Determinants Of Financial Sustainability Of Civil Society Organizations In Kisii And Nyamira Counties, Kenya

Abstract

ABSTRACT When an organization has lack of financial sustainability, a gap is created that makes it difficult to achieve success, the study aimed at identifying determinants of financial sustainability of Civil Society Organizations in Kenya with regard to Kisii and Nyamira Counties. The research’s specific objectives were to; assess how accessibility to donor funding, corporate governance, financial management, and stakeholder’s relationship, determine financial sustainability of civil society organizations in Kisii and Nyamira Counties. The previous studies related to, financial sustainability of civil society organizations were reviewed which includes review of theoretical and empirical studies, and conceptual framework. Descriptive survey design was adopted for this study. The population of the research study comprised of51 Finance Managers of 51civil society organizations in Kisii and Nyamira Counties. The sample size of the study comprised of all population subjects and therefore, census method was used for the research study. The research study used primary data which was collected by use of self-administered data collection tool to the target respondents. Data was analyzed using SPSS as per the data collection tool. Descriptive statistics formed the basis of the research and included frequencies and percentages. The relationship between determinants of financial sustainability of CSOs and level of financial sustainability were illustrated by a linear regression equation. All the relevant diagnostic tests were performed for the coefficients and overall model.Frequency distribution charts and tables to were used to present the data.The findings of the study revealed that access to donor funding, corporate governance, financial management and stakeholder’s relations had a role in determining financial sustainability of civil society organizations. Inferential statistics results like unstandardized regression coefficients indicate a positive role on these factors. Regression model indicate that there is positive relationship between access to donor funding, corporate governance, financial management and stakeholders relations and financial sustainability of civil society organizations.The study findings show there was a significant positive relationship between the factors under study (access to donor funding, corporate governance, financial management and stakeholder relations) and the level of financial sustainability of civil society organizations. The findings also indicate that the factors under study influenced financial sustainability of civil society organizations positively. The study suggests recommendations that donors need to give them long term grants so that they are able to operate efficient without constraints of funds. The decision making process need to be enhanced so that there is clear and effective communication process within the organizations. The reports submitted to donors need to be worked on effectively so as to expect positive results. Civil organizations can engage the respective donors on the areas of disagreement so as to harness the working relationship between donors and civil society organizations. When civil society organizations are designing their programs, there is need to consult with all stakeholders so that their views and contributions towards these programs can be taken into account. There is need for the civil society organizations to appreciate their stakeholders with whichever kind so that thy feel part and parcel of the process. The study was done on the civil society organizations within Kisii and Nyamira Counties, there is need to replicate the same to other counties so that researchers can compare results and have different views from these regions. The researcher dealt on civil society organizations may be another research can be done on other areas like faith based organizations.