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Determinants of Sustainability and Organisational Effectiveness in Non-Profit Organisations

Author

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  • Chux Gervase Iwu

    (Department of Entrepreneurship & Business Management, Cape Peninsula University of Technology, Corner of Tenant & Keizersgracht, Zonnebloem, Cape Town 7530, South Africa)

  • Lloyd Kapondoro

    (Graduate Center for Management, Cape Peninsula University of Technology, Corner of Tenant & Keizersgracht, Zonnebloem, Cape Town 7530, South Africa)

  • Michael Twum-Darko

    (Graduate Center for Management, Cape Peninsula University of Technology, Corner of Tenant & Keizersgracht, Zonnebloem, Cape Town 7530, South Africa)

  • Robertson Tengeh

    (Department of Entrepreneurship & Business Management, Cape Peninsula University of Technology, Corner of Tenant & Keizersgracht, Zonnebloem, Cape Town 7530, South Africa)

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.

Suggested Citation

  • Chux Gervase Iwu & Lloyd Kapondoro & Michael Twum-Darko & Robertson Tengeh, 2015. "Determinants of Sustainability and Organisational Effectiveness in Non-Profit Organisations," Sustainability, MDPI, vol. 7(7), pages 1-14, July.
    • Handle: RePEc:gam:jsusta:v:7:y:2015:i:7:p:9560-9573:d:52745
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    References listed on IDEAS

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    1. Weerawardena, Jay & McDonald, Robert E. & Mort, Gillian Sullivan, 2010. "Sustainability of nonprofit organizations: An empirical investigation," Journal of World Business, Elsevier, vol. 45(4), pages 346-356, October.
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    Cited by:

    1. Sebastian Ion Ceptureanu & Eduard Gabriel Ceptureanu & Vlad Liviu Bogdan & Violeta Radulescu, 2018. "Sustainability Perceptions in Romanian Non-Profit Organizations: An Exploratory Study Using Success Factor Analysis," Sustainability, MDPI, vol. 10(2), pages 1-23, January.
    2. Bilal Asghar & Ahmad Wasim & Usama Qazi & Azfar Rasool, 2020. "Financial and Non-Financial Practices Driving Sustainable Firm Performance: Evidence from Banking Sector of Developing Countries," Sustainability, MDPI, vol. 12(15), pages 1-15, July.
    3. Siphokazi NONYUSA & Robertson Khan TENGEH & Gervase Chux IWU & Darlington ONOJAEFE, 2022. "App-Based Ride Services And The Sustainability Of Metered Taxis In South Africa," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 12(3), pages 13-29, September.
    4. Eun-Jung Shin & Hyoung-Goo Kang & Kyounghun Bae, 2020. "A Study on the Sustainable Development of NPOs with Blockchain Technology," Sustainability, MDPI, vol. 12(15), pages 1-18, July.
    5. Urquía-Grande, Elena & Estébanez, Raquel Pérez & Alcaraz-Quiles, Francisco José, 2022. "Impact of Non-Profit Organizations’ Accountability: Empirical evidence from the democratic Republic of Congo," World Development Perspectives, Elsevier, vol. 28(C).
    6. Williams Kwasi Peprah & Isaac Anowuo & Daniel Adofo Kwakye Ameyaw, 2019. "The Relationship between Working Capital Management and Financial Sustainability of Selected Christian Denominations in Ghana," Applied Finance and Accounting, Redfame publishing, vol. 5(2), pages 20-25, August.
    7. Sebastian-Ion Ceptureanu & Eduard-Gabriel Ceptureanu & Mihai Cristian Orzan & Irinel Marin, 2017. "Toward a Romanian NPOs Sustainability Model: Determinants of Sustainability," Sustainability, MDPI, vol. 9(6), pages 1-26, June.

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