Abstract: Project management requires effective financial management. Financial Sustainability is therefore an integral part of the project management. The objective of the study was to analyze financial sustainability of community based organizations, a survey of selected community based organizations. The study was guided by the following specific objectives; Establish the diversity of funding sources and their characteristics; Examine the practices and challenges of financial sustainability in relation to financial competence and own income generation; Suggest ways towards sustainable financial management practices Kenya. Descriptive survey research design was used targeting 154 registered and active and registered CB0s in Mt. Elgon Sub County. A sample size of 110 obtained using simple random sampling was used and data collected using questionnaires. Data was analyzed using both descriptive and inferential statistics with the aid of regression analysis. The findings revealed that diversity of funding sources (r = 0.787, α = 0.05); practices and challenges of project management (r = 0.478, α = 0.05) and Sustainable financial management practices (r = 0.435, α = 0.05) had significant effects on financial sustainability of CBOs. The results indicated that the Practices and challenges of the projects was the most important factor. The study recommended that CBOs should be engaging in income generation activities as for-profit organization. Emphasis should also be placed on hiring staff that are competent. This is because competence of staff significantly affects the financial sustainability of CBOs. Nevertheless, the staff should be frequently trained to ensure continued competence level.
Keywords: Sustainability, Finance, community based organisation, Harambee.
Title: Financial Sustainability of Community Based Organizations’ in Mt. Elgon Sub-County, Kenya
Author: Alex Cheptot, Dr. Mike Iravo, Mr. Robert Wamalwa Wandera
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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