Abstract
This case study investigates the criteria for organizational effectiveness in non-profit organizations (NPOs) with the aim to determine how the elements of sustainability fit within the criteria. To achieve this, the study utilized the research questions: “what criteria do NPOs use to evaluate their effectiveness?” and “how is sustainability embedded in NPO effectiveness?” The research design was interpretivist, adopting focus group interviews to obtain data. Specifically, two focus group interviews were held with the top management of an NPO which revealed that both financial and non-financial criteria were equally essential for NPO effectiveness. This finding is consistent with the literature, although it contradicts the initial assumption of the study that NPO effectiveness was based more on non-financial criteria than financial criteria. The study also found that the effectiveness of an NPO should be viewed in two ways: firstly, “the full achievement of its mandate” and, secondly, “the ability to run business projects to cover cost.” It also emerged that both the ability to cover costs and the achievement of a mandate should be done in a sustainable manner (a sustainable manner is seen as one that is harmonious with the natural and the socio-political environment). The results of this paper present a practical case for the management of NPOs by reiterating that the full achievement of the NPO mandate and the successful running of social projects to generate funds for sustainability are key elements of effectiveness. Given the essential role that NPOs play in developing countries, this study has provided the foundation for more widespread enquiry into the sustainability and effectiveness of NPOs.
Highlights
This study achieves its intention by examining both theoretical and empirical links between the concepts of effectiveness and that of sustainability in non-profit organizations (NPOs) management
This paper argues that NPOs use more non-financial criteria to assess organisational effectiveness than financial criteria
The above arguments can be understood to mean that NPO effectiveness has greater meaning if both the financial and the non-financial criteria, which are shown in Figure 1 are interpreted within the context of sustainability
Summary
This study achieves its intention by examining both theoretical and empirical links between the concepts of effectiveness and that of sustainability in NPO management. While organisational effectiveness in profit-making institutions is, arguably, mainly determined through financial measures [4], NPOs present a different case, whereby the concept of effectiveness has little orientation to financial criteria [5,6]. This paper argues that NPOs use more non-financial criteria to assess organisational effectiveness than financial criteria. This makes the study of NPO effectiveness quite problematic to generalize. The main research question was: “what criteria do NPOs use to evaluate their effectiveness?” The case study approach was used to determine the criteria for NPO effectiveness. We provide some practical implications of the study, conclusions, and recommendations
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