Background: Alternative healthcare, community development, social justice, and education are

all areas where non-governmental organisations (NGOs) are increasingly being recognised or
promoted, but these efforts are hampered by government inefficiency and resource constraints.
However, the statement of non-profit organisations is more complicated than simply comparing
them to the government, as they may also suffer from a lack of resources and ineffective
management, just like the government. Purpose: The purpose of this paper is to examine the role
and impact of non-governmental organisations (NGOs) towards Sustainable Community
Development in and to identify the challenges these organisations face. Method: Throughout this
investigation, a wide range of sources from academic journals, reports, and even company
websites were consulted to gather data. This article includes data on the number of NGOs in
Malaysia, which can help us obtain a better sense of the sector. To find out just how rapidly these
non-profits are expanding, the project’s goal is to track their progress. A systematic literature
review method was used to screen the retrieved articles from three online databases. Findings:
Eight articles have been chosen for further analysis in this study. In total, four challenges and
four recommendations have been identified. Conclusions: To that end, this article offers some
suggestions for improving already-existing non-profit organisations so that they serve the
community as a whole.
Keywords:

1. Introduction

In the final two decades of the twentieth century, Non-Governmental Organisations (NGOs)
began to play a role in politics in the majority of countries, although these organisations initially
focused on social welfare. Simultaneously, academics’ interest in NGOs is growing. Between
1987 and 1997, numerous empirical studies on NGOs were conducted, with a focus on
government, democratisation, the formation of civil society, and also on NGOs in the global
system. Simultaneously, governments and communities in the majority of countries have begun
to reveal and highlight various complex societal issues such as consumerism, women’s
empowerment, the environment, and human rights [1]. With these coincidences, an NGO can
become involved in complex societal issues as part of its role during this time.
Meanwhile, NGOs are generally defined by four characteristics: they are voluntary, non-partisan,
non-profit, and non-criminal. According to Salamon and Anheier [2], seven distinct
characteristics were used to categorise and differentiate NGOs. The seven characteristics are as
follows: (1) formal (officially registered and governed); (2) private (having a separate
organisation from the government); (3) non-profit distributing (different from the objectives of
establishing a business organisation); (4) self-governing (privately managed); (5) voluntary
(worked voluntarily); (6) non-religious (not motivated by preaching); and (7) non-political (not
involved in promoting candidates in elections). These characteristics are particularly useful for
identifying and differentiating NGOs from other organisations.
Willets [3] classifies NGOs into two broad categories: operational and campaigning. Operational
NGOs are non-governmental organizations whose primary mission is to carry out development
projects for underserved populations such as the poor, disabled, elderly, and oppressed.
Meanwhile, campaigning NGOs are organisations whose primary objective is to influence a
country’s policymaking process. Understandably, operational NGOs require resources in the
form of financial support, equipment, or volunteer labor to carry out their projects and programs.
In comparison to operational NGOs, campaigning NGOs rely on more intangible resources to
mobilize the activities they manage, such as ideas, experience, expertise, and time from other
members and individuals. Thus, NGOs are defined as development actors that can contribute to
the strengthening of social relations and cross-networks that can serve as a foundation for
collective action and increased democratic participation.
In defining sustainable community development, its definition emphasises the importance of
striking a balance between environmental concerns and development objectives while also
enhancing local social relationships. Sustainable communities not only protect and enhance the
environment but also promote more humane local societies. It is a combination of both
Sustainable Development and Sustainable Community, whereby the community lives in a
sustainable environment and social interaction [4]. On the other hand, community development
is the voluntary participation of individuals in an organised process aimed at achieving the
desired outcomes, most notably in the areas of education, health, recreation, and housing. It is an
activity carried out at the community level that is an organised effort to raise the social,
economic, and environmental standards of society with the least amount of external assistance
possible [5]. Community development can help local communities improve their socioeconomic
situation and make better use of available resources [6,7]. Community development shifted to
resource mobilisation during the pre-industrial era. During this period, community development
became focused on workforce expansion and self-defence, which was accomplished through
resource mobilisation. Since the modern era’s focus on community development shifted
significantly, the primary goal of societal development has been to improve people’s social well-
being.
Furthermore, Khalid [8] stated that NGOs excel at organising ordinary communities in such a
way that they can be viewed as reinforcement social capital, a role that can obviate service
delivery. Local communities, on the other hand, should be involved in all development plans.
This is due to the observations which had demonstrated that NGOs are extremely effective at
developing communities and that people are willing to join these organisations for the benefits
they provide. As such, this article examines the role and impact of NGOs in community
development, the challenges that NGOs face, and the direction that NGOs should take in
community development.

2. Literature Review

2.1. Non-Governmental Organisations (NGOs)

Except for political parties and private organisations, the term non-governmental organisations
(NGOs) refers to nearly all organisations that are not sponsored by the government. The
organisation must be entirely voluntary and must operate within the confines of the laws of the
country in which it operates. NGOs are competently run organisations that seek to alleviate
human suffering and promote the development of poor countries [9] through a variety of
methods, including funding projects, assisting in the provision of services, and building capacity
[10].
As identified by Stromquist [11], NGOs perform three primary functions: (i) providing direct
services such as providing shelter and aid, caring for unfortunate welfare; (ii) providing
educational services such as initiating educational awareness and encouraging critical analysis on
the social environment; (iii) defending public policy such as advocating for corruption
prevention or no smoking policy. Baccaro [10] demonstrates how certain NGOs can promote the
organisation and empowerment of the poor, particularly women, through training for group
members, awareness-raising, and other social services, among other methods. The ability to gain
control socially, politically, economically, and psychologically, according to Zimmerman and
Rappaport [12], is defined as the ability of an individual to gain control through access to
information, knowledge, and skills; making decisions; and individual self-efficacy, community
participation, and perceived control.
Over time, NGOs seek to promote sustainable community development through capacity-
building and empowerment activities. Langran [13] defined capacity building as the process by
which NGOs enable community development. NGOs are frequently formed to help people
develop their capabilities. Additionally, NGOs are commended for promoting community
autonomy and empowerment by assisting community groups and facilitating participatory
processes [14].

2.2. The Concept of Community Development

A community is a well-defined social unit, for example, a group or association of people who
share common needs, interests, functions, and values. Moreover, community development is a
process in which agencies assist community members in identifying and taking collective action
on issues that matter to them. Community development empowers residents and strengthens and
connects communities [15]. Community development has grown to be one of the most powerful
social forces in the process of deliberate and effective change [16].
According to the United Nations [17], community development is a process in which citizens
work alongside government officials to improve the economic, social, and cultural conditions of
the entire society, enabling them to contribute fully to national progress and integrate these
communities into national life. Jones [18] coined the term “community development,” which
encompasses community participation, empowerment, and capacity. As a result, there are two
primary facets to the community development process. To begin, participation by individuals in
the effort to improve their standard of living as much as possible through their initiative. Second,
providing technical and social services in a manner that fosters initiative, self-reliance, and
mutual understanding [19].
According to Pearce [20], a community development strategy should incorporate three critical
components: unified empowerment, unified leadership, and revolutionising through discourse.
Rural and urban communities should be involved in all stages of the development process,
including need assessment, planning, and implementation. In this context, community
development can be used for a variety of purposes, including (1) improving health; (2)
improving education; (3) improving recreation and housing; (4) developing community leaders;
(5) motivating communities to organise community-based plans to solve their problems; (6)
strengthening local communities’ capacities to identify their incomes and interests; (7)
establishing clear support among the community; and (8) enhancing operational community
grunt.
Meanwhile, sustainable community development offers new challenges to a society that demands
more attention and collaboration from various parties. It is an integration of two major concepts,
namely, sustainable development and sustainable community. Here, communities are expected to
be able to live in an environment that is sustainable and socially sustainable, including economic
as well. In other words, a sustainable community adapts continuously to meet its residents’ social
and economic needs while preserving the environment’s capacity to support them [21].
Therefore, NGOs have to mobilise communities to become self-sufficient. It assists communities
in discovering their potential and in relying on their resources to achieve their goals which
eventually contribute towards sustainable community development [22].

2.3. The Relationship between NGOs and Community Development

Based on this research, it can be stated that NGOs are essential in the promotion of sustainable
community development that strikes a balance between environmental concerns and
development goals while also strengthening local social ties. Sustainable communities provide
for the economic needs of their residents, improve and protect the environment, and promote the
growth of humanitarian communities, among other things.
According to William [23], the following six functions of NGOs are critical to community
development: (1) infrastructure development and operation; (2) support for innovation,
demonstration, and pilot projects; (3) facilitation of communication (NGOs can facilitate
communication upward from people to the government and downward from the government to
the people); (4) technical assistance and training; (5) research, monitoring, and evaluation; and
(6) advocacy (NGOs play roles from advocates for the poor to implementers of government
programmes).
NGOs play an important role in community development by assisting communities in developing
their social, capital, and human resources; enhancing knowledge and skills; encouraging people
to take part in activities; and acting as a link between communities and systems. Involvement in
these activities will result in their strengthening, which will be achieved as a result of community
development [24]. Ultimately, this results in long-term, environmentally friendly community
development [22].

2.4. NGOs in Malaysia

According to Tumin & Norhadi [25], the activities of NGOs in Malaysia before and following
the declaration of independence for Tanah Melayu in 1957 can be understood through the lens of
specific themes. These themes include communalism, welfarism, universalism, as well as
cooperative and confrontational modes of thought. During the colonial period, for example, the
establishment of NGOs to represent the interests of the major races, namely Malay, Chinese, and
Indian, was heavily influenced by racism or communalism. Additionally, as was customary for
the immigrant community at the time, welfare NGOs were established to address issues
exacerbated by migration from the country of origin (China and India) to Malaya.
This is not to say that the two themes of understanding NGOs have ceased to be prominent
following the declaration of independence. Even before 1969, the issue of racism was frequently
and loudly raised, both by political party leaders and non-governmental organisation leaders.
However, following independence, it was discovered that in addition to the establishment of
organisations to protect similar NGOs, beginning in the 1970s, non-communalistic and
universalistic issues such as consumerism, environmentalism, and feminism became the focus of
NGO activity [25].
The process of strong community development among Malaysians is generally successful, with
the government spearheading these energies to ensure political stability and justice, as well as
socioeconomic peace. Malaysia frequently serves as a model for other countries in terms of
community relations, owing to Malaysia’s success in fostering harmony among diverse ethnic
groups. The majority of these successes are the result of collaborative efforts between various
stakeholders, including NGOs.
Until September 2021, there are currently 82,675 NGOs registered in Malaysia. The state of
Selangor has the highest number of NGOs, and the state with the lowest number of NGOs is the
Wilayah Persekutuan Labuan, which has only 270 NGOs. According to the category, the Welfare
category has the highest number of NGOs in Malaysia with 27,109 NGOs, while the Safety
category has the lowest number of NGOs with only 658 NGOs. The number of active
organisations by state and number of active organisations by category are as shown in Table 1
and Table 2, respectively, based on data from the Registrar of Societies of Malaysia (ROS) [26].
Table 1. The number of active NGOs by state.

Table 2. Number of active NGOs by category.

Since NGOs, like political parties, government bodies, the media, and certain figures can
influence policymaking, some NGOs may have divergent or conflicting goals of struggle and
values. Confrontational relations between NGOs and the government frequently occur when
there are disagreements or conflicts of opinion on an issue for which NGOs advocate, such as
some human rights and environmental issues.
Nonetheless, numerous NGOs have developed cooperative and collaborative relationships with
the government to bring attention to a particular issue. Typically, representatives from such
NGOs are invited to serve on advisory councils alongside representatives from other sectors,
such as higher education institutions, the media, and the private sector. The preceding discussion
demonstrates that NGOs will continue to have a place in Malaysia’s government and society in
the future.

3. Methods

A substantial amount of literature was analysed in this study, including journal articles, reports,
and even organisational websites, to ascertain the possible impact of NGOs on community
development. Following that, several electronic databases were used to conduct the document
analysis and literature reviews, including Google Scholar, Scopus, and Wiley. Several keywords
were used, including “non-governmental organisations’ role” and “community development.”
The retrieved articles were analysed with a systematic review process involving three steps,
namely, identification, screening, and eligibility and explain in the following subchapter.

3.1. Systematic Review Process

i. Identification
The first phase in the systematic review process is the identification which involved keywords
identification for information searching purposes. Table 3 shows the keywords used for
searching the related articles in each search engine. The keywords were obtained from several
sources including dictionaries, thesaurus and keywords from previous literature. At the end of
this process, a total of 180 documents from Scopus, 247 documents from Google Scholar, and
118 documents were retrieved from Wiley. In total 545 documents were retrieved.
Table 3. Keywords and search strings.

ii. Screening (inclusion and exclusion criteria)

Screening is a process to include or exclude articles according to criteria determined by the
authors with the assistance of specific databases [27]. To determine the suitability of the articles,
eligibility, inclusion and exclusion criterion were determined including a timeline (between 2016
to 2022), document types (articles journal with empirical data) and language (English). Articles
with other criteria were excluded from this study. After the identification process, a total of 324
articles were removed.
iii. Eligibility and duplication exclusion (Manual Screening)
Eligibility is a process that includes or excludes articles manually according to the authors
‘specific criteria [27]. At this phase, the articles retrieved were thoroughly reviewed, with articles
that did not match the criterion being rejected. This includes duplicate documents. A total of 117
articles were detected to be redundant and left a total of 104 documents for eligibility process
screen manually for literature focusing on NGOs and community development. Then, another
eligibility criteria for the articles are that it should include the role of the NGOs or impact of the
programs, strategies, or interventions towards the sustainability of community development.
After a thorough process of reading and screening, a total of 14 articles were selected for further
analysis in this study.

3.2. Data Abstraction and Analysis

The articles were then evaluated, reviewed, and analysed. A total of 14 articles were analysed
using thematic analysis as the first stage to extract statements and data based on the study’s
objective. Following the analysis of the role and impacts of NGOs, an examination of the
challenges confronting NGOs engaged in community development, as well as several
recommendations were made to strengthen NGOs’ commitment to community development.
There are four challenges identified, which include networking, poor governance, lack of
funding, as well as imbalance, dangerous, and conflict-prone communities. So, four insights
toward improvement have been suggested, which are government support, community support,
adequate training for NGOs, monitoring and evaluation mechanism for NGOs, and support for
women NGOs.

4. Results and Discussion

Table 4 shows the selected literature search from 2000–2020 on the role and the impact of NGOs
in community development in various countries. The challenges faced by NGOs in community
development are also discussed in this section. In addition, this section also provides the way
forward of the NGO with several recommendations are proposed.
Table 4. Literature search result.

4.1. Challenges Faced by NGOs in Community Development

NGOs, as an integral part of civil society, play a critical role in the administration of a wide
variety of complex and diverse activities. They face management challenges on both the internal
and external fronts when it comes to carrying out their trusts [22]. Numerous studies and
practices have demonstrated that NGOs face obstacles such as political interference, a lack of
funding, ineffective networking, and poor governance. The following are significant findings
regarding the challenges faced by NGOs engaged in community development.
To begin, one significant challenge that NGOs face is ineffective communication and
networking. It also is associated with the duplication of efforts, contradictory policies at the
community level, a lack of experience-based learning, and the inability of NGOs to address the
structural causes of underdevelopment at the local level [36,42,43]. Additionally, destructive
competition for resources erodes the sector’s reputation and the effectiveness of NGO activities
at the community level. As a result, there is widespread suspicion of NGOs, a culture of secrecy,
and a lack of transparency. Numerous NGOs, large and small, intervene at the community level
without conducting a community mapping exercise and implement projects without regard for
ongoing community initiatives. Many communities have been characterized by tensions between
NGOs, with one fighting another with resources but no community presence and another with
community presence but no resources [44].
Secondly, another major problem encountered by NGOs is poor governance. The understanding
of good governance varied widely, with some regions showing very little understanding of why
NGOs are required to have boards or what their roles, responsibilities, and functions should be.
Mawere [45] explained that many NGOs mismanage their resources, frequently with the
involvement and encouragement of their boards. As a result, many NGOs operate inefficiently
[36,42]. This issue has been well documented in the majority of developing countries, where
individuals have increased their involvement in forming NGOs as a means of self-sufficiency.
The third difficulty that NGOs face is obtaining sufficient, appropriate, and sustainable funding
for their work. The lack of funds and funding support is a significant impediment to achieving
the desired goals. Funds are critical for NGOs to implement their projects, programs, and
activities that benefit their communities’ development [46]. They have a difficult time
convincing donors to abstain from dealing with their funding situation [47]. They believe there is
an alliance of certain individuals and non-governmental organizations that controls access to
donor funds. They can mobilize insufficient resources and frequently do not seek funding
locally, preferring to attend for international donors to approach them. There is a strong reliance
on donors and a tendency to tailor interventions to donor preferences. Additionally, there is a
deficiency in financial, project, and organizational sustainability [44]. As a result, funding
agencies, donors, and sponsors are critical to all non-governmental organizations [48].
Finally, many NGOs operate in unbalanced, dangerous, and conflict-prone communities or
collaborate with predatory individuals such as those who cause political interference or who may
misuse the funding or grants allocated for the NGOs for their advantages. In some constituencies,
NGO activists acknowledged that local politicians’ and civic leaders’ interference was a
significant impediment to their work [36,49]. NGOs are frequently unaware that the constitution
and laws exist to safeguard them against such intimidation.

4.2. Direction for Improvement

Following a review of the literature on the role and challenges faced by local NGOs in
community development, several recommendations are made to ensure that NGOs become more
effective at providing community development services while also contributing to economic
growth and stability in the area.
Governments, other organizations, and individuals should strengthen their support for NGOs,
including by providing a supportive work environment, financial resources, equipment, and
technical reporting. Governments should foster an enabling environment for community
development initiatives by providing funding to NGOs to carry out community-based programs.
Even though past research had identified several links of government funding with causing
isomorphism, loss of autonomy, mission drift, and crowding out in the NGOs [50], it is crucial as
it can contribute towards the sustainability and development of the NGO sector. In return, NGOs
should create a dedicated database to assist the government and all other interested parties. The
construction of a database that includes both social and environmental variables from existing
high-quality datasets may be necessary to evaluate the relationship between social and
environmental issues over time [4]. This database can be used by all interested parties to develop
programs that address the need for individuals to improve their standard of living.
Next, beneficiaries of community development programs and activities should continue to
support NGOs in their communities and ensure the maintenance and continuity of completed
community development projects. NGOs should always involve beneficiaries in planning,
implementing, and evaluating their community development activities. This will increase the
project’s sustainability and ownership. The purpose of NGOs is not only to assist the government
but also to act as a backbone for the poor and vulnerable, particularly during difficult times such
as the COVID-19 pandemic. The community views NGOs’ efforts as evidence of their
unwavering compassion in the face of disaster. Research by Kucheryavaya [51] has clearly stated
that people believe the NGOs must first and foremost address basic everyday social problems
and that the primary focus of NGOs’ activity should now be on specific social actions and direct
assistance to people. For this, NGOs are suggested to have formed coalitions to receive support
from other network institutions and to promote their activities on a larger scale through
networking and federations.
Other than that, local NGOs should also be trained to supplement government efforts in the area
of community development. NGOs can be formed as a result of the ideas, experiences, interests,
and great spirit of specific individuals or groups to address societal issues or desires. It is
especially important for the NGO leaders to have good leadership skills to manage the NGO
effectively. NGO leaders exhibit a chameleon-like ability to balance competing demands and a
variety of roles depending on the circumstances and individuals involved; for example, balancing
their vision with the practical needs of local communities, as well as donor demands or the
vested interests of local politicians [52]. Thus, they require training that can support these roles.
Furthermore, the NGOs’ founding principles and strengths are centred on achieving their
objectives, which include providing educational opportunities and skills development,
controlling and managing disease, assisting victims of natural disasters, empowering women’s
economic empowerment, and advocating for human, social, economic, political, and cultural
rights.
NGOs must demonstrate a greater commitment to community development activities,
particularly through self-help promotion. A monitoring and evaluation mechanism for NGOs is
required to ensure that community development programs and services reach the area’s most
vulnerable residents. The management of NGOs should consider hiring sufficient personnel to
assist the project team in conducting monitoring and evaluation activities throughout the project.
Additionally, management should establish a routine for conducting periodic staff needs
assessments for Monitoring and Evaluation (M&E) in collaboration with the monitoring and
evaluation staff/focal point [53]. This monitoring and evaluation can be carried out by a third-
party organization as well for better accountability.
Working women’s non-governmental organizations are growing in strength; they should be
involved in a variety of programs and training. Women, as significant assets of the country, must
be optimally developed to enable them to contribute actively to community development. The
fact that some women’s non-governmental organizations (WONGOs) were downsizing and/or
closing as a result of financial constraints is concerning; the majority of them were skeletal
naturally, resulting in coverage compromises, according to a recent study [54]. Although this
research has a different demographic, it is important not to disregard the findings because this
may occur in Malaysia, thereby hindering women’s empowerment. Meanwhile, the government
is very interested in promoting women’s empowerment through Sustainable Development Goal
5: Achieve Gender Equality and Empower All Women and Girls, which is being implemented in
partnership with NGOs that advocate for gender equality and women’s empowerment in the
developing world [55]. As a result, strengthening women’s NGOs is an effort that should be
highlighted by all parties because it will have benefits from various perspectives on community
development.
In a nutshell, community development should not be solely the responsibility of the government.
Individuals, communities, NGOs, and other organizations must all be involved in efforts to serve
the poor. The objectives of the programs should be clearly understood by the entire community.
The full support of all parties will result in a better outcome that may benefit all parties involved.

5. Conclusions

Throughout this systematic review article, the role and impact of NGOs in promoting sustainable
community development has been discussed. From this research, it can be concluded that
sustainable community development is not a one-time effort. As much as NGOs play an
important part in initiating as well as advocating sustainability through their programs and
interventions, it is also vital to engage other stakeholders to further ensure the effectiveness of
this effort. In addition, continuous monitoring and assessment should be performed by NGOs to
find out how much impact every program or strategy that has been carried out has towards
developing sustainable community development.
In addition, the challenges faced by these NGOs in their efforts towards the sustainability of
community development has also been identified. Although NGOs play a significant role to
facilitate the sustainability of community development strategies, effective networking and
teamwork between stakeholders, capability development, or training for continuous
improvement in the quality of life, good financial planning, as well as ongoing consultation or
facilitation and advocacy are very much needed. As they are facing various challenges,
stakeholders should emphasise strengthening the efficacy of NGOs in delivering community
development services, as well as encouraging economic growth, development, and stability in
the region. Overall, it is intended that NGOs would be more imaginative in the future in terms of
picking a suitable, interesting, and effective medium for executing their programmes, thus
contributing to being more successful in tackling the difficulties faced. A considerable increase
in the contribution of NGOs to community development may be obtained with a clear grasp of
the study’s purpose.