Influence of Governing Body Structure on Financial Sustainability of NGOs in the Advocacy Sector in Kenya
Abstract
Purpose: The study sought to examine the influence of governing body structure on the financial sustainability of NGOs in the advocacy sector in Kenya. Methodology: The study utilised a mixed-methods research approach and adopted a cross-sectional survey design. The study’s target population was 11,176 NGOs in the advocacy sector in Kenya, using a sample size of 384 NGOs, based on the Taro Yamane formula. 305 responses were received and analysed. Research instruments included questionnaires and checklists used to triangulate responses from questionnaires. Qualitative data was analyzed and presented in narrative statements, while inferential statistics were analyzed using the Pearson correlation coefficient and multiple regression analysis to test hypotheses. Findings: From the descriptive statistics, professional diversification of board members was highly agreed upon by respondents as having an influence on financial sustainability of NGOs in the advocacy sector in Kenya while board members diversification by age was the least agreed upon item. The study found a positive significant correlation between governing body structure and financial sustainability. The regression results also found that governing body structure explained a substantial amount of variance in financial sustainability of NGOs in the advocacy sector in Kenya. The study rejected the null hypothesis and concluded that governing body structure has significant influence on the financial sustainability of NGOs in the advocacy sector in Kenya. Recommendations: Managers in NGOs in the advocacy sector should develop systems that promote the structure of the governing body structure by ensuring that the number of members of the governing body are neither too few nor too many to impede deliberations during meetings. Members should hold regular meetings and the membership of the governing should also be diversified in terms of expertise and should be independent from management. In addition, CEOs should not play the dual role of also being the Chair of the governing body.
Downloads
References
2. Boyes-Watson, T., & Bortcosh. S. (2022). Breaking the starvation cycle? How international funders can stop trapping their grantees in the starvation cycle and start building their resilience Humentum, available at: https://reliefweb.int/training/3898850/planning-ngo-financial-sustainability
3. Dănescu, T., Spătăcean, I-O., Popa M-A. & Sîrbu, C-G. (2021). The Impact of Corporate Governance Mechanism over Financial Performance: Evidence from Romania. Sustainability, 13(19):10494. https://doi.org/10.3390/su131910494
4. Francois, E. J. (2015), Financial Sustainability for Non-Profit Organisations, New York, Springer Publishing Company.
5. Kenya National Council of NGOs (2018). Report: Summary of Challenges and Opportunities facing NGOs and the NGO Sector. Retrieved from: http://www.penkenya.org/UserSiteFiles/public/challenges%20and%20opportunities%20faci ng%20NGOS.pdf
6. Khlif, W., Karoui, L. & Ingley, C. (2022) Introduction to the Special Issue: “Corporate Governance of Sustainability”. Journal of Management and Governance, 26, 1–8. https://doi.org/10.1007/s10997-022-09623-y
7. Kim, M. & Mason, D. P. (2020). Are You Ready: Financial Management, Operating Reserves, and the Immediate Impact of COVID-19 on Nonprofits. Nonprofit and Voluntary Sector Quarterly, 49(6), 1191-1209.
8. Konadu, R., Ahinful, G. S. & Owusu-Agyei, S. (2021). Corporate Governance Pillars and Business Sustainability: Does Stakeholder Engagement Matter?. International Journal of Disclosure and Governance. 18, 269–289. https://doi.org/10.1057/s41310-021-00115-3
9. Mawudor, B. G. (2016) Financial Sustainability of Church Related Organisations: An Empirical Study on Kenya, Globethics.Net International Secretariat, Switzerland
10. Mbu-Ogar, G. B. (2017). Governing Body Structure and Organisational Performance: Evidence from the Nigerian Manufacturing Industry. Journal of Business and Management, 19(8), VIII: 46-51.
11. McDermott, M., Moote, M. A. & Danks, C. (2011). Effective Collaboration: Overcoming External Obstacles. Community Based Collaboration: Bridging Socio-Ecological Research and Practice. University of Virginia Press, Charlottesville.
12. Mohamed, A. & Makori, D. (2022). Strategic Financial Practices and Funding Sustainability of Non-Governmental Organisations in Kenya: A Case of Islamic Relief Kenya. International Journal of Current Aspects in Finance, Banking and Accounting, 4(2), 1-10. https://doi.org/10.35942/ijcfa.v4i2.248
13. Naciti, V. (2019). Corporate Governance and Board of Directors: The Effect of a Board Composition on Firm Sustainability Performance. Journal of Cleaner Production, 237, 117727.
14. Nanthagopan, Y., Williams, N. & Thompson, K. (2019). Levels and interconnections of project success in development projects by Non-Governmental Organisations (NGOs), International Journal of Managing Projects in Business, 12 (2), 487-511. https://doi.org/10.1108/IJMPB-04-2018-0085
15. Odhiambo, E. & Njuguna, R. (2021). Effect of Strategic Management Practices on the Performance of Health Non-Governmental Organisations in Kenya. Journal of Strategic Management, 6(1), 1-16.
16. Renz, D. O., and associates, (2010). The Jossey-Bass Handbook of Nonprofit Leadership and Management, San Francisco, Calif.: Jossey-Bass.
Copyright (c) 2026 Alice Wangui Aidah, Esther Waiganjo, Agnes Njeru
This work is licensed under a Creative Commons Attribution 4.0 International License.
