DETERMINANTS OF FINANCIAL SUSTAINABILITY OF NON-GOVERNMENTAL ORGANIZATIONS IN MOMBASA COUNTY, KENYA
Abstract
The purpose of this research was to find out what factors are responsible for NGOs' financial viability in Mombasa County, and to provide a solution to that issue. The descriptive research design was utilized in this study. The study population consisted of 67 non-governmental organisations based in Mombasa County. The sample size for the research consisted of 134 respondents in 67 registered NGOs. The main data was gathered via the use of questionnaires. Correlation and regression analyses were carried out in order to establish the connection between the different research variables. All the three variables financial sources, Strategic financial planning and budgeting (0.037, 0.000 and 0.016) had a p value less than the significance level of 0.05, indicating that all the independent variables are important for financial sustainability, which is contrary to popular belief. According to the findings of the research, in order for non-profit organisations to be financially sustainable, they must have a variety of sources of funding, which may include local or international sponsors, in order to avoid the initiatives they support from being derailed. In order to guarantee that funds are effectively used, non-governmental organisations encourage the input of shareholders who are the beneficiaries of the initiatives and who assist the NGO in obtaining lower-cost resources from local sources throughout the budget planning process. According to the findings of the research, non-governmental organisations should diversify their revenue sources to include public, local, and national government, as well as private sector companies, rather of depending only on overseas donations. NGOs should not only develop strategic plans, but also evaluate them on a regular basis to ensure that they are still relevant. Accounting rules and recording processes should be properly recorded and made into written policies. Furthermore, non-governmental organisations should put in place sufficient internal controls to ensure that the money given by donors are used in a transparent and accountable manner.
Key Words: Financial Sources, Strategic Financial Planning, Budgeting, Financial Stability
CITATION: Nalivata, K. K., Muli, S., & Nyamongo, M. (2022). Determinants of financial sustainability of non-governmental organizations in Mombasa County, Kenya. The Strategic Journal of Business & Change Management, 9 (1), 59 – 76.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i1.2164
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