Financial performance of faith-based nonprofit organizations: lessons from Jakarta mosques during COVID-19

Purpose This paper aims to examine the financial resilience of Jakarta mosques as faith-based nonprofit organizations (FBOs) during COVID-19 pandemic. It investigates the impact of various factors, such as COVID-19, mosques attendance, programs conducted, staff, government subsidies, mosque size and the four pillars of sustainability dimensions (Prosperity, People, Planet, Prophet) on cash flow of selected FBOs. Design/methodology/approach Research design is based on a survey data which is collected from 97 mosques across five selected districts in Jakarta from 2019 to 2022. The data were analyzed using panel regression. The authors developed two models: Model (1) uses cash flow as a proxy for a selected mosque financial performance as the dependent variable and Model (2) examines the impact of different external shocks from the perspective of attendees as the dependent variable. Robustness checks were conducted to assess the stability of the panel regression results. Findings This study observes that COVID-19 did not significantly affect cash flow, although it reduced average attendance by 21 worshippers. The authors also noted that the number of attendees, programs and the People’s sustainability dimension were significant predictors of cash flow, while government subsidies had a negligible impact. Practical implications This study can help FBOs administrators and policymakers enhance mosque financial performance and mitigate such future crises. It highlights the importance of community engagement, diverse program offerings, alternative fundraising strategies and applying a sustainability dimension (People) for maintaining mosques’ financial health. Originality/value This study contributes to the theoretical understanding of the FBOs from an Islamic perspective, with a special focus on mosque management. It explores the socioeconomic factors influencing the financial performance of mosques. In addition, it develops sustainability scales based on quadruple bottom line (QBL) theory, which can be used to assess mosque sustainability.