Financial viability of BRAC in Bangladesh

Abstract

BRAC has been operating in Bangladesh for more than 40 years and the development climate has changed over these years. Bangladesh, who used to be a low-income country, has achieved lower middle-income country status in 2015 and has a vision to become high middle-income country by 2021. In such circumstances development work from donor funding is forecasted to slow down since international donors will shift focus from Bangladesh to poorer countries. The objective of my report is to understand the current financial viability of BRAC based on financial performance of the organization in Bangladesh in above mentioned changing climate. BRAC’s composition of income has changed and reliance on donor funding has reduced. BRAC’s performance of financial ratio’s like liquidity ratio and debt ratio is satisfactory and there is scope of improvement. The microfinance program has achieved operating self-sufficiency and the trend is that OSS will improve. Overall the institutional sustainability of BRAC depends on BRAC’s ability to increase the size of income generating projects, microfinance and social enterprises.