Capacity building of NGOs-I

Capacity building has in recent years become a catch-word among NGO support organisations and generally refers to Non Government Organisation Support Organisations (NGOSOs) efforts to strengthen the organisation and activities of partner NGOs and Community-Based Organisations.
There are several reasons for this new emphasis such as changes in development thinking from simple transfer of skills and resources towards building autonomy and self-reliance.
Most of the NGOSOs want sustainability of their partners through programmes which offer limited support in the long run and capacity building is being used as a tool or process to achieve this end.
Although it is slow, time-consuming, complex and requires sufficient resources and commitment of all the stakeholders, it decidedly makes better use of people and organisations with the support of sound leadership, commitment and an understanding of inter-relationships.
Defining the term "Capacity building" is the first step in understanding its importance and in analysing lessons learned about its effectiveness, especially in the developing world. Capacity building means different things to different organisations.
In some of the literature, Capacity building, Institutional Building, Institutional Strengthening and Institutional Development are used interchangeably although there are fine differences among them.
According to DeVita and Fleming capacity building can be defined as "the development of an organisation's core skills and capabilities, such as leadership, management, finance and fundraising, programmes and evaluation, in order to build the organisations effectiveness and sustainability...Capacity building is facilitated through the provision of technical sup-port activities, including coaching, training, specific technical assistance and resource networking."
In the 1950s and 1960s the term Institutional Building was in vogue on a global level. The reason was that the international development community felt that the progress of third world nations rested on the development of strong public sector infrastructure. This infrastructure development could govern and provide the necessary services to the private sector that in turn would become the main vehicle for development.
This was the stage when considerable investment was made in setting up these new institutions missing in the existing inherited structures of the newly independent countries. These institutions developed the necessary systems that were imported straight from the north. Social and cultural factors were not taken into consideration so such institutions could not be properly integrated with the rest of society. Consequently, the main beneficiaries emerged as urban elite who were trained to run those institutions.
Later, in the 1960s and 1970s, the approach shifted to Institutional Strengthening where the emphasis was moved to supporting existing public sector institutions rather than creating new ones. The approach adopted for this was similar to the previous one.
These institutions were provided with tools, equipment and systems often alien to their native environment. Instead of adopting a broad approach, the interventions remained fragmented.
Then the phraseology of Institutional Development entered this discipline in the 1980s. This could be called the predecessor of capacity building. Institutional Development involved adopting a broader approach and factors such as sustainability were taken into consideration. It also considered the social and cultural aspects and did not merely involve transfer of technology. In addition, institutional development examined groups of institutions with the same sectoral focus instead of focusing on individual institutions.
Capacity building that follows a holistic approach is the buzzword of the 80s and 90s. It takes into account cultural, environmental factors and may work in a multi-sectoral manner. This international approach to capacity building has also been transferred to the capacity building of non-governmental organisations, including the grassroots organisations commonly known as community-based organisations. Before discussing the modalities of capacity building, let's discuss what it means to describe the "capacity" of an organisation.
In the organisational context, capacity is the measure of an organisation's ability to achieve its objectives. CB can be narrowly or broadly defined. Institutions are a stable set of rules, which are widely recognised, while organisations are structures bringing together people to work towards a common purpose. Organisational Development (OD) seeks to alter the internal working of an organisation. Institutional development (ID) seeks to influence the wider pattern of relations and interactions within society eg creating net-works, influencing policy framework etc.
APPROACHING TO CAPACITY BUILDING: Academics and practitioners suggest that non-profits face two broad decisions when attempting to succeed in their complex environments in order to build on their capacities. Capacity building approaches can either be internal or external.
Internal strategies comprise various management initiatives designed to produce greater organisational efficiency, effectiveness, and flexibility. Recently though, the trend in international NGOs which tend to be more encompassing than northern or southern NGOs is an important one to mention. These International NGOs, which started in one country, have expanded globally (Action-Aid).
Also, there are new transnational NGOs specifically formed with representatives from more than one country (CIVICUS), bringing along a distinctive set of organisational problems. Organisational self-assessment of programme design, staff setting, programme implementation as well as refinement of organisational philosophy and practice are other areas of internal focus.
Finally, institutionalisation of best practices is usually a major focus for capacity building efforts. These approaches might include internal management changes that allow non-profits to continue their current activities, but in a more efficient and effective manner. Strategies such as increased staff training, greater use of volunteers, or more public out-reach programmes can reduce the costs of delivering services or build a stronger community and greater motivation.
When designing and implementing an internal capacity-building effort, it is essential to effectively measure the NPOs current needs and assets as well as its readiness and ability to under-take any internal changes that may be required. Data gathered from an initial assessment will be most useful if put into a larger context for greater understanding.
Externally oriented capacity-building strategies attempt to alter the relationship between individual NPOs and the funding and political systems in which they operate. If an organisation adopts an external approach to capacity building, it is attempting to create an enabling environment for itself. Organisations will adopt new resource strategies to maximise the possibility of their survival, stabilise relations with other groups in the community, and reduce over-dependence on specific sources of funding. One typical external approach is to shift resources to more profitable activities or services. There is mounting evidence that non-profit organisations are becoming increasingly business oriented and more inclined to diversify goods and services to expand their financial capacity.
So in the environmental context of NPOs, the non-profit sector and the government are both players with whom there is important, continuous interaction. This interaction is also helped by shifting external forces, such as socio-demographic factors, economic conditions, political dynamics, and the values and norms of the community. This convergence of evolving factors creates the environmental con-text in which capacity-building initiatives must operate.
Fundraising and financial management practices are decidedly critical elements of any NPO and demand careful attention in capacity-building efforts. Much emphasis is being laid on greater transparency, accountability and professionalism in the NGO sector due to a variety of stakeholders and scale of operation of most NGOs. Sufficient resources must be devoted to the infrastructure to keep any organisation running smoothly. The effective allocation and use of available resources are key to the long-term success of a non-profit organisation.
Financial support can be provided to NGOs in three departments according to Backer. First, to simply enable the organisation to do what it does. Second, to fund the purchase of equipment or facilities etc and third in the form of loans to meet immediate and long-term requirements of the NGO. Whilst this may make needy organisations weak and even more dependent, it can be argued that the money is ploughed back into the organisation and unlike a profit organisation, this will eventually lead to overall betterment of the NPO.-Courtesy: NGORC Journal
(To be concluded)