Financial Decisions and Performance of the Board of Directors in Non Governmental Organizations in Kisumu County

Abstract

The general objective of the study was to examine the effect of financial decision on board performance in NGOs in Kisumu County. The study narrowed its undertakings on budgets, investment strategies and financial reports as determinants of financial decisions. Literature review looked into role of the board with regards to financial oversight and safe guarding organization resources. Primary data was collected using a semi-structured questionnaire through survey research cross sectional approach. Data on financial decision and board performance were obtained from a sample of 284 NGOs in Kisumu County. Quantitative approach was employed. Data analysis was done using tables, factor and correlation analysis. The study found that board performance and financial decisions are positively related. The results indicate a positive and statistically significant relationship between the financial decision and board performance .The board members have reduced their participation in investment strategies as few organizations invest funds in interest bearing accounts due to donor designated fund restrictions. The study recommends donors and other well wishers should provide financial support to NGOs that is specifically focusing on strengthening board performance especially on their financial oversight role, promoting accountability and ensuring that NGOs have effective boards who understand the organizational goals and objectives.