Income generating strategies and financial sustainability of non governmental registered organisations in Nairobi city county, Kenya
Busienei, Violet Chepchirchir
MetadataShow full item record
With Donor funding diminishing or diverted to other needy projects, humanitarian organizations are deepening forays into commerce as they race to reduce over reliance on dwindling inflows. This study focuses on financial sustainability which is the ability of NGOs to develop a diverse resource base so that it can continue its institutional structure and production of benefits for intended beneficiaries after the cessation of donor financial support. The general objective of this study investigated income generating strategies and financial sustainability among Non-Governmental Organization in Nairobi City County. Specifically,the study investigate the relationship between Fund Raising, income diversification, income generating projects and cost recovery adopted Non-governmental Organizations on Financial Sustainability, a case of Non-governmental Organizations in Nairobi City County. The study was conducted through descriptive study. Theories for anchoring this study are Resource based resource Dependency, Resource Mobilization, Legitimacy theories. The study was important to all managers in the NGO sector it helped them understand the strategic practices and help the NGOs sustain their funds, it enlighten the stakeholders on how to ensure financial sustainability of NGOs and the result of the study was valuable to scholars in forming a basis of further research. Descriptive research design was used and a stratified random sampling technique was used to select 127 respondents from a list of NGOs in Nairobi. The study used both primary and secondary data sources in gathering data for analysis. A questionnaire was used as data collection instrument. Data was analysed using statistical software, Statistical Package for Social Sciences (SPSS). Multiple regression analysis was used to determine the relationship between one dependent variable and one or more independent variables.The study achieved a response rate of 81%. The findings show that 53% of the respondents were male; majority 60% of the survey organizations had been in operation for over 6 years. The findings further shows that funding strategies had a mean of 11.68, income generating project strategies had 9.62 while cost recovery strategy and capacity building had 8.21 and 5.69 respectively. With R Square of 0.589 (58.9%), the model used in this study was fit. In general, the study found that all variables had strong evidence that there is greater association between fundraising and finance sustainability.Most respondents agreed that their sustainability was guaranteed for life as they received substantial grants to support projects. This study recommends that NGOs explore their strategies to ensure sustainability, recognising however, that the need for ongoing fundraising is part of what ensures the creativity and innovation of NGOs, while also being a drain on financial and human resources.