Local non-governmental organizations (NGOs) in Somaliland face difficulties in managing their finances, which puts them at risk of folding. Sound to guarantee an NGO's long-term economic success and sustainability, it needs a financial management system that allows for the most effective allocation of its resources, as well as the highest possible levels of transparency and accountability in those finances. Donors give money to non-profits on the assumption that the money will be used to accomplish the goals outlined in the organization's strategic plan and annual work plan. The study is based on the use of descriptive research as has employed questionnaire method of data collection which involves the use of both quantitative and qualitative research methodology.A research project submitted in partial fulfillment of the requirements for the award of master of business administration degree in accounting ofMount Kenya University.