Abstract: Due to poor financial management practices, NGOs face challenges in operational sustainability as they are faced with donor withdrawals and subsequent collapse of the NGOs. Therefore study examined the influence of financing decisions on operational sustainability of NGOs in Nakuru. Theory that was used in the study was Contingency theory. The study adopted explanatory research design. The target population of the study included 158 managers from finance and accountant departments who were the study respondents. Simple random sampling technique method was employed where 59 respondents were selected. Data was collected from the respondents by use of structured questionnaires which was constructed on a 5-point Likert scale. Questionnaires were tested for reliability and validity. Data was collected and analyzed using Statistical Package for Social Sciences (SPSS) IBM Version 24. This was done using both descriptive and inferential statistics. Descriptive statistics included percentages, frequencies, and means while inferential statistics included correlation analysis and regression analysis. The findings established that financing decisions had significant relationship of r=.575 with operational sustainability of the NGOs in Nakuru county. Therefore, the study concluded that financing decisions have a significant influence on operational sustainability of NGOs in Nakuru County, Kenya. The study recommended that the NGOs in Nakuru town should come up with a policy framework to help them with better financing decisions. This will help the NGOs avoid cases of poor resource allocation that jeopardize operational sustainability in the NGOs.
Keywords: Financing Decisions, Financial Management Practice, Nakuru county, Non-Governmental Organization, and Operational Sustainability.
Title: INFLUENCE OF FINANCING DECISION ON OPERATIONAL SUSTAINABILITY OF NGOS IN NAKURU COUNTY, KENYA
Author: Silvester Totona Kibet, Dr. Patrick Kibati
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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