Author: Bright Mawudor
Protestant University Wupperttal/Bethel, Germany
Email: mawudor@aacc-ceta.org
Abstract
The purpose of this study was to examine the effect of income diversification on financial sustainability of Church Related Organizations in Kenya. The study employed cross-sectional survey design. Target population consisted of 298 respondents including members of the governing bodies in the selected CROs, development/donor partners, general secretaries and Church leaders in addition to past and executive/program staff. Stratified proportionate random sampling technique was used to select the sample of 168 respondents. Questionnaire was the data collection instrument used by the study. Questionnaire was used to collect data from the members of the governing bodies, general secretaries, past and present executive/program staff. The collected data was analyzed quantitatively. The quantitative method involved both descriptive and inferential analysis. Descriptive analysis entailed summarizing the coded data in frequencies and percentages and presenting in tables and figures. This was achieved with an aid of SPSS version 17. The study findings revealed that income diversification strategies are effective in tapping international funding streams to a moderate extent, expansion of fund-raising activities directed at the general public to a moderate extent and in tapping new corporate donors for monetary and in-kind support to a moderate extent. Income diversification strategies are effective in social entrepreneurship to a little extent, redesigning program implementation strategies to include cost-recovery components to a little extent, holding one-time events to a little extent and in owning and managing, businesses such as restaurants, tour companies, banks and clinics to a little extent. The study therefore recommended that the CROs should establish various social enterprises that serve as a strategy to diversify their funding base, decrease reliance on donors, and recover or subsidize program costs. Leaders play an important role in shaping the necessary change processes related to diversity and the Church Related Organizations need to reinforce awareness around the range of activities they undertake and the added value they create for society, helping potential partners to evaluate funding options as well as tapping international funding streams.
Keywords: Income Diversification, Financial Stability, Church Related Organizations
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Suggested Citation
Mawudor, B.G. (2021). Effect of income diversification on financial sustainability of Church Related Organizations in Kenya. African Research Journal of Education and Social Sciences, 8(3), 27-34. Available online at http://arjess.org/social-sciences-research/effect-of-income-diversification-on-financial-stability-of-church-related-organizations-in-kenya.pdf
