Abstract This study explores the operative capacity of non-governmental organizations (NGOs) in the Southern region of Punjab Province, Pakistan. Data from all functional NGOs registered with the Social Welfare and the Bait-ul-Maal Department, Punjab under the provisions of the Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961 were collected. A questionnaire based on basic information about NGOs, namely about membership, elections, services offered and opportunities for capacity building, was used for data collection. The results of the study identify education, health, and vocational and technical training as the three major areas of activity for NGOs in the Southern region. The study also found that NGOs do not have an adequate democratic process for elections. Women’s participation is less than men’s in general and in particular regarding membership of executive bodies. The core areas where gaps in capacity building were found are in governance and leadership, financial and human resource management, record maintenance and reporting. On the basis of the findings of this study, it is suggested that NGOs should extend their areas of operation and field of services, and that the democratic process could be ensured by concerned departments through proper monitoring and surveillance.