Organizational Effectiveness

Organizational effectiveness, or OE, is the ability of an organization to marshal its knowledge, skills, and other resources to effectively fulfill its purpose. Also referred to as “capacity building,” OE describes the effort to ensure that nonprofits benefit from good management and strong governance, and are equipped to deliver programs that serve the community.
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What is organizational effectiveness?

Organizational effectiveness, or OE, is the ability of an organization to marshal its knowledge, skills, and other resources to effectively fulfill its purpose. Also referred to as “capacity building,” OE describes the effort to ensure that nonprofits benefit from good management and strong governance, and are equipped to deliver programs that serve the community. View all of the Foundation’s recent grantees.

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The Foundation defines an effective nonprofit as one that:

  • Has a clear sense of its identity, with a compelling mission that is rooted in community needs, which it can communicate clearly to stakeholders.
  • Is stewarded by an engaged, thoughtful, ethical and competent board with best practice governance policies guiding their efforts.
  • Delivers programs and services of the highest quality, which have been shown to effectively address community needs.
  • Is financially sound, with a diversified funding base able to weather the ever-changing economic and funding landscape.
  • Is respected by key stakeholders–clients, funders, donors, members, and the field–and influences the sector and community of which it is a part.
  • Utilizes organizational and operational best practices, implemented by knowledgeable and skilled staff, and strives to be an organization of excellence.
  • Can respond effectively to the changing landscape of community needs, economic ups and downs, and other unforeseen circumstances.

In the video below, vice president for Organizational Effectiveness Joann Ricci discusses OE.

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