NGOs must build capacity for a bigger impact

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NGOs must build capacity for a bigger impact

Wednesday, 04 October 2023 | Naghma Mulla

NGOs must build capacity for a bigger impact

Capacity building is a continuous process that enables NGOs to strengthen their essential capabilities which go fuel their workforce to bring about a lasting change

Organisational development may be termed as the development of strategies, structures and processes that contribute to the effectiveness of an organisation. An effective organisation is characterised by strong financial and technical performance, quality products and services and high productivity. To achieve these indicators of effectiveness, an organisation must utilise a combination of human, financial, and infrastructural resources to improve its product/service delivery and meet its objectives. These resources are organised into specialised departments such as human resources, legal, monitoring and evaluation, communications etc. Capacity building is a structured process that aims to strengthen these organisational capabilities, thereby improving the organisation’s efficiency and effectiveness in achieving its purpose.

Non-government organisations, working in the social development sector need these capacities to enhance the impact of their interventions on the communities they serve. However, NGOs are dependent upon CSR grants and philanthropic funding for the same. Often these funds are tied to program expenses, as for NGOs, the direct outcomes for communities result from their programs.

Pathways for capacity building of NGOs

Capacity building for these functions can be conducted through investments in training and developing existing employees, creating specialised departments for key functions, and hiring talent. To improve their internal capacities, NGOs should put a strong emphasis on leveraging their resources. They must plan and invest in solutions where their investment could make the most significant impact in line with the organisation's strategic goals. Training and development may be conducted through hiring consultants, investing in courses and workshops and engaging in cross-learning through networking with other NGOs.

Most capacity building requires monetary investments. Hence, the ability of NGOs to raise funds for non-programmatic aspects is of great significance. To increase their ability for such fundraising, NGOs can incorporate a process of self-assessment of their capacities, strengths, and weaknesses. Based on the assessment they can create a roadmap for capacity building and include ways of measuring the impact of capacity building. Including such assessments in their proposals will enable funders to identify the need for non-programmatic funding and gauge the significance of capacity building.

On the funders’ side, there should be an acknowledgement of the fact that training and workshops will only have a limited impact on the capacity building of NGOs. There needs to be a stream of funds, apart from the programmatic grants, that can be utilized dedicatedly for strengthening capacities. For this purpose, the funders should be open to investing in empowering the NGOs in terms of skill-building, learning and other necessary aspects.

Capacity building enables organisations to meet their strategic goals through sound organisational processes, skills, and knowledge. For an NGO, these goals might include empowering communities through improving access to essential services, providing means for income enhancement, and elevating the representation of underserved groups across sectors. For NGOs, their capabilities have a direct bearing on their ability to deliver desired outcomes in the communities that they serve. Therefore, the impact of capacity-building activities by NGOs must also be measured to ensure their effectiveness. Capacity building as a continuous process enables NGOs to strengthen these essential capabilities which go towards fuelling their workforce towards creating impact.

(The writer is the chief executive officer, EdelGive foundation; views are personal)

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