Thesis (MBA)-University of KwaZulu-Natal,2007.In an effort to address the poverty situation in world, the international community set up Millennium Development Goals (MDGs) committing countries to work towards achieving these by 2015. Tanzania is one of the poor countries located in Sub-Sahara Africa and is expected to work towards the MDGs. Tanzania Development Vision 2025 and National Strategy for Growth and Reduction of Poverty (NSGRP) are some of the efforts made by the government of Tanzania to achieve these goals. A nongovernmental organization within Civil Society sector is the subject of this study. The researcher believes in the importance of the organization and other similar organizations as major contributors in delivering the objectives of the poverty reduction strategy in the country. The research investigated the current institutional framework of the Non Governmental Organization (NGO) in Tanzania, specifically focusing on its financing strategy with a view to assess how the strategy can be strengthened or changed in order for the organization to remain strong and effective. The key questions of the study being; what make up an effective financing strategy, Can an NGO be financially sustainable without donor support? And what constitute a financially stable organization? The methodology used during the study included interviews with staff members and other key stakeholder, consulting literature and other relevant organization documents. The information collected was analyzed using a range of strategic analysis and research tools. Key to the financial stability is ensuring that the organization does quality and relevant work that is well planned and undertaken by motivated and competent staff. The study concludes that structures need to be reviewed time to time and defined to reflect organization's reality. Given the organization's situation it is recommended that capacity building work it does is accelerated and extended to local government as long as it will not affect the organization's core values. The Vision and mission should stay the same. To avoid confusion with the stakeholders and tax authorities the management should clarify non-profit making status of the organization. An audit of personnel capacity need to be carried out and their work responsibilities reviewed. Finally the organization should develop a clear proposal on capacity building for poverty reduction to access more donors funding