Influence of Innovative Funding Strategies on Financial Sustainability of Non-Profit Organizations in Nairobi City County, Kenya
DOI:
https://doi.org/10.47941/jbsm.3067Keywords:
Corporate Social Responsibility Partnerships, Crowdfunding, Government Funding, Financial Sustainability, Non-Profit OrganizationsAbstract
Purpose: The general objective of this study was to determine the influence of innovative funding strategies on financial sustainability of non-profit organizations in Nairobi City County, Kenya.
Methodology: This study adopted a descriptive correlational research design. The population of the study was all the 1388 non-profit organizations in Nairobi City County, Kenya that have implemented projects in the last 3 years. The sample size was 311 and arrived using Yamane formula. The target respondent was the head of finance in each firm or their equivalent. The study used a structured questionnaire to gather primary data. For data analysis, the researcher used descriptive and inferential techniques. Data was summarized in the form of frequencies, percentage distributions, mean and standard deviation. Inferential statistical analysis included correlation and linear regression.
Findings: The study found that innovative funding strategies significantly impact the financial sustainability of non-profit organizations in Nairobi City County, Kenya. The model indicated that these partnerships explain 40.4% of the variance in financial sustainability, emphasizing the importance of robust corporate engagement and effective communication in enhancing financial outcomes. Crowdfunding efforts also positively influence financial sustainability, contributing to 40.8% of the variance. Government funding emerged as the most critical factor, explaining 63.5% of the variance in financial sustainability. Overall, the combined influence of CSR partnerships, crowdfunding, and government funding explains 60.2% of the financial sustainability of non-profit organizations, underscoring the need for diversified and innovative funding strategies to ensure their long-term viability.
Unique Contribution to Theory, Practice and Policy: The study recommends that non-profit organizations in Nairobi City County, Kenya, should strategically enhance their engagement with corporate partners by cultivating long-term CSR partnerships and securing substantial donations. Additionally, these organizations should focus on expanding their crowdfunding efforts, targeting a larger number of individual donors and ensuring successful campaign execution. Furthermore, non-profits should advocate for flexible and long-term government funding commitments, which are crucial for financial stability and continuity.
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