Abstract: | Abstract: As the work of NGOs broadens and becomes more complex, concerns about their capacity and sustainability will loom much larger and have more signi?cant implications for development processes. The main issue addressed in this paper is how NGOs and donors variously view the relationship between capacity building and ?nancial and organisational sustainability. To this end we ?rstly explore varying de?nitions of capacity building, highlighting distinctly Paci?c perspectives of the concept and subsequently look at emerging practices used by Paci?c NGOs to create sustainable organisations. The role of donor organisations in Paci?c NGO capacity building is critiqued. We conclude that despite considerable rhetoric about the need for donors to adopt more co‐ordinated approaches to capacity building, there is limited evidence to suggest that donors are prepared to act together to set up, for example, joint capacity building funds. Donors must accept that the long‐term processes of development and the roles played by Non‐Governmental and Community Based Organisations require a rethinking of the standard funding cycle and the focus on ‘exit strategies’. |