Implications Of Financial Stability On The Sustainability Of Seventh Day Adventist Church Activities In South East Kenya Field, Kenya

Abstract

For the church, particularly the Seventh Day Adventist (SDA) church in South East Kenya Field (SEKF) to realize her mission, she needs to be financially stable. But the SDA church is facing financial constraints that hinder her from fully realizing her mandate thereby necessitating this study on the implications of financial stability on the sustainability of the SDA church activities in South East Kenya Field, Kenya. The specific objectives of the study were: to evaluate traditional financial sources for sustainability of Seventh Day Adventist church activities in South East Kenya Field, Kenya; to assess income diversification strategies for sustainability of the Seventh Day Adventist church activities; to examine financial management systems for sustainability of Seventh Day Adventist church activities; and to evaluate financial challenges that hinder sustainability of the Seventh Day Adventist church activities. Four theories were used to guide the study: Resource-Based Theory by Wernerfelt 1980s, Resource Dependence Theory by Pfeffer and Salanik in 1970s, Resource Mobilization Theory by McCarthy and Mayer Zald 1977, and Stewardship Theory by Donaldson and Davis in 1991. Being a qualitative research, the study adopted a descriptive research design. The target population was 1185 informants with the sample size of 355 respondents determined by Mugenda and Mugenda formulae. The study used two sampling techniques: purposive for pastors and simple random for church development officers, treasurers, elders and secretaries. Censors was used to collect data from the leadership of South Kenya Field. Three data collection tools were used: questionnaire, interview schedule guide, and document analysis. A pilot study was done to ascertain the reliability of these tools. Data was analyzed using three methods: content, narrative and thematic analyses; it was reported and presented using frequency tables, charts and verbatim. The study was deemed to benefit a wide range of people – church believers, financial managers, donors, church leadership, church policy makers, and researchers on church and finance for the stability and sustenance of church activities. It assumed that participants collaborated and responded to the questionnaire and interview questions honestly and truthfully, and that the targeted respondents had the knowledge on matters of church finances as elucidated in the study objectives – finance sources, diversification strategies, finance management systems and experience of financial challenges in the SDA church in SEKF, Kenya. The study found that traditional church sources are the major source of revenue with 290 (93.5%) endorsing offerings, tithes 300 (96.8%), thanksgiving 290 (93.5%); pledges 275 (88.7%) and fundraising 300 (96.8%). On financial diversification, the study found that the SDA church has not diversified her financial sources with 300 (96.8%) positing it. The study also found that there are internal finance management and control systems with 300 (96.8%) in support of this view, but then the systems and policies are not operational. It concluded that the SDA church in South East Kenya Field is not financially self-sustaining, which jeopardizes her mission of service to society; it does not have church owned long-term finance sources. The study recommended the church to overcome short-term financial resource and opt for long term financial planning that ensures financial sustainability of the church. Also ensure that existing finance policies and internal control systems are operational for financial stability and sustainability of church activities.