BUDGETING PRACTICES AND FINANCIAL SUSTAINABILITY OF NON-PROFIT ORGANIZATIONS IN KISII COUNTY, KENYA
Abstract
The objective of this research was to assess the effect of budgeting practices on financial sustainability of non-profit organizations in Kisii County, Kenya. The specific objectives are; to determine the effect of budget planning on financial sustainability, to establish the effect of budget implementation on financial sustainability, to assess the effect of budget control on financial sustainability and to determine the effect of budget review on financial sustainability of non-profit organizations in Kisii County, Kenya. The research was based on four theories namely; the resource dependency theory, agency theory, contingency theory and institutional theory. Descriptive research design was employed in this study. The population of the study was all the 73 non-profit organizations in Kisii County, Kenya that have implemented projects in the last 3 years which were all studied using a census. The target respondent was the head of finance in each non-profit organization. A descriptive survey research design was utilized. Questionnaires were utilized in primary data collection. The collected data was analysed using multiple linear regression method. Data collected was analyzed using both descriptive and inferential statistics; and presented inform of tables. Ordinary Least Square method was used for estimation and Statistical Package for Social Sciences (SPSS) Version 24 was used to aid the analysis. Results showed that budget planning has a positive significant effect on financial sustainability (β = 0.142; p = 0.014), budget implementation has a significant positive effect on financial sustainability (β = 0.340; p = 0.029; budget control has a significant positive effect on financial sustainability, (β = 0.235; p = 0.017) and budget review has a significant positive factor affecting financial sustainability (β = 0.305; p = 0.001). It was recommended that policymakers leverage these insights to develop targeted interventions supporting NGOs in enhancing their financial resilience.
Key Words: Budget Planning, Budget Implementation, Budget Control, Budget Review, Financial Sustainability
CITATION: Bosire, M. M., & Miroga, J. (2024). Budgeting practices and financial sustainability of non-profit organizations in Kisii County, Kenya. The Strategic Journal of Business & Change Management, 11 (2), 1099 – 1124. http://dx.doi.org/10.61426/sjbcm.v11i2.2972
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DOI: http://dx.doi.org/10.61426/sjbcm.v11i2.2972
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