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Nc ngo and corp governance


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Nc ngo and corp governance

  1. 1. Governance and NGO’s<br />Abhinav Goyal<br />Dhananjay Patil<br />Nitin Gaopande<br />Nupur Ajmera<br />Sonali Gupta<br />
  2. 2. Governance<br />…relates to <br />Decisions that define expectations, <br />Grant power, <br />Verify performance<br />
  3. 3. AID to HAITI failed<br />80% of public services in HAITI are delivered by NGO’s<br />Donors sometimes by-pass government and donate directly to NGO’s<br />A/c to a reseach survey done<br />Haitian Govt indifferent to the programs initiated by the NGO’s<br />NGO’s creating an “internal” brain drain. People moving from Govt to NGO’s<br />Numerous NGO’s independent of each other and difficult to manage<br />
  4. 4. NGO’s in Haiti virtually running parallel service delivery systems<br />There by eroding the legitimacy of the government system<br />NGO’s were unwilling to transfer power back to the government<br />Few of the NGO were feared to be doing <br />“ADVOCACY”<br />Sufficing political agenda.<br />
  5. 5. Another type of ehtical issue<br />Unchallengeable phenomena: Whenever there is a new door invented/discovered to create money/value, there will be scores of copycats taking advantage of the bandwagon… one or the other way<br />Bangladesh - Birthplace of microfinance<br />Districts Natore, Rajshahi and others<br />30 Fake NGO’s reported<br />Swindled around 10 lakh poor<br />NGO Freedom UnnayanSangsthahad vanished overnight with nearly taka 250 crore<br />
  6. 6. Reason<br />Slack regulations and registration norms for NGO’s<br />Registration as Voluntary Social Welfare Agencies gives way for fake NGO’s to register<br />NO government regulatory authority which supervises over the MFI NGO’s<br />NO central agency that evaluates FINANCIAL PERFORMANCE<br />
  7. 7. Challenges in front of an NGO<br />Rising expectations<br />Talent & passion is not freely available <br />Increasing interference and demand for interaction by governmental authorities. <br />Conflicting goals<br />Expansion dilemma<br />Fund raising <br />Long term Sustainability<br />
  8. 8. What Next?<br />
  9. 9. Regulatory framework and financial accountability<br />Legal framework (registration, oversight, tax) outdated and the multiple implementing agencies lack capacity.<br />Laws relating to internal governance, accounting, disclosure and transparency are rudimentary<br />NGO Boards face similar corporate governance problems as corporate sector (family members, lack of term limits, lack of role clarity)<br />Donor financial reporting requirements are questionable<br />Quality of external audits and public access to reports vary significantly<br />
  10. 10. Regulatory framework and financial accountability (contd…)<br />Uniform accounting standards using IAS, oversight system for audit quality through proposed Financial Reporting Council and public access to audit reports would help<br />Board composition and functions could be strengthened in line with Code of Corporate Governance<br />An Independent NGO Commission is one option for improving institutional framework<br />Certification bodies, as in Philippines and Pakistan<br />PCNC, Philippine Council for NGO Certification<br />Pakistan Centre for Philanthropy (PCP)<br />Legislative revision carries risks as does current status quo.<br />
  11. 11. More governance<br />Accountability of an NGO<br />Performance<br />Disclosures<br />Protection of donors money<br />Code of practice on client/donor protection<br />Independent National Rating agencies<br />Rate on performance<br />Initiatives<br />Fulfillment of milestones<br />
  12. 12. More governance<br />A ‘strategic compact’ between <br />Government, <br />Donors, <br />NGOs and <br />Clients <br />Each improves certain aspects of its current practices could further enhance development impact of NGOs<br />
  13. 13. <ul><li>In India few organizations are involved in creating governance guidelines and assisting NGO’s in direct or indirect way.</li></ul>The Center for NGO Governance<br />Global Forum on NGO Governance<br /><br />NO ORGANISATION IS A REGULATORY BODY<br />
  14. 14. THANK YOU<br />