This study sought to examine the effect of financial literacy on the sustainability of Catholic
service institutions, using the Dream Centre in Nairobi as a case study. Specifically, it evaluated
the impact of financial knowledge, financial skills, and ethical awareness on organizational
sustainability. A descriptive survey design was adopted, with data collected through structured
questionnaires from 38 staff members. The study achieved an 88% response rate, ensuring high
data reliability. Findings revealed that a majority of the respondents possessed adequate financial
knowledge and skills, and that management effectively understood financial reports and aligned
decisions with long-term strategic goals. Additionally, most respondents acknowledged a clear
link between financial literacy and fund management success. However, a portion of staff indicated
that financial literacy was not consistently prioritized, signaling room for improvement in training
and policy integration. Although ethical awareness data was limited, it was acknowledged as a
critical pillar for transparency and donor trust. The study concluded that financial literacy,
comprising knowledge, skills, and ethical conduct, is essential for the financial sustainability of
Catholic service institutions. It recommended strengthening training, clarifying roles, enhancing
ethical awareness, and embedding financial literacy into institutional policy. The study called for
further research into donor dependency, the use of digital financial tools, and cross-institutional
comparisons.