The Impact of Governance in the Nonprofit Sector on Financial Sustainability and the Efficiency of Financial Investment Management (Published)
This study aimed to know the effect of governance in the nonprofit sector on financial sustainability and the efficiency of financial investment management. It also aimed to know the challenges that face the application of governance. The study used the descriptive analytical method. It used a mixed method by questionnaire and interviews. The questionnaire sample was 59 persons from nonprofit organizations. The interview sample was 13 persons. The results showed a high level of governance application in the organizations of the study. The results also showed a positive effect of governance on financial sustainability and on the efficiency of financial investments. Transparency, financial disclosure, and internal control were among the most applied elements. Governance helped to increase the confidence of donors and supporters, improve the stability of financial resources, make investment decisions better, and reduce investment risks. The study found some challenges. The main challenges were weak awareness of governance, lack of specialized people, and the need to improve risk management and control systems. The study recommended more training, activation of audit and internal control committees, better transparency, development of digital systems, and diversification of income and investments.
Keywords: Financial Sustainability, Governance, Internal control, Saudi Arabia, financial investments, nonprofit sector
The Influence of Source of Funding on the Financial Sustainability of Non-Governmental Organizations in Uasin Gishu County, Kenya (Published)
Financial sustainability is the ability of organizations to develop a diverse resource base. In Kenya, the number of NGOs has been increasing yearly; most of them depend on foreign donations. Therefore, the study sought to establish the relationship between donor funding and financial sustainability of non-governmental organizations in Uasin Gishu County, Kenya. Based on the study, this paper explores the influence of sources of funding on the financial sustainability of NGOs. Correlation research design was used as the principal research methodology for the study. The target population was 146 NGOs that were actively engaged in development projects in Uasin Gishu County. The respondents were NGO management and volunteers. Stratified sampling technique was used to identify non-governmental organizations to participate in the study. A sample size of 60 respondents was selected using Nassiuma’s 2000 model. Data collected was analysed using descriptive and inferential statistics. Test re-test was done to establish the reliability of instruments results; 95% level of significance was used to test the hypothesis. The findings of the study showed that there was a positive correlation between donor funding and financial sustainability of the NGO’s in Uasin Gishu County. Improved financial sustainability could be achieved as a result of diversifying sources of funds, retaining qualified staff and improving governance practices and organizational capacity. Therefore, it was recommended that NGOs should limit over-dependence on donor funds and indeed focus on establishing income generating activities and venture into multiple sources of funds for their projects; this would improve their financial sustainability.
Keywords: Financial Sustainability, Funding, Influence, Kenya, Non-Governmental Organizations, Source, Uasin-Gishu County