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 strategic financial management on 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 financial management affected financial sustainability in the organizations. Failure of CROs to effectively manage finances can lead to financial instability. The study concluded that financial management affects the financial sustainability of the CROs. As such, budgeting systems, funds flow control system, asset management systems, financial planning, reporting and monitoring systems, accounting policies and procedures, internal and external auditing systems, financial analysis, information systems and plan implementation are used. 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: Church Related Organizations, strategic financial management, church related organization’s sustainability
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Suggested Citation
Mawudor, B. G. ( 2021). Effect of strategic financial management on sustainability of Church related Organizations in Kenya. Journal of Management and Business Administration, 3(1), 51-60. Available online at http://writersbureau.net/journals/jmba/effect-of-strategic-financial-management-on-sustainability-of-church-related-organizations-in-kenya.pdf
