The Effects of Funding Diversification on Financial Sustainability of Non-governmental Organizations in Nairobi County

Abstract

xi ABSTRACT The Non-Governmental Organization sector has been active in delivering important services both economically and socially in Kenya. This study focused on “determining the effect of funding diversification on the financial sustainability of NGOs in Nairobi County. The study has adopted a descriptive survey design and this research design was found productive technique for methodically gathering information from a wide range of people and instructive settings. The population of the study comprised of 150 NGOs that are duly registered by the National Council of NGOs and operating in Nairobi County and particularly, the heads of the involved organizations.The sample size was computed using the Yamane formula that gave a sample size of 109 samples. Data collected was purely primary and consisted data obtained from questionnaires and face-to-face interviews. Data analysis was carried out using Statistical Package for Social Sciences (SPSS) and the results were summarized by use of descriptive statistics such as frequency distributions, percentages, and standard deviation. The findings showed that expansion of subsidizing sources, faculty fitness, self-financing and key money related arranging all contributed generally to the budgetary supportability of the NGOs in Kenya. From regression test, diversification of funding sources, personnel competency, strategic financial planning and income from self-financing accounts for 49.3% of financial sustainability. Hypotheses were tested and all null hypotheses were rejected, showing that study variables influence financial sustainability. The study recommended that NGOs need to frame an expansive and brought together planning discussion, affiliation or gathering to speak to their advantage and agenda, to strengthen their organizational capacity. There is need to develop strong network for more fund raising and support”.