By Veronica Chelangat, Paul K Sang (PhD), Eddie Simiyu (PhD)
Financial sustainability requires that NGOs be able to meet all their resource and financing obligations and remain in existence for unforeseeable future. NGOs also play crucial role in the society. However, just a small number (10 percent) of NGOs that had managed to achieve a desirable level of institutional and financial sustainability. The study sought to establish the effect of financial planning on financial sustainability of public governance NGOs in Nairobi County. The study was guided by resource mobilization theory and fraud theory. Primary data was collected by use of questionnaires. The study adopted descriptive research design. The study target population was the 550 public governance NGOs in Nairobi County dealing with public governance. Systematic sampling technique was used to identify 10 percent of the population as the respondents where every 10th organization was studied. The collected data was analyzed using both quantitative and qualitative data analysis methods. Quantitative method involved both descriptive and inferential analysis. Data from questionnaire was coded and analyzed using Statistical Package for Social Science (SPSS). SPSS was used for data entry, descriptive analysis, reliability analysis, correlation analysis and multiple regression analysis. The study established that the independent variables Financial Control (r=0.685, p<0.05) had positive and significant effect on NGO financial sustainability. The study concluded that high number of NGOs were not sustainable a problem which could be addressed through NGOs improving their financial planning practices. The study recommended that the management at the NGOs to work towards improving financial management practices with aim of enhancing financial sustainability of the NGOs.
Key Words: Financial Planning, Financial Sustainability, Public Governance Non-Governmental Organizations, Nairobi County, Kenya
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