing a fair degree of agreement. However, it does show that there is potential for development in terms of aligning organizational missions with donor expectations. Wiggill (2014) emphasized the importance of maintaining an organization's core mission without compromising solely to secure funding.

Overall, the mean scores ranged from 2.24 to 4.28, reflecting general agreement with the statements provided, though several areas—such as communication, donor involvement in strategy, and maintaining balanced accountability—require focused attention. These findings are consistent with Danida (2014), who highlighted that multi-donor fund approaches can improve impact while lowering administrative burdens, reinforcing the importance of strong donor relationships and effective communication to maximize sustainability and resource use

Table 8: Orphanages and Old Age Homes Performance

The results presented in Table 8 reveal positive financial management practices within the orphanages and old age homes. Specifically, the findings show that most of the orphanages and old age homes consistently adhered to their budgetary allocations, as indicated by a mean score of 3.91 and a standard deviation of 0.781, reflecting general agreement among respondents. Additionally, the orphanages and old age homes demonstrated effective cost management, with respondents strongly agreeing that their institutions have successfully maintained low operational costs over time, with a standard deviation of just 0.466 and a mean of 4.71, it is well-supported. In addition, with an average score of 4.12 and a standard deviation of 0.800, the results show that the organizations have often had enough resources to properly care for the children in their care.

Overall, these results suggest that the majority of the orphanages and old age homes implement sound financial strategies, ensuring stable operations while prioritizing the well-being of the children they support. The respondents largely agreed that the orphanages and old age homes manage their financial resources effectively, maintain low operational costs, and generally have adequate resources to care for the children.

Correlation Analysis

The correlation analysis results reveal varying relationships between different sustainability strategies and the performance of orphanages and old age homes. The findings show a positive but weak relationship between strategic leadership and organizational performance, With a correlation of 0.148 and a p-value of 0.459, the link is not deemed statistically significant.

The converse is true as well: donor relationship management methods are positively and significantly related to organizational success (r=0.817, p`0.000). This highlights the crucial role of effective donor management in improving performance.

On the other side, there are negative and statistically significant correlations between organizational performance and tactics for generating income and fostering cooperation. At the p-value level of 0.012, the connection between the cooperation approach and organizational performance is -0.477, suggesting that increased collaboration may not always translate into improved performance, possibly due to coordination challenges or resource constraints. Similarly, revenue generation strategies show a negative correlation of -0.498 with a p-value of 0.008, indicating that these initiatives may sometimes divert focus from the core mission, affecting overall organizational effectiveness.

These results suggest that while donor relationships and strategic leadership contribute positively to organizational success, excessive reliance on collaborations and revenue-generating activities may present challenges to sustaining high performance.

Table 9: Correlations

*. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

Regression Analysis

The research used multiple regression analysis to determine how sustainability measures affected the efficiency of nursing facilities and orphanages. What follows is a presentation of the findings.

Table 10: Model Summary

Table 10 shows that the R² coefficient of determination was determined to be 0.805. Collectively, the strategies for collaboration, revenue generation, strategic leadership, and donor relationship management account for about 80.4% of the variance in the organizational performance of orphanages and nursing homes.

Despite the fact that the chosen methods are major performance drivers, other variables account for 19.6% of the variance in performance, indicating that, there are additional external or internal influences that may also impact the effectiveness and sustainability of these institutions.

Table 11: ANOVA