The impact of an organisational capacity assessment on non-profit organisations in South Africa.

Abstract

The research study investigated the potential impact that organisational capacity assessments can have on the long-term sustainability of non-profit organisations (NPOs). The researcher employed longitudinal research design as the main instrument in the collection of data. Data was collected from four local non-profit organisations in the Cullinan and Bronkhorstspruit areas of South Africa. These organisations were evaluated by means of a questionnaire, which was developed by the researcher. NPOs can only play a pivotal role in community and social services if management, leadership, governance and other elements of organisational capacity are well developed and continuously strengthened. This is critical for attracting local and international donors who provide crucial running costs and relieve national, provincial and local government departments of the financial burden. Currently, the South African government supports NPOs in South Africa. The legislative and registration aspects of NPOs are regulated by the NPO Act (Act 71 of 1997) and the Income Tax Act (Act 58 of 1962). The State of South African Registered NPOs Report 2010/2011 indicated a growth of the number of registrations to have increased by 8.3%. However, in the same financial year a total number of 468 NPOs were deregistered; 98% of these lost their registration due to non-compliance of regulatory requirements. According to the State of South African Registered NPOs Report (2016) the total number of applications received for the financial year was 16 726 (53.7%), however 4 421 (46%) did not meet the requirements of sections 12-13 of the NPO Act, an issue that would definitely affect the existence of non-compliant institutions.