NGO AND CORP GOVERNANCE

1. Governance and NGO’s Abhinav Goyal Dhananjay Patil Nitin Gaopande Nupur Ajmera Sonali Gupta

2. Governance …relates to Decisions that define expectations, Grant power, Verify performance

3. AID to HAITI failed 80% of public services in HAITI are delivered by NGO’s Donors sometimes by-pass government and donate directly to NGO’s A/c to a reseach survey done Haitian Govt indifferent to the programs initiated by the NGO’s NGO’s creating an “internal” brain drain. People moving from Govt to NGO’s Numerous NGO’s independent of each other and difficult to manage

4. NGO’s in Haiti virtually running parallel service delivery systems There by eroding the legitimacy of the government system NGO’s were unwilling to transfer power back to the government Few of the NGO were feared to be doing “ADVOCACY” Sufficing political agenda.

5. Another type of ehtical issue 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 Bangladesh - Birthplace of microfinance Districts Natore, Rajshahi and others 30 Fake NGO’s reported Swindled around 10 lakh poor NGO Freedom UnnayanSangsthahad vanished overnight with nearly taka 250 crore

6. Reason Slack regulations and registration norms for NGO’s Registration as Voluntary Social Welfare Agencies gives way for fake NGO’s to register NO government regulatory authority which supervises over the MFI NGO’s NO central agency that evaluates FINANCIAL PERFORMANCE

7. Challenges in front of an NGO Rising expectations Talent & passion is not freely available Increasing interference and demand for interaction by governmental authorities. Conflicting goals Expansion dilemma Fund raising Long term Sustainability

8. What Next?

9. Regulatory framework and financial accountability Legal framework (registration, oversight, tax) outdated and the multiple implementing agencies lack capacity. Laws relating to internal governance, accounting, disclosure and transparency are rudimentary NGO Boards face similar corporate governance problems as corporate sector (family members, lack of term limits, lack of role clarity) Donor financial reporting requirements are questionable Quality of external audits and public access to reports vary significantly

10. Regulatory framework and financial accountability (contd…) Uniform accounting standards using IAS, oversight system for audit quality through proposed Financial Reporting Council and public access to audit reports would help Board composition and functions could be strengthened in line with Code of Corporate Governance An Independent NGO Commission is one option for improving institutional framework Certification bodies, as in Philippines and Pakistan PCNC, Philippine Council for NGO Certification Pakistan Centre for Philanthropy (PCP) Legislative revision carries risks as does current status quo.

11. More governance Accountability of an NGO Performance Disclosures Protection of donors money Code of practice on client/donor protection Independent National Rating agencies Rate on performance Initiatives Fulfillment of milestones

12. More governance A ‘strategic compact’ between Government, Donors, NGOs and Clients Each improves certain aspects of its current practices could further enhance development impact of NGOs

14. THANK YOU