Monday, June 2, 2008
Starting an NGO: Funding and Fund-Raising
Remember money does not grow on trees. Even if a 'donation' is made to a programme or activity, it is done with an objective in mind - sometimes simply to get good karma. This is critical to understand when we approach a potential sponsor - why is he donating? What advantages can they obtain? What PR milage can they receive from the act?
It is equally important to maintain professionalism, within the NGO, to build adequate trust with the poptential sponsor or donor. Transparancy, accountability, communication etc. should be an integral part of the NGO. A good strategy is to create a working advisory group for each project or activity. This group will have two types of members - strategic members, who will give weight and legitimacy, (and will also bring in key non-financial resources) to the activity, and financial members who will make the actual contribution, based on the strength of the strategic members!
Do not always depend on external or large sources of funding - sometimes, it can come from surprising sources in your own backyard.
Tax exemption: File for tax exemption with the national tax authority (where available). Now that you have formed your board, incorporated your organization, and developed your bylaws you are ready to file with the tax authorities for tax-exemption. The national tax authority may require a number of forms for this process. Be prepared to have the following information ready:
A description of the organizations purpose and programs, including: who the organization serves and why, constituency demographics, examples of training materials, workshops, and other services, etc.
Financial information: sources of funding; financial statements (revenue and expense statement and a balance sheet) for three prior or two projected years.
Source:http://www.gdrc.org/ngo/start-ngo/startngo-6.html
The Ten Most Common Reasons Grants are Declined
"The organization is not located in our geographic area of funding."Get the guidelines before applying/at least check the grants guide.
"The proposal does not follow our prescribed format."Read the application information very carefully and follow it exactly.
"The proposal is poorly written and difficult to understand."Have friends and experienced people critique the grant.
"The proposed budget and grant request is not within our funding range."Look at average size of grants of the funder.
"We don’t know these people—are they credible?"Set up an interview before submitting the proposal and have board members and other funded organizations give you credibility.
"The proposal doesn’t seem urgent—and I’m not sure it will have an impact."Study the priorities and have a skilled writer do this section to make it "grab" the funder.
"The objectives and plan of action of the project greatly exceed the budget and timelines for implementation."Be realistic about the programs and budgets—only promise what can realistically be delivered for the amount requested.
"We’ve allocated all the money for this grant cycle."Don’t take this personally. It is a fact of life. Try the next available grant cycle.
"There is insufficient evidence that the program will become self-sufficient and sustain itself after the grant is completed."Add a section to the proposal on plans for sufficiency and develop a long-term strategy.
Source: Grant Guides Plus, Inc.
Internet Use: NGOs in Action
Concrete actions that NGOs use in developing web-based information have entailed three broad approaches: publicizing, interacting, and supporting:
By publicizing: awards programmes, press campaigns, placards, posters, notice boards, media exercises (photographs, video, films, articles), non-formal activities: street dramas, newsletters, bulletins, documentation of case studies etc.
By interacting: formal and informal community group meetings, forums/workshops, site visits, interviews, etc.
By supporting: minigrants, internships, workshops, training in leadership and other organizational/operational skills, surveys and other means of information gathering etc.In general, NGO have used the internet for information collation, for networking, for collaboration and partnerships, for participation and exchange, for communications and more. They have used various kinds of technologies to achieve this.
a. Information Collation: NGOs have extensively used the internet for collation of information on the activities that they and other NGOs carry out. They have both put up information for others to use, as well as accessed information that was made available on the internet. Some examples:
The NGO Cafehttp://www.gdrc.org/ngo/The NGO Cafe is a meeting place for and by NGOs to discuss, debate and disseminate information on their work, strategies and results. It contains information useful to both NGOs and those studying NGOs.
Biodiversity Conservation Information System (BCIS)http://biodiversity.org/A joint initiative of eleven programmes and partners, BCIS seeks to support environmentally sound decision-making and actions affecting the status of biodiversity and landscapes at the local, national, regional and global levels through cooperative provision of data, information, advice and related services.
The Hunger Webhttp://www.brown.edu/Departments/World_Hunger_Program/The aim of Hunger Web is to facilitate the free exchange of ideas and information regarding the causes of, and solutions to, hunger. It contains primary information, made available by the World Hunger Program and its partners, as well as links to other sites where information of relevance to hunger can be found.
b. Networking: It is in networking that NGOs have made most effective use of the internet for the access, sharing and dissemination of information. NGOs have used the internet for advocacy, awareness building, consultancy, education and sensitization, identifying resources, impact analysis, knowledge creation, mutual support, news & events info, programme/project support, research, training courses etc. Some examples:
NGO Global Networkhttp://www.ngo.org/The purpose of this site is to provide information for NGOs (Non-Governmental Organizations) who are active at the United Nations. The Network seeks to develop partnerships with other NGOs around the Globe and initiate a dialogue and links to those NGOs with similar interests.
Climate Action Network (CAN)http://www.soc.titech.ac.jp/uem/trialogue/can.htmlThe Climate Action Network (CAN) is a network of NGOs who share a common concern for problems of climate change and wish to cooperate in the development and implementation of both short term and long term strategies to combat it.
GEF NGO Information Kioskhttp://www.gefweb.com/NGO/ngo.htmThe Global Environment Facility provides grants and concessional funding to recipient countries for projects and programs that protect the global environment and promote sustainable economic growth. The NGO Information Kiosk was set up to enable interaction between GEF and NGOs.
c. Collaboration and Partnerships: The internet has provided the ideal platform for intensive collaboration and partnerships between NGOs themselves, and with other organizations. These collaborations have typically been with respect to information, programmes and projects, monitoring and evaluation, research, policy development etc. Some examples:
OneWorldhttp://www.oneoworld.org/OneWorld Online is a partnership of over 100 organizations working for human rights and sustainable development. Its aim is to publish information about global issues at low cost for development NGOs and others whose remit it is to get such material out to the world. Separate, autonomous websites are created for each of its development partners
Asia-Pacific Cities Forumhttp://www.apcf.org/APCF is an action partnership for sustainable cities and communities linking leaders of business, government, civil society, academe, and media. The Mission of APCF is to act as a catalyst for a continuing and constructive interaction in Asia and the Pacific region whereby partners are able to leverage their respective resources to a degree not achievable individually.
d. Participation and exchange: Due to the large number of NGOs and public users who have access to the internet, it has been an ideal medium for the exchange and dissemination of information - at the right level to the right people. Some examples:
Envirolink Networkhttp://www.envirolink.org/EnviroLink is a non-profit organization, a grassroots online community that unites organizations and volunteers around the world with people in over 130 countries. It provides information services such as a library, news service, the Sustainable Business Network etc.
The International Council for Local Environmental Initiatives (ICLEI)http://www.iclei.org/ICLEI is the international environmental agency for local governments. It serves as an international clearinghosue on sustainable development issues, initiates joint projects among local governments, organizes training programmes and serves as an advocate for local governments in international fora.
e. Communications: It is only with constructive communications and dissemination of their activities and services that an NGO is able to deliver its message to its constituency. It has done so very effectively using the internet. Some examples:
Association for Progressive Communicationshttp://www.apc.org/The Association for Progressive Communications (APC) is a global network of networks whose mission is to empower and support organizations, social movements and individuals through the use of information and communication technologies. Composed of a consortium of 25 international member networks, APC offers vital links of communication to over 50,000 organizations and individuals in 133 countries.
f. Technology: NGOs have used various means and technologies that the internet offers in its online activities. Mailing lists and newsgroups (including online bulletin boards) are on example of the one-to-many and many-to-many communication technologies that the internet offers. Web-based databases have been created, maintained, and updated dynamically by accessing them over the internet. Public membership in NGOs have been solicited over the internet; similarly online question-and-answer forums have also been activated. Downloading and uploading of files and databases over the internet have also been enabled by internet links.
Source: http://www.gdrc.org/ngo/internet-ngos.html
NGO views on NGO Networking
" ... a good platform to express solidarity among NGOs. Helps to share experiences and expertise to work for common action programmes to create an impact on the policies of the government"
" ... helps to share problems of development works and solve them. It also helps the groups to be better informed"
" ... important for collective action for social justice and common causes"
" ... networking is good and needed to think on similar lines. It supports each other"
" ... it is a positive structure which promotes smooth running of the organization."
" ... given the critical context in which India is today and the way the voluntary sector has plunged itself into a water-less ocean, there is a need for immediate networking of a genuine nature."
" ... working together for common causes"
" ... can achieve change in government policies in favour of low-income groups"
" ... essential for developmental activities which implies adoption of technologies, implementation of developmental activities and those which involve procedural implications."
Integrating NGOs and Governmental Action
Integrating NGO activities and government action essentially involves the "sclaing up" of innovative approaches. Some of the key problems include:
The input of financial and hman resources in pilot projects is often too high to be widely replicable within existing resources. Any single standard package may not have enough flexibility to be adapted to a wide variety of specific local institutions and cultural contexts. Often voluntary organizations have initiated projects with no involvement or low involvement of government; thus they have not had to deal with the real-life constraints of government bureaucracy, and therefore, have less credibility. Sometimes there is not enough community involvement in all the stages to assure appropriateness, cost-effectiveness, coverage,a nd continuity. Sometimes the innovative are in too much of a hurry to establish a large program and to go to scale nationally. Government officials are often skeptical or suspicious of voluntary agencies.
Key issues in Scaling Up:
Getting the attention of policymakers and convincing then of the isefulness, practicality, affordability and replicability of the approach.
Scaling up calls for a different kind of managerial capacity which will be less personal and informal at the top.
Selection and maintenance of staff with requisite attitudes, skills and motivation.
Training a sufficiently large cadre of field workers and project officers for participatory projects.
Maintenance of an emphasis on participatory process, rather than the result alone.
Maintenance of accountability to the people at the grass roots by alllevels of planners and administrators.
Modalities of scaling up:Three ways of scaling up can be identified:
An NGO project is absorbed by the government and becomes an integral part of and helps transform government programmes/projects.
A cellular multiplication process, where, based on a service model, the government agrees with selected NGOs on the functional roles they will play.
. . .
Source:
Abstracted from - Cousins William, "Non-Governmental Initiatives" in ADB, The Urban Poor and Basic Infrastructure Services in Asia and the Pacific". Asian Development Bank, Manila, 1991 Source: http://www.gdrc.org/ngo/go-ngo.html
Skills required of an NGO
Group dynamics
Community integration
Problem identification
Community investigation
Facilitation
Mobilization
Communication
Role playing
Objectivity, monitoring and evaluation
B. PARTICIPATORY ACTION RESEARCH
Identification of research problem
Identification of different research tools
Data gathering
Analysis of data
Consultation with the community and validation of data
Drawing of conclusions
Making of recommendations
C. BUSINESS SKILLS
Planning
Participatory (circular) management
Accounting and bookkeeping
Marketing and purchasing
Negotiation
Monitoring and record keeping
Technical skill in micro-computers
Organizing cooperatives/credit unions
Handling labour problems
Understanding legal aspects.
D. DOCUMENTATION, DISSEMINATION OF INFORMATION
Small group formation
Clarification of values and vision
Group dynamics
Different kinds of media production
Communication skills and visual aids
Conscientization/senticizing skills (??)
Advocacy
Networking and linkages
E. TRAINING METHODS
Use of cultural forms
Use of media
On-the-job training - participant observation
Workshoporganization
Group dynamics
Practice-Theory/Action-reflection
Exposure programme
Group discussion and synthesis, brain-storming
Self-learning kits and modules
F. TECHNOLOGY TRAINING - APPROPRIATE TECHNOLOGIES
Agriculture, fishing, post-harvest technology, energy, housing, health, sanitation, handicrafts, food technology.
Source:
Notes from the NGO Workshop organized at the Asian Institute of Technology, Bangkok, October 17-21, 1988. Source: http://www.gdrc.org/ngo/ngo-skills.html