The Impact of Internal Control System on the Performance of Palestinian NGOs رسالة ماجستير

Abstract

The internal control system plays a critical role in enhancing the performance of non-governmental organizations (NGOs). This study aims to examine the impact of internal control systems on the performance of Palestinian NGOs by analyzing how the key characteristics of internal control—namely, the control environment, risk assessment, control activities, information and communication, and monitoring—contribute to their overall performance. The study focuses on NGOs headquartered in the city of Ramallah, Palestine. The research population comprises 160 NGOs, from which a sample of 45 organizations was selected. To gather data, four employees from each organization were targeted, resulting in a total of 180 distributed questionnaires. Of these, 155 responses were retrieved and analyzed for the study. This study confirms a positive relationship between internal control systems and NGO performance. Key factors contributing to enhanced performance include a strong control environment, effective oversight activities, robust risk assessment, efficient communication mechanisms, and continuous monitoring. These elements collectively improve transparency, accountability, and operational efficiency in NGOs.