INFLUENCE OF FINANCIAL SUSTAINABILITY ON FINANCIAL GROWTH OF NON-GOVERNMENTAL ORGANIZATIONS IN LREB-KENYA
DOI:
https://doi.org/10.46827/ejefr.v7i3.1557Gako-hitzak:
financial sustainability, financial growth, Lake Region Economic Block- KenyaLaburpena
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:
Erreferentziak
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
