Organizational capacity

Assessment tool1

Purpose

This assessment tool is intended to guide HI staff and members of local structures to
assess organisational capacity. The questions highlight three key areas development
organizations are generally assessed for: 1) the internal functioning of the
organization; 2) its service delivery or program performance; and 3) its external
relationships.

The profile generated through this assessment is meant as a take-off point for
discussing the strengths and weaknesses of the development organisation and the
factors contributory to the strengths and weaknesses.

Using the assessment tool

Score “1” for each statement that describes your organization and “0” for each
statement that does not, or that is only partially descriptive.

Add the scores for the statement associated with each characteristic and enter the sum
as its “Total”. Enter the totals for each of the characteristics on the organizational
capacity profile sheet.

1
This assessment tool was adopted from two major documents: 1) the Organizational Capacity
Assessment Handbook, PACT Ethiopia Program; and 2) Sustainable Development Service Projects
Second Creating Change Strategies for Sustainable Development Workshop, January 14-17, 1997 by
the initiatives Project/JSI Research and Training Institute.
 Organizational capacity
Assessment tool
Name of NGO_______________________________________
Date of assessment___________________________________
Assessment conducted by______________________________

Governance
1. Board Score Comments
a. The board provides overall policy direction and oversight.
b. The board provides accountability and credibility.
c. The board is composed of committed members who
represent the varied interests of the constituents
d. The board is capable of carrying out key roles such as
policy formulation, fund raising, public relation and lobbying.
Total

2. Mission and goal Score Comments

a. The mission and goal are clearly articulated.
b. The mission is understood by staff, constituency and the
public.
c. Strategies are aligned with mission and realistic.
d. Strategic planning is jointly conducted by the board, senior
management, and staff with input/participation from other
stakeholders.
Total

3. Leadership Score Comments

a. Board and senior management have a clear understanding
of their roles and responsibilities as providers of overall
direction.
b. Senior management’s relationship to staff is participatory,
transparent and management decisions are delegated.
c. Leadership is accessible and fosters participation.
d. Succession plan(s) for key managers exist(s) or is being
developed.
TOTAL

4. Organisation Score Comments

a. The board meets regularly.
b. The board is representative (women, PWD’s, young people
are included).
c. The board has selection criteria for member selection.
d.
Total
Management
1 Organization structure Score Comments

a. The organizational structure clearly defines lines of

authorities and responsibilities
b. Systems exist to collect, analyse and disseminate data and
information.
c. Decisions are based on data.
d. Open communication and feed backing mechanism in place.
Total

2 Planning Score Comments

a. Operating plans are developed, reviewed, updated and reflect
a strategic plan.
b. Staff is involved in planning.
c. Resources are planned for and allocated properly.
d. Input from constituents is included in planning
Total

3 Monitoring and evaluation Score Comments

a. A monitoring and evaluation system exists and outputs are
used.
b. Constituents and staff are involved in monitoring and
evaluation.
c. Regularly reports activities and results of evaluation to
stakeholders.
d. Disseminates or shares reports on lessons learned.
Total

4. Program development Score Comments

a. Systems for routinely collecting information about program
operations are in place or being developed (product/service mix,
utilization levels and patterns, client profile(s), etc.).
b. Operations are guided by an implementation (or business)
plan against which performance is regularly monitored and
evaluated.
c. Service quality guidelines exist or are being developed
d. Unit cost per benefit / client can be calculated for each main
service
Total
Human resource development
1. Personnel management Score Comments
a. Recruitment, employment and personnel practices are clearly
defined and followed.
b. Clearly established links exist between staff capacity and
NGO mission.
c. Internal regulations governing staff rights and obligations
(e.g., working hours, entitlements, discipline and codes of
conduct, etc.) exist, function and are supported with written
procedures and guidelines.
d. Job descriptions are well defined, documented and respected
and updated and an organisational chart exists.
Total

2. Work environment Score Comments

a. Staff members participate in management decisions.
b. Staff members are encouraged to make suggestions and to
share ideas to improve organizational; performance.
c. Team work is practiced or encouraged.
d. Information is shared freely among all staff members.
Total

3. Staff development Score Comments

a. Human resources development planning takes place and
based on the capacity needs and strategic objectives of the
organization.
b. Staff members are cross-trained to facilitate backup coverage
of multiple functions as well as personal professional growth.
c. Opportunities exist to integrate skills acquired in staff
development activities into the work environment.
d. Evaluation and promotions are based on performance and are
equitable.
Total

4. Salary, benefits and performance Score Comments

a. Salaries are clearly structured and competitive.
b. Benefits policy is written and practiced.
c. Performance is regularly assessed and used in furthering staff
capacity and organization mission.
d. Productivity indicators exist and are used to evaluate field
staff and supervisor performance on a regular basis.
Total
Financial resources
1. Accounting and financial management systems Score Comments
a. Accounting system (standards, policies, records, reporting)
exists, functions and is supported with written procedures and
guidelines.
b. Approved versus actual budget expenditures, revenues and
cash flows are reviewed at least quarterly – variances are
explained and budgets are revised as appropriate
c. Managers and program supervisors receive financial
information on expenses and income, and are used to make
program decision for which they are accountable.
d. Accounting system(s) can segregate the costs of delivering
each principal product/ service.
Total

2. Financial control and budgeting Score Comments

a. Adequate financial and inventory controls exist and are
implemented.
b. Internal and external financial reviews are performed with
regular and appropriate frequency to assure transparency.
c. Regular budgeting process is developed and integrated into
annual operating plans.
d. Staff members are responsible for preparation, management
and implementation of project budgets.
Total

3. Financial Reports Score Comments

a. You produce monthly, quarterly, annual financial reports
b. You produce donor reports
c. Administrative costs are calculated
d. Are separate accounts/reports available for each donor
Total

4. Administration Score Comments

a. You have administrative procedures for procurements ,
logistics, MIS.
b.
c.
d.
Total
Service delivery

1. Sect oral expertise Score Comments

a. Relevant sect oral expertise exists within organization.
b. Exercise is credible and recognised by the development
community.
c. Capable of adapting program and service delivery to the
changing needs of the constituency.
d. Appropriate structures exist to reach grassroots.
Total

2. Community participation Score Comments

a. Information about current or planned services is routinely
shared with intended beneficiary communities.
b. Administrative structure is either decentralized or has
consultative mechanisms in place that make responsive to local
needs.
c. Community input is used in decision-making.
d. Community members sit on the organization’s local governing
body (e.g., board of directors or board of trustees).
Total

3. Impact assessment Score Comments

a. Indicators of success and impact were jointly identified and
established with the community partners.
b. Baseline data measurements are monitored and regularly
analysed.
c. Data gathering and analysis for impact assessment are jointly
undertaken with community partners.
d. Impact assessments are used to adjust programs as required
Total

4. Viability Score Comments

a. Are the products/services financially viable.
b. Are the users satisfied
c. Are there methods to analyse the costs of each product/service.
d. Do mechanisms exist to evaluate the product/service.
Total
External relations
1. Community partners. Score Comments
a. Seen as credible and a valuable resource by the target group.
b. The relationship with target group is one of full partners
serving a common purpose.
c. Program priorities and services are defined in collaboration
with constituency and are based on need and institutional
capacity.
d. Constituency perceives service delivery is adequate and cost
effective.
Total

2. Other development organizations Score Comments

a. Networks and shares resources with national and
international NGO’s
b. Plays leadership role in promoting coalitions, networks,
linkages and mechanisms for advocacy
c. Has contacts with decision makers and is able to engage
policy makers in dialogue.
d. Exchange of resource occurs between NGO and government
(training, TA, material resource, etc.)
Total

3. Donors Score Comments

a. Has diversified contacts within the donor community.
b. Regarded as a credible and valuable resource to donor(s).
c. Capable of asserting and negotiating with donors.
d. Has the opportunity to engage in open and frank dialogue
with donor(s).
Total

4. Other local organizations Score Comments

a. Has relations with private business sector, academic and
research institutions and the media for technical expertise,
material and human resources.
b. It is perceived as a community partner.
c. Known and its opinions and experiences are solicited.
d. Information on the organization is available and mechanism
for dissemination exists.
Total
Organization and program sustainability
1. Commitment Score Comments
a. Interested in decreasing or eliminating donor dependence.
b. Believes that one can be a non-profit and still think and
behave in a business-like way.
c. Accepts that it is permissible for programs to charge user
fees.
d. Prepared to eliminate unfounded cost centres
Total

2. Strategic thinking Score Comments

a. A strategic plan for achieving organizational objectives exists
or is being developed.
b. Strategic plan incorporates financing implications and needs
of programmatic goals and objectives.
c. Succession plan(s) for key managers exist(s) or is being
developed.
d. Decisions are based on data
Total

3. Marketing Score Comments

a. Information on the needs and wants of target clients or
beneficiaries is collected or regularly updated and periodically
reviewed in relation to the product/services offered by the
organization.
b. Client or beneficiary satisfaction is regularly assessed.
c. Information is regularly collected on availability and prices of
services offered by actual potential competitors.
d. Marketing plan exists or is being developed and
responsibility for its implementation is assigned to specific
individual(s).
Total

4. Efficiency of operation Score Comments

a. Client volume is steady or increasing overtime.
b. Operating costs compare favourably to those of other
organizations with similar services and clients.
c. Shares resources as a member of a network or with other
organizations.
d. Makes use of trained volunteers among whom there is
infrequent turnover.
Total

5. Reliance on donor support Score

a. Decrease in reliance on a few donors (i.e., diversification of
donor base).
b. Type of donor funding is less restrictive (e.g., more
institutional development, fewer program-specific grants).
c. Amount of donor funds rising less rapidly relative to other
sources of income.
d. Donor funds cover a decreasing portion of operating capital.
Total

6. Alternatives to donor financing Score Comments

a. Systems/procedures for local fund-raising are in place or are
being developed.
b. Cost recovery (fee for services) systems are in place or are
being developed.
c. Income-generating activities, which generate a surplus, exist
or are being planned.
d. The local government resources are tapped or will provide
support (drugs, personnel, buildings, etc.).
Total

7. Income-generating enterprise existence and operation Score Comments

a. Mission/objectives of the enterprise are clearly defined and
known within the PVO.
b. Enterprise has its own operational structure and systems
including its own staff and managers who have experience in
the activities undertaken
c. Costs/revenues of the enterprise are known and routinely
monitored against a business plan.
d. Enterprise is based on a feasibility study of its economic
viability.
Total
 Organisational characteristics Capacity
assessment
scores
0 1 2 3 4
Governance 1. Board
2. Mission/Goal
3. Leadership
Management 4. Organization structure
5. Planning
6. Monitoring and evaluation
7. Program development
Human-resource 8. Personnel management
development 9. Work environment
10. Staff development
11. Salary benefits and performance
Financial 12. Accounting and financial
resources management systems.
13. Financial control and budgeting
Service delivery 14. Sect oral expertise
15. Community participation
16. Impact assessment
External relations 17. Community partners
18. Other development
organisations
19. Donors
20. Other local organisations
Organisation and 21. Commitment.
Program 22. Strategic thinking
sustainability 23. Marketing function
24. Efficiency of operation
25. Reliance on donor support
26. Alternatives to donor financing
27. Income-generating enterprise
existence and operation
 Strengths Weaknesses Obstacles Potential
Governance

Management

Human resource
development

Financial
resources

Service delivery
external
relations
Organization
and program
sustainability

Collaboration possible with HI/ANS

Short term-

Medium term-

Long term-

Plan of action
Activity Indicator (s) Player Date for
Completion