Influence of financial sustainability on financial growth of non-governmental organizations in lreb-Kenya

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.