Non-governmental organisations have met with immense growth over the past decades with increasing donor support towards their highly regarded work especially in developing countries. However, the social and economic impact of these entities has of late not faired as expected in Botswana. NGOs are frail and easily crippled in the face of volatile donor-funding from developing countries. This qualitative research therefore, adopted a case study research design to investigate the sustainability of Donor- Funding towards NGOs and their Socio-economic impact in Botswana. A sample of 10 NGOs was selected for the study. Structured questionnaires and interviews were used to gather data. Data was presented in form of graphs and tables. The study revealed that NGOs in Botswana are now struggling to reach out effectively to their beneficiaries as much as they are supposed to. Their ability to satisfy the needs of beneficiaries is desirable but gravely challenged principally by sustainability issues. BOCONGO as the coordinating body is in a dire state. It also interprets to less effective abilities to fulfil their own mandate of espousing the local NGOs together. While impartial comments were passed with some agreeing to the government as very supportive, some were differing. There was a general view that the government was moderately assisting towards the upkeep of the NGO sector. Laws and regulations governing CSR of the private sector were highlighted as desirable. Due to the departure of donors, NGOs in Botswana have turned to the private sector and to the government for assistance. There is need for diversification in the funding structures of NGOs to combat survival issues and ensure for sustainable socio-economic impact. As a result, the researchers recommended that NGOs should seriously look further into diversification of their funding strategies more if they are to be sustainable. Furthermore, instead of NGOs competing for resources and donor-funding, they need to employ a culture of endorsing each other’s work. Further research may look into NGOs in Botswana sector by sector so as to suggest tailor-made recommendations for their sustainability and funding diversification.