UNRWA suffers severe funding shortfalls, impacting its sustainability, during the recent years, especially 2024-25, due to the war on Gaza and Lebanon and instability in Syria, and threats to dismantle it. This study aimed at exploring Income Diversification Strategy (IDS) as a fundraising driver to maintain UNRWA’s Financial Sustainability (FS) and ensure its continuity, considering the moderating role of dynamic managerial capabilities (DMC). Based on the analytical qualitative methodology, it collected data through a questionnaire and analysis of the financial statements for the last twelve years and found that
a.UNRWA has a medium level of IDS(49.14%), FS(45.5%) and DMC(59.59%)
b.There is a statistically significant positive moderate relationship between IDS and FS (R=0.463), and impact of 31.6%, where DMC moderated these relationship and impact by 6.2%, therefore, it can be concluded that IDS and DMC can reduce the threat to dismantle UNRWA
The study provided recommendation to improve UNRWA’s FS, through IDS and creating SGI project/programmes, and efficient utilisation of the available resources and reducing the expenditure