<p> Knowledge Management (KM) has been defined as “…the process by which an organization creates, captures, acquires, and uses knowledge to support and improve the performance of the organization. KM processes can be broadly characterized as consisting of knowledge creation activities and knowledge transfer activities. Interest in KM has grown because of the belief that the creation and transfer of knowledge is essential to long-term organizational effectiveness. In non-profit companies, historically, stakeholders have been lenient in their tolerance for poor KM processes. Stakeholders are often more interested in “touchy-feely” returns on their investment. This paper is an attempt to explore the theory of Knowledge Management and the important role it can play in organizational and individual effectiveness for non-profit organisations.</p>