FINANCIAL SUSTAINABILITY PRACTICES AND OUTCOMES IN KENYA’S NONGOVERNMENTAL ORGANIZATIONS: DEVELOPMENT ASSISTANCE DIPLOMATS AND ANGELS OF MERCY PARADOX

Abstract

Non-Governmental Organizations (NGOs) play a major role in improving the living standards of families’ households, groups and individuals in any country especially in Kenya and yet its downplayed therefore, this paper posits that through financing There has been a significant increase in activities from Non-Governmental Organizations NGOs) with regards to funding of various projects as a practice (Adera, 2012). This paper seeks to posit financial sustainability practices and outcomes in Kenya’s Non-governmental organizations in a quest to deepening and creating an in-depth knowledge on some of these practices and their outcomes initiated or funded by non-governmental organizations to creating financial sustainability. The objectives of the article are three fold: to identify financial sustainability practices such as surplus, cash available to pay bills, credit facilities and community participation, to evaluate on the role of funding policies for financial sustainability of non-governmental organizations and finally to explore any inherent paradox on non-governmental financial sustainability principles and outcomes. The hypotheses were developed and tested using data collected using survey of the four regions selected in Kenya. Stratified random sampling technique was used to pick 110 managers in the region. Data was collected using self-administered structured questionnaires to the respondents. Pearson correlation and multiple regression models were used in the analysis to assess the financial sustainability. Financing policies was positively correlated to financial sustainability beta coefficient 0.296, ρ<0.05 does affect financial sustainability. level of access to donor funds was positively correlated to financial sustainability (Pearson correlation=0.468, p value=0.000) financing policies was 0.249 with p value 0.000<0.05 significance level, thus the study provide precursory evidence to reject null hypotheses that donor financing policies had no significance effect on financial sustainability of the project and infer that donor financing policies positively affect financial sustainability, thus enhancing financial policies will improve the financial sustainability of a project. The study is intended to strike a realistic approach of donor implementers and various governments on development assistance and allocative performance in creating financial sustainability and improving non-governmental organization performance which normally trickles down on citizen’s sustainability.