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The Capacity Development of Non-Profit

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 JKAP (Jurnal Kebijakan dan Administrasi Publik)
Vol. 20 No 2 – November 2016, p36-47
ISSN 0852-9213 (Print), ISSN 2477-4693 (Online)
Available Online at https://journal.ugm.ac.id/jkap

The Capacity Development of Non-Profit Organizations in the Growth Stage

(An Action Research Based on the SSM)

Harry Nenobais, Azhar Kasim, Irfan Ridwan Maksum

Administration Doctoral Study Program, Universitas Indonesia

hary_pesat@yahoo.co.id

Abstract

This research aims in analyzing the capacity development of non-profit organizations in the
growth stage through six internal components and four external components at Papuan Pesat
Foundation. The approach used in the research is the action research based on the soft systems
methodology that consists of two activities that had been done simultaneously, which are the
research interest and the problem solving interest (McKay and Marshall, 2001). It fulfills crite-
ria that are systematically desirable and culturally feasible (Flood an Jackson, 1991). Whilst
the theory used is according to Brothers and Sherman (2012) that states that there are six inter-
nal components that should be strengthened in the growth stage, which are the leadership, the
organization’s culture, the role of the board, programs’ extension, the management and infra-
structure, the financial sustainable. Afterwards, according to De Vita, et. al. (2001) there are
four organization’s external components that should be maintained, which are the social demo-
graphic, the economy/market, the politic and values, and the norms. The result of this research
shows the research interest, that the organization needs to be equipped with the transformation-
al leadership, the simple structure design, and the improvement of the role of the board. For the
problem solving interest, it needs the working programs’ extension through the correct formula-
tion process, the human resources management, the organization’s financial sustainability.
Then the external components which need to be formed are the collaboration among the non-
profit organizations, the local government, the private sectors, business activities, politic partic-
ipations and the public relation.
Keywords: action research, capacity building, growth stage, non-profit organization, soft sys-
tems methodology

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JKAP (Jurnal Kebijakan dan Administrasi Publik) Vol.20, No 2 November 2016 ---- https://journal.ugm.ac.id/jkap
INTRODUCTION
Nowadays, the public sector or the so-
called Non-Governmental Organizations and
non-profit organizations have a very im-
portant role in the development process gen-
erally (Nikkhah and Redzuan, 2010). Since
the 1980s globally, the civil society sectors
or the NGOs have played an increasing role
in producing and providing both public
goods and public services to the community
(Killian and Eklund, 2000). The dynamics
played by NGOs is so different. The NGOs
are so intensely encouraged to take an active
role in policy formulation at both national
and international levels, to advocate for lo-
cal regulation, and to pressure governments
based on international alliances that fund it
(Weller, 2005).
In Indonesia, the growth of the NGOs
has experienced a remarkable growth since
the fall of the “New Orde” regime in 1998.
The number of the civil society organiza-
tions, including the NGOs throughout Indo-
nesia has increased substantially. According
to Antlöv, et al (2009) in Jordan and Van
Tuijl (2009), there are tens of thousands of
civil society organizations in Indonesia to-
day. However, it is difficult to ascertain the
precise number of the NGOs in Indonesia
because only NGOs that have legal entities,
usually in the form of foundations, which
must report their existence to the authorities.
A regulation on foundations under the
Law no. 16/2001 which was subsequently
revised by the Law no. 28/2004 on Amend-
ment to Law No.16 / 2001 on the founda-
tion, is expected to provide an assurance and
a legal certainty to the existence of a foun-
dation. It is expected that they can achieve
various objectives that are social, religious,
and humanitarian in an accountable, trans-
parent, effective and efficient manner so as
to avoid distorted purposes, such as making
a profit or being a business land for the
founders and the builders, (Susanto, et al.,
2002; Jordan and Van Tuijl, 2009).
However, despite the rapid growth of
Copyright © 2016, JKAP, ISSN 0852-9213 (Print), ISSN 2477-4693 (Online)
the NGOs and the existence of regulations
on foundations, it has not led to the profes-
sional management of the organizations.
This is confirmed by Kusumahadi (2014)
from his experience in assisting about 215
NGOs in Indonesia and in his involvement
in NGO forums in ASEAN, that in general,
it can be said that the management perspec-
tive of NGOs in Indonesia is relatively weak
compared to the general NGOs in the Philip-
pines and Thailand. Then, Jordan and Van
Tuijl (2009) by citing various academic re-
search results, such as: Discourse (1999);
Ibrahim (2003); PIRAC (2002); Hadiwibata
(2003); Stanler, et al (2003); And Sidel
(2004), summarizes a number of weaknesses
of NGOs in Indonesia, which are; lack of
both managerial and organizational skills,
being elite and micro-oriented, the dominant
role of founders and leaders in taking almost
all decisions, the workers are lacking the
skills in their respective fields, the lack of
inter-NGO coordination, and the lack of
transparency and accountability.
Responding to the phenomenon, the
Papua Integrated Village Service Founda-
tion (Pesat) seeks to expand its capacity to
be able to both manage and encourage the
social growth and changes that are happen-
ing nowadays. In the future, it is expected
that Pesat Foundation can grow effectively
and become a mature organization, which
can achieve its vision optimally, which is to
completely develope Papuan people. Alt-
hough it is not easy to develop the capacity,
but according to Brinckerhoff (2012), intel-
ligent boards of a foundation of course, need
to do even better actions to encourage the
growth of the organization. The growth of
the organization will only work effectively
if the leaders do the capacity development.
This research is completely distin-
guished from previous researches. The dif-
ferences are found in the focus of the re-
search, the study perspective, the research
methods, and the research objects used. The
focus of this research is on the capacity de-
velopment efforts of nonprofit organizations
relating to the existence of organizational
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 Harry Nenobais, Azhar Kasim, Irfan Ridwan Maksum — The Capacity Development of Non-Profit..
life cycle, especially at the (early) growth
stage. This study aims in providing a thor-
ough understanding of how nonprofit organ-
izations develop their capacities whitin a
growth stage whose the characteristics cer-
tainly different from those of other stages.
By focusing on the growth stage, this re-
search will focus on the components needed
in the organization capacity development so
as to create both the efficiency and the ef-
fectiveness to generate innovations
(Connolly and York, 2003; Brothers and
Sherman, 2012). Therefore, the approach
used to deal with and to solve the problems
must be chosen and carefully determined so
that it is capable of providing a good and
proper solution.
This research uses an action research
approach based on the soft system method-
ology (SSM) to get answers that fulfill the
research interest and the problem solving
interest simultaneously (dual imperartives of
action research) (McKay and Marshall,
2001). The basic idea of SSM is that real-
world situations being explored are all about
human activity systems, in which the writer
can choose one or more relevant human ac-
tivity systems (Hardjosoekarto, 2012).
While the object of the research is the Papua
Foundation Services Village Terpadum
(Pesat), a foundation that has been operating
in Papua in years.
Questions in this study are divided in-
to two parts, namely questions for the re-
search interest and questions for the problem
solving interest. Questions for the research
interest are: (1) How is the process of lead-
ership style changing in Papuan Pesat Foun-
dation? (2) How is the process of forming
the organizational cultures inside the Papuan
Pesat Foundation? (3) How is the process of
improving the role of the boards in Papuan
Pesat Foundation? Meanwhile, the questions
for the problem solving interest are: (1) How
is the process of the program expansion at
Papuan Pesat Foundation? (2) How is the
process of management and infrastructure
establishment in Papuan Pesat Foundation?
(3) How is the process of financial sustaina-
Copyright © 2016, JKAP, ISSN 0852-9213 (Print), ISSN 2477-4693 (Online)
bility in Papuan Pesat Foundation? (4) How
are the demographic social implications of
the Papuan Pesat Foundation? (5) What are
the economic / market environment implica-
tions for the Papuan Pesat Foundation? (6)
What are the political environmental impli-
cations of the Papuan Pesat Foundation? (7)
What are the environmental implications of
community values and norms toward the
Papuan Pesat Foundation?
Currently, the term of capacity devel-
opment is not only used in the public and
private sectors, but it has also been used in
the nonprofit sector, that is universally ac-
cepted and critically accepted. A lot of liter-
atures have presented the capacity develop-
ment in the context of nonprofit organiza-
tions or NGOs (DFID, 2006).
Barbara Kibbe in Light (2011) states
that the capacity of a nonprofit organization
is an organization’s ability to define mis-
sions meaningfully, to generate both the tan-
gible and intangible resources to actualize
the missions, to deploy the resources effi-
ciently, and to get works done properly.
McKinsey & Company (2001) states that the
capacity development aims in enhancing the
ability of individuals, organizations, and
systems to perform functions in order to
achieve the missions and goals effectively,
efficiently, and sustainably. The nonprofit
organization capacity is required in mission-
related activities. The capacity is absolutely
not the same as the organization effective-
ness. Funding agencies are interested in see-
ing that the organizational management,
governance, and leadership are linked to the
organizational effectiveness as a part and
give wider social impacts (Hudson, 2005;
Light, 2004a; Lets, Ryan & Grossman,
1999; Kibbe, et al, 2004; Letts, et al. , 1999;
McKinsey & Company, 2001).
The concept of the organizational
growth or can also be referred as the stage of
infrastructure development has been an area
of interest for organizational theories in this
decade; (Adizes 1979, 1989, Downs, 1967,
Greiner, 1972, Hanks, et al., 1993; Miller
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JKAP (Jurnal Kebijakan dan Administrasi Publik) Vol.20, No 2 November 2016 ---- https://journal.ugm.ac.id/jkap

Figure 1. Capacity Development of Nonprofit Organizations on the Growth Phase

Source: Adapted from Brothers and Sherman (2012) and De Vita, et al (2001)

and Friesen, 1984; Penrose, 1952; Quinn
and Cameron, 1983 in Lester and Parnell,
2008). According to Jones (2004), organiza-
tional growth is defined as a stage in the life
cycle organization (organization life cycle)
where the organization is able to develop
values and to create expertises and compe-
tences so as to obtain additional resources.
This growth enables organizations to im-
prove job sharing and specialization, while
developing competitive advantage as well.
Once the organization is able to obtain re-
sources, it is certainly that the organization
will benefit so that it can further develop.
This sight is in line with what Brothers and
Sherman (2012) have proposed that defines
the growth of the organization as a signifi-
cant extension of the provision of programs,
community services, the provision of prem-
ises, operating budgets, and the like.
The components of the nonprofit or-
ganizational capacity development in the
growth stage or known as the stage of infra-
structure development used as a reference in
this study are based on the explanation of
Brothers and Sherman (2012) which specifi-
cally outlines the six internal organizational
components that should be managed and
developed by the nonprofit organizations:
leadership, expansion of programs, manage-
ment and infrastructure, financial sustaina-
bility, board roles, and organizational cul-
tures. Furthermore, the external components
of the organizations used the model pro-
posed by De Vita, et al (2001) which con-
sists of four components, namely social de-
mographic, economic / market conditions,
politics, and the values and norms of socie-
ty. From the various components of capacity
development of the nonprofit organizations
in the stage of growth, this can be illustrated
in Figure 1.
According to Wolf (2012), a nonprofit
organization can be defined as an organiza-
tion that has a primary mission to serve the
community. The nonprofits are not orga-

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 Harry Nenobais, Azhar Kasim, Irfan Ridwan Maksum — The Capacity Development of Non-Profit..

Figure 2. The Dual Imperatives of Action Research

Source: McKay dan Marshall (2001)

nized for both profit and corporate charity.
The United Nations Developments Program
(UNDP) in 2011 defines NGOs, which are a
form of nonprofit organization, as voluntary
and non-profit-oriented community groups,
organized at either local, national, or interna-
tional levels.
RESEARCH METHODS
2001). The two cycles of the problem solv-
ing interest and the research interest in the
action research are described by McKay and
Marshall (2001) in Figure 2.
Generally, the SSM implementation is
conducted though seven stages as showed in
Figure 3.

The paradigm used in this research is RESULTS AND DISCUSSIONS

the paradigm of constructivism or known
also as interpretivism. Meanwhile, the ap-
proach used is the action research based on
the Soft Systems Methodology (SSM) which
consists of two types of activities as a dual
cycle process, namely: Firstly, the action
research cycle based on the problem solving
interest. Secondly, the action research cycle
based on the research interest. Both are not
independent but those are interconnected
with each other (McKay and Marshall,
Explanation of the Problem Situation
This section will describe the prob-
lematic situation. According to Checkland
(1990) there are three types of analysis that
need to be considered, namely:
1. Introduction of the Problematic Situa-
tion: Analysis One
The analysis one or the analysis of inter-

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JKAP (Jurnal Kebijakan dan Administrasi Publik) Vol.20, No 2 November 2016 ---- https://journal.ugm.ac.id/jkap

Figure 3. The Basic Cycle of the SSM

Source: Checkland dan Poulter (2006)

ventions will identify the actors that exist
in the real world that will be references,
as well as their roles in the real world.
The first stage of the application of SSM
is to determine the problematic situation
faced by Papuan Pesat Foundation as a
real world view which is studied. Next, it
is defined who will be C (Clients), P
(Practitioners), and O (Owners of the is-
sue addressed).
2. Introduction of Problematic Situations:
Analysis Two (Social)
Checkland and Poulter (2006) describe
the three social elements consisting of
roles, norms, and values. These three so-
cial elements are closely related, dynam-
ic, and constantly changing over time as
the real world changes. Based on this, the
researcher conducted a social system
analysis on the existing system in Papuan
Pesat Foundation.
a. Roles
Roles are social positions that mark
differences among group members or
organizations. The group in the foun-
dation consists of the Trustees, Super-
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visors, and Management (at least con-
sisting of: a chairman, a secretary, and
a treasurer)
b. Norms
Norm is the expected behavior associ-
ated with the role. Thus, the definition
of norm here is related to the various
provisions of the roles and responsi-
bilities that must be done by the
coach, boards of trustees, administra-
tors, divisions, implementing units,
and branch administrators that exist in
Papuan Pesat Foundation.
c. Values
Values are the standards or criteria to
be applied into behavior-in-role. The
values that are owned by Papuan Pesat
Foundation are based on values in the
Bible.
3. Introduction of Problematic Situa-
tions: Analysis Three (Politics)
This political analysis will find out the
problematic situation that has been made
by including the political situation. This
analysis is always strong in determining
the success of Yayasan Pesat. Some of
the components that need attention in this
41
 Harry Nenobais, Azhar Kasim, Irfan Ridwan Maksum — The Capacity Development of Non-Profit..
analysis are: (1) related to roles: personal
charisma, membership in various com-
missions, regular access to power hold-
ers. (2) related to the knowledge-based
setting (knowledge-based setting): the
intellectual authority and reputation, the
reputation of making a report of a meet-
ing. (3) in relation to information authori-
ties: having access to important infor-
mation, having access to close access to
important information (Hardjosoekarto,
2012).
a. Rich Picture
The compilation of rich picture re-
quires three roles that become a refer-
ence when composing the image.
First, a person or a group of people
causing an investigation and an im-
plementation of the intervention
(client). Second, a person or a group
of people who conduct an investiga-
tion (practitioner). Third, the owner
of the issue addressed or the issue
owner. The issue owner holds an im-
portant role in presenting the research
investigation.
Based on the results of information
from informants , the following is the result
of the construction of the ideas of the prob-
lematic situation obtained from the actors in
the tenth-components of the capacity de-
velopment of the Papuan Pesat Foundation
at the stage of growth.
The first is that the component of lead-
ership, supervisor, and chairman of the foun-
dation have not been optimal in compensat-
ing for changes in the foundation at the stage
of infrastructure development. The leader-
ship style used by the leader, especially the
coaching board, is still likely to have a char-
ismatic, singular, and informal or purposeful
entrepreneurial (PaEi) style, which is charac-
teristic of the basic leadership style or back
to basics.
The second is the organizational cul-
ture component. The organizational culture
values prevailing in Papuan Pesat Founda-
Copyright © 2016, JKAP, ISSN 0852-9213 (Print), ISSN 2477-4693 (Online)
tion still dominantly informal have not been
yet developed into formal, whereas the situa-
tion of the foundation is currently experienc-
ing significant development.
The third is the role of the council. At
the age of sixteen, the Papuan Pesat Founda-
tion has only one coach, who is also the
founder of the Foundation. Though, the pro-
gram and the geographic coverage of the
foundation's services is now widespread.
The quantity and quality of existing staff is
increasing and the personal activity of the
coach and founder is also getting higher.
The fourth is the expansion of the pro-
gram. The Papuan Pesat Foundation has
been working to expand its work programs.
Therefore, it is not only about developing
programs in the field of education, but also
developing programs in the field of spiritual,
health, information media, and business and
economic development. However, the for-
mulation of the expansion of new programs
has not been planned through a appropriate
process, such as through SWOT analysis
(Bryson, 2004; Daft, 2007; Chaston, 2011;
Alison and Kaye, 2013), creating logical
models (Tschirhat and Bielefeld, 2012;
Brothers and Sherman 2012), and perform
the validity of new programs first (Brothers
and Sherman, 2012). This resulted in some
new programs that not being able to run
smoothly in its implementation. Further-
more, the other cause is the lack of sufficient
funds to realize the new programs.
The fifth is the management and infra-
structure. During its six-year operation, the
Pesat Foundation has been working as close-
ly as possible to improve the skills of its
staff. The foundation coaches pay a great
deal of attention to this. Through the deci-
sion of the coach, some staff who are seen to
have good potential are given opportunities
and scholarships to develop their knowledge
and skills through formal and informal edu-
cation channels. They are sent to university,
master, and even to doctoral level so they
can work well and able to develop the foun-
dation effectively. However, from the find-
ings, it should be noted that leaders still have
42
JKAP (Jurnal Kebijakan dan Administrasi Publik) Vol.20, No 2 November 2016 ---- https://journal.ugm.ac.id/jkap
weaknesses for how to organize, maintain,
and maintain existing staff so that they can
work in accordance with their expertise and
stay on the foundation so they do not need to
leave the foundation. Although some of the
foundation staff are schooled to work out-
side the Pesat Foundation, they are expected
to continue to provide assistance to the foun-
dation's progress. Therefore, to overcome
this problem, the need for good human re-
source management (MSDM). In the use of
IT (Information Technology) was found that
the Foundation has been quite advanced. The
use of IT is not only used by foundation staff
through computer units and Internet infor-
mation networks to manage data and infor-
mation, perform administrative service tasks,
publish and provide reports on the existence
and development of foundation activities to
donors, governments and the wider commu-
nity Interactive and periodic, but also taught
to children from the time they sit in primary
school to high school. Meanwhile, for com-
munication with the public, in this case with
the community, local government, and do-
nors as a means of accountability to the en-
tire development of the foundation's activi-
ties in order to increase their voluntary sup-
port to the programs implemented by the
foundation has been running quite well.
The sixth one is the financial sustaina-
bility. The Pesat Foundation has not been
able to have sufficient finance to finance all
program activities, adding administrative
staff, and expanding the place / work space.
The source of the financial revenue of the
Pesat Foundation is still largely obtained
from donations either institutionally or pri-
vately. Efforts through other sources of fi-
nance, such as foundations' economic enter-
prises, the sale of foundation services, and
government assistance have not been max-
imized so that the results are not yet optimal.
The seventh is the social demograph-
ic. The demographic social conditions of Pa-
pua are still very lagging, widespread, and
complex. To overcome these conditions, it
needs a collaboration. However, the collabo-
ration between the Pesat Foundation and
Copyright © 2016, JKAP, ISSN 0852-9213 (Print), ISSN 2477-4693 (Online)
other foundations, local and private govern-
ment to partner to reach and serve the rural
communities of Papua has not been formed
optimally. Though this collaboration, it is
very important to be formed in order to ex-
plore the differences and seek a constructive
and mutually beneficial solution so as to ob-
tain quality results.
The eighth is the condition of the econ-
omy / market in Papua that is still very poor
and underdeveloped that can not support the
foundation's activities financially, then creat-
ing business activities is needed to generate
financial benefits in order to sustain all the
operational costs of the foundation is in-
creasing in number. The Pesat Foundation
has planned and built business activities. But
the result is not yet maximally yielding fi-
nancial benefits to sustain all operational
costs of the foundation when compared to
donations from donors.
The ninth is the politics. The Pesat
Foundation has never been involved in any
decision-making / policy through Musren-
bang activities or through other forms of po-
litical participation, such as lobbying and
negotiating, conducting discussions and
communications with political / administra-
tive officials, etc. in order to provide inputs
for the creation of products Government pol-
icies that are aspirational and able to im-
prove the welfare of people inland Papua
optimally. In addition, local governments
have not opened wide access to foundations
to participate in every stage of Musrenbang
or other political activities, such as lobbying
and negotiating.
The tenth is the values and norms of
the society. The values or customs and
norms that apply to rural Papuans are largely
incapable of creating conditions conducive
to the position of women and children in the
family structure, particularly for educational
activities (UNDP, 2005; Team Sintese,
2006, ILO -EAST, 2011; Bhakti and Pigay,
2012). Therefore, with such conditions, it is
necessary to do intensive and sustainable
public relations to influence and to change
the way of view and life of the community,
43
 Harry Nenobais, Azhar Kasim, Irfan Ridwan Maksum — The Capacity Development of Non-Profit..
Figure 4. Rich Picture The Capacity Development of Non-Profit Organizations in the Growth
Stage
and it turns out that the Foundation has been
very well run public relations, so many in-
land Papuan people who have realized how
important the education for Life and future
of their children.
Based on the description, Figure 4 is
a rich picture of the Capacity Develiopment
of Pesat Foundation at the growth / early
stage.
Analysis of Components of Nonprofit Or-
ganization Capacity Development in the
Infrastructure Development Phase
This section will describe the analysis
of each component of capacity building of
nonprofit organizations at the growth stage
in Yayasan Pesat Papua, which is as follows.
1. Leadership
To overcome the problematic situation in
the leadership of the foundation, the
board of coaches and chairmen must be
able to adapt maximally to the style of
Copyright © 2016, JKAP, ISSN 0852-9213 (Print), ISSN 2477-4693 (Online)
the transformational leadership. Another
alternative that the foundation can do is
to appoint a new leader (board member
of the coach or executive director) who
has a transformational leadership model
in order to complement the pre-existing
type of leader.
2. Organization’s cultures
The organization’s cultures prevailing in
the Pesat Foundation at the growth stage
has not been developed optimally, so it
has not been able to strengthen the devel-
opment and changes that occurred in the
foundation. Therefore it is necessary to
design simple structures. The simple
structures are selected and used within
the foundation as they are capable of
overcoming organizational changes at the
growth stage. The simple structures will
also be able to organize elements in the
foundation to support each other, work
together, and unite as a part to carry out
their duties and responsibilities. This
simple structure of the key lies in the
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JKAP (Jurnal Kebijakan dan Administrasi Publik) Vol.20, No 2 November 2016 ---- https://journal.ugm.ac.id/jkap

apex strategy, ie at the top managers who the community, local government, and
are given the overall responsibility of the donors as a means of accountability to
organization (Mintzberg, 1979). the entire development of the founda-
tion's activities in order to increase their
voluntary support to the programs im-
3. Board Roles
plemented by the foundation has been
The program and the geographical cover-
running quite well.
age of the current foundation services
increasingly increase the quantity and
6. Financial sustainability
quality of existing staff. Moreover, the
The Pesat Foundation has not been able
personal activity of the coach / founder
to have sufficient finance to finance all
is also higher. This leads to an improve-
program activities, adding administrative
ment in the composition of the advisory
staff, and expanding the place / work
board which can compensate for changes
space. The source of the financial reve-
in the foundation through the process of
nue of the Pesat Foundation is still large-
identifying, recruiting and integrating
ly obtained from donations either institu-
several new council members into the
tionally or privately. Efforts through oth-
composition of the Board of Trustees
er sources of finance, such as founda-
(BoardSource, 2012).
tions' economic enterprises, the sale of
foundation services, and government
4. Program Extension
assistance have not been maximized so
The formulation of the expansion of new
that the results are not yet optimal.
programs has not been planned through
a appropriate process, such as through
7. Social Demographic
SWOT analysis (Bryson, 2004; Daft,
The social demographic conditions of
2007; Chaston, 2011; Alison and Kaye,
Papua are still very lagging, widespread,
2013), creating logical models
and complex. To overcome these condi-
(Tschirhat and Bielefeld, 2012; Brothers
tions, it needs a collaboration. However,
and Sherman 2012), and perform the
the collaboration between the Pesat
validity of new programs first (Brothers
Foundation and other foundations, local
and Sherman, 2012). This resulted in
and private government to partner to
some new programs that not being able
reach and serve the rural communities of
to run smoothly in its implementation.
Papua has not been formed optimally.
Furthermore, the other cause is the lack
Though this collaboration, it is very im-
of sufficient funds to realize the new
portant to be formed in order to explore
programs.
the differences and seek a constructive
and mutually beneficial solution so as to
5. Management and Infrastructures
obtain quality results.
The Pesat Foundation has been working
hard to improve the skills of its staff.
8. Economy / Market
The foundation coaches completely care
The condition of the economy / market
off this. However, from the findings, it is
in Papua that is still very poor and un-
important to note that leaders still have
derdeveloped that can not support the
weaknesses for how to organize, main-
foundation's activities financially, then
tain, and maintain existing staff so that
creating business activities is needed to
they can work in accordance with their
generate financial benefits in order to
expertise and stay in the foundation. In
sustain all the operational costs of the
the use of IT, the foundation has been
foundation is increasing in number. The
quite advanced. Meanwhile, for commu-
Pesat Foundation has planned and built
nication with the public, in this case with

Copyright © 2016, JKAP, ISSN 0852-9213 (Print), ISSN 2477-4693 (Online) 45

 Harry Nenobais, Azhar Kasim, Irfan Ridwan Maksum — The Capacity Development of Non-Profit..

Figure 5. Construction generated in the context of the Nonprofit Organization Capacity

Development Research in the Growth Phase at the Papuan Pesat Foundation

business activities. But the result is not
yet maximally yielding financial benefits
to sustain all operational costs of the
foundation when compared to donations
from donors.
9. Politics
The Pesat Foundation has never been
involved in any decision-making / policy
through Musrenbang activities or
through other forms of political partici-
pation, such as lobbying and negotiating,
conducting discussions and communica-
tions with political / administrative offi-
cials, etc. in order to provide inputs for
the creation of products Government
policies that are aspirational and able to
improve the welfare of people inland
Papua optimally. In addition, local gov-
ernments have not opened wide access
to foundations to participate in every
stage of Musrenbang or other political
activities, such as lobbying and negotiat-
ing.
10. Values and norms in the society
The tenth is the values and norms of the
society. The values or customs and
norms that apply to rural Papuans are
largely incapable of creating conditions
conducive to the position of women and
children in the family structure, particu-
larly for educational activities (UNDP,
2005; Team Sintese, 2006, ILO -EAST,
2011; Bhakti and Pigay, 2012). There-
fore, with such conditions, it is neces-
sary to do intensive and sustainable pub-
lic relations to influence and to change
the way of view and life of the commu-
nity, and it turns out that the Foundation
has been very well run public relations,
so many inland Papuan people who have
realized how important the education for
Life and future of their children.

Copyright © 2016, JKAP, ISSN 0852-9213 (Print), ISSN 2477-4693 (Online) 46

 JKAP (Jurnal Kebijakan dan Administrasi Publik) Vol.20, No 2 November 2016 ---- https://journal.ugm.ac.id/jkap
All the findings of the study of the Pe-
sat Foundation’s Capacity Development in
the growth stage illustrated in Figure 5.
CONCLUSION
The results of this study indicate some
important points. Regarding to the research
interest, the development of the capacity of
nonprofit organizations at the stage of
growth needs a renewal of theory, namely:
transformational leadership and simple
structure. As for the problem solving inter-
est, the capacity building of nonprofit organ-
izations in the growth stage needs to be re-
newed: human resource management, col-
laboration, business activities, participation,
and public relations (PR). In relation to the
methodology, this study contributed SSM-
based action research methods with two cat-
egories, namely research interest and prob-
lem solving to solve problems in the capaci-
ty building of nonprofit organizations in a
range.
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