This paper is an assessment of what in Finland are referred to as local forest management associations (LFMAs); the local units of a non-profit, forestry-promotion institution. First, the concept of organisational effectiveness is explored and an attempt is made to define it with respect to the LFMAs. The study then seeks to identify the environmental constraints, organisational characteristics and managerial practices differentiating the most effective and least effective associations. Discriminant analysis revealed four determinants of effectiveness: agrarian prosperity in the given area, activeness in marketing services to forest owners, the board of governors' role, and goal setting practices. The results thus indicate that the comparison of managerial policies and practices among LFMAs can provide useful information for improving their effectiveness.