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Building Confidence Through Certification
- 1. CERTIFICATION Building Confidence – Adding to Credibility and Trust A Programme of ‘Pakistan Centre for Philanthropy’ (PCP) CSOs Building Effective Development Partners
- 2. PAKISTAN FACT SHEET (Source: UN Human Development Report 2011 – The World Fact Book , 190 Million population 10th Largest Labor Force 15% Population is unemployed 24% Population lives below poverty line 140 Countries have a better literacy rate than Pakistan 100 Countries have a better ratio in “Human Poverty Index” 145th on Human Development Index
- 3. PAKISTAN FACT SHEET 1. Individuals gave $ 820 Million in cash and goods (Pakistan – 1998) 2. Individuals gave $ 1.17 Billion in cash and goods (Punjab – 2009) 3. Corporate Giving for Social Development is $ 37.1 Million (2010) 4. Total giving by Pakistanis in USA is to the tune of $ 1 Billion (2005) Source: “Individual Indigenous Philanthropy” AKDN study 2000 “Individual Indigenous Philanthropy in Punjab” PCP Study 2011 “Corporate Philanthropy in Pakistan” 2010 A Giving Nation…
- 4. 2ndLargest Development Aid Recipient in Asia PAKISTAN FACT SHEET Source: Organization for Economic Co-operation and Development (OECD) – Aid Statistics,
- 5. Overview of Civil Society Sector (Source: John Hopkins study 2002) Active CSOs In Pakistan A growing sector, duly recognised as partner in development 30,000 65,000 45,000 Total CSOs In Pakistan Not Registered Registered Active CSOs No recent data available…
- 6. Overview of Civil Society Sector (Source: John Hopkins study 2002) 20% 16% 37% 8% 35% 11% Health Education Environment Child Welfare Other Water Sanitation Major Sectoral Interventions by CSOs in Pakistan
- 7. 1. Limited Credibility 2. Lack of Transparency 3. Governance – Capacity to deliver is limited 4. Financial Sustainability 1. Trust deficit 2. Lack of information 3. Limited capacity of CSOs … Donors Obstacles … CSOs
- 8. 1. Weak regulatory regime 2. Lack of knowledge of CSO sector 1. Need to inform society on citizen led developments initiatives 2. Show casing success stories and lessons learnt … Media … Government Obstacles
- 9. CSOs CERTIFICATION Setting standards in nonprofit sector Road to Credibility Road to Credibility Road to Credibility Road to Credibility
- 10. 1. To strengthen Civil Society Sector 2. To bridge the information and credibility gap between grant makers and grant seekers 3. To help professionalise grant making 4. To help CSOs become more effective grant seekers Objectives of Certification Helping to build an enabling environment embedding Knowledge and Trust
- 11. 1. Developed after Research and Study of different models 2. Designed after collective consultations 3. Optional and voluntary 4. Standardized parameters (80) 5. Setting sector wide standards i. Certified CSOs = 237 ii. Evaluated CSOs = 361 CSOs Certification
- 12. Major Sectoral Interventions by Certified CSOs Source: PCP Others, 14% Micro Credit, 7% Special Education, 4% HR Development, 6% Advocacy, 8% Environment, 9% Community Development, 7% Health, 56% Education, 49% Rural Support Development, 10%
- 13. 1. Registered, Functional for three years at least. 2. Audited accounts of last three years 3. Does not propagate views of any political party or religious sect 4. Tax specific requirements Mandatory Requirements Evaluation Standards
- 14. 1. Registration Certificate 2. Memorandum & Articles of Association/ Constitution/ Trust deed 3. Minutes of Governing Body meeting 4. Audit Report for last three years 5. Certification Fee Minimum Documents Required for Filing Application
- 15. Internal Governance (26 parameters) Financial Management (25 Parameters) Programme Delivery (29 parameters) Evaluation Parameters
- 16. Win Win For All Govt. – CSOs – Donors
- 17. Ready reference of CSO’s Quality Assurance Risk Management Identifying Credible Partners in development Determining eligibility for Tax credits Public Good Promotion of Government Agenda: Good Governance Transparency Accountability For Government Benefits of Certification
- 18. Value Creation Enhanced Credibility Indirect Capacity Building Tax Benefits Access to Philanthropy / Resources Promotion through: Gateway to Giving PCP Website Philanthropy Portal For CSOs Benefits of Certification
- 20. Certification Fee Structure SN Size of CSO Income Slab (Rs.) Fee Rate (Rs.) 1 Small Up to 1 Million 15,000 2 Medium 1 1 – 5 Million 45,000 3 Medium 2 5-10 Million 100,000 4 Large 1 10–50 Million 175,000 5 Large 2 50 – 100 Million 225,000 6 Large 3 100 Million and above 325,000
- 21. Applied to PCP for Expected Achieved Improvement in Organisational System 60% 89% Evaluation for Tax benefits 75 % 86% Access to donors 45% 55% Expectations and Actual Benefits Accrued to C-CSOs
- 22. Bridging the Information Gap “Gateway to Giving” o Directory of the Certified CSOs published, launched and disseminated. (2006-10) o Work on third edition underway
- 23. CSO Certification Updates Over 2000 Government officials oriented Over 60 orientation sessions with stakeholders held Govt. funding certification to the tune of Rs. 58.3 million (2006-2011)
- 24. • Donors making certification a requirement for funding • Govt. also sporadically asking for certification before funding • Number of NPOs seeking certification on the rise CSO Certification Updates
- 25. PCP Certification Programme Replicable in other Regions? PCP Certification Regime is Replicable We learnt from Australia, New Zealand & Philippines Tajiks, Afghans and Canadians learning from us
- 26. Our Mission “We aim to increase the volume and effectiveness of philanthropy for social development” Our Vision “The three sectors of society – business, civil society and government – work in a strengthened partnership for social development in Pakistan”
- 28. THANK YOU Pakistan Centre for Philanthropy