Key Issues Affecting the Effectiveness of Not for Profit Organisations

Not For Profit organisations (NPO) have an important part to play in both the communities they serve and a country’s economy regarding their contribution to Gross Domestic Product. However, the not for profit sector has many important, some serious, issues to deal with to maintain their survival as a vibrant entity and contributor to community services. NPO rely primarily on funding to assist them to carry out their day to work operations to delivery community services. The extent and level of effectiveness in delivering NPO services remains uncertain. NPOs downward accountability is poorly developed leaving the sector vulnerable to the funders as the main drivers for accountability practices. Many organisations in the nonprofit sector have serious competency accountability problems because they may lack the skills to deliver performance measurement activities. Confusion exists concerning the level of involvement, support and content of nonprofits evaluation responsibilities. There is concern that due to pressure that may be out of their control, NPO have become more focused on meeting government/principal funder goals and less on independently meeting and responding to community needs. This paper will also introduce a logic model for future research of the New Zealand Not For Profit Sector.