INFLUENCE OF STRATEGIC PLANNING ON FINANCIAL SUSTAINABILITY OF NGOs IN THE ADVOCACY SECTOR IN KENYA
Keywords:
Strategic Planning, Financial SustainabilityAbstract
This study aimed to examine the influence of strategic planning on the financial sustainability of NGOs in the advocacy sector in Kenya. The study employed 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. The correlation index between strategic planning and financial sustainability was positive and significant, r (304) =.577; p≤.05. This inferred that as the level of strategic planning increases, the financial sustainability also increases. The T value for strategic planning was also significant: T (304) = t=15.860; β= 0. 0.408.; P≤.05. This implied that for each unit increase in strategic planning, the financial sustainability of the NGOs could increase by 0.408 units. This inferred the rejection of the null hypothesis, and the conclusion made was H1 (There is a significant influence of strategic planning on the financial sustainability of NGOs in the advocacy sector in Kenya). The researcher recommends the institutionalisation of strategic planning by NGO management and a policy action by the regulatory authorities to provide necessary training for the NGOs so as to incubate their skills for effective strategic planning.
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