Browsing by Author "Orinda, Victor Omondi"

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    Financial Planning Practices and Donor Retention Rate of Education-Centered Non-profit Organizations in Nairobi City County, Kenya
    (GLOBEEDU Group, 2025-01) Orinda, Victor Omondi; Kosgei, Margaret
    This study examines the influence of financial planning practices on donor retention rates in education-based non-profit organizations (NPOs) in Nairobi City County. These organizations are vital in addressing educational disparities in underserved regions, but they have faced increasing donor retention challenges, particularly since 2019. This study relates the need to uncover financial planning practices' effect on the donor retention rate of education non-profits in Nairobi City County. It aimed to evaluate the correlation between budgeting practices and donor retention rates, determine how financial forecasting strategies affect donor retention rates, investigate the effect of cash flow management methods on donor retention rates, and examine the association between risk management approaches and donor retention rates. The study, grounded in stewardship, social exchange, and resource dependency theories, sampled 85 finance and fundraising officers from 109 targeted education-based NPOs. Data were collected through open— and closed-ended questionnaires. Three diagnostic tests were performed before the inferential analysis: the normality, multicollinearity, and heteroscedasticity tests. Descriptive and inferential techniques guided the analysis of data after collection with the help of Excel and SPSS software. The data was analyzed using the Pearson correlation. Multiple linear regression analysis was used as the decision rule for testing the study's hypothesis. The decision rule specified that the null hypothesis rejection or acceptance was established on the coefficient's signage. The findings reveal that all three financial planning practices significantly and positively affect donor retention. The study concludes that effective financial management practices are essential for donor retention and recommends implementing comprehensive financial frameworks. Further research is encouraged to explore these dynamics in other non-profit sectors.
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    Financial Planning Practices and Donor Retention Rate of Education-Centered Non-Profit Organizations in Nairobi City County, Kenya
    (Kenyatta University, 2025-06) Orinda, Victor Omondi
    The donor retention rate is a nonprofit concept that requires strategic and tactical efforts to sustain the stability of most education-based nonprofit organizations. These organizations have consistently bridged the gap in education by providing resources to underserved and vulnerable regions. Since 2019, the donor retention rate has become a critical challenge for education-based nonprofit organizations, given the uncertainty of reduced income and donor withdrawals. This study highlights the role of financial planning practices on the donor retention rate of education-based nonprofit organizations in Nairobi City County, Kenya. The objectives of this study are as follows: the influence of budgeting practices, the effect of financial forecasting practices, the effect of cash flow management procedures, and the influence of risk management practices on the donor retention rate of education-based nonprofit organizations in Nairobi City County, Kenya. The research scope covered educational institutions in Nairobi City County and targeted 109 NPOs in the education sector. It anchored its theoretical foundation in stewardship, social exchange, and resource dependency theories. The sample size included 85 respondents, targeting finance managers, program coordinators, and fundraising officers selected through a simple random sampling technique. Open and closed-ended questionnaires assisted in gathering the data. A pilot study was conducted with six participants. Cronbach’s alpha coefficient determined reliability before the measuring tool was administered, and variables with coefficients greater than 0.7 were regarded as reliable for the study. The validity of the measuring tool was established with the assistance of supervision and research experts. Three diagnostic tests were performed before inferential analysis: normality, multicollinearity, and heteroscedasticity tests. Descriptive survey and explanatory research designs guided both quantitative and qualitative data collection. Descriptive and inferential techniques directed the analysis of data after collection, using Excel and SPSS software version 30.0.0. Data was analyzed with the Pearson correlation to determine the strength of the associations. Descriptive analysis results were presented in diagrams, pie charts, and tables, while inferential statistics results were presented in tables. The results of the data analysis indicated R-squared values for the predictor variables as follows: 0.485 for budgeting, 0.149 for financial forecasting, 0.055 for cash flow management, and 0.656 for risk management practices meaning that 48.5%, 14.9%, 5.5%, and 65.6% of the total variations in the donor retention rate are explained by variables, respectively. Additionally, multiple linear regression analysis served as the decision rule for testing the study’s hypothesis. The results of the multiple regression analysis indicated that all predictor variables, budgeting (with a coefficient of 0.344), financial forecasting (with a coefficient of 0.112), cash flow management (with a coefficient of 0.114), and risk management practices (with a coefficient of 0.570), positively and significantly influenced the donor retention rate. The study concluded that budgeting, financial forecasting, cash flow management, and financial risk management practices significantly influence donor retention rates in education-centered nonprofit organizations in Nairobi City County. The study recommends that education-based nonprofit organizations adopt and strengthen these four financial planning practices to improve donor retention and long-term financial sustainability. Further studies can be conducted to replicate the research activities of nonprofit organizations beyond education-centered nonprofit organizations.