Abstract
Budgeting processes and financial reporting are widely recognised mechanisms for enhancing financial accountability, yet empirical evidence on how these mechanisms influence financial accountability within faith-based non-profit organisations remains limited. Guided by Stewardship Theory and Stakeholder Theory, this study examines the influence of budgeting processes and financial reporting on financial accountability in religious organisations. Using a deductive approach, empirical data were collected from 173 Catholic and Lutheran parishes in Dar es Salaam, Tanzania, yielding a total of 471 valid responses aggregated at the parish level for analysis using Partial Least Square Equation Modeling (PLS-SEM). The findings reveal that both budgeting processes and financial reporting positively and significantly influence financial accountability, with financial reporting demonstrating a stronger effect. These results support the applicability of Stewardship and Stakeholder theories in faith-based settings, underscoring that formal financial management practices are essential for promoting transparency, trust and responsible stewardship. The study highlights the importance of institutionalising transparent reporting practices and performance-oriented budgeting systems to enhance accountability and mission effectiveness. By providing evidence from a developing-country context, the study contributes to the limited literature on financial governance and accountability in religious organisations and offers insights relevant to faith-based institutions in similar emerging economies.
Recommended Citation
Bayno, Plasidi Marcel and Haule, Helena Thomas
(2026)
"The Influence of Budgeting and Financial Reporting on Financial Accountability in Religious Organisations: Evidence from Selected Churches in Tanzania,"
Business Management Review: Vol. 29:
No.
3, Article 1.
Available at: https://doi.org/10.65085/2546-213x.1367