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Sustainability 2015, 7(7), 9560-9573; doi:10.3390/su7079560

Determinants of Sustainability and Organisational Effectiveness in Non-Profit Organisations

1
Department of Entrepreneurship & Business Management, Cape Peninsula University of Technology, Corner of Tenant & Keizersgracht, Zonnebloem, Cape Town 7530, South Africa
2
Graduate Center for Management, Cape Peninsula University of Technology, Corner of Tenant & Keizersgracht, Zonnebloem, Cape Town 7530, South Africa
*
Author to whom correspondence should be addressed.
Academic Editor: Giuseppe Ioppolo
Received: 22 May 2015 / Revised: 4 July 2015 / Accepted: 13 July 2015 / Published: 17 July 2015
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
View Full-Text   |   Download PDF [761 KB, uploaded 17 July 2015]   |  

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. View Full-Text
Keywords: organisational effectiveness; non-profit organisations; NPO sustainability; organisational performance; financial and non-financial criteria organisational effectiveness; non-profit organisations; NPO sustainability; organisational performance; financial and non-financial criteria
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Iwu, C.G.; Kapondoro, L.; Twum-Darko, M.; Tengeh, R. Determinants of Sustainability and Organisational Effectiveness in Non-Profit Organisations. Sustainability 2015, 7, 9560-9573.

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