The role played by donor agencies in improving living standards of families’ households, groups and individuals in any country especially in arid and semi-arid areas cannot be underestimated. There has been a significant increase in activities from donor agencies such as Community-Based Organizations (CBO), Faith-Based Organizations (FBO) and Non-Governmental Organizations (NGOs) among others with regards to funding of various projects especially in arid and semiarid areas where the government has failed to deliver services to its people (Adera, 2012). However development projects, initiated and/or funded by these donor agencies, perform poorly and many become non-operational on termination of donor support. However, few studies have been conducted to establish the sustainability of these donor funded projects. This poses a gap that this study sought to fill through an investigation of the donor funded project and their financial sustainability. The study specifically determined the effect of accessibility of donor funding, donor training, and donor funding policies on financial sustainability. The study was guided by principle agency theory. The study adopted descriptive survey research design. The target population included 10 projects under world vision in five counties. Stratified sampling technique was used to select a sample size of 133 employees and 40 community leaders. Data was collected from the respondents using questionnaires as the principal data collection instrument. The data was analyzed using descriptive statistics such as means, standard deviation, skewness and kurtosis and inferential statistics such as Pearson correlation and multiple regression model was used to aid in generation of results. Capacity building impacts aspects of identifying an efficient communication strategy, identifying more efficient uses of technology and engaging in collaboration with community members and this in turn increases sustainability and donor capacity building which was positively correlated to sustainability beta coefficient 0.296, ρ<0.05 does affect sustainability. The study benefited both project implementers and their donors in improving the relationship between donor and the project sustainability.
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