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The Impact of Board Effectiveness and Business Planning on Financial Sustainability of NGOS in Nairobi

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dc.contributor.author Amadi, Hellen
dc.date.accessioned 2015-09-01T07:19:43Z
dc.date.available 2015-09-01T07:19:43Z
dc.date.issued 2015
dc.identifier.uri http://erepo.usiu.ac.ke/11732/691
dc.description A Research Project Report by Hellen Amadi, Submitted to the School of Business in Partial Fulfilment of the Requirement of the Degree of Masters in Business Administration (MBA). en_US
dc.description.abstract The general objective of this study was to establish the impact of board effectiveness and board planning on financial sustainability in national NGOs in Nairobi, Kenya. The specific objectives of the study to was to determine whether the structure and role of the board influences the financial sustainability of national NGOs; to determine whether the competence and performance of the board influences financial sustainability of national NGOs and to determine whether the business planning role of the board influences the financial sustainability of national NGOs in Nairobi. The study used correlational study techniques as they are used to determine relationships between variables. Random sampling is also used in this study as it permits true statistical inference and fosters external validity. Random sampling ensures that all members of the population have an equal and independent chance of being selected. In this study, the desired confidence level was 90% which meant that for a population size of 702, the ideal sample size was 62 respondents. A confidence interval is a statistic plus or minus a margin of error, and the margin of error is determined by the number of standard errors that one needs to get the desired confidence level. The Likert Scale is used for data collection as it uses a unidimensional summative design approach to scaling. Primary data was collected using a structured questionnaire which utilised the five point Likert Scale and which was developed in line with the specific objectives of the study. The findings of the study shows that the majority of the respondents disagreed that there exists functional boards of directors in their non-profits at the rate of 51%. The findings also showed that majority of the respondents highly disagree that there are any functional committees within the boards at a rating of 51%. In addition, the findings show that sustainability is at a constant value of 8.181 while board function contributes b=.096 which show a positive correlation between board function and sustainability. The majority of respondents disagreed that the board has performance management systems. 64% of respondents either disagreed or highly disagreed that board evaluation was carried out. In addition, there was a positive correlation of b=.356 between board performance and t sustainability. The conclusions drawn from the study are that all the study variables (role of the Board, performance of the board and Business planning) positively contributed to the sustainability of the NGOs from whichever area of influence. The findings of regression and correlation analysis showed that indeed there is a relationship between the three variables against the dependent variable, sustainability. The findings on board performance against business sustainability using sustainability as a dependent variable and board performance, board function and business planning as the predictors, indicates statistical significance of the regression model which significantly predicts the dependent variable. In general, the findings statistically predict the dependent variable, business sustainability. This implied that NGOs with functioning boards, boards that perform and have business planning are more likely to be financially sustainable. It is recommended that these findings are used to improve the functioning of boards of directors in order to improve financial sustainability of the organizations they represent. It is hoped that the study findings will form a baseline for further debate on the subject and will lead to the implementation of more comprehensive and functional board performance. It is also hoped that these findings will provide grounds for future research work. en_US
dc.publisher United States International University - Africa en_US
dc.subject Board Effectiveness en_US
dc.subject Business Planning en_US
dc.subject Financial Sustainability en_US
dc.subject NGOs en_US
dc.title The Impact of Board Effectiveness and Business Planning on Financial Sustainability of NGOS in Nairobi en_US
dc.type Thesis en_US


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