This study was set to analyse institutions and processes governing the practice of party financing modalities in Malawi. The question central to this study was; which institutions are governing party financing in Malawi in the absence of national regulations? Employing an institutional approach to political analysis the study was premised on the assumption that where party financing is not properly regulated, party financing activities are guided by informal practices. The major finding is that party financing in Malawi is unregulated. In fact, there are no documented rules in Malawi on party financing. The key argument is therefore that party financing activities in Malawi are guided by informal institutions. This situation has entrenched lack of and accountability in financial matters in Malawi and within the Malawian political parties.