Effect of Financial Planning on Resource Mobilization of Humanitarian Non-Governmental Organizations in Nairobi County

Abstract

NGOs in Kenya play major roles in a number of developmental areas; socially, politically, economically and culturally. However, the NGOs in Kenya have been characterized with poor relations towards the citizens, which has been brought about by problems in political, historical and cultural aspects. This study sought to determine the effect of financial planning on resource mobilization of humanitarian non-governmental organizations in Nairobi County. The study adopted a descriptive research design. The target population of the current study was 64 humanitarian NGOs that are based in Nairobi County. While the unit of analysis was the 64 humanitarian NGOs, the unit of observation were two respondents from finance and project management departments of these organizations. The study adopted a census sampling technique where the entire sample size of 128 was used. Primary data was collected using a structured questionnaire. A regression model was used to test the effect of financial planning on the resource mobilization of Humanitarian NGOs in Nairobi County. The results indicated that financial planning has a negative and insignificant effect on resource mobilization of Humanitarian Non-Governmental Organizations in Nairobi County (B = -0.068; t = -0.890 < 1.96, = p-value = 0.375 > 0.05). These results imply that efficient financial planning practices do not improve resource mobilization of Humanitarian Non-Governmental Organizations in Nairobi County. The null hypothesis developed on the non-significance of financial planning on resource mobilization of Humanitarian Non- Governmental Organizations in Nairobi County was not rejected.  The study findings led to a conclusion that the null hypothesis on the insignificance of the influence of financial planning on the resource mobilization of Humanitarian Non-Governmental Organizations in Nairobi County was not rejected. The study found that the current financial planning measures adopted by Humanitarian Non-Governmental Organizations do not improve their financial accountability. Thus, the study recommends that there is need for these organization to pay keen attention to their financial planning around budgeting, financial practices, and financial forecasting, in order to improve their financial accountability. Keywords: Financial Planning, Resource Mobilization & Humanitarian Non-Governmental Organizations