INFLUENCE OF GOVERNING BODY STRUCTURE ON FINANCIAL SUSTAINABILITY OF NGOS IN THE ADVOCACY SECTOR IN KENYA
INFLUENCE OF GOVERNING BODY STRUCTURE ON FINANCIAL SUSTAINABILITY OF NGOS IN THE ADVOCACY SECTOR IN KENYA
Alice Wangui Aidah - PhD Student in Strategic Management, School of Business, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr Esther Waiganjo - Lecturer, School of Business, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Elisabeth Makokha Nambuswa - Lecturer, School of Business, Jomo Kenyatta University of Agriculture and Technology, 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, checklists used to triangulate responses from questionnaires and score sheets used to collate data on the dependent variable. Diagnostic tests were conducted for normality, heteroscedasticity, autocorrelation and multicollinearity. Qualitative data was analysed and presented in narrative statements, while inferential statistics were analysed using the Pearson correlation coefficient and linear regression analysis used 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. Correlational analysis revealed positive and significant relationships between the governing body structure and financial sustainability (0.789). For the ANOVA, governing body structure, was found to have a value of F-statistic of (F(1,303) = 556.942, and the p-value was found to be 0.000 which is less than the critical value of 0.05. The regression coefficients implied that governing body structure had a positive effect on financial sustainability (β =0. 489, t= 23.600, p-value=0.000). The regression results also found that governing body structure explained a substantial amount of variation ((R2 of 0.648) 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 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 also hold regular meetings, the membership of the governing body should be diversified in terms of expertise and the governing body should be independent of management. Further, CEOs should not play the dual role of also being the Chair of the governing body.
