The Effect of Financial Management and Practices on Financial Sustainability of NGOs in Nairobi County: A Case Study of Local NGOs

Financial sustainability has helped many NGOs implement diverse programmatic interventions which has not only benefited the communities but also improved the standard of living. Tough economic times buoyed by global recession have in one way or another affected financial sustainability. This has led many NGOs to cease operating day by the day. The NGOs are overwhelmingly significant in Africa where most Africans search for their well-being so deeply woven in the rhythms of their everyday lives and deeply entwined in their values, attitudes, perspectives and decision-making. This study sought to determine how financial management and practices influenced financial sustainability of projects. The study adopted a descriptive research design. Currently there are 708 local NGOS in Nairobi County that formed the target population of this study. Stratified random sampling and purposive sampling procedure was used to select the study sample. The study had a sample size of 78 local NGOs. The operations manager and chief financial officer were sampled using purposive sampling technique giving the study a sample size of 156 respondents. Primary data was collected by using a questionnaire. The secondary data was obtained from the published annual reports spanning five years (2011 - 2015) for the local NGOs in Nairobi. The reliability of the instrument was estimated using Cronbachs Alpha Coefficient while Validity was established from the experts opinion. In analyzing the quantitative data. The study used SPSS version 21.0 to model the relationship between the various selected variables and tested there explanatory power. After the analysis the data was presented through the use of various presentation tools such as graphs pie charts and tables.