How to Start and Build a Successful NGO:

From Developing a Vision to Implementing Your Development and Fundraising Strategy

1. Understanding the basics of an NGO

Over the past few decades NGOs have gained significant popularity as the third pillar of development and have played a key role in providing social, economic and environmental services to the marginalized.

Growth of NGOs as providers of essential services and key players in policy reforms has been a global phenomenon. NGOs have worked very effectively in areas where both government and private players have failed miserably, this ability of NGOs to work in the most fragile and backward places has been recognized and applauded by both national and international entities.

NGOs play an important role in pushing several social agendas both at National and International level. These organizations not only implement action oriented programs at grass root levels, but also advocate socially relevant procedures and protocols globally. Over the years, NGOs have established themselves as important institutions that tackle issues related to the poorest sections of the society. NGOs undertake a wide array of activities, including policy advocacy on international affairs, environment protection, delivering healthcare, women empowerment, economic development, and many other developmental projects.

Seeing the multiplicity of NGOs, it would not be incorrect to say that NGOs exist for nearly all possible social causes. Last few decades have witnessed the growth and upsurge of NGOs like never before, they have grown both in numbers and effectiveness. There are approximately 1.5 million NGOs in the United States, while India has around 3 million NGOs and we have a lot also in Tanzania. Acknowledging the strong grass root linkages and field expertise of NGOs, several large international organizations support and work with smaller NGOs. Most often NGOs use participatory tools to engage local communities, that leads to effective project implementation.

To help you in understanding the basic concepts of NGO, this chapter has been divided into three sections. The first section briefly describes the meaning of NGOs; the second section looks into the important functions of NGOs while the third section defines important principles of an NGO.

1.1 What is a Non-Governmental Organization?

Historical records suggest that the term Non- Governmental Organizations (NGOs) came in to use in 1945. The term was coined during one of the conferences of The United Nations, as a measure to distinguish organizations from inter-governmental and member organizations. Though the term NGO received recognition only after 1945, studies suggest that several organizations were actively engaged against slavery, racism and women suffrage during the late eighteenth century.

NGO is a broad term encompassing organizations, that are not affiliated by the government or a private company. Some countries use the term Non-Profit Organization, Voluntary Organization, Charitable Organization to represent organizations that are independent of government. Considering the wide diversity of NGOs both in terms of their function and structure, it is very difficult to define the term ‘NGO’. However, some of the definitions that are widely used have been suggested by World Bank and United Nations.

The World Bank defines NGOs as “private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development.”

While, The United Nations defines NGOs as “a non-for-profit, voluntary citizens’ group, which is organized on a local, national or international level to address issues in support of the public good.”

As per the definitions above, NGO is an organization that addresses social issues to promote public welfare.  Along with the features described in the above definitions, an organization should have the following features for it to qualify as an NGO:

• Non Profit: An NGO is not meant for making profit for personal gain. In case an NGO conducts some revenue generating activity, the profit earned should not be distributed amongst the board members, instead it should be used for carrying out NGOs activities.
• Social Values: An NGO should address a social cause and should work towards public good. The activities undertaken by the NGO should improve the conditions of the disadvantaged people.
• Voluntary: These organizations are formed by free will of the founding member. There are no laws that restrict or promote the formation of NGOs, it is a voluntary decision of the founding members.
• Legally registered: Should be legally registered as per country norms.
• Independent: NGOs are independent of government or private interference. They are controlled by the board of management and work independently for social welfare.
• Non- criminal: NGOs should not indulge in anti-social and criminal activities.

Considering the above mentioned features and definitions, an NGO can be described as a legally constituted organization, created voluntarily by an individual or a group of people that operates independently of government interference towards the welfare of people.

NGOs are classified on numerous aspects, some classify them on the basis of their activity, while others classify them on the basis of their orientation. World Bank classifies NGOs in two types based on their activity:

1. Operational NGOs: These organizations are engaged in the implementation of development related projects. There exists a wide range of activities that are undertaken by operational NGOs. Based on the scope of the work, operational NGOs are further classified into:
   
   • Community-based organizations (CBOs): Operations restricted to a small geographic area.
   • National organizations: Operate in individual developing countries.
   • International organizations
2. Advocacy NGOs: These organizations promote and advocate for policy changes related to a particular cause. These organizations carry out demonstrations, rallies and events to generate awareness to influence policy change.

Another way of classifying NGOs is on the basis of their orientation, into the following types:

3. Charitable: These NGOs follow top-down approach for its projects. There is little participation of the communities and activities are planned to help the weaker -sections of the society, without seeking suggestion from beneficiaries.
4. Service: These NGOs provide services to the people, which can vary from health, family planning to education services as per the NGO goal.
5. Participatory: Such NGOs follow a bottom- up approach where local people are involved in the implementation of a project. The participation can be in form of contributing cash, tools, land, materials, labor etc.
6. Empowering: These NGOS empower the marginalized communities by sensitizing them and building their skills.

NGOs can also be classified based on the sector they work in, for example

1. Health NGOs: Their activities revolve around providing awareness, conducting health camps, distribution of medicines and advocating health related issues.
2. Environmental NGOs: NGOs that work only for environmental related issues, which range from awareness generation, plantation drives, climate change negotiations etc.
3. Educational NGOs: NGOs that conduct activities related to education, skill development etc.

Most often smaller NGOs carry out several activities like advocacy, empowerment, service delivery and work across several sectors, making it difficult to classify them into one of the categories mentioned above.

1.2 Functions of an NGO

NGOs worldwide perform a wide range of services aimed towards human wellbeing and social welfare. These organizations relentlessly work towards development and bringing a positive change in the society. NGOs may have different structures, activities and policies, but all NGOs are committed towards their cause and perform their functions to achieve their respective goals.

NGOs facilitate government policies to reach remote areas and enhance the overall effectiveness of social welfare schemes. As discussed in the section above, NGOs perform a variety of services for social wellbeing either through implementing development projects or through policy advocacy.

Most NGOs contribute to the overall development of a community through their engagement in social issues and therefore s are recognized as the third pillar of development. Most NGOs have the following inherent features associated with them:

• Grass root linkages
• Participatory approach
• Community engagement
• Community trust
• Long-term commitment

Most experts recognize the role of NGOs in all areas of development and have classified their role into the following categories:

• Developing Infrastructure: Some NGOs primarily help in development and operation of infrastructure. These organizations purchase land and then use the land for construction of schools, hospitals, wells, public toilets etc. which is used by community at large.
• Research and Development: These NGOS conduct research and help in enhancing knowledge on current issues. They develop innovative solutions based on the research to deal with social problems.
• Advocacy: Several NGOs attempt to influence policy development in favor of poor and marginalized communities.  These NGOs are most likely to conduct rallies, stage demonstrations, participate in policy formulation etc.
• Dissemination of Information: In areas where government is unable to reach out to people, NGOs help in disseminating information about government schemes, policies and programs. They help in generating awareness about relevant government projects.
• Training and Capacity Building: NGOs provide training and conduct capacity building courses to empower marginalized communities.
• Facilitate Dialogue: NGOs can facilitate both upward communication from people to government and downward communication from the government to the people. This two-way flow of information helps in designing better projects and effective policies.

1.3 Fundamental Principles/Values of an NGOs

Successful people and organizations follow certain set of rules that helps them grow and sets them apart. These rules are the fundamental principles that largely influence the working style of people and their organizations. A principle can be defined as a rule that helps people in understanding the context around us and then accordingly suggests the best way to operate in the given condition. Along with providing guidance in our day to day lives, principles also help in successfully completing the given assignments.

For an NGO to be successful, there are certain fundamental principles that should be incorporate in its day to day working.

Transparency and Accountability: All NGOs should be transparent and accountable in their day to day activity. This means that NGOs should be open and honest about their activities, funding and internal operations. Most NGOs follow a protocol that enhances their credibility by making the more accountable and transparent.

Transparency: Your NGO should be open about the activities it undertakes, the funding it receives and the people it helps.  Information related to NGO working should be easily accessible and should be available to relevant stakeholders.  Transparency empowers NGOs to approach donors, develop collaborations and improve performance.

Accountability:   Accountability refers to the obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner. Accountability is a very large term and encompasses several issues of an NGO; some of these may include organizational management structure, financial procedures, human resource policies etc.  Accountability is a fundamental principle for any organization, you must explain to the stakeholders how you have used the resources and what are the impacts your organization has yielded.  Experts suggest the following four aspects of accountability for an NGO.

• Upward Accountability: This refers to the responsibility of an NGO towards being accountable to funders, donors and government institutions. As an organization you are answerable to donors and funders about how you will be utilizing their money.
• Horizontal Accountability: This refers to being responsible with project partners, peers and related organizations. This also includes enhancing partnerships and collaborations with other organizations and stakeholders.
• Downward Accountability: This means that as an organization you are responsible towards your beneficiaries and the target audience.
• Internal Accountability: One of the most important aspects of accountability is to be answerable to your own employees and your organizations mission. It means that you have ethical standards and governance structures and justify your organizations core value.

Advantages of being Transparent and Accountable

• Improved rapport with donors and funders: donors and funders are more accessible to organizations that are transparent.
• Trust amongst communities: Local communities tend to get involved with NGOs that provide and share information with the beneficiaries.
• Facilitates partnerships and collaborations: Being transparent helps you in developing partnerships with other organizations and agencies.
• Greater employability: Your staff will continue to work with you as they would feel secure to work for an organization that is credible.
• Improved performance: Tools to enhance accountability and transparency, help you to keep check on your activities thereby improving your performance.

Ways to ensure accountability and transparency in your NGO:

• Registration: Make sure your organization has a legal status and is registered under a relevant legal framework. Registering your NGO will not help you in enhancing your accountability but would also enable you to interact with government agencies and diverse donors.
• Accreditations and certifications: This refers to an external agency certifying that your organization complies with a set of norms and policies. Accreditation ensures that your organization has been evaluated by a third party and fulfills the nationally recommended standards and policies.
• Annual Reports and financial reports: Publishing your annual reports regularly is a great way to ensure that you are fulfilling the required activities responsibly. The annual report provides the readers with details about all the activities that your organization undertook a particular year. Another important tool to enhance accountability is to regularly update and compile your financial reports. This report clearly indicates your income and expenditure on a monthly, quarterly and annual basis.
• Third Party Audits and Evaluation: Many organizations rely on evaluation and external audits as an accounting tool. The external audits help you to analyze and see if you are complying with the industry standards and norms.
• Develop your own set of self-regulation procedures: This is considered to be one of the most effective ways to enhance accountability. Develop your own policies of keeping records, formats for reports, trip and field reports, internal minutes.
• Conduct due diligence before partnering with a new organization: Conduct in-depth research of a new partner firm before entering in a partnership. This will help you in selecting reliable partners who have a clean background and have not been involved in fraud or an anti-social activity.
• Appoint a rating agency or watchdog firm: Several organizations set up their own standards and rating systems to measure the performance of other organizations.  The rating system can be applied to various activities and functions of the NGO.

Besides Transparency and Accountability, the Toronto declaration on NGO values suggests ten other core values to be adopted by NGOs. These core values are:

1. Service beyond self: The very purpose of NGOs is to serve others. Integrating this value in the overall working of the NGO not only makes them socially acceptable, it also makes them more responsive to take up societal issues. It is important for NGOs to responsibly take up societal issues and serve the community.
2. Respect for human rights: An NGO respects human rights and does not violate them in any form. The Universal Declaration of Human Rights endows all human with certain fundamental rights (which includes freedom, equality, freedom of thought, practice a certain religion, family integrity etc.) An NGO should recognize these rights and under no circumstance question or violate these rights.
3. Maintain a vision: All NGOs irrespective of their size or area of work, should maintain a vision for their existence. This simple means that NGOs should have the potential to think beyond the reality and envision an ideal society. All the work that is carried out under the NGO should be target to achieve the vision.
4. Responsibility: NGOs are entrusted with a responsibility towards the public and the society. As an NGO you have to take ownership of all activities undertaken by you.
5. Cooperation beyond borders: Most NGOs work to address existing social ills prevalent in the society. As an NGO you should collaborate and cooperate with other NGOs to foster positive change. An NGO should work beyond borders to achieve its organizational goals in particular and societal vision in general.
6. Public mindedness: Make sure that the funding you receive is strictly used for society and for the public. An NGO should be responsible and caring attitude toward the environment in all of its activities.
7. Truthfulness: An NGO should be truthful in its dealings with its donors, project beneficiaries, staff, members, partner organizations, government, and the general public. An NGO under no circumstance should be involved in money laundering, bribery, corruption, financial improprieties or illegalities.
8. Nonprofit Integrity: The organization should operate as a not-for-profit organization. In case of any surplus generated through its operations, it should be utilized solely to help the organization fulfill its mission and objectives.
9. Comprehensive viewpoint: An NGO should follow a comprehensive approach towards problem solving.
10. Voluntarism: NGOs are formed by private initiative, resulting from the voluntary actions of individuals who have chosen to pursue a shared interest of concern.

It is important for you to understand the basic concept of NGOs and their working so that you can establish an NGO. Make sure to integrate some of these values in your NGO procedures, to enhance overall effectiveness and success of the organization.

To be continued. .......