INFLUENCE OF FINANCIAL SUSTAINABILITY ON FINANCIAL GROWTH OF NON-GOVERNMENTAL ORGANIZATIONS IN LREB-KENYA

Eunice Achola, Benjamin Ombok, Evans Kiganda

Abstract


Literature reveals inconsistencies on factors influencing the financial sustainability of local NGOs, with some suggesting such factors as income diversification, incomes from local and external donors as well as own income-generating activities, while others opine that continued external donor funding is required for sustainability. Evidence also shows that for the period under review, the financial growth of the NGOs, as critical vehicles of welfare development in the region has been fluctuating since 2010, but with a declining trend from 2019 to 2022. The purpose of this paper is to establish influence of the financial sustainability on the financial growth of non-governmental organizations in the Lake Region Economic Block- Kenya. A cross-sectional research design is adopted on a sample size of 220 respondents from whom both primary and secondary data were obtained and analyzed using independent samples t-test, one-way ANOVA, correlation, and regression. Guided by the Resource Based View Theory, the results yielded a significant  change of 0.033; from 73.7% to 77% after moderation; implying that financial sustainability has a significant moderating effect of 3.3%. The findings of this study are invaluable for innovative and sustainable financial decisions by NGOs, and also scholars and policymakers on matters of revenue growth.

 

Article visualizations:

Hit counter


Keywords


financial sustainability, financial growth, Lake Region Economic Block- Kenya

Full Text:

PDF

References


Atalay, A. (2021). The Journal of Corporate Governance, Insurance, and Risk Management (JCGIRM). Central and Eastern European Library, 19-38.

Alhadhrami A. and Nobanee H. (2019). Sustainability Practices and Sustainable Financial Growth. SSRN Product Services. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3472413

Alshubiri, F. N. (2020). Analysis of financial sustainability indicators of higher education institutions on foreign direct investment. International journal of sustainability in higher education, 22(1).

Arner, D. (2007). Financial Sustainability, Economic growth and the role of law. Retrieved from https://www.researchgate.net/publication/227390374_Financial_Stability_Economic_Growth_and_the_Role_of_Law

Barthelmer, Spellerberg, & Montgomery, R. (2011). Education for Sustainability at Lincoln University New Zealand. Lincoln University.

Board, N. C. (2020). NGOs Annual report. Nairobi: NGOs.

Gakuu C., Kidombo H., & Ltumbesi L. (2018). Analysis of moderating influence of community participation on the relationship between technical assistance and sustainability of donor-funded project in Samburu. International journal of economics, commerce and management, (4)1. Retrieved from https://www.researchgate.net/figure/Moderating-influence-of-Community-Participation-on-the-relationship-between-Technical_tbl1_326609841

Galera, A. (2016). Measuring the financial sustainability and its influence factors in local government. Applied Economics, 48(41).

Gebregiorgies, E. (2022). Determinant of financial sustainability of non-governmental organization in Ethiopia. Journal of accounting and marketing, 11(8).

Gul, K. & Morande S. (2023). Factors Influencing Sustainability of Non-Governmental Organizations in the developing world. SEISENSE Business Review. Retrieved from https://journal.seisense.com/index.php/sbr/article/download/885/193

Hailey, J. & Salway M. (2016). New routes to CSO sustainability. Development in practice, 26(5).

Holland Karnis (2011). Framework for integrating sustainability into remediation projects. Journal of environmental cleanup cost, technologies and techniques, 45, 17, 7116–7117. Retrieved from https://pubs.acs.org/doi/10.1021/es202595w

Hui Hu, & Sathye, M. (2015). Predicting financial distress in Hong Kong's growth enterprises market from the perspective of financial sustainability. Journal sustainability. 7(2) https://doi.org/10.3390/su7021186

Makeche, E. M., & Chowa, T. (2023). A Study of the Factors that Determine Local NGO Financial Sustainability, A Case of CIDRZ. International journal of innovation science and research technology, 8(4).

Malito, D. (2014). Measuring Sustainability: Benefits and Pitfalls of Fiscal Sustainability Indicators. Retrieved from https://cadmus.eui.eu/handle/1814/31913

Matinda, J. & Ndungu', E. (2022). Corporate growth strategies and financial performance. International Academic Journal of Economics and Finance-IAJEF, 3(8), 25-46.

Musah A. & Ahmed A. (2020). Determinants of Financial Sustainability of Non-Governmental Organizations (NGOs) in Ghana. The journal of accounting and management, 10(1).

Mulusa, G., Kiganane, L. K., & Asiega (2021). Influence of income generating activities on the financial sustainability of churches in Kenya. JSSBT, 2(1), 22-32.

Nemetz, A. (2015). A Global Investigation of Government and Community Stakeholder Influences on Large Company Engagement in Sustainability. International journal of business and management, 10(2).

Nnabuife, E., & Onwuzuligbo P. (2016). Sustainability and corporate longevity of firms in Nigeria. Journal of economic and sustainable development, 6(18).

Ochiri, G., & Maina, A. (2019). Determinants of Financial Sustainability of Community Based Organizations in Kenya. International journal of management and commerce innovation, 6(2).

Pittel, K. (2010). Sustainability and Endogenous growth. Canadian journal of economics. Retrieved from https://ideas.repec.org/b/elg/eebook/2776.html

Schultz, G., & Neely, D. (2016). Exploring nexus of non-profit financial stability and financial growth. International journal of voluntary and non-profit organization, 2561-2575.

Varghese, Joe, & Ajukuria (2021). Financial sustainability of non-profit organization (NPO) North East India. Turkish online journal of qualitative inquiry, 12(7), 6683-6697.

Zabolotnyy, S.; Wasilewski, M. (2019). The Concept of Financial Sustainability Measurement: A Case of Food Companies from Northern Europe. Sustainability, 11, 5139. https://doi.org/10.3390/su11185139




DOI: http://dx.doi.org/10.46827/ejefr.v7i3.1557

Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Eunice Achola, Benjamin Ombok, Evans Kiganda

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.

Copyright © 2016 - 2023. European Journal of Economic and Financial Research (ISSN 2501-9430) is a registered trademark of Open Access Publishing Group. All rights reserved.

This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and  Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.