GENESIS AND DEVELOPMENT OFisca.co.in/SOC_HU_SCI/book/ISBN 978-93-86675-24-8.pdf · GENESIS AND...

GENESIS AND DEVELOPMENT OF NGO IN INDIA

Dr. AvaniManiar Associate Professor, Department of Extension and Communication, Faculty of Family and Community Sciences, M. S. University of Baroda, Vadodara, India

Ms. KrutikaBhate Teaching Assistant, Department of Extension and Communication, Faculty of

Family and Community Sciences, M. S. University of Baroda, Vadodara, India.

Ms. NiditaKarkare Sr. Executive, Administration in Rishabh Software Pvt Ltd., Vadodara

2018

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Title: GENESIS AND DEVELOPMENT OF NGO IN INDIA

Author(s): Dr. AvaniManiar, Ms. KrutikaBhate, Ms. NiditaKarkare

Edition: First

Volume: I

© Copyright Reserved

2017

All rights reserved. No part of this publication may be reproduced, stored, in

a retrieval system or transmitted, in any form or by any means, electronic,

mechanical, photocopying, reordering or otherwise, without the prior

permission of the publisher.

ISBN:978-93-86675-24-8

GENESIS AND DEVELOPMENT OF NGO IN INDIA iii

Ideal International E- Publication

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CONTENT

CHAPTER 1 ........................................................................................................ 1

MEANING OF NGO and GO .............................................................................. 1

MEANING OF GOVERNMENT ORGANIZATION ......................................... 2

DIFFERENCE BETWEEN NGOsANDGOs ....................................................... 3

CHARACTERISTICS OF NGO .......................................................................... 4

STRUCTURE OF NGO ....................................................................................... 5

FUNCTIONS OF NGO ........................................................................................ 7

HISTORICAL PERSPECTIVE OF NGO ............................................................ 9

ADVANTAGES OF NGO ................................................................................. 12

CONTRIBUTION OF NGO IN DEVELOPMENT ........................................... 13

EXTRA READING MATERIAL ...................................................................... 16

STUDENT EXERCISE ...................................................................................... 20

CHAPTER 2 ...................................................................................................... 22

STARTING OF NGO ......................................................................................... 22

REGISTERING THE NGO ................................................................................ 27

PERSONAL SELECTION ................................................................................. 36

PROPOSAL WRITING UNDER NGO ............................................................. 40

RESOURCE MOBILIZATION ......................................................................... 52

DOCUMENTATION ......................................................................................... 53

EXTRA READING MATERIAL ...................................................................... 56

CHAPTER 3 ...................................................................................................... 60

NGO MANAGEMENT ...................................................................................... 60

ORGANISATIONAL TYPES ............................................................................ 60

GENESIS AND DEVELOPMENT OF NGO IN INDIA iv


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ACCOUNTABILITY ......................................................................................... 62

PERSONNEL MANAGEMENT ....................................................................... 69

ESSENTIAL NGO MANAGEMENT COMPETENCIES ................................ 75

STUDENT EXERCISES .................................................................................... 95

CHAPTER 4 ...................................................................................................... 96

PROBLEMS OF NGO ........................................................................................ 96

EXTRA READING MATERIAL .................................................................... 101

CHAPTER 5 .................................................................................................... 103

PROFILE OF DEVELOPMENT AGENCIES ................................................. 103

NGOS WORKING IN INDIA .......................................................................... 103

UNICEF ............................................................................................................ 103

PRATHAM ....................................................................................................... 105

SEWA ............................................................................................................... 107

CHETNA .......................................................................................................... 109

UNITED WAY OF BARODA ......................................................................... 112

BAL BHAVAN SOCIETY .............................................................................. 113

FRIENDS SOCIETY ........................................................................................ 114

SMILE FOUNDATION ................................................................................... 116

CSR INITIATIVE ............................................................................................. 118

GAIL INDIA LIMITED ................................................................................... 118

RELIANCE CSR .............................................................................................. 125

DEEPAK CHARITABLE TRUST ................................................................... 128

SHROFF FOUNDATION ................................................................................ 129

GOVERNMENT ORGANISATIONS ............................................................. 131

GENESIS AND DEVELOPMENT OF NGO IN INDIA v


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NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT

........................................................................................................................... 131

DISTRICT RURAL DEVELOPMENT AGENCIES ...................................... 135

REFERENCES FOR FURTHER READING .................................................. 139

GENESIS AND DEVELOPMENT OF NGO IN INDIA 1


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CHAPTER1

MEANING OF NGO and GO The term, "non-governmental organization" or NGO, came into use in 1945 because of the

need for the United Nations to differentiate in its charter between participation rights for

intergovernmental specialized agencies and those for international private organizations. At

the UN, virtually all types of private bodies can be recognized as NGOs. They only have to

be independent of government control, not seeking to challenge governments either as a

political party or by a narrow focus on human rights, non-profit-making and non-criminal.

A non-governmental organization (NGO) is any non-profit, voluntary citizens' group which is

organized on a Local, National or International level. Task-oriented and driven by people

with a common interest, NGOs perform a variety of service and humanitarian functions,

bring citizen concerns to Governments, advocate and monitor policies and encourage political

participation through provision of information.

World Bank definition of an NGO: The diversity of NGOs strains any simple definition.

They include many groups and institutions that are entirely or largely independent of

government and that have primarily humanitarian or cooperative rather than commercial

objectives. They are private agencies in industrial countries that support international

development; indigenous groups organized regionally or nationally, and member-groups in

villages. NGOs include charitable and religious associations that mobilize private funds for

development, distribute food and family planning services and promote community

organization. They also include independent cooperatives, community associations, water-

user societies, women groups and pastoral associations. Citizen groups that raise awareness

and influence policy are also NGOs.

A non-governmental organization (NGO) is generally considered to be any non-state, non-

profit, voluntary organization. As a non-state entity, an NGO is generally independent of

government influence - it is not a part of or controlled by the government or an

intergovernmental agency. As such, an NGO is either not established by a government, or

intergovernmental agreement, or, if established in such a manner, is now independent of such



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influence. As a non-profit organization, an NGO is not operated for the primary purpose of

carrying on a trade or business, although profits may be generated for the mission of the

organization. A more accurate term may be non-profit distributing, in that any surplus that is

generated is to be used solely to help the organization fulfill its mission and objectives, with

no part of the net earnings of the NGO to be distributed to the benefit of the directors,

officers, members, or employees of the NGO, or any private persons, other than reasonable

compensation for services rendered. As a voluntary organization, an NGO is not required to

exist by law but is formed by private initiative, resulting from voluntary actions of

individuals.

To summarize, NGOs are the organizations that are not part of the government sector or part

of the business sector. For such reasons, they are sometimes referred as "the third sector" in

society.

Meaning OF Government Organization A government-owned corporation (sometimes state-owned enterprise, SOE or Government

Organization) may resemble a not-for-profit corporation as it may not be required to generate

a profit. Governments may also use profitable entities they own to support the general budget.

SOE's may or may not be expected to operate in a broadly commercial manner and may or

may not have monopolies in their areas of activity. The creation of a government-owned

corporation (corporatization) from other forms of government ownership may be a precursor

to privatization

A government or state agency, often an appointed commission, is a permanent or semi-

permanent organization in the machinery of government that is responsible for the oversight

and administration of specific functions, such as an intelligence agency. There is a notable

variety of agency types. Although usage differs, a government agency is normally distinct

both from a department or ministry, and other types of a public body established by the

government. The functions of an agency are normally executive in character since different

types of organizations (such as commissions) are most often constituted in an advisory role—

this distinction is often blurred in practice, however. A government agency may be

established by either a national government or a state government within a federal system.

http://en.wikipedia.org/wiki/Not-for-profit_corporation

http://en.wikipedia.org/wiki/Government_budget

http://en.wikipedia.org/wiki/Monopoly

http://en.wikipedia.org/wiki/Corporatization

http://en.wikipedia.org/wiki/Privatization

http://en.wikipedia.org/wiki/Machinery_of_government

http://en.wikipedia.org/wiki/Intelligence_agency

http://en.wikipedia.org/wiki/Ministry_%28government_department%29

http://en.wikipedia.org/wiki/Government



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An organization created by a government and resembling an NGO usually created for the

purpose of promotingissues that the government wants to bring attention to. It is not a

traditional NGO.

STUDENT EXERCISE

1. Write down the definition of NGO and GO.

2. Write the definition of NGO given by World Bank.

3. NGO is also known as ______________ and ______________.

4. NGO is not a part of _______________ or _____________.

5. GO is a ___________owned corporation.

DIFFERENCE BETWEEN NGOsANDGOs

NGO GO

1 The Non-government organization

isalegally constituted organization

created by natural or legal persons

that operate independently.

1. A Government agency

established by either a

national Government or state

government within a federal

system.

2. Funded totally or partially by the

government or private sector.

2. Funded totally by the

government and public sector.

3. NGOs operation are based on

donations

3. GO is a self-sustaining unit.

4. NGOs are based on sharing or

joint- ownership.

4. GO are common with natural

monopolies.

5. NGOs: Help Age India, Smile

Foundation, Pratham, BCC,

VikasJyot, United Way, Deepak

Foundation

5. GOs: Jute Corporation of

India Limited, Food

Corporation of India, District

Rural Development Agency

http://www.businessdictionary.com/definition/organization.html

http://www.businessdictionary.com/definition/government.html

http://www.businessdictionary.com/definition/non-governmental-organization-NGO.html

http://www.businessdictionary.com/definition/promoter.html

http://www.businessdictionary.com/definition/promoter.html

http://www.businessdictionary.com/definition/want.html

http://en.wikipedia.org/wiki/Natural_monopoly

http://en.wikipedia.org/wiki/Natural_monopoly

http://en.wikipedia.org/wiki/Jute_Corporation_of_India_Limited

http://en.wikipedia.org/wiki/Jute_Corporation_of_India_Limited

http://en.wikipedia.org/wiki/Food_Corporation_of_India

http://en.wikipedia.org/wiki/Food_Corporation_of_India



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CHARACTERISTICS OF NGO An NGO is a non-profit making, voluntary, service oriented/development oriented

organization, either for the benefit of members (a grassroots organization) or of other

members of the population.

It is an organization of private individuals who believe in certain basic social principles

and who structure their activities to bring about development to communities they are

servicing.

It is a social development organization assisting in the empowerment of people.

An organization or group of people working independently of any external control with

specific objectives and aims to fulfill tasks that are oriented to bring about desirable

change in a given community or areas or situation.

An independent, democratic nonsectarian people’s organization working for the

empowerment of economic and/or socially marginalized groups.

An organization not affiliated with political parties, generally engaged in working for aid,

development, and welfare of the community.

An organization committed to the root causes of the problems trying to better the quality

of life especially for the poor, the oppressed, the marginalized in urban and rural areas.

Organizations established by the end for the community with or without little intervention

from the government, they are not only a charity organization but work on socioeconomic

cultural activities.

They are not required nor prevented from existing by-law but result from people’s self-

chosen voluntary initiative to pursue a shared interest or concern.

Registration means that the founders wish to have social recognition, this call for some

degree of formalization and the principle of social accountability acceptance.

Within the terms of whatever legislation they choose to register themselves, they also

govern themselves.

NGOs are defined as non-membership development-oriented organizations that provide

services either directly to the rural poor or to grass-roots membership organizations and

with the local branches of international NGOs that enjoy varying degrees of autonomy.

They are therefore distinct from formal and informal membership organizations such as

farmers' associations.



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STUDENT EXERCISE

1. Write the differences between NGO and GO.

2. NGO is a ______________, ________________, ____________ organization.

3. NGO are not affiliated to _____________ parties.

4. Match the Following

A B

1. Funded totally by Government 1. NGO

2. Help Age 2. Sharing or Joint Ownership

3. NGO 3. GO

4. GO 4. Food corporation of India

STRUCTURE OF NGO

It is difficult to talk about the structure of NGOs; because there are wide variations among the

countries they operate structure of NGOs. The structure of each NGO is nearly identical to

the structure of any enterprise or corporation: highly hierarchical. The NGOs borrowed even

the division of labor from the capitalist economy, each NGO has its president, its council and

its field workers (activists). Like any enterprise, each NGO unavoidably has its accounting

department (since, although “non-profit”, it works with large sums of money), as well as

managers of various fields and projects.

Again, the legal system has thought of everything, so in pursuit of ensuring the predictable

hierarchy in the NGO sector, the law determines that one of the basic conditions for

registering a formal organization is that it has a listed president or leader (“someone who can

be held responsible”).

The NGO sector in the world is completely professionalized, which is why insisting on

calling the NGO activism volunteering, instead of a profession, makes no sense anymore.

When the NGO activist spends a number of hours every day working in the organization,

receives a salary for his work and doesn’t have a “real” job, it is clear that working in an

NGO is a profession, like any other.



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It is true, on the other side, that many NGO-affiliated activists are in fact volunteers, i.e. they

don’t get paid for their efforts. But in any NGO, those are only the “young and inexperienced

beginners” who actually do all the physical work that is relevant for the NGO (such as,

conducting surveys in the streets, spreading propaganda materials, doing field work related to

some campaign etc). A smaller number of activists (those “most dedicated and most

experienced”) do get paychecks for their work, which usually consists of sitting on a soft

chair in a private desk, monitoring the work of others.

Organizational structure gives a pictorial representation of the functioning styles of anNGO.

It provides a graphic view of the hierarchical system and the levels of responsibility in an

organization. It is relevant to present an organizational chart because it gives a quick view of

the management structure of an NGO.

Organizational structure is mostly found in the annual reports, brochures and other

promotional material of the NGO. But it is also essential for fundraising and donor proposals.

Many donors and donor agencies are interested to know how the operational systems of the

NGO are structured and how roles and responsibilities of various staff members are

distributed. Organizational structure also becomes useful when new employees join the

organization and they need to be oriented to the working environment. Organizational

structure also aids the management to understand the understaffed and overstaffed sections

and arrange transfers between them accordingly.

NGO has a board of directors comprising of community members, then an organizational

structure presents the best opportunity to highlight this. You can mention how the beneficiary

community is involved in the decision-making activities of the organization.

http://www.fundsforngos.org/tag/ngos/

http://www.fundsforngos.org/human-resource-management-2/human-resource-management-ngos/

http://www.fundsforngos.org/category/fundraising-resources/

http://www.fundsforngos.org/how-to-write-a-proposal/introduction-to-proposal-writing/

http://www.fundsforngos.org/tag/donors/

http://www.fundsforngos.org/category/environment-2/

http://www.fundsforngos.org/tag/community/

http://www.fundsforngos.org/tag/activities/



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Below is a sample for an organizational chart in a typical small and medium-sized NGO:

FUNCTIONS OF NGO

NGOs have changed over the decades. At the beginning, its role was understood as ‘care and

welfare’ or ‘philanthropy’, but nowadays the image of NGOs is seen as organizations which

are working for structural change in the society. They have the goal of working for the

transformation of existing structures, democratization, civil society, etc.

According to the Report of Commonwealth Foundation (1994), NGO activities can be

grouped under two headings. These are:

a)Care and Welfare

· Service and delivery

· Mobilizing resources

· Research and innovation

· Human resource development

· Public information

b) Change and Development

These organizations are structured on the following field of activities;

· Welfare organizations

· Development organizations



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· Environmental organizations

· Indigenous people’s organizations

· Women’s organizations

· Youth organizations

· Human right organizations

· Environmental groups

· Income generating projects

· Job creation programme

· Children organizations

· Disabilities organizations

· Workers organizations

This diversity of NGO activities reflects itself in the wide range of expressions. NGOs use to

describe their function which includes as human rights, environment, development, or

religious organizations. The diversity also indicates that NGOs, with their highly specialized

personnel, have highly specialized targets. Task-oriented and driven by people with a

common interest, NGOs perform a variety of service and humanitarian functions, bring

citizen concerns to governments, advocate and monitor policies, and encourage political

participation through provision of information. Some are organized around specific issues,

such as human rights, environment or health. They provide analysis and expertise, serve as

early warning mechanisms and help monitor and implement international agreements.

STUDENT EXERCISE

1. Draw the organization structure of an NGO.

2. Write the name of an NGO- which works for the following causes:

(Local/National/International)

A. Heath: ______________

B. Environment : ______________

C. Women : ______________

D. Disabilities : ______________

E. Children : ______________



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HISTORICAL PERSPECTIVE OF NGO

NGOs (Non-governmental organizations) are increasingly becoming an important force, in

part because of claims that they are efficient and effective because they are innovative,

flexible, independent, and responsive to the problems of poor people at the grass-roots level.

The growth of such NGOs over the past two decades has given them an increasingly

important role and has led them forming a distinctive sector within civil society. They have

been engaged in all sectors of social life such as relief, rehabilitation, health, education,

development programs, peace, human rights, and environmental issues, using finance raised

from voluntary, private sources, and donor agencies, and managing themselves autonomously

at local, national and international levels.India has a long history of civil society based on the

concepts of dana (giving), andseva (service).

Medieval

Era

Organization those were voluntary in spirit and without profit-

makingobjectives,were active in cultural promotion, education,

health,and natural disaster relief.

British Rule They proliferated during this period. Work forimproper social

welfare, literacy and pursuing relief projects.

In the

second half

of the 19th

century

Self-help emerged as the primary focus of socio-political movements.

Numerous organizations were established during this period

including:

Friend in Need society (1858)

PrarthanaSamaj (1864)

SatyaShodhanSamaj (1873)

AryaSamaj (1864)

National Council for women in India (1875)

Indian National Conference (1887)

1860 The Societies Registration Act (SRA) was approved in 1860 to

confirm the legal status of growing body of

nongovernmentorganizations(NGOs). The SRA continued to be

relevant legislation for NGOs in India, although most state



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governments had enacted amendments to the original version.

1905 Christian missionaries active in India at this time directed their

efforts toward reducing poverty and constructing hospitals, schools,

roads and other infrastructure. Meanwhile, NGOs focused their

efforts on education, health, relief and social welfare. A firm

foundation for secular voluntary action in India was not laid until the

servants of India, a secular NGO was established.

1916 Mahatma Gandhi’s return to India in 1916 shifted the focus of

development activities to economic self-sufficiency. His Swadeshi

movement, which advocated economic self-sufficiency through

small-scale local production, swept through the country. He also

believed that voluntary action, decentralized to gram panchayats

(village councils), was the ideal way to stimulate India’s

development. Gandhi reinvigorated civil society in India by stressing

that political freedom must be accompanied by social responsibility.

1950 The Government of India decentralized development activities

throughout the 1950s. The establishment of the National

Community Development Program and the National Extension

Service were early steps in this direction.

1953 The Central Social Welfare Board was established to promote

social welfare activities and support people’s participation

programme through NGOs. This additional funding and recognition

led to a growing body of professional NGOs.

1958 Three tier Panchayati Raj System was introduced.

Many farmer unions and agriculture cooperatives were formed around

this time, and networking became more commonplace in civil society.

Association of Voluntary Agencies for Rural Development

(AVARD) was founded as a consortium of major voluntary agencies.

1965-67 International NGOs entered India in significant numbers to provide

drought relief during two consecutive agricultural seasons.

Foreign funds began flowing to domestic NGOs in India, changing

the character of civil society once more.



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1970 The Government pursued a “minimum needs” programme,

focusing on the basic impediments to improving the quality of life for

the rural poor, such as education, electrical power, and health.

Several governmental development agencies were established around

this time, such as the People’s Action for Development of India.

Foreign-trained Indians entered civil society in greater numbers,

leading to a professionalization of the sector.

1970-1980 NGOs began to be formally recognized as development partners

of the state.

Their work was increasingly characterized by grassroots interventions,

advocacy at various levels and mobilization of the marginalized to

protect their rights.

1990 The process of structural adjustment begun in this year.

The more recent approach of bilateral andinternational donors

channeling funds directly through the government, NGO networks,

and large corporate NGOs have somewhat pushed people’s

organizations into the backgrounds.

After 2000

to till today

Today about 1.5 million NGOs work in India (i.e nonprofit, voluntary

citizens groups organized on a local, national or international level).

According to a survey conducted by Society for Participatory

Research in Asia(PRIA), 26.5% of NGOs were engaged in religious

activities, while 21.3% work in the area of community/or service.

About one in five NGOs works in education, while 17.9% were active

in the fields of sports and culture. Only 6.6% work in the health

sector.

The Credibility Alliance is an initiative by a group of NGOs committed to enhancing

accountability and transparency in the voluntary sector through good governance. Credibility

Alliance was registered in May 2004 as an independent, nonprofit organization after 2 years

of extensive consultation with thousands of NGOs in India. Credibility Alliance operates as a

standard-setting body and aims to build trust among all the stakeholders. Its members include

nearly 600 organizations.



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ADVANTAGES OF NGO

They have the ability to experiment freely with innovative approaches and to take

risks.

They are flexible in adapting to local situations and responding to local needs, and

therefore able to develop integrated projects as well as sectoral projects.

They enjoy good rapport with people and can render micro-assistance to very poor

people as they can identify those who are most in need and tailor assistance to their

needs.

They have the ability to communicate at all levels, from the neighborhood to the top

levels of government.

They are able to recruit both experts and highly motivated staff with fewer

restrictions than the government.

As India is a large country and the population is huge, it may not be practically

possible for the government to take care of all the activities, and the country

definitely needs the support of the NGO in India to take care of the rest.

India desperately needs NGOs to support its government in improving the lifestyle of

the people.

STUDENT EXERCISE:

1. Write the brief history of NGOs in India.

2. Write the advantages of NGOs with examples.

3. Match the following

A B

1. The Societies Registration Act (SRA) 1905

2. Christian missionaries active 1958

3. NGOs work in India 1860

4. Three tier Panchayati Raj System 1.5 million



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CONTRIBUTION OF NGO IN DEVELOPMENT

Non-Government Organizations are increasingly being used as a vehicle for development.

They are becoming a measure of citizen’s participation. They work on the issues of poverty,

literacy, health, population, women empowerment, environment, community regeneration

and so on. Many of them focus on some issues in different regions, but it has been found that

there are sharing and learning between these NGOs.

The strength of the NGOs lies in their approach and method for motivating people to

participate in the development process. When government works for development, it has the

target-oriented approach and works as consultants. It is least concerned about needs and

problems of the people whereas, NGOs work with a friendly and informal approach. They

motivate people to participate in all stages of the programme. NGOs are purposeful, role

bound social units. They are groups of individuals who allocate tasks between themselves to

contribute to a common goal. There is self-motivation in the individuals and they feel

empowered to work with co-owners of the organization. Apart from self-motivation, their

competence, experience, aptitudes, and aspirations also play important role in their working

for the cause of development. NGOs have value driven, committed and self-motivated staff

which identifies itself with their clients and adopts appropriate approaches towards the hem,

engendering trust and enhancing authentic participation. They do not need the uniformity or

standardization of practices and so on. They can adapt more readily to local contents and

meet the demands of people-centered development. They can organize themselves to provide

tailored support to a,particularly disadvantaged group. Due to their non-profit principles,

many donor agencies trust them and support them in reaching out to the poor groups. NGOs

do not just implement the programme but play a very supportive role in mobilizing human

and nonhuman resources.

According to Shah and Iyengar, “The NGOs are generally in the better position to both

comprehend people’s perspective at the local level and share with people the changing

perspective at the global level. In this sense, they act locally and think globally.”



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NGOs have an immense role in bringing about social change and development and it is being

experienced from different parts of the country. Development, as we have read earlier, is a

multi-faceted process, which essentially involves the aggressive participation of the people

that would not be possible unless they are educated, awakened and motivated. NGOs are

taking up this job sportingly and successfully.

Appreciative work done by NGOs in development are as follows:

1. The NGOs are active to promote education, particularly among that section of the

population, which has remained un-benefited or less benefited by the measures adopted by

the government. The education of girls and other deprived people, particularly the

Scheduled Cast (SCs) and Scheduled Tribe (STs), has been their target objective.

2. Women are the other vulnerable section of society. Gender discrimination is a ubiquitous

cultural reality. Girls are discriminated in the upbringing pattern in the family. Larger

numbers of the undernourished are from amongst the girls. Retention of girls in schools is

much less as compared to boys. Women are forced to work as a housewife and denied

participation in gainful economic activities outside homes. About three-fourths of the

work done by women is un-monetized.

3. Since the second half of the preceding century started the change in the status of women

with their active participation in political, social and economic activities, which gained

acceleration since the last quarter of the preceding century. More and more women started

moving out of the four walls of their houses and involving themselves actively in the

social sphere outside their homes. Important in this process has been the role of

academicians and NGOs. The book Women’s Role in Economic Development by Easter

Boserup (1970) is the pioneering work in this direction. After a gap of few years, by 1978,

a large number of works were published, particularly on the status of women in the Third

World – where their position has been more vulnerable. The role of women voluntary

organizations towards this cause has been marvelous. Sewa, Sathin, Eklavya, Disha,

Environmental Action Group and Agrani Foundation etc. are some of the thousands of

NGOs known for their role in development by creating awareness among people and

interventions, if required.



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4. The approach to development has been almost uniform all over the world at least in terms

of the use of technology, magnitude of production, the pattern of consumption and

achievement of wealth. Both state and people were unaware about the backwash of the

nature of development pursued. The threat to the human life developed due to

environmental pollution and imbalance and the depletion of natural resources as a

consequence of the nature of development. Here, the role of NGOs is really noticeable and

praiseworthy. Thousands of voluntary organizations are at work to awaken people and

governments against environmental degradation and depletion of resources.

5. It is not that the development process has unleashed only environmental threats to the

human existence but also many people are displaced due to developmental projects and are

quite often not properly compensated and rehabilitated. The NGOs have a major role to

play towards the cause of people’s resettlement and are also performing the commendable

job in this direction. The projects like the construction of dams, road highways, and

railways have often made some sections of people, particularly in rural areas, vulnerable

and are displaced without being properly compensated.

6. NGOs are also rendering great service in restoring dignity to the deprived and

discriminated sections of the people in the society like women suffering from gender

discrimination, lower caste people suffering from caste segregation and the status of

untouchable, racial and religious discrimination. Voluntary organizations, working at both

national and international levels, have earned praise for their services in societal

development. These organizations are busy in creating awareness and zeal for

participation in development projects. Ensuring humanism by fighting against human

rights violations, social exclusion, domestic violence, and others have been common

objectives of the NGOs. Of late, these organizations are also entering the sector of

economic well-being and standard of living. In the state of Uttar Pradesh, Agrani

Foundation’s Jan SurakshaKranti (JSK) scheme of savings and life insurance is indeed a

commendable effort in this direction.



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EXTRA READING MATERIAL

ROLES OF NGO

Among the wide variety of roles that NGOs play, the following six can be identified as

important, at the risk of generalization:

1) Development and Operation of Infrastructure:

Community-based organizations and cooperatives can acquire, subdivide and develop

land, construct housing, provide infrastructure and operate and maintain infrastructures

such as wells or public toilets and solid waste collection services. They can also develop

building material supply centers and other community-based economic enterprises. In

many cases, they will need technical assistance or advice from government agencies or

higher-level NGOs.

2) Supporting Innovation, Demonstration, and Pilot Projects:

NGOs have the advantage of selecting particular places for innovative projects and specify

in advance the length of time which they will be supporting the project - overcoming some

of the shortcomings that governments face in this respect. NGOs can also be pilots for

larger government projects by virtue of their ability to act more quickly than the

government bureaucracy.

3) Facilitating Communication:

NGOs use interpersonal methods of communication and study the right entry points

whereby they gain the trust of the community they seek to benefit. They would also have a

good idea of the feasibility of the projects they take up. The significance of this role to the

government is that NGOs can communicate to the policy-making levels of the

government, information about the lives, capabilities, attitudes and cultural characteristics

of people at the local level. NGOs can facilitate communication upward from people tothe

government and downward from the government tothe people. Communication upward

involves informingthegovernment about what local people are thinking, doing and feeling

while communication downward involves informing local people about what the

government is planning and doing. NGOs are also in a unique position to share

information horizontally, networking between other organizations doing similar work.



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4) Technical Assistance and Training:

Training institutions and NGOs can develop a technical assistance and training capacity,

and use this to assist both CBOs and governments.

5) Research, Monitoring, and Evaluation:

Innovative activities need to be carefully documented and shared, effective participatory

monitoring would permit the sharing of results with the people themselves as well as with

the project staff.

6) Advocacy for and with the poor:

In some cases, NGOs become spokespersons or ombudsmen for the poor and attempt to

influence government policies and programmes on their behalf. This may be done through

a variety of means ranging from demonstration and pilot projects to participate in public

forums and the formulation of government policy and plans, to publicizing research results

and case studies of the poor. Thus, NGOs play roles from advocates for the poor to

implementers of government programmes; from agitators and critics to partners and

advisors; from sponsors of pilot projects to mediators.

STRENGTHS of NGOs

The majority of NGOs are small and horizontally structured with short lines of

communication and are therefore capable of responding flexibly and rapidly to clients' needs

and to changing circumstances. They are also characterized by a work ethic conducive to

generating sustainable processes and impacts.

NGOs' concern with the rural poor means that they often maintain a field presence in

remote locations, where it is difficult to keep government staff in post.

One of NGOs' main concerns has been to identify the needs of the rural poor in

sustainable agricultural development. They have therefore pioneered a wide range of

participatory methods for diagnosis3 and, in some contexts, have developed and

introduced systems approach for testing new technology, for example in Chile

(Sotomayor, 1991). In some cases, these approaches have extended beyond fanning

systems into processing and marketing, as with soya in Bangladesh (Buckland and

Graham, 1990), sesame in the Gambia (Gilbert, 1990), and cocoa in Bolivia (Trujillo,

1991).



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NGOs' rapport with farmers has allowed them to draw on local knowledge systems in

the design of technology options and to strengthen such systems by ensuring that the

technologies developed are reintegrated into them (Chagumaand Gumbo, 1993).

NGOs have also developed innovative dissemination methods, relying on farmer-to-

farmer contact, whether on a group or individual basis (e.g., Sollows, Thongpan,

andLeelapatra, 1993).

In some cases, NGOs have developed new technologies such as soya production in

Bangladesh (Buckland and Graham, 1990) or management practices such as the

sloping agricultural land technology in the Philippines (Watson andLaquihon, 1993),

but more often they have sought to adapt existing technologies, such as PRADAN's

efforts in India to scale down technologies developed by government for mushroom

and raw silk production and so make them accessible to small-scale farmers

(Vasimalai, 1993).

Undoubtedly, one of the main strengths of NGOs has been their work in group

formation. This has been in response to perceived needs at several levels: (1) To meet

the technical requirements of certain types of innovation. Thus, Action for World

Solidarity in India worked with grass-roots organizations to achieve simultaneous

action in an integrated pest management programme (SatishandVardhan, 1993). In the

Gambia and Ethiopia, NGOs helped farmers to organize local informal seed

production in ways to avoid undesirable cross-pollination (Henderson and Singh,

1990). (2) To manage "lumpy" assets. In Bangladesh, NGOs have helped to organize

landless laborers to acquire and operate water-pumping technology (Mustafa,

Rahman,andSattar, 1993). (3) To manage common property resources. Many

examples exist of formal and informal associations, often supported by NGOs, which

manage irrigation water. In other cases, NGOs have supported group efforts in soil

and water conservation, whether on private land or on a micro-watershed basis

involving both private and common land (Fernandez, 1993a). They have also helped

in managing common grazing and forest land in a sustainable fashion in relation both

to technology and the creation of a capacity to make demands on the government

over, for example, access issues (Fernandez, 1993b).



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WEAKNESSES OF NGOs

NGOs' small size means that their projects rarely address the structural factors that

underlie rural poverty. Small size, independence, and differences in philosophy also

militate against learning from each other's experience and against the creation of

effective forums, whether at national or provincial levels.

Some "fashionable" locations have become so densely populated by a diversity of

NGOs that problems have arisen not merely of competition for the same clientele, but

of some undermining the activities of others (Ayers, 1992).

NGOs have limited capacities for agricultural technology development and

dissemination and limited awareness of how to create effective demand-pull on

government services.

Some NGOs are more accountable to external funding agencies than to the clientele

they claim to serve. Donor pressure to achieve short-term impacts, combined with a

lack of cross-learning, has led in some cases to the promotion of inappropriate

technology, such as protected horticultural systems in the Bolivian Andes (Kohl,

1991).

Many NGOs place great emphasis on voluntarism. Whilst such concepts as "volunteer

extension workers" have great intuitive appeal and reflect widely commended values,

they are sometimes promoted at the expense of financially sustainable alternatives.

This was evident in SIDA's farm-level forestry project in North Vietnam, for instance,

where the scope for supporting an emerging private nursery sector in the provision of

technical advice was ignored, and complex and largely voluntary advisory services at

the village level were promoted instead (author's observation, April 1994).



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STUDENT EXERCISE

1. Write two definitions of NGO.

2. Write in brief about GO.

3. Write differences between GO and NGO.

4. Explain the structure of NGO.

5. Discuss the contribution of NGO in India.

6. Fill in the blanks.

I. As a __________________entity, an NGO is generally ___________ from

government influence.

II. NGO are based on ______________ or _____________.

III. Field workers work under ________________ in an NGO.

IV. The central social welfare board was established in ___________.

V. NGOs have played immense role in bringing about _______________ and

____________ in the different parts of the country.


A B

I. Person operate independently I. GO

II. Self-sustaining Unit II. NGO

III. Care and Service III. Change and Development

IV. NGO proliferated during this period IV. 1950

V. Decentralized development activities V. 1916

VI. Focus shifted from development VI. British Rule

Activities to economic self-sufficiency

VII. 1970-1980 VII. NGOs began to be

formally recognized as

development partners of

the state

VIII. Children organizations VIII. Care and welfare



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8. Tick ( ) on the appropriate option.

I. Find the NGO

(VikasJyot, Food Corporation of India, District Rural Development Agency)

II. Care and Welfare Organization

(Research and Innovation, Environmental Organization, Disabilities Organization)

III. Role of NGO

(Facilitating Communication, Group Of People, Invention)

IV. Find the GO

(Help Age India, Jute Corporation of India, Pratham)

V. An NGO is generally considered to be any

(Profit Making, Government Supported, Voluntary Organization)



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CHAPTER 2

STARTING OF NGO

STEPS IN ESTABLISHING NGO

1. Select target group

Normally NGOs are started to provide relief of life for a certain group of people, be it

orphans, unemployed youth, people living with HIV, Widowsetc. Therefore, the first step in

starting NGO is to think of a group your NGO will specifically direct its major efforts. In

selecting the group, you also have to decide the geographical location of the group because in

many cases laws governing the registration of NGOs require founders to state in what

geographical level the NGO will operate i.e., at district, regional or national level.

2. Defining the problem

After choosing a target group, say orphans, you need to define exactly what specific

challenge the target is facing that your NGO wants to solve. This is important so that you can

create an efficient NGO that really delivers value to its target group. An example, the orphans

have many challenges; therefore you need to specify what challenge you want to overcome.

Example of challenges they face are daily food, shelter, school fees, school items like

uniform and textbooks, they also have a challenge of not getting the care that other children

with parents get.

1. Select target group

2. Define the problem

3. Background of the problem:

4. Formulate proposed solutions

5. Justification

6. Define scope of the NGO

7. Formulate by-laws (constitution) to govern the NGO



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3. Background of the problem

You need to understand the origin of the problem or challenges that your target group face,

examine previous efforts done by other organizations or individuals to curb the challenges.

It is also helpful to get an insight into challenges faced by individuals or other NGOs that

made efforts to address the same challenge that you want to address. Analyzing the problem

or challenge this way will help your new NGO to fill the gap that exists in addressing the

challenge, learning from the past mistakes and be prepared for the challenges that are

encountered when addressing problems or challenges of that particular type. The analysis will

make it possible for your new NGO to design solutions or projects that are more efficient.

4. Formulate proposed solutions

After careful and comprehensive background study of challenge or problem faced by the

target group, you need to carefully formulate solutions to such challenges or problems.NGOs

implement solutions of challenges faced by their targeted groups through designing and

implementing projects or programmes. For example, for challenges faced by orphans such as

uniform and school materials such textbooks and stationeries, your NGO will create a project

title BACK TO SCHOOL with activities such as fundraising to obtain money to buy the

books and uniforms, or even asking stationery stores to offer books for the orphans. A person

needs to think of solutions for a target group before starting NGO because formulating the

solutions give an idea of what type of NGO in terms of management structure, sources of

funds and activities. This is, therefore, going to be considered when formulating bylaws or

constitution of NGO. For example, in NGO's constitution, you will need to outline

management structure, types of meetings, sources of finance and rules related to membership.

All these rules should be in line with the works or plans that one NGO has to accomplish.

5. Justification

Let’s understand the justification of NGO's activities by considering the existing laws,

regulations, and policies in the country. Consider also various independent reports about the

problem/challenge want to solve. Are the solutions and NGO's activities in line with such

laws, regulations, policies and independent reports?



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You can also consider your own mission in life, future plans of other members of the NGO if

they are ready to discuss. Assess if these individuals missions and plans are in line with the

activities that the new NGO you want to form. You need to assess such missions and plans

because your new NGO needs the commitment of the founders so that it can grow and be a

sustainable one.

6. Define scope of your NGO

By scope of your NGO, it means the level of work that your NGO is going to be engaged

with. Let's consider again the case of NGO that wants to solve challenges faced by orphans.

The following questions will help to identify the scope of the NGO:

Are we going to establish a foundation that will collect money and let individuals

submit requests for school fees?

Are we going to work with already established foundations to distribute funds to

orphans that we have identified?

7. Formulate bylaws (constitution) to govern the NGO

A broad look at what bylaws/constitution mean to NGO: Constitution is a collection of rules

that define procedures, powers, and limitations of staff, members, and management. The

constitution defines the vision, mission, and scope of the organization. The Constitution is a

very important document that needs to be well prepared, well understood and approved by

membersConstitution is also a document that communicates what your NGO is to the public.

It is important to note that your NGO's constitution/bylaws are not the secret document, but

rather public documents. Members of your NGO, donors, partner organizations, government

and any individual from the public may require reading your NGO's bylaws/constitution. So,

don't fall into a trap of just copying and pasting other people's constitution. You can,

however, use other organization's constitution as a template. You should also note the first

constitution your organization created for registration purpose is not necessarily the final one.

In its life, your organization can have as many changes as necessary.



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IMPORTANT CONTENTS TO CONSIDER IN OUR CONSTITUTION

Name and Abbreviation of the organization: This part is important as it shows consent of

the members on what name and abbreviation should be used. The name and official

abbreviation are going to be used by the registrar of the organizations, to register your NGO,

and they are also used in other registrations with authorities and in the opening bank account.

Some organizations may opt to include their official logo in the constitution.

Head Office Location: Normally you would be required to mention region, city,and country

where the head office of your organization would be situated. If you have already located an

office premises, you can write full physical address of that office.

Vision and Mission: Again these two are very important as they tell registrar what your

NGO is about and what is dreamed to become. It is very important to mention these as they

help the registrar to justify his or her decision to register your NGO. It is also important to

consider vision and mission in our constitution because of vision — the dream of what the

NGO will accomplish and mission — what the NGO is going to do, are key reasons why the

members join together to form that particular organization. If these two key reasons are not

understood and not consented by all members, then to run the NGO will be very difficult.

Objectives: Just like vision and mission, objectives — which mean specific targets that your

organization seeks to achieve, should be very well understood and agreed by all members.

These objectives are the ones that set a type of activities your organization is going to engage

itself with. Some legislation like Children's Homes Act in Tanzania requires that any NGO

which wants to operate a children's home should mention this fact expressly in its objectives.

For this fact, it is important to consider your short and long-term objectives and express them

in writing in the constitution so that to conform with certain legislation.

The scope of the organization clause: This is the part where you state geographical

boundaries of your organization operations; it can be district, regional or national level.

Activities clause: In this clause, you list down specific and general activities that your

organization will be doing in order to reach its mission and realize its dream. For example, to

conduct research, to conduct seminars and workshops, to do fundraising, to advice, etc.



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Management structure clause: This is a very important clause that will have its sub-clauses.

The purpose is to explain duties of managing the activities and resources of the organization

so that vision and mission can be achieved. In this part, powers and limitations of power in

the organization are clearly stated. The choice of management structure depends on many

things including the type of activities, the scope of the organization, skills of the people to

hold such positions, financial capacity and strategic plans of the organization. It is also

important to take note of legal and donors requirements when prescribing the management

structure. For example, some donors would prefer to deal with an organization, whose

management is independent of found members, and there is clear of limits of power and in

some cases there is a board of directors.

Membership clauses: These clauses are important as they set rules, powers, and limits of

powers, of the members. Typical clauses mention such information as for qualifications of a

person to be registered as a member, rights, and duties of members, termination of

membership, types of membership, membership fees and mode of payment of membership

fee, disqualification of a member.

Meetings clauses: It should mention in the constitution, types of meetings —members and

management meetings. Important rules regarding the meetings such as who will chair the

meetings, quorum for meetings, voting, how many times in a year will the meetings be called

up and notice for meetings.

Sources of finance clause: This clause mentions different sources from which your NGO is

expected to generate its financial resources. It is safe to mention as many sources as possible,

but also limit if it is found necessary. Such sources could be members' contribution, loans,

grants, profit from profit-generating projects, gifts etc.

Finance control clauses: This clause is about rules and procedures to be followed to ensure

that organization's resources are used properly. Your organization can set general rules such

as who can be a signatory of cheques and financial reporting arrangements. More specific day

to day financial controls can be set later, by management through fiscal policies. You may

find it helpful to mention in the constitution that financial policies and other policies will be

formulated. Interpretation and changes of the constitution clause these clauses outline who



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has the power to clarify clauses of the constitution when there is a problem of interpretation,

plus how changes to the constitution should be carried.

Dissolution clauses: You need to agree on what will happen if your NGO goes to an end.

The rules that set procedures to be followed in dissolving the organization are set in these

clauses. Typical information in these clauses includes circumstances under which the NGO

will be dissolved, the quorum for meeting to dissolve the NGO, payment of liabilities of the

organization and distribution of its resources of the organization. Normally the residual of the

resources of the NGO after paying all liabilities will not be distributed to members; instead, it

is given to the government or other organizations.

REGISTERING THE NGO

When it is time to register your NGO, you should understand the type of documents required

by the registrar of NGOs, the following documents must be available:

After the registrar is satisfied with your documents, the NGO will be registered and you will

obtain the certificate of registration. You must keep certified copies of the constitution for

yourself because the registrar will not return a copy of constitution that you submitted on

registration. (Copies of your NGO's constitution should be certified by an attorney). It is,

therefore, wise to keep at least two copies of the constitution with your organization.

Together with the certificate of registration, they form the basis of the legal existence of your

new NGO.

NGO Registration Methods

Curriculum vitae of office bearer(s )for the proposed NGO this means even one

person can apply for registration , provided that it is mentioned that the NGO has

more than one founder member-names and signatures of such founder members to

be shown in the constitution.

Two passport photos of office bearers of constitution of the proposed NGO so

Minutes of meeting of members to resolve the establishment of the proposed NGO

registration forms duly filled.

Proof that payment for registration fees has been made- receipt for the amount

paid.

Information about address and physical address of the head office.



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1. Trust

2. Society

3. Non-profit Company

In India, non-profit / public charitable organizations can be registered as trusts, societies or a

private limited nonprofit company, under section-25 companies. Non-profit organizations

in India (a) exist independently of the state; (b) are self-governed by a board of trustees or

‘managing committee’/ governing council, comprising individuals who generally serve in a

fiduciary capacity; (c) produce benefits for others, generally outside the membership of the

organization; and (d) are ‘non-profit-making’, in as much as they are prohibited from

distributing a monetary residual to their own members.

Section 2(15) of the Income Tax Act – which is applicable uniformly throughout the

Republic of India – defines ‘charitable purpose’ to include ‘relief of the poor, education,

medical relief and the advancement of any other object of general public utility’. A purpose

that relates exclusively to religious teaching or worship is not considered as charitable. Thus,

in ascertaining whether a purpose is public or private, one has to see if the class to be

benefited or from which the beneficiaries are to be selected, constitute a substantial body of

the public. A public charitable purpose has to benefit a sufficiently large section of the public

as distinguished from specified individuals. Organizations which lack the public element –

such as trusts for the benefit of workmen or employees of a company, however numerous –

have not been held to be charitable. As long as the beneficiaries of the organization comprise

an uncertain and fluctuating body of the public answering a particular description, the fact

that the beneficiaries may belong to a certain religious faith or a sect of persons of a certain

religious persuasion, would not affect the organization’s ‘public’ character.

Whether a trust, society or section-25 company, the Income Tax Act gives all categories

equal treatment, in terms of exempting their income and granting 80G certificates, whereby

donors to non-profit organizations may claim a rebate against donations made. Foreign

contributions to non-profits are governed by FC(R) regulations and the Home Ministry.

Formation and Registration of a Non-Profitorganization in India

1. Trust



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2. Society

3. Section-25 Company

4. Additional Licensing/ Registration

I. TRUSTS

A public charitable trust is usually floated when there is property involved, especially in

terms of land and building.

Legislation: Different states in India have different Trusts Acts in force, which govern the

trusts in the state; in the absence of a Trusts Act in any particular state or territory the general

principles of the Indian Trusts Act 1882 are applied.

Main Instrument: The main instrument of any public charitable trust is the trust deed,

wherein the aims and objects and mode of management (of the trust) should be enshrined. In

every trust deed, the minimum and a maximum number of trustees have to be specified. The

trust deed should clearly spell out the aims and objects of the trust, how the trust should be

managed, how other trustees may be appointed or removed, etc. The trust deed should be

signed by both the settlor/s and trustee/s in the presence of two witnesses. The trust deed

should be executed on non-judicial stamp paper, the value of which would depend on the

valuation of the trust property.

Trustees: A trust needs a minimum of two trustees; there is no upper limit to the number of

trustees. The Board of Management comprises the trustees.

Application for Registration: The application for registration should be made to the official

having jurisdiction over the region in which the trust is sought to be registered. After

providing details (in the form) regarding designation by which the public trust shall be

known, names of trustees, mode of succession, etc., the applicant has to affix a court fee

stamp of Rs.2/- to the form and pay a very nominal registration fee which may range from

Rs.3/- to Rs.25/-, depending on the value of the trust property.

The application form should be signed by the applicant before the regional officer or

superintendent of the regional office of the charity commissioner or a notary. The application



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form should be submitted, together with a copy of the trust deed. Two other documents which

should be submitted at the time of making an application for registration are affidavit and

consent letter.

II. SOCIETY

According to section 20 of the Societies Registration Act, 1860, the following societies can

be registered under the Act: ‘charitable societies, military orphan funds or societies

established at the several presidencies of India, societies established for the promotion of

science, literature, or the fine arts, for instruction, the diffusion of useful knowledge, the

diffusion of political education, the foundation or maintenance of libraries or reading rooms

for general use among the members or open to the public, or public museums and galleries of

paintings and other works of art, collection of natural history, mechanical and philosophical

inventions, instruments or designs.

Legislation: Societies are registered under the Societies Registration Act, 1860, which is a

federal act. In certain states, which have a charity commissioner, the society must not only be

registered under the Societies Registration Act but also, additionally, under the Bombay

Public Trusts Act. Main Instrument: The main instrument of any society is the memorandum

of association and rules and regulations (no stamp paper required), wherein the aims and

objects and mode of management (of the society) should be enshrined.

Trustees: A society needs a minimum of seven managing committee members; there is no

upper limit to the number managing committee members. The Board of Management is in the

form of a governing body or council or a managing or executive committee

Application for Registration:

Registration can be done either at the state level (i.e., in the office of the Registrar of

Societies) or at the district level (in the office of the District Magistrate or the local office of

the Registrar of Societies).

The procedure varies from state to state. However generally the application should be



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submitted together with: (a) memorandum of association and rules and regulations; (b)

consent letters of all the members of the managing committee; (c) authority letter duly signed

by all the members of the managing committee; (d) an affidavit sworn by the president or

secretary of the society on non-judicial stamp paper of Rs.20-/, together with a court fee

stamp; and (e) a declaration by the members of the managing committee that the funds of the

society will be used only for the purpose of furthering the aims and objects of the society.

All the aforesaid documents which are required for the application for registration should be

submitted in duplicate, together with the required registration fee. Unlike the trust deed, the

memorandum of association and rules and regulations need not be executed on stamp paper.

III. SECTION-25 COMPANY

According to section 25(1)(a) and (b) of the Indian Companies Act, 1956, a section-25

company can be established ‘for promoting commerce, art, science, religion, charity or any

other useful object’, provided the profits, if any, or other income is applied for promoting

only the objects of the company and no dividend is paid to its members.

Legislation: Section-25 companies are registered under section-25 of the Indian Companies

Act. 1956.

Main Instrument: For a section-25 company, the main instrument is a Memorandum and

articles of association (no stamp paper required)

Trustees: A section-25 Company needs a minimum of three trustees; there is no upper limit

to the number of trustees. The Board of Management is in the form of a Board of directors or

managing committee.

Application for Registration:

An application has to be made for availability of name to the registrar of companies, which

must be made in the prescribed form no. 1A, together with a fee of Rs.500/-. It is advisable to

suggest a choice of three other names by which the company will be called, in case the first

name which is proposed is not found acceptable by the registrar.



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Once the availability of name is confirmed, an application should be made in writing to the

regional director of the company law board. The application should be accompanied by the

following documents:

Three printed or typewritten copies of the memorandum and articles of association of the

proposed company, duly signed by all the promoters with full name, address, and occupation.

A declaration by an advocate or a chartered accountant that the memorandum and articles of

association have been drawn up in conformity with the provisions of the Act and that all the

requirements of the Act and the rules made thereunder have been duly complied with, in

respect of registration or matters incidental or supplementary thereto.

Three copies of a list of the names, addresses and occupations of the promoters (and where a

firm is a promoter, of each partner in the firm), as well as of the members of the proposed

board of directors, together with the names of companies, associations and other institutions

in which such promoters, partners and members of the proposed board of directors are

directors or hold responsible positions, if any, with description of the positions so held.

A statement showing in detail the assets (with the estimated values thereof) and the liabilities

of the association, as on the date of the application or within seven days of that date.An

estimate of the future annual income and expenditure of the proposed company, specifying

the sources of the income and the objects of the expenditure.

A statement giving a brief description of the work, if any, already done by the association and

of the work proposed to be done by it after registration, in pursuance of section-25. A

statement specifying briefly the grounds on which the application is made. A declaration by

each of the persons making the application that he/she is of sound mind, not an undercharged

insolvent, not convicted by a court of any offense and does not stand disqualified under

section 203 of the Companies Act 1956, for appointment as a director.

The applicants must also furnish to the registrar of companies (of the state in which the

registered office of the proposed company is to be, or is situated) a copy of the application

and each of the other documents that had been filed before the regional director of the

company law board.



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The applicants should also, within a week from the date of making the application to the

regional director of the company law board, publish a notice in the prescribed manner at least

once in a newspaper in a principal language of the district in which the registered office of

the proposed company is to be situated or is situated and circulating in that district, and at

least once in an English newspaper circulating in that district.

The regional director may, after considering the objections, if any, received within 30 days

from the date of publication of the notice in the newspapers, and after consulting any

authority, department or ministry, as he may, in his discretion, decide, determine whether the

license should or should not be granted. The regional director may also direct the company to

insert in its memorandum, or in its articles, or in both, such conditions of the license as may

be specified by him in this behalf.

IV. SPECIAL LICENSING

In addition to registration, a non-profit engaged in certain activities might also require special

license/permission. Some of these include (but are not limited to):A place of work in a

restricted area (like a tribal area or a border area requires a special permit – the Inner Line

Permit – usually issues either by the Ministry of Home Affairs or by the relevant local

authority (i.e., district magistrate). To open an office and employ people, the NGO should be

registered under the Shop and Establishment Act. To employ foreign staff, an Indian non-

profit needs to be registered as a trust/society/company, have FCRA registration and also

obtain a No Objection Certificate. The intended employee also needs a work visa. A foreign

non-profit setting up an office in India and wanting staff from abroad needs to be registered

as a trust/society/company, needs permission from the Reserve Bank of India and also a No

Objection Certificate from the Ministry of External Affairs.

Comparison among Trust, Society and Non-profit Company

Trust Society Section-25

Company

Statute/Legislation Relevant State Trust

Act or Bombay

Public Trusts Act,

Societies Registration

Act, 1860

Indian

Companies Act,

1956



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1950

Jurisdiction Deputy

Registrar/Charity

commissioner

Registrar of societies

(charity

commissioner in

Maharashtra).

Registrar of

companies

Registration As trust As Society

In Maharashtra, both

as a society and as a

trust

As a company

u/s 25 of the

Indian

Companies Act.

Registration

Document

Trust deed Memorandum of

association and rules

and regulations

Memorandum

and articles of

association. and

regulations

Stamp Duty Trust deed to be

executed on non-

judicial stamp paper,

vary from state to

state

No stamp paper

required for a

memorandum of

association and rules

and regulations.

No stamp paper

required for a

memorandum

and articles of

association.

Members Required Minimum – two

trustees. No upper

limit.

Minimum – seven

managing committee

members. No upper

limit.

Minimum three

trustees. No

upper limit.

Board of

Management

Trustees / Board of

Trustees

Governing body or

council/managing or

executive committee

Board of

directors/

Managing

committee

Mode of Succession

on Board of

Management

Appointment or

Election

Appointment or

Election by members

of the general body

Election by

members of the

general body

Procedure for registration of Co-operative societies

1. The first step is to get 10 Individuals together who are desirous of forming a society.



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2. A provisional committee should be formed and a chief promoter should be elected

from amongst them.

3. A name for the society has to be selected.

4. An application has to be made to the registration authority for reservation of name and

a letter to that effect has to be obtained confirming the reservation of name. The name

once reserved is valid for 3 months.

5. The entrance fees and share capital has to be collected from the prospective members.

6. A bank account has to be opened in the name of the proposed society as per the

directions of the registration authority. The entrance fees and share money has to be

deposited in the bank account and the certificate from the bank has to be obtained in

that respect.

7. The registration fees have to be deposited with the Reserve Bank of India.

8. The application for registration of the society should be submitted to the Registrar of

Societies of the concerned municipal ward. The documents to be submitted for

registration are as follows:

Form no. A in quadruplicate signed by 90% of the promoter members

List of promoter members

Bank certificate

A detailed explanation of working of the society.

Copies of proposed by-laws of the society.

Proof of payment of registration charges.

Other documents like affidavits, indemnity bonds, any documents specified by the

registrar also have to be submitted.

The registrar will enter the particulars in register of application maintained in form “b” and

give the serial number and issue receipt in acknowledgment of the same. On registration, the

registrar will notify the registration of the society in the official gazette and

Student Exercise

1. List down the steps for establishing NGO.

2. Which important points need to be consider for constitution of an NGO

3. NGO registration methods in India are ______________ , _______________and

____________ , _______________.

4. A trust need minimum ___________ trustees in India.

5. A society need minimum ______________ trustees in India.

6. A society 25 company needs ___________ trustees.



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PERSONAL SELECTION

Purpose

The purpose of the personnel policy is to set down the policies, conditions, rights, and

obligations of NGO employees subject to their performing of the duties and responsibilities

in their respective job descriptions. From the time of hiring, each employee will have access

to this policy, so that he/she can adhere to it with full knowledge and information. The

policies described below may at any time be subject to modification if the board of members

of NGO deems it necessary. In such cases, employees will be fully informed of the changes

made.

Categories of Personnel

All personnel working for NGO are classified into following types Employees designate

salaried individuals who, after a probationary period, are given ongoing assignments, either

part-time or full-time and are paid on monthly basis. They will be contracted on long-term

basis subject to periodic evaluations and performance assessments. They will have the

responsibility towards the day to day functioning and/or in any one of more

ongoing/prospective projects of the organization.All the employees of the organization are

classified into categories. These categories are as follows:

1. Management Category:

a. Executive Director

2. Professional Category:

a. Program Officer

b. Researcher

c. Finance Officer

3. Support Category:

a. Administrative Assistant

b. Office Boy

c. Consultants

Consultants are professional experts hired by NGO on a short-term basis only for the

completion of specific tasks and assignments related to NGO or one or more of its projects.

Separate and limited contracts, defining their job description, timeline, deliverables, reporting



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procedures and payment details will be issued to consultants. They will be paid on

daily/monthly/weekly basis depending upon the nature of their assignment. They will not be

considered as full-time or part-time employees of the organization.

Volunteers

Volunteers are individuals who work at NGO out of their own choice or have been deputed at

NGO by other organizations. They will be assigned tasks from time to time as deemed

necessary by NGO. NGO will have a limited contract with volunteers and will not provide

any compensation except under special conditions. They will not be considered as full-time

or part-time employees of the organization.

Personnel Recruitment

NGO believes in equal employment opportunity to each individual, regardless of race, color,

gender, religion, age, sexual orientation, national or ethnic origin, disability, marital status,

veteran status, or any other occupationally irrelevant condition. This policy applies to

recruitment and advertising; hiring and job assignment; promotion, demotion and transfer;

layoff or termination; rates of pay and benefits; selection for training; and the provision of

any other human resources service.

Notice of Vacant or New Position

It is the responsibility of the board of members to fill vacant positions as well as new regular

positions and new temporary positions of a duration exceeding more than six months. The

board must make sure that the positions can be filled under the organizational budget.

For all new positions, a job description shall be established and include the following

elements:

Position Summary

Description of Duties and Responsibilities

Conditions of Work

Qualifications

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Notice of a new or vacant position must be approved by the board before it is released

publicly.Recruitment for a new or vacant position can be opened to internal and external

competition. For external recruitment, positions in the professional category can be

advertised publicly through newspapers if they are regular positions, or if there is a limited

tendering process for consultation.

Interview and selection

As a general rule, a selection committee comprising of, at least two members shall be

assembled for filling all positions. The committee will go through the applications received,

retaining those that show the best qualifications. It will evaluate each candidate’s application

with the help of an evaluation form created beforehand, containing well-defined criteria.

A list of the candidates chosen to be interviewed will be shortlisted by the selection

committee. The interviews will serve to make a final choice and also to establish a database

of potential future candidates.

Appointment Letter

Any personnel employed with NGO will be issued an appointment letter prior to his/her

employment by NGO. The appointment letter will officially announce his/her position within

the organization, the place of assignment and the effective date of employment. The

appointment letter will carry annexes, specifying the employee’s job description, terms of

reference, salary and benefits and other relevant terms of employment (Refer 1.4

Employment).

Probationary Period

A probation period of three months shall apply to all new employees from the date of hire.

Exceptionally, the probation period may be extended to six months. In case, if a new

employee fails to perform in accordance with expectations of NGO staff/board, he/she will be

given a notice, terminating the contract at the end of the probationary period.

Staff orientation

All new employees will get an orientation about the organization’s mission and strategies, its

structure and the staff within it, the policies and conditions of employment, the internal rules

and regulations, etc.



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Remuneration

NGO believes in attracting and retaining a qualified and effective workforce through a

system of payment that is both appealing and fair. All employees of NGO are entitled to a

basic salary, depending upon their skills, qualification and experience. The basic salary will

be mentioned in the appointment letter.

Salary Increment

Salary increment will be based on an employee’s position and performance. Increment will

be provided to employees on annual basis after their performance evaluation.

Salary increment is calculated on the basis of a basic salary of the staff.

TRAINING OF PERSONNEL

Personnel’s training is the process of orienting and educating employees in the workplace. In

many cases, this form of training is associated with entry-level education that helps to prepare

new employees for the work they will do. At other times, personnel’s training involves

continuing or remedial education opportunities for long-term employees. In either case, staff

that is devoted to the task of personnel management and training usually develops the training

policies and procedures. The nature of a personal training program will vary, depending on

the function and purpose of the organization. For example, an NGO would normally have a

formal training period foranew employee who is field worker or project manager. The

underlying goal of this type of training effort is to ensure that each employee has what he or

she needs to successfully manage the responsibilities associated with the position he or she

will eventually occupy.While the bulk of the actual training is focused on the tasks each

employee will perform, there is also general information provided by the company.

Orientation Programme : - Personnel training programs usually include sessions where the

new employees are given background on the company the goals and mission statement of the

business,general information about relevant company policies and proceduresInformation of

this type helps employees to know in advance how to deal with just about any situation, from

how to change withholding on wages to what process is followed to request time off.

Advanced Orientation Programme: -Not all personnel training are done at the point of hire.

Many companies also offer continuing education opportunities for long-term employees.

http://www.wisegeek.com/what-are-personnel.htm

http://www.wisegeek.com/what-is-personnel-management.htm

http://www.wisegeek.com/what-are-policies-and-procedures.htm

http://www.wisegeek.com/what-are-the-benefits-of-continuing-education.htm



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Training sessions of this type may include advance orientation related to new products or

operational changes that will affect how those employees handle their daily tasks.

Remedial training: - Remedial training is also a common form of personal training. Training

of this type if often utilized in an attempt to salvage an employee who is having trouble

complying with his or her assigned responsibilities. The idea is to provide the employee with

every chance to become more skillful in the performance of those responsibilities, thus

protecting the investment that the organization has already made in the individual.

PROPOSAL WRITING UNDER NGO

The proposal outlines the plan of the implementing organization about the project, giving

extensive information about the intention, for implementing it, the ways to manage it and the

results to be delivered from it.A proposal is a very important document. In some cases, a

concept note precedes a proposal, briefing the basic facts of the project idea. However, the

project idea faces a considerable challenge when it has to be presented in a framework. The

Student Exercise

1. Which are the different types of personnel working for NGO?

2. Enlist the steps of recruitment of personnel.


A B

1. Orientation Programme 1. For new operational changes

2. Advance Orientation Programme 2. Entry level education

3. Remedial Traning 3. To salvage an employee who is

having trouble to complying

with her or her assigned

responsibilities

A proposal is an essential marketing document that helps cultivate an initial professional

relationship between an organization and a donor over a project to be implemented.

http://www.fundsforngos.org/concept-note/how-to-write-a-concept-note/



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proposal has a framework that establishes ideas formally for a clear understanding of the

project for the donor. Besides, unless the ideas are not documented in writing, they do not

exist. Hence, a proposal facilitates appropriate words for the conception of an idea. Proposals

have recently become more sophisticated. This reflects the increased competitiveness and

larger resources existing in the NGO sector. The trend of inviting proposals for contracting

development programmes began with the allotment of substantial resources for development

that triggered off the mushrooming of NGOs around the world.

Before writing a proposal: - Before we start writing a proposal, it is important for us to do

some research. No matter how small or big the project is some kind of references to existing

literature or data should be made. Usually, it is expected that the NGO has enough

information at hand about the problem or the project before writing the proposal. Yet, NGOs

have to gather all relateded information about the issue they are working on and the sit down

to write the proposal.In some cases, donors sponsor pre-proposal research so that

organizations have enough evidence, both atthefield and in literature, before developing the

actual proposal. But not many NGOs are lucky enough to avail such an opportunity.

While planning the proposal, it is ideally believed that all stakeholders have been consulted

or involved in the process. There are generally three main categories of stakeholders involved

in the process of writing the proposal. They are:

1. The Proposing Organization/s or the Proponent: This could be just one NGO or a group

of NGOs applying for the project to the donor.

2. The Community: The most important stakeholder for whom the project is conceived.

Community members or beneficiaries or the target group has to be involved in the proposal

planning process so that the project reflects strong qualities of participation and community

ownership.

3. The Donor Agency: Wherever possible, it will be useful to take inputs from the donor. In

formal invitations for proposals, the donor may discourage any contact with the proposing

organizations. However, in other situations where donor has requested for a one-to-one

proposal, it will be a good idea to have several meetings with this stakeholder and note down

http://www.fundsforngos.org/category/united-states/

http://www.fundsforngos.org/tag/research/



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information carefully. It will also help researching donor priorities while conceiving the

proposal idea.

Make sure you gather enough information about your donor, such as,

Aid priorities and issues of the donor

The donor’s country strategy paper (if any)

Proposal guidelines

Previously funded projects and programs

Problems in Writing Proposals

Before we start learning about proposal writing, it will serve our purpose if we outline the

exact difficulties we face working on the proposal. The following are the common problems

we face while trying to write a proposal:

The format: -There are as many proposal formats as there are a number of donors and each

donor has a different format. Although the basic information requested by various donors is

generally the same, yet we often encounter snags that make the entire process confusing.

Planning problems: -Although a good idea exists, yet when we try to plan it out extensively,

we face many unexpected challenges.

Fear of proposal rejections: -No matter how much of an expert we are in writing proposals,

the underlying fear of proposal rejection hovers over us while writing it.

Tight deadlines: -This is perhaps a universal problem for all proposal writers. For some

reason or the other, we are expected to complete working proposals under very tight

deadlines.

Solicited and unsolicited proposal

Solicited and unsolicited proposals are quite confusing. Many NGOs work hard and submit

proposals to donors, but soon they get a letter saying that they had never asked them to send.

THE ACTUAL PROPOSAL

A general format of the proposal consists of the following parts:




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1. Problem Statement

The problem statement/project rationale gives an explanation about the issue that is being

addressed by the project. It also argues in favour of implementing the project in the proposed

area in the existing conditions. It is very critical that we give evidence to what we are writing

in this section of the proposal. Evidence can be in form of other research, existing literature

or data collected by the organization itself. The following are some important points that need

to be remembered while developing the problem statement/project rationale. Problem

statement/project rationale is a brief analysis or summary of the problems identified relating

to the project or issue to be addressed by the project. It has to be the precise and point-to-

point basis. Use of quotes, live examples, references, research data and press articles would

be very helpful. It has to be very specific to donor issues and priorities. Giving references to

other NGOs, governmental work in the area working on the same problem would be useful.

2. Rationale or justification for implementing the project

Sometimes, we may find difficulties in writing the exact problem we intend to address in the

proposed project. It happens this way that the problem we are mentioning in the proposal is

not a problem at all but is actually an effect of another problem. For example, suppose there

is high child mortality rate in our project area and we wish to put up a proposal on it, we

cannot mention this as a problem because this is an effect of a problem, while the problem is

something else. In this case, it could be the prevalence of diarrhea that is leading to high child

mortality. So the problem here is “the prevalence of diarrhea” and not “high child mortality

rate.”It is also necessary to mention the cause of the problem because it is an integral part of

the project implementation. In this scenario, the cause of the problem for the prevalence of

diarrhea could be the “poor knowledge of the community about proper hygiene and

sanitation.”

The relationship between the three (Effect, Problem, and Cause) has to be outlined in the

problem statement of the proposal. If we have an issue, it will be a good exercise to go a step

back and forth to find out its cause and effect relationship. The best way to understand the

cause of an issue is to ask “Why” continuously. This will help reveal the cause of the

problem. A problem can have many causes and effects.

“The Why of Why”

Projects evolve out of identified problems

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It is the problem that comes before a project

The secret of solving a problem is proper identification of the problem. This requires

a thorough investigation.

A problem does not happen in isolation. It goes hand in hand with cause and effect.

There is a relationship between cause and effect. They are linked by the problem.

A way to analyze a problem is through analyzing the root causes and its effects.

State the problem as effectively and precisely as possible

Refer to any research data that is available, including publications, reports,

newspapers, etc.

Give a narration of community perception with quotes.

Check back how well it matches with the donor guidelines or issues.

Give thorough background information about the region, community and resources

available.

Explain the organizational strength and capacity in countering this problem and

achieving long-term results.

3. Project Goal and Objectives

A project goal is a very general, high-level and long-term objective of the project. It is

different from project objectives because the latter are very specific and have to be addressed

alone by the project. But a goal cannot be achieved by the project on its own since there will

be other forces like the Government and other agencies as well working to achieve it. It is a

major benchmark to compare work between different projects. Usually there is one project

goal only and it can be reflected in the title of the project also. It should ideally support the

overall policy of the government or the donor agency.

Example: “Providing housing facilities to earthquake-affected victims” – This cannot be a

project goal, but can be a general objective

“Reducing the impact of the natural disaster on communities belonging to the hilly region” –

This can be a project goal, as you are contributing to the problem in addition to other efforts.

4. Strategy and Activities

Proposals are required to outline how the objectives of the project would be achieved. Here, it

will be necessary to mention the strategies and the activities to be implemented in the project.


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There is a lot of difference between strategies and activities. Strategies are broad concepts

under which activities are placed.

Strategies in a project can include:

Capacity-building/ awareness raising

Organizational development

Researchand development

Advocacy

Victim support strategy

Micro-finance and CBO development strategy

Participatory infrastructure development strategy

Activities can include:

Training workshops, street shows, rallies

Staff selection, staff training

Baseline, PRA, FGD

Conferences, meetings, articles, publications

Establishing shelter homes, counseling, legal support

Forming Self Help Groups and cooperatives

Building irrigation tanks, demo plots,etc

To develop activities:

Refer back to the lessons learned from previous projects.

Identify best practices from other agencies/ projects/sources.

Activities as identified by the communities

Develop activities by listing numbers, so that they can refer back easily.

Leave space for unplanned activities that can be added later during project

implementation Activities are usually listed out in a Gantt chart. A Gantt chart is a

kind of a time table of all project activities given along with the role and

responsibilities of the project staff.


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5. Results: Outputs and Outcomes

Results are changes that we expect to take place after implementing the project activities. The

results are generally positive experiences undergone by the beneficiaries.

Results are divided into three types:

1. Outputs

2. Outcomes

3. Impact

Outputs are immediate results that we achieve soon after the completion the project or any

specific project activity. For example, if training on human rights is carried out in a project,

the output or the immediate result of it is “a greater understanding of human rights amongst

the participants.”

The outcomes are results that have been or that are to be achieved after a period of time, but

not immediate. In the above example, it could that “the participants have gone further to

communities to inform them about human rights or carrying out policy advocacy in favor of

human rights.”The impact is the longer-term result that has happened because of the activities

is undertaken in the project. The impact in the example given above could be “policies are

framed by the government to protect the human rights of the people.”

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6. Budget

The budget has to be itemized as clearly as possible, presented in the required format. It

should be in line with the activities set in the project. It will be an additional advantage to

mention contribution from other sources such as the community or other donors. The

contribution made by the proposing organization should also be mentioned. It there is any

recurring income from the project activities, it needs to be clearly given in the budget section.

Application for financial assistance

Application for grant- in- aid/financial assistance shall be made in the prescribed form or by

furnishing amongst others, the following information/details.

General Profile for the NGO

a. Name, address, legal status (along with the details of registration number) and thrust

area.

b. Names and addresses of chief/other functionaries of the organization.

c. Main activities and sources of funding generally for last three years. Bank details are

also required in some cases.

d. Evaluation of the achievements, if any carried out by any independent agency along

with the report thereof.

Project Profile

e. The title of the project

f. Aims and objectives along with an estimation of targeted beneficiaries, expected

qualitative improvement, etc.

g. Strategy/action plan, details of training required, availability of volunteers and their

skills, etc.

h. The financial requirement, sources of funding and financial assistance required from

the government under the respective programme.

i. Duration of the project and sustainability after support is completed

j. Monitoring and evaluation indicators

Documents to be furnished

I. Generally, the following documents are required to be furnished along with the

application



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II. Copy of registration certificate

III. Memorandum of association and bylaws

IV. Latest annual report

V. Audited accounts along with auditor report/certificate

VI. List of important functionaries and employees

Grant-in-Aid from Foreign Agencies

Acceptance and utilization of foreign contribution and hospitality by associations whether

incorporated or not, is regulated by the Foreign Contribution (Regulation) Act, 1976.

Association Eligible to Receive Foreign Contribution

For the purpose of acceptance of foreign contribution and hospitality, associations have been

divided into three categories:

1. Association registered with the central government

2. Associations not registered with the central government

3. Organizations of political nature

Operation of bank accounts in respect of foreign funds covered under FCRA

Only one bank should be maintained and operated exclusively for receipt of the foreign

contribution. The details of such a bank account should have been informed to the FCRA

Division while making the application for registration or prior permission and it should have

been specified in the registration letter or prior permission order. If the organization wants to

change the designated bank account then a fresh application in appropriate form must be

made justifying the reasons necessitating such a change.

IDENTIFYING FUNDING AGENCIES

NGOs often get lost when they have to start planning to raise funds for their projects and

programs. As soon as one project ends, they quickly need to look around for more funding to

sustain their work. But funding may not be immediately available for them to grab it.

Besides, with so much competition, it is not easy enough to get hold of the desired support

from donors all the time. In order to counter such a situation, it is important for NGOs to have

a strategy. Fundraising strategy is always kept on the back burner by NGOs because they lack

the skills to develop it. Here, we are providing a simple and short guide to help you

understand and develop a fundraising strategy and how you can raise funds in a strategic



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manner. To start implementing your fundraising strategy, you can begin identifying potential

donor agencies. One of the best sources of donor agencies is this website itself where you can

look for latest funds for NGOs and a list of foundations. Remember that different donor

agencies have different causes and issues to fund. So you cannot contact all of them with

funding requests. You need to identify those that fund the cause your organization works with

(it should reflect in your mission statement). For Example, If your NGO works for

prevention of HIV and AIDS, then you cannot seek to fund from United States Institute of

Peace because it only funds peace and conflict resolution projects. Similarly, if your NGO is

based in Africa, you cannot seek funding from the Asia Foundation that supports projects

only in Asia.

Make a list of donor agencies that have similar causes and those that fund in your

country or project area.

Then you can start contacting them one by one.

Again, many of these donor agencies will not be interested in receiving full proposals.

You only need to send a concept note or a letter of inquiry explaining briefly about

your organization and what it wants to do. Since fundraising is a long-term activity,

you cannot expect immediate response from donor agencies. It’s a continuous process

that you need to follow carefully.

For individual donations, you can start listing out businesses in your area that may be

interested in supporting your cause. Local businesses will be initially reluctant to fund

but if they know about your organization through your brochure and website, then

they may think of donating something. The same process can be adopted for

mobilizing in-kind support from public.

Local and international volunteers can be of great value to the organization. If your

organization’s work is well-publicized, then local volunteers will keep turning up to

offer free services. International volunteers can be very useful as they can provide

professional skills to your organization and they can also help in raising funds.

Tools your NGO needs for raising funds

After you have developed your resource mobilization plan and assigned roles for tapping

resources from various sources, you need to prepare your tools, or in other words your

marketing material. Obviously, you will not seek to fund from donor agencies without a

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http://www.fundsforngos.org/donor-agencies-2/

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http://www.fundsforngos.org/category/peace-conflict-resolution/

http://www.fundsforngos.org/tag/africa/

http://www.fundsforngos.org/category/foundation-funds-for-ngos/

http://www.fundsforngos.org/category/concept-note/



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proposal and you will not organize fundraising events without getting your information

brochure ready. So what are the promotional materials required to carry out the resource

mobilization process?

Organizational Profile: Make sure you have developed your organizational profile

that will have the basic information about the name of your organization, contact

address, contact person, objectives, vision, working areas etc.

Brochure: A brochure is a more attractive way of presenting your organizational

profile. You can get it printed with interesting text and graphics.

Annual Report: The annual report comes with the complete documentation of one

year’s activity along with the financial details.

Governing Document: A governing document provides an overview of how your

organization is structured.

Fact Sheet: A fact sheet offers quick and concise information about the organization.

Website: Websites have now become essential tools for identification. They can play

a powerful role while raising funds from international donors.

Sources of fund raising for NGO

An NGO may draw its funds from internal as well as external sources

Internal sources

Membership contribution

Sponsorship fees

Sales (such as greeting cards, candles, handicraft items, homemade foods items,

books, etc.)

Interests

Community, philanthropists (patron members, life members, etc.) Individual

donations

Besides, an organization can save resources by using services of volunteers rather than

paid staff.

External sources

Within India

Grant in aid (from Central or State Government), various funding schemes

operated by different ministries of the central government

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http://www.fundsforngos.org/free-resources-for-ngos/annual-report-ngos/

http://www.fundsforngos.org/free-resources-for-ngos/governing-document-ngos/

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Donations in kind, such as medicines, books, food items, etc.

Private institutional or grants form

Parent NGOs

Corporate bodies

Industrial houses

Sponsorship for ticket collections from fund raising events such as charity shows,

musical nights etc.

Advertisements

Souvenirs

Other trusts/organizations

Individuals

Box collections

Tourists/visitors

Outside India (Foreign Sources)

Bilateral funding

Multilateral funding

Private Institutional Funding

Overseas nonresidents communities

The purpose of which and the account of foreign contributions received are regulated by

foreign contribution regulation Act, 1976 (FCRA). Further, the institutions receiving such

funding are required to submit necessary documents and returns.

However, certain foreign donations are exempt from the provisions of FCRA and in respect

of them, the requirements of documentation and returns are not applicable.

Eligibility Condition

Generally, for receiving funding from either Indian or foreign sources, the following are

essential conditions:

Legal status: NGOs should have legal status i.e., it should have been registered as a society

or a Trust or a Company under sec 25

Constitution and working rules: NGO should have proper constitution and objectives

framed in the form of memorandum and articles of Association/Bye-laws/Trust Deed.



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Management: It shall have a governing body with authority to conduct the affairs to achieve

the main objectives.

Nonprofit Character: It should do its activities not for any profit but with an objective to

serve the targeted population. Even if it carries on some auxiliary business in the interests of

the development of its target audience, such profits shall not be distributed by way of

dividend to any of its members.

Involvement: It shall consist of such people who are voluntarily involved in rendering the

services to the target society and also shall be able to attract volunteers.

Not to discriminate: it shall not indulge in discriminating the target group nor use the

resources mobilized for the furtherance of interests of any political party or involved in

creating communal disharmony.

Part record: Normally the existing NGO with past record of good service and non-

discriminating in nature are funded.

RESOURCE MOBILIZATION

As fundraisers, we often come across the term ‘resource mobilization.’ Although technical in

sense, it merely means mobilizing resources. Now resources can include many different

things, not just money, for an organization, apart from money, can also raise support from

volunteers; you can also receive material donations for your NGO, or you can get the in-kind

Student Exercise

1. Generally _______________ , ____________________ and __________________

main categories of stakeholders involved in the process of writing proposal.

2. Which point needs to kept in mind before writing proposal?

3. Enlist the internal and external sources, for starting a project on child labour.

4.



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contribution from your own community. So, in order to put all these sources of support into

one kitty (including cash donations), we refer to them collectively as ‘resource mobilization.’

To further understand what this process is, we will break up these different types of support

below:

1. Submitting proposals to a typical donor agency is the most conventional way of

getting support.

2. Organizing fundraising events where you invite guests and request donations for your

organization.

3. Donation boxes where you request small amounts of money from the public.

4. Collecting in-kind contribution such as used clothes, furniture, books, vehicles or

even buildings.

5. Volunteer support where volunteers provide their time and resources to support the

work of your organization.

6. Income from business-oriented projects of your organization like selling of

publications, offering consultancies, microfinance, micro insurance or micro-

enterprise-based activities.

All the above-listed types of support are essential for NGOs, though all of them do not

contribute equally to the funding needs of the organization. Yet, a good fundraising strategy

will consider all these.

DOCUMENTATION

While monitoring captures the inputs and outputs, and evaluation detects the effects and

impacts. Process documentation chronicles the process of carrying out the main activities of a

project. It fills the gap in the feedback system left by monitoring and evaluation. Thus,

monitoring, evaluation, and process documentation measure the four basic elements of the

project.

1. Inputs and outputs are measured by monitoring

Resource mobilization is actually a process of raising different types of support for your

organization. As said above, it can include both cash and in-kind support.

http://www.fundsforngos.org/category/livelihood-2/



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2. Activities are measured by process documentation

3. Objectives which contain the expected effects

4. Impacts are measured by evaluation

Purpose: The main purpose of process documentation is to record the steps used in

conducting relatively new activities in order to develop management and operation manuals

which can be useful in expanding a pilot project’s area of coverage

Outputs: The major outputs of process documentation are management and operation

manuals that are essential in:

Reducing the incidence of trial and error of new managers and implementing staff in

starting a similar project. This saves time, money and effort.

Documenting, preserving and ensuring the transfer of experiences and lessons learned

by the project manager and the implementing staff which might be lost with them in

the case of transfer, promotion, resignation, retirement or death.

Activities to document

Some of the activities that may be documented include the following:

Conducting participatory baseline survey

Community –based communication planning

Participatory planning

Participatory training

Participatory communication campaign

Organizing community associations

Mobilizing village groups

Monitoring project inputs, activities, and outputs

Evaluating project effects and impact

Principles of Process Documentation

Certain basic principles should be followed in process documentation. These are:

The project to be documented should deal with socio-economic problems that are of

high priority to the country where the project is being implemented. For example, we

have documented a family planning project in China because the population is of high

priority in that country.



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The project should focus on filling up certain important gaps from earlier related

projects.

The project should develop, test, document and adjust the models to realize the goal

of improving the efficiency and effectiveness of the project in attaining the desired

outputs and effects. The network lacked clear-cut communication, management,

planning, monitoring and evaluation models which could be followed by the project

staff in implementing the project in their respective areas.

The models should be based on actual field practice rather than on new and imaginary

conceptual models based on existing theories or the common sense of academicians.

The models, which may be strange to the project staff and beneficiaries, should also

show the interrelationships between different activities and outputs within a given

framework.

The testing of models should follow procedures that are in line with the design and

schedules indicated in the project document. This is to prevent the total abolition of

the original project design as well as the allocation of financial and related resources.

Systematic steps

The following are systematic steps in process documentation:

Formulate the objectives. To do this, answer this question: what activity, method or

approach do I want to document.

Look for the activity, method or approach and watch how it is done.

Note down the steps followed by those doing the activity.

Ask those involved in the in the management and implementation of the project for

clarification on steps that were followed.

Ask those involved which steps could be skipped without affecting the resulting

output or which steps would improve it. This process of eliminations is extremely

important in improving the efficiency and effectiveness of the project’s management

and implementation.

Arrange in logical sequence all the written steps that way they come in carrying out

each activity, method or approach.

Organize experienced review groups who will go over the way the guidelines.



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Ask the review groups which steps in each set of guidelines or procedures could be

eliminated without sacrificing the quantity and quality of the product or outputs.

Edit the set of guidelines based on the recommendations of the review group.

Produce the materials into management and operation manuals

Process documentation should last for at least one year from the start of operation

planning and /or project implementation depending on the interest of the project.


What does it take to establish a successful NGO?

The following points explain 7 ingredients of a successful NGO

1. Projects that match targeted groups It is a common mistake by many NGOs to

introduce projects to certain groups of people without extensive research on what

really the groups want. Since it is not practical to say no to such projects, the targeted

people will try to find their way out of such projects to earn their living and perhaps

collect resources to do what they really need. For example, your NGO introduces

entrepreneurship education programme to young women. Requiring the women to

attend classes to learn concepts while what they really want is capital to establish their

own business or support their families. What happens is that they will be coming to

classes only because there are some incentives you provided such as allowances and

prizes, but in reality, the project will not help the target group.

2. The feeling of ownership Though it is important to involve target groups when

designing and implementing projects, NGOs need to create a culture/feel that the

Student Exercise

1. Which are the four elements to measure monitoring, evaluation and process

documentation?

2. Define the term resource mobilization.

3. Enlist the principles of process documentation.

4. How outputs of process documentation will help to improvise the quality of

project?



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projects belong to the people, and the targeted people should be encouraged to

innovate better ways of improving the projects. The feeling of ownership is important

because there is a need for the people to believe that they are going to benefit not only

in the short run but also in the long run.

3. Realistic ambitions An example of NGO that provides loans to the disadvantaged

group can explain this point well. The loans can be repaid only if it is provided to the

right people; such people understand the objectives of the loans and have means to

repay the loans. The means to pay the loans include the fact that such people have

income generating projects and the knowledge of how to run such projects.

Administration of the lending is very important, there should be training for the

borrowers before they get loans, and analysis is done on to know creditworthiness of

the borrowers. Not forgetting that fraud, corruption and favoritism can take place

during the lending process which in the long run will kill the project.

4. Continuous efficiency and productivity Efficiency and productivity depend on the

management style and introduction of the project. But continuous improvement and

strategic thinking will help to ensure efficiency and productivity in the organization.

Strategic thinking is necessary to solve unexpected challenges and problems while

projecting the better future of the project.

5. Accounting: Common mistakes when working in NGO is that people don't take

accounting seriously. Accounting is assumed to merely for donor's purposes.

However, accounting if taken seriously will help the organization in improving its

accountability. It will help to know where the resources are moving and help the

organization improves its operations for instance management reports may help the

management come up with alternative ways to reduce costs of operation.

6. Marketing and Public relations management Even NGOs, need to establish for

themselves, good marketing and public relations manager.

7. Operations management The areas that will need to be observed carefully on

operations management include the following: Membership enrollment and their

activities within the organization, human resources affairs, Projects planning,

implementation and controlling, records management, information and financial

matters.



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THE CHARACTERISTICS OF A SUCCESSFUL NGOOWNER/MANAGER

The people who are in charge of keeping NGO alive and functional need to have the

following characteristics:

1. Commitment

Committed to seeing that the objectives of the NGO are met, by ensuring that they are

available for NGO's activities without unreasonable excuses. These people are committed

enough to make the interest of the NGO and those that the NGO targets first before their

personal interests.

2. Entrepreneurial skills

Innovative, creative and ready to take risks type of a person is appropriate for making a

person a successful NGO manager.

Entrepreneurial skills are necessary as most NGOs can no longer rely on donors/sponsors.

NGOs need to establish their own enterprises /investments to generate income to cover costs

of their management operations and core projects expenses.

3. Management Skills

Management skills required to run an NGO include financial management skills, human

resources management skills, project management skills, strategic management skills,

marketing and procurement management skills.

NGO manager is not necessarily the one with specialized knowledge in all of these areas of

management but should be familiar with relevant management functions

4. Financial capacity

The primary aim of the NGOs is not to make a profit, and in most cases, it takes time to

generate income from external sources, therefore, the founders/managers of the NGO need to

be financially well prepared to finance management costs and core projects before the NGO

start to receive money from other sources.



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5. Vision

The founders /managers should set long-term rewarding goals for the NGO. They are

supposed to create a picture of the organization in the near and far future, to motivate

themselves and those around them.

6. Knowledge of the subject matter

It is not a must that the managers/founders be people of a specialized field in which the NGO

is dealing with — say it is not a must that the NGO that deals with HIV/AIDS be formed and

managed by doctors, but it is necessary that the managers/founders have adequate knowledge

of the challenge their NGO is trying to face and solve. For example, it is not wise to run a

project that aims to provide HIV counseling services while you are familiar with neither HIV

nor counseling field.

Experts may be sought, and research conducted by the managers to familiarize themselves

with the subject matter so that they can perform their duties well.

7. Passion

To establish and manage an NGO takes time and need commitment. Success or achievement

of objectives of the NGO may take a long time. To go through all the hardships of managing

the NGO and serving the targeted audience, require people with the passion of doing what

they have to do in the established NGO.



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CHAPTER 3

NGO MANAGEMENT

ORGANISATIONAL TYPES A number of people have sought to categorize organization into different types. Some

typologies distinguish them according to the focus of their work, for instance, it is primarily

service or welfare oriented or whether it is more concerned with providing education and

development activities to enhance the ability of the poorest groups to secure resources. Such

organizations are also classified according to the level at which they operate, whether they

collaborate with self-help organizations, whether they are federations of such organization or

whether they are themselves a self-help organization. They can also be classified according to

the approach they undertake, whether they operate projects directly or focus on tasks such as

advocacy and networking.

1. Relief and welfare agencies: such as missionary societies.

2. Technical innovation organizations: organizations that operate their own projects to pioneer

new or improved approaches to problems, generally within a specific field.

3. Public service contractors: NGOs mostly funded by northern governments that work closely

with southern governments and official aid agencies. These are contracted to implement

components of official programs because of advantages of size and flexibility.

4. Popular development agencies: both northern and southern NGOs that concentrate on self-

help, social development, and grassroots democracy.

5. Grassroots development organization: southern locally based development NGOs that

concentrate on self-help, social development, and grassroots democracy.

6. Advocacy groups and networks: organizations without field projects that exist primarily for

education.

a) NGO type by orientation

Charitable orientation often involves a top-down paternalistic efforts with little participation

by the beneficiaries. It includes NGOs with activities directed toward meeting the needs of

the poor-distribution of food, clothing or medicine, provision of housing, transport, schools,

etc. Such NGOs may also undertake relief activities during a natural or manmade disaster.



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Service orientation includes NGOs with activities such as the provision of health, family

planning or education services in which the programme is designed by the NGO and people

are expected to participate in its implementation and in receiving the service.

Participatory orientation is characterized by self-help projects where local people are

involved particularly in the implementation of a project by contributing cash, tools, land,

materials, labor etc. In the classical community development project, participation begins

with the need definition and continues into the planning and implementation stages, co-

operatives often have a participatory orientation.

Empowering orientation is where the aim is to help poor people develop a clearer

understanding of the social, political and economic factors affecting their lives, and to

strengthen their awareness of their own potential power to control their lives. Sometimes,

these groups develop spontaneously around a problem or an issue, at other times, outside

maximum from NGOs plays a facilitating role in their development. In any case, there is

maximum involvement of the people with NGOs acting as facilitators.

b) NGO types by the level of operation:

Community-based organizations arise out of people own initiatives. These can include

sports clubs, women organizations, and neighborhood organizations, religious or

educational organizations. There is a large variety of these, some supported by NGOs,

national or international NGOs, or bilateral or international agencies, and others

independent of outside help. Some are devoted to raising the consciousness of the urban

poor or helping them to understand their rights in gaining access to needed services while

others are involved in providing such services.

Citywide organizations include organizations such as chambers of commerce and industry,

coalitions of business, ethnic or educational groups and associations of community

organization. Some exist for other purposes and become involved in helping the poor as

one of many activities, while others are created for the specific purpose of helping the poor.

National NGOs include organizations such as the Red Cross, professional organizations etc.

Some of these have state and city branches and assist local NGOs.

International NGOs range from secular agencies such as Redda Barna and Save the

Children organizations, OXFAM, CARE, Ford and Rockefeller Foundations to religiously

motivated groups. Their activities vary from mainly funding local NGOs, institutions, and

projects, to implementing the projects themselves.



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ACCOUNTABILITY

Accountability calls for a simplified structure that avoids duplication and achieves greater

impact, empowered and responsible staff managers, a leaner and more efficient non-

governmental organization that fosters management excellence and is accountable for

achieving results. NGO accountability covers issues such as organizational management,

project implementation, financial management and information disclosure. It is related to

issues such as answerability, responsibility, liability, dependability, conscientiousness,

reliability, trustworthiness, legitimacy, and transparency.

Accountability for an NGO essentially means empowered and responsible staff and

managers who have more authority and responsibility for decision-making, can improve

delivery of an NGO's aims and objectives and can improve management of human and

financial resources. Accountability can be characterized in a number of ways.

Accountability is personal, i.e., the authority can only be delegated to one person.

Accountability is vertical, i.e., from top to bottom, responsibilities, and authority is

delegated from supervisor to subordinate (Therefore, a supervisor holds the subordinate

accountable). Accountability is neutral, i.e. it is neither a positive nor a negative concept.

Excellent results are recognized, but failure may involve sanctions, including the

withdrawal or modifications of working systems.

The four principles of accountability call for responsibility and authority to be clearly

specified, guidance and support to be provided at all stages to everyone involved, the

exercise of responsibility and authority to be monitored and assessed, and appropriate action

to be taken. Accountability mechanisms in NGOs take a number of forms. For example,

they include documents such as legal instruments, policies, mandates, values, legislative

provisions, rules, and regulations. It could also be in the form of processes covering the way

work is done, disbursement and deployment of resources and accounting, etc. Bodies,

whether internal and external, are sometimes set up to oversee and investigate

accountability of an NGO. Policies are put in place, that cover goal setting, work planning

and performance reporting. Accountability also involves the justice system - appeal for

redress etc.



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A number of organization-wide accountability mechanisms can also be seen, for example,

programme management planning and review, compliance monitoring of resources

management, and the setting up of accountability panels.

Programme management planning and review cover such issues as enhancement of the

performance appraisal system for NGO managers reporting directly to its advisory or

steering board, commitment by NGO managers to achieve measurable goals or review of

achievements of the previous year and proposed objectives for the forthcoming year.

Compliance monitoring takes the form of regular monitoring of compliance with financial

and human resources regulations and rules, and management objectives, identifying

problem areas within individual units of the NGO, proposing remedial action, and make

information available to the top management, and the accountability panel.

The accountability panel itself is chaired by the top management representative and reviews

review exercise of managerial authority and responsibility within the NGO. It reports back

to the top management or the board of its investigations and recommends action.

Ensuring accountability alongside human resource reforms calls for specific reforms to

include measures to ensure accountability, reforms to be reviewed to ensure that the above

four principles of accountability are met, and all delegation of authority need to be

specifically tested against these principles.

The key principles of NGO accountability

One of the first principles is that responsibility and authority have to be clearly specified.

The responsible person must be informed of the expected programme results and resources

(financial and human) allocated for the purpose. Monitoring and evaluation systems should

be clarified, along with organizational values, policies, rules and regulations, and the

behavioral standards.

The second principle calls for providing guidance and support to the responsible person in

the form of regular and timely management information, training and development, access

to senior managers, and advice from financial and human resource management experts.

The third principle calls for the monitoring and assessment of the needs of responsibility

and authority. This is done by an objective comparison of results against targets and

standards, covering such issues as delivery of programmes, cost and quality; management of



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human and financial resources; decision-making - authority fully exercised but not

exceeded; compliance with policies, values, rules, and regulations, and behavioral

standards.

The final principle is on taking appropriate action. This deals with issues such as excellence,

satisfactory performance, unsatisfactory execution of responsibility and authority as a result

of carelessness or ignorance, unacceptable execution of responsibility and authority due to

the deliberate flouting of policies, rules, and regulations, or exceeding the limits of decision-

making authority.

Najam (1996) in his conceptual framework for NGO accountability distinguish three

categories of accountability considerations:

1. NGO accountability to patrons: The most obvious NGO patron relationship would be that

of NGOs and donors. Donors may be both external (for example governments, foundations,

or other NGOs) and internal (members who contribute smaller amounts). NGO patron

relationships have very clear, though unwritten, lines of responsibility. The mechanisms for

enforcing accountability tend to be strong, grants are canceled, membership dues dwindle,

accreditations are revoked, and collaborative agreements are reconsidered. In many cases,

however, the critical danger may be not a lack of NGO accountability or mechanisms of

enforcing accountability, but a danger of being coerced, or what may be called the

“puppetisation” of NGOs. The rise of quasi NGOs caused by “donor dependency”

sometimes is viewed as a danger to a national security and an external attack on local

priorities, culture, and values.

2. NGO accountability to clients: The obvious line of responsibility is for the NGO to be

accountable to the needs and aspirations of the community it is working with. Basically,

serving community interests is the stated primary goal of much NGO activity in

development. Often in practice, not only do impoverished communities lack mechanisms of

holding NGOs accountable, the process of aspiration definition is also often murky and

subjective. Unlike donors, communities cannot withdraw their funding, unlike governments,

they cannot impose conditionality.

3. NGO accountability to themselves: This kind of responsibility manifests itself on several

levels. NGOs are ultimately responsible for the vision that made them NGOs in the first

place. They are responsible to their stated mission, to their staff, to their

supporters/members, to their coalition partners, to their larger constituency, and finally to



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the NGO community at large. Obviously, the specific counters of accountability to

themselves are likely to be different for membership and non-membership organizations.

NGO PRINCIPLES AND VALUES

NGO work is part of a joint effort to help poor people make life better for themselves, in

complex and changing circumstances. NGOs contribute best when they collaborate,

empower and respond. A good rule of thumb is for NGO staff to act the way they would

like to be treated if they were on the receiving end of their NGO’s assistance.

Collaborate

An NGO’s managers have to make sure their activities link up with other people’s efforts,

as well as being high quality on their own. The linking up is as important as the NGO’s own

activities. It involves different people and approaches in every context. As a first priority, an

NGO has to collaborate with the people it works directly with and adds value to. For

example, this might include poor people themselves, local partner organizations or

policymakers.

Empower

Most NGOs support local people and organizations to gain more control over their lives.

NGOs have to avoid undermining their autonomy, for instance by telling people what to

do. NGOs contribute most when they are demand-led, responding to what people want,

rather than supply-led. A demand-led approach can also make changes more sustainable, so

they last after an NGO project finishes. People make their own decisions about what they

value. Many NGOs work with the poorest and most marginalized people. It can be difficult

and slow to build relationships with them and involve them in making decisions. Furthering

their causes is almost always political, involving negotiations with people who may lose

power.

Respond

Local contexts change continually, for instance as politics and economic opportunities

change and people interact in different ways. They always include different social groups,



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some of whom win and some lose from any set of activities. NGOs need to respond to

people’s priorities as they develop, rather than just complete pre-planned activities.

Development management is not just a question of getting the task at hand completed by the

best means available” (Alan Thomas, 2000).

Core Humanitarian Principles

Humanity

The principle of humanity means that humankind shall be treated humanely in all

circumstances by saving lives and alleviating suffering while ensuring respect for the

individual. It is the fundamental principle of humanitarian response.

Humanitarian Imperative

The Code of Conduct for the International Red Cross and Red Crescent Movement and

NGOs in Disaster Relief (RC/NGO Code) introduces the concept of the humanitarian

imperative which expands the principle of humanity to include the right to receive and to

give humanitarian assistance. It states the obligation of the international community “to

provide humanitarian assistance wherever it is needed.”

Impartiality

Provision of humanitarian assistance must be impartial and not based on nationality, race,

religion, or political point of view. It must be based on need alone. For most non-

governmental humanitarian agencies (NGHAs), the principle of impartiality is unambiguous

even if it is sometimes difficult to apply, especially in rapidly changing situations. However,

it is no longer clear which organizations can claim to be humanitarian. For example,

companies like PADCO, a USAID subcontractor, are sometimes seen as a humanitarian

NGO. However, for the UN agencies, particularly where the UN is involved in

peacekeeping activities as the result of a Security Council resolution, it is not clear if the

UN is in position to act in an impartial manner if one of the parties is in violation of terms

of the UN Charter.

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Independence

Humanitarian agencies must formulate and implement their own policies independently of

government policies or actions. Problems may arise because most NGHAs rely in varying

degrees on government donors. Thus, for some organizations, it is difficult to maintain

independence from their donors and not be confused in the field with governments who may

be involved in the hostilities. The ICRC has set the example for maintaining its

independence (and neutrality) by raising its funds from governments through the use of

separate annual appeals for headquarters costs and field operations.

Defining Principles

The core principles are defining characteristics, the necessary conditions for humanitarian

response. Organizations such as military forces and for-profit companies may deliver

assistance to communities affected bythedisaster in order to save lives and alleviate

suffering, but they are not considered by the humanitarian sector as humanitarian agencies

as their response is not based on the core principles.

Additional humanitarian principles

In addition to the core principles, there are other principles that govern humanitarian

response for specific types of humanitarian agencies such as UN agencies, the Red Cross

and Red Crescent Movement, and NGOs.

Neutrality

The International Red Cross and Red Crescent Movementfollow, in addition to the above

core principles, the principle of neutrality. For the Red Cross, neutrality means not to take

sides in hostilities or engage at any time in controversies of a political, racial, religious or

ideological nature.

The principle of neutrality was specifically addressed to the Red Cross Movement to

prevent it from not only taking sides in a conflict but not to “engage at any time in

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controversies of a political, racial, religious or ideological nature.” The principle of

neutrality was left out of the Red Cross/NGO code because of some of the NGHAs, while

committed to giving impartial assistance, were not ready to forgo their lobbying on justice

issues related to political and ideological questions.

United Nations General Assembly Resolution 46/182 lists the principle of neutrality,

alongside the principles of humanity and impartiality in its annex as a guide to the provision

of humanitarian assistance. The resolution is designed to strengthenthehuman response of

the UN system, and it clearly applies to the UN agencies.

Neutrality can also apply to humanitarian actions of a state. “Neutrality remains closely

linked with the definition which introduced the concept into international law to designate

the status of a state which decided to stand apart from an armed conflict. Consequently, its

applications under positive law still depend on the criteria of abstention and impartiality

which have characterized neutrality from the outset.”

The application of the word neutrality to humanitarian aid delivered by UN agencies or

even governments can be confusing. GA Resolution 46/182 proclaims the principle of

neutrality, yet as an inter-governmental political organization, the UN is often engaged in

controversies of a political nature. According to this interpretation, the UN agency or a

government can provide neutral humanitarian aid as long as it does it impartially, based

upon need alone.

Today, the word neutrality is widely used within the humanitarian community, usually to

mean the provision of humanitarian aid in an impartial and independent manner, based on

need alone. Few international NGOs have curtailed work on justice or human rights issues

because of their commitment to neutrality.

Proselytism

The provision of aid must not exploit the vulnerability of victims and be used to further

political or religious creeds. All of the major non-governmental humanitarian agencies

(NGHAs) by signing up to the RC/NGO Code of Conduct have committed themselves not

to usethehumanitarian response to further political or religious creeds.



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Principles based on field experience in emergencies

All of the above principles are important requirements for effective field operations. They

are based on widespread field experience of agencies engaged in humanitarian response. In

conflict situations, their breach may drastically affect the ability of agencies to respond to

the needs of the victims.

If a warring party believes, for example, that an agency is favoring the other side, or that it

is an agent of the enemy, access to the victims may be blocked and the lives of humanitarian

workers may be put in danger. If one of the parties perceives that an agency is trying to

spread another religious faith, there may be a hostile reaction to their activities.

The RC/NGO Code also lists a number of more aspirational principles which are derived

from experience with development assistance.

Agencies should operate with respect to culture and custom

Humanitarian response should use local resources and capacities as much as possible

The participation of the beneficiaries should be encouraged

Emergency response should strive to reduce future vulnerabilities

Agencies should be accountable to both donors and beneficiaries

Humanitarian agencies should use information activities to portray victims as dignified

human beings, not hopeless objects

PERSONNEL MANAGEMENT Personnel management is the management of the people who work in an organization. They

can be managers, employees, project officers, field workers, coordinators. Since the

organization is run by the people, they are considered to be a ‘resource’, ‘a human resource’.

Like we use funds to manage a project, we also need to use these human resources or the

people to manage the organization.

According to Ivancevich and Glueck, “Personnel management is the function performed in an

organization that facilitates the most effective use of people (employees) to achieve

organizational and individual goals”.



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Good people management is far less simple or straightforward than is often thought. This

chapter provides guidance on how to develop a human resources management policy that

includes the essential elements of managing people effectively, ensuring that they perform to

their best and develop personally through their jobs.

1. Equal Opportunities and Diversity

Most NGOs subscribe to principles of equal opportunities and non-discrimination. These

concepts are rooted in the commitment to ensure equality of opportunity in all matters

relating to employment and conditions at work, and to a working environment and culture

free from any form of discrimination. The idea of valuing diversity adds to these principles

simply through a more active commitment towards the promotion of difference. In other

words, an organization that values diversity will not only seek a culture and ethos in which

discrimination and inequalities of opportunity are not tolerated, but will strive to ensure that

it embraces and celebrates difference. A commitment to these principles can be written up

in the form of a statement of good practice to be included, for example, in all employment

contracts.

2. Performance Management

How employees are managed is one of the most important determinants of the

organization’s success and programme impact. It is thus essential that the organization

discusses and agrees on the core elements of the performance management system that will

be used and documents them clearly in the human resource management policy document.

Principles of Performance Management

It is important to look at the principles of performance management that the organization

wishes to follow. The following points present some questions to consider.

KEY PRINCIPLES

1. Assess the benefits for the organization

• What are the main benefits of performance management for the organization?

• What are the main benefits of performance management for the individuals the

organization employs?



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2. Agree on key processes

• How will the organization ensure that the performance management system adopted is

fair, transparent and accountable?

• Who will be responsible for reviewing the performance of the Executive Director (for

example, the chair of the governing body)?

• Will the Executive Director Delegate responsibility for reviewing the performance of more

junior staff to others in the office? How will the line managers give feedback on junior staff

performance to the Executive Director?

3. Agree with reviews

• When will annual performance reviews and interim reviews with staff take place?

• Will the agreed outcomes of all reviews be kept on the individual staff member’s file or

will the interim reviews simply be more informal than the annual review?

4. Discuss preparation

• How will staff prepare themselves for performance reviews?

• Does the organization have the necessary skills to implement a performance review

system or is training required?

• How might such training be acquired?

What is performance management?

Performance management can be defined in different ways, but it usually comprises three

core elements:

• The day-to-day management of an individual’s performance to ensure that what needs to

be achieved is achieved effectively and on time. It requires good two-way communication

between an individual employee and his or her line manager, and positive and critical

feedback about how well the work is going.

• Performance review or appraisal to assess if each employee is performing his or her job

according to clearly defined objectives or an agreed work plan. These reviews are usually

held once a year, with interim appraisals either monthly or quarterly.

• Staff development through which each employee’s existing skills, knowledge, and

experience are developed so that he or she performs as effectively as possible in the job.



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3. Staff Development

Staff development is one of the most effective tools for ensuring that the organization can

retain staff and that individuals perform to the best of their potential. Staff development is

all about strengthening each person’s existing knowledge, skills and ways of working and

helping them to acquire new skills, experience, and knowledge so they can perform their

jobs more effectively.

Developing people is not only about formal training, although this can play an important

role. It is also about learning in different ways, both formal and less formal, through

workshops and short courses; mentoring, coaching or shadowing others; on-the-job

experience; sharing ideas, skills, and experiences with colleagues, clients, and partner

organizations; self-reflection on mistakes and achievements, what works well and less well;

using the internet (if this is an option); and from private study and reading. Some of these

forms of learning can be planned.

For example, if a new programme officer has little prior experience in developing a project

proposal her manager could arrange for her to be mentored by a more experienced

programme officer in the same or another organization. The mentor would be a person

whom the new programme officer could ask for special advice and assistance. The mentor

could invite the new programme officer to be a shadow during the process of developing a

project proposal. The mentor would also look out for useful events such as meetings and

workshops that the new programme officer might participate in to help develop her skills

and confidence. Other forms of learning are either continuous or occur spontaneously as

part of an individual’s daily work practice or leisure. Much learning is based on an attitude

of mind – the willingness and desire to learn more and to improve practice – and

organizational culture: an environment which encourages ‘no blame’ and learning through

sharing and doing. This is encouraged through team working, clear policies, robust

performance management, and non-hierarchical structures.

4. Raising Concerns at Work (Grievance)

In some cases, performance and other issues cannot be resolved through dialogue, but

require more formal procedures. It is important for an organization to have a policy on how



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staff can raise concerns at work. Staff members need to understand how to use it if they

need to.In the past, all the strands of such a policy fell under the title of a ‘grievance policy’.

In today’s more complex and aware world, it is recognized that some issues, such as

bullying and harassment at work, cause grievance of a, particularly difficult nature. Hence, a

new and more innovative approach to employees’ concerns in the workplace is developing

in the public, private and ‘not for profit’ sectors.

Why is it important to have a grievance policy?

• Having a grievance policy enables employees to raise concerns at work more easily,

whether these concerns are about their own employment or about other aspects of the

organization’s operations.

• Such a policy reflects the organization’s commitment to the highest possible standards of

openness, probity, and accountability. In line with that commitment employees with serious

concerns about any aspect of the organization’s work are encouraged to come forward and

express them.

To whom do employees air a grievance?

In the vast majority of cases, employees who have concerns should be advised to share

these with their line manager in the first instance. The employee concerned must be assured

that the line manager will treat the concerns seriously and deal with them promptly. In

special circumstances, however, this course of action may be inappropriate and therefore the

policy should state that the employee may approach a member of the governing body.

When should an employee raise a concern?

It is important to promote good employee relations by encouraging employees to raise

concerns about matters affecting their employment at an early stage. It is also important to

emphasize that the organization will provide all reasonable protection for employees who

raise genuine concerns in good faith. Staff must be assured that if they raise a concern in

good faith that is not subsequently confirmed by investigation, no action will be taken

against them. If, however, it is the considered view of the relevant manager or the governing

body Chair that an employee has raised a concern frivolously, maliciously, or for personal

gain, it must be emphasized that disciplinary action may be taken.

What is ‘whistle blowing’?



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Any serious concern an employee may have about any aspect of the organization’s work or

about the conduct of other employees, trustees or others acting on behalf of the

organization, should be reported. It is important at a policy level to be very clear about what

such concerns mean in practice. In the following example, a serious concern is seen to relate

to one of three things.

EXAMPLE: DEFINITION OF A ‘SERIOUS CONCERN’

• It is against the organization’s policies.

• It falls below established standards of practice.

• It amounts to improper conduct, including something that is believed to be: against the law

• A health and safety risk damaging the environment misuse of donated money corruption

or unethical conduct abuse of clients or service users. These concerns must be treated in

confidence and every effort must be made to protect the identity of the employee raising the

concern if he or she so wishes. However, the employee may be required at the appropriate

time to provide a statement or act as a witness. Concerns expressed anonymously are

normally not investigated unless the relevant manager and the governing body agree that

there is sufficient evidence to proceed.

BENEFITS OF A HUMAN RESOURCES MANAGEMENT POLICY

I. Equal opportunities and diversity-The staff team, partner organizations, beneficiaries and

funding agencies know that discrimination is not tolerated: rather, diversity is celebrated.

II. Performance management Principles are agreed for managing individual performance and

the team understands the annual review process, how to resolve the disagreement and how

poor performance will be handled.

III. Staff development Team members are motivated to seek new knowledge and practice in a

learning environment.

IV. Grievance Staff members understand what a grievance is and know what to do and expect

should they air a grievance or ‘blow the whistle’.



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ESSENTIAL NGO MANAGEMENT COMPETENCIES

Underlying all of the competencies necessary to manage human service organizations is the

need for a robust array of intellectual, interpersonal and technical skills. For example,

intellectual skills provide a clear perspective of the organization in its environment and are

essential to the capacity to think and act strategically; interpersonal skills are necessary to

motivate and engage others to achieve an organizational mission and vision; and, technical

skills are required to successfully manage organizational functions such as budget and

finance, human resources and others.

Leadership

Leadership is one of the competencies listed and defined below, yet the need for leadership in

many ways transcends the others. It is the most complex, critical and overarching

competency and the one most directly associated with organizational success and

sustainability in a rapidly changing and challenging environment. Given this environment and

the growing complexity of both organizations and the functions necessary for their

management, it becomes less likely that one individual possesses all of the required

competencies in sufficient degree. Therefore, the competence most critical to organizational

success are the ability of a manager to be self-aware of her or his own strengths and

limitations and have the skill and self-confidence to build an organizational leadership team

that has in the aggregate all of the management competencies described below. This is a

critical component of leadership and it is the key ingredient of management competency.

A competent leader must have the capacity to create, define, communicate, interpret, support

and anchor the vision, mission and values of the organization so that they are infused

throughout the organization and pro-vide a guide and framework for all actions and activities.

Many successful multinational companies use credos or vision and mission statements to

define who they are, what values are important, what they are attempting to achieve and the

manner in which they pursue achieving their identified purposes. A clear, well communicated

vision, mission and set of values provide organizational clarity and unity of purpose. Leaders

must then anchor the vision and infuse the values throughout the organization so that these

affect and guide all of the actions taken and decisions made in all spheres of operations.



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A leader must be a role model in demonstrating and promoting ethical conduct and building

the culture of the organization to embrace the values of professionalism, customer service,

employee engagement, and empowerment as well as efforts to promote diversity in the

workforce, customer base and ideas that drive the organization. Leaders must have the

capacity to effectively influence and motivate organizational employees and the broader

groups of stakeholders such as donors, customers, regulators, allied organizations,

government officials and others in ways that support the achievement of the organization’s

mission and vision. Lewis, Packard, and Lewis in Management of Human Services Programs

point out the sources of power and authority available to leaders and managers to achieve

these ends. Position power, for example, refers to the power and authority conferred by virtue

of the position itself. Managers at certain levels may set and implement corporate policy, hire

or terminate the services of organizational employees, and are empowered to make key

strategic decisions. Within the framework of positional power is the authority to differentially

apply rewards and sanctions to employees based on their performance.

Rewards may be material in nature and involve determining cash compensation levels for

employees, bonus payments, promotions, desirable work assignments, educational and

training opportunities, promotions and others. Rewards may also be symbolic in nature and

include positive feedback on performance, special recognition, awards, and privileges. Both

types can be important motivators used by managers. Sanctions may involve an entire range

of progressive disciplinary actions from a verbal reprimand to termination. They may also

involve the absence of symbolic awards and opportunities.

The power of position and the related authority to dispense rewards or impose sanctions is

conferred by the organization and related to the hierarchical position of the manager. There

are other sources to draw upon for exercising power, however, and these are a function of the

knowledge, skills, and abilities of the individual in a leadership role. The first of these is the

power of information and expertise. When an individual within an organization has unique

access to a critical body information or extensive expertise or abilities that are essential for

organizational success and the success of individuals within that organization, then that

individual may exercise power by using those attributes to influence the course of

organizational events. The second non-organizationally conferred source of power and

authority is that of referent power. This is the power associated with serving as a role model.



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When members of the organization admire and respect a leader they tend to emulate and

adapt the behavior of that leader. Thus the leader leads by example and by so doing uses her

or his personal attributes as a source of power to motivate, guide and direct other members of

the corporation.

Successful leaders utilize the full range of sources of power and authority creatively in a

manner that motivates employees and other stakeholders to pursue and adhere to the mission,

vision, and values of the nongovernmental organization. A critical quality of successful

leaders in this regard is that of emotional intelligence, or EQ (as opposed to IQ) as defined by

Daniel Goleman. The author sets forth four domains of emotional intelligence including self-

awareness, self-management, social awareness and social skill; and, defines the components

of each. He posts it that a creative understanding and use of self, coupled with strong social

skills, constitutes a powerful capacity of successful leaders. Emotional intelligence is separate

and apart from intellectual capacity and technical skills and defines a dimension of attributes

of the most successful leaders. Goleman continues on to describe a variety of leadership

styles that encompass a wide group of behavioral attributes or styles of leaders ranging from

coercive to authoritative or visionary. His critical point is that the successful leader must have

the emotional intelligence to know when and how to use each style effectively.

The concept of adaptive leadership is defined by Heifetz, Grashow, and Linsky in their book

entitled, “The Practice of Adaptive Leadership”. They point out that effective leaders enable

the organizations they lead to adapt to an ever-changing environment. Certainly, the

economic, technological, demographic and other macro trends evolving rapidly and globally

threaten the existence of those organizations that are unable to adapt. Values such as

encouraging experimentation and diversity are essential to cope with the social Darwinism

prevalent in the organizational environment.

Lewis, Packard, and Lewis conceptualize leadership the hub of a wheel with the spokes

constituting the other management competencies necessary for organizations to succeed.

Three types of competencies or spokes emanate from the hub. Some management

competencies have a primary focus inside the organization such as human resource

management, budget and finance and the management of information technology. Some

competencies are centered outside the boundaries of the organization and include marketing



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and fundraising along with building professional, organizational and community partnerships.

Finally, two of the competencies transcend boundaries and are practiced in the internal and

external environments. These latter relate to strategic, program and business planning and,

performance management.

Internal Management Competencies

Human Resource Management – The vast majority of non-governmental organizations are

labor intensive as opposed to capital-intensiveendeavors. The key challenges, therefore, are to

recruit, retain and develop the work-force necessary to achieve the organizational mission

and vision. Given the pace of change and the growing competitiveness within the non-

governmental organizational marketplace, effective training and professional development of

the workforce is essential. As diversity is a key to successful organizational adaptation,

management must focus on maintaining a workforce that is diverse in people, ideas,

approaches, and styles. This entails creating and sustaining a harassment and discrimination

free workplace to give employees the nurturing and supportive environment necessary to

maximize creativity and productivity. Sound employee relations practices are also essential to

achieve this end. Finally, leadership development and succession planning activities are

necessary to assure continuity and stability in the face of inevitable turnover at key



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organizational levels. A vibrant leadership “pipeline” that results from the latter will help

assure organizational success and sustainability.

Budget and Finance –Organizations must develop the ability to effectively manage the

material resources they develop or are entrusted with. This means the effective manager must

prepare and execute a financial plan or budget for the organization that maximizes the

utilization of such resources to achieve organizational goals. This requires the establishment

and implementation of a robust set of internal controls that adequately accounts for and

safeguards available resources. Given the growth of litigation in the workplace, expanding

liability and employee and stakeholder concerns as to safety, managers must learn to manage

risk by carefully and consistently refining organizational procedures and securing insurance

as may be required. This may be essential to protect all organizational assets including cash,

real estate holdings, equipment, and other property. The resources of nongovernmental

organizations are subject to the rules and accounting requirement of host nations. This

requires the creation and maintenance of adequate financial records that are auditable by a

professional third party and meet established governmental standards. Finally, transparency

of financial operations is most helpful in maintaining the trust and confidence of stakeholders

and gaining their support and understanding when difficult decisions must be made.

Management of Information Technology – Information technology has four specific

audiences or venues of use that a competent leader must consider and address. The first is

customers, clients or recipients of services from the NGO. Web-based or online applications

of education, health and human services have proliferated. Many universities now offer

degree programs that are fully online, health care is available through the web to individuals

residing in remote areas where physicians may not be available, and applications for a variety

of NGO services may be made electronically. Effective use of customer based IT applications

can enhance organizational services and improve the well-being of the individuals, families,

and communities served.

A second audience or venue is the workforce of the NGO. Information technology

applications are constantly evolving that enhance the productivity and reach of the workforce.

Electronic records, new communication modalities, and decision support systems among

others are examples. A third venue would be the management of the NGO and the emergence

of an “executive dashboard” or an information technology-based system of real-time



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information as to organizational status, productivity, characteristics and locations of

customers served, financial position and emerging trends and needs of those affecting the

services of the NGO. Electronic inventory systems, personnel management, and purchasing

are examples of this approach. A final venue would be the general public including those

potentially interested in the services of the NGO, actual and potential donors, potential

employees and others. The web and social media have become powerful tools for marketing

and fundraising.

A successful manager need not have extensive technical skills in the development of

information technology applications to the work of the NGO but must have the imagination

and skill to be a catalyst in this regard. A competent manager must also understand how to

undertake information technology development in a strategic manner that addresses the needs

of all of the audiences or venues identified above and is able to effectively direct planning,

acquisition, support, and training of personnel related to the creation, maintenance, and

evolution of a sound system.

Performance Management - If NGOs are to succeed in achieving their mission, they must

establish consequences for performance. Accountability for performance must be infused

throughout the organization and be applied to the governance body, leaders, managers, and

all employees. It should also guide partnerships, collaborations, and joint ventures.

A manager with this competence must have the ability to:

dards for the organization, its programs, and all personnel;

standards;

evise methods that generate consequences for both positive and negative performance

that are uniformly and consistently applied;

us performance improvement; and

management to establish standards and benchmarks for measuring his/her own performance.

If superior performance is not consistently recognized or rewarded, and if inadequate or poor

performance is not consistently addressed and sanctioned, organizations will ultimately fail.



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External Management Competencies

Building Professional, Organizational, and Community Partnerships – The vast majority

of NGOs need to collaborate, coordinate, and generally work together in partnerships with

other organizations, groups, professions, and sectors of the community to achieve

organizational goals. Whether the goals relate to the community or economic development,

health care, education or the delivery of human services, partnerships can leverage the impact

of NGO services and outcomes. For example, many individuals or families served have more

than a single and exclusive set of needs that fall completely within the purview of a single

organization or sector. In the area of human services, many individuals and families may

suffer from co-occurring social and health disorders. Child abuse, substance abuse, and

mental illness may be all affecting a single family that may also struggle with unemployment

and poverty. The solution to this family’s problems may involve public sector organizations

and several NGOs. The competency here is to promote, design and execute the kind of

partnership necessary to assure the family receives the services and supports they require to

succeed in a coordinated and timely manner.

Marketplace competition is such that strong managers need to identify and seize opportunities

such as mergers, acquisitions and joint ventures to position the NGO for survival and success

in a changing and challenging marketplace. As many governments are exploring the

privatization of public human services and are purchasing services for their citizens from

NGOs, competent managers need to understand the implications and opportunities of this

activity for their organizations. Particularly important is the ability to analyze and respond

effectively to the methods by which government provides opportunities for partnership in

service delivery including managed care, pay for performance and unit cost arrangements.

Cross-sector partnerships that involve public and private entities, NGOs, for-profit and faith-

based organizations are often important vehicles in strengthening civil society as well as

meeting specific needs of individuals, families, and communities. Competent NGO

leadership in this domain can serve as a catalyst to further these efforts.

Marketing and Fundraising – In the growing and competitive environment in which NGOs

function, a successful organization must establish a “brand” or a broadly shared reputation of



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what the NGO stands for or represents that reflects quality, integrity, and professionalism in

customer and community service. The brand – which is a key to successful marketing – must

be carefully established and disseminated effectively throughout a variety of venues that

encompass customers, employees, donors, government regulators, allied organizations and

the public at large. Effective use of electronic, video and print media is a critical component

of this competency.

It is thus incumbent for the successful manager to be skilled in building, refining,

communicating and disseminating the NGO brand so that the organization may be in a

position to attract and retain the most desirable employees, customers, donors, partners and

others. This is marketing which is inextricably intertwined with fundraising. Donors

contribute and the government provides resources based on the relative attractiveness of the

brand that has been established.

Effective fundraising must be preceded by effective “friend-raising” or activities to

familiarize potential supporters with the NGO including the people and issues to which it is

dedicated and the outcomes it strives to achieve. This competence entails building a culture

of philanthropy within and surrounding the organization and developing and executing

strategies to raise capital and other forms of material support to benefit the NGO. It also

requires a “stewardship” in dealing with donors and the funds that are contributed.

Crosscutting Competencies

Strategic, Program and Business Planning – Effective NGOs cannot survive by simply

reacting to the challenges or opportunities presented in their environments. Leaders must

carefully position their organization to anticipate and proactively address such changes and

select interventions and activities that both comport with the NGO mission and vision and

serve a legitimate purpose within the larger context in which they operate. This will often

entail guiding, directing and orchestrating an inclusive and organization-wide process that

scans both the internal and external environments in which the organization operates;

identifies strengths, weaknesses, opportunities, and threats; and, devises a broad framework

for future action. A business plan is then required to transform broad strategic priorities into a



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series of sequenced specific actions, identify responsible entities for carrying out each action;

and, establish timelines benchmarks to gauge progress.

Managers need the capacity to identify and plan the implementation of evidence-based

programs and services. They also require the skills to identify, collect and analyze reliable

data to guide their planning efforts. The competency also encompasses the ability to adjust

plans and activities as necessary when the environmental factors and projections that formed

the basis of the original plan have changed.

Conflict Resolution – Leading and managing NGOs as well as other types and forms of

organization regularly requires the resolution of inevitable conflicts that occur. These may be

internal conflicts over resources, individual or group behavior or performance, organizational

authority, policy, and practice or they may involve external conflicts with other individuals or

organizational entities relating to competition for clients, resources or employees. Conflicts

may contain the following dimensions:

depending

on the nature of the resolution, may obligate the organization to incur future cost and

expense;

alienate one or both parties; and

.

Conflicts can be costly in time and resources but, depending on the way in which they are

managed and resolved, they also can be organizationally productive, clarify policy, and create

solutions to long-standing problems and innovations that may drive organizational success.

Managers who are competent in this domain are able to diagnose the root cause of the

conflict, select the appropriate means and methods of resolution, convey to each disputant an

understanding and appreciation for their concerns, and arrive at resolutions that are efficient

(use the minimum amount of resources necessary) and effective (resolve the problem in a

way that comports with the organizational mission and values, fully resolves the dispute, and

role models effective conflict resolution for others).



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The Areas of Sustained Focus of Successful Managers

Upon achieving a position of management within an organization, individuals are often

besieged with issues to resolve including demands from governance, concerns about

customers, employee issues, budget dilemmas, external conflicts and others. They must be

competent in prioritizing the issues they face and determine which ones must be immediately

resolved, which may be deferred, which ones relate to issues of vital importance or concern

to core constituencies, and which can be delegated or assigned to others to address. The

effective manager can sort through the volume of diverse inputs and focus on those that are

most relevant to the organization’s success and sustainability. The areas of focus are

identified and detailed below:

Public

Managers need to identify the public or stakeholders that are affected by or can significantly

affect the organization. A careful analysis should be conducted to determine the degree of

relative importance of each to achieve the mission of the organization. For many NGOs, these

include, but are not limited to:

e individuals, families, and communities served;

their representative labor union, if any;

Policy, program and other significant decisions made by the organization should take into

consideration the degree of involvement that is appropriate for a specific group in the

decision itself, the impact of the decision on each of the entities, the manner in which

managers should present such decisions, the likely response or reaction of the affected group

to the decision; and, what impact that reaction might have on the NGO.

Understanding, sensitivity, and responsiveness to the needs and requirements of stakeholders

is essential so that, for example, customers find the NGO services worthwhile and valuable,



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employees find the NGO a desirable and fulfilling place to work, donors perceive a strong

return on investment, and government officials see a regulatory compliant and sound

corporate citizen. Developing personal relationships with leaders in these key constituencies

that promote trust, understanding, and support of the organization and its mission are integral

components of this focus area.

Products

A strong manager is clear as to precisely what the product is of the organization, what its key

components are, what its niche in the marketplace is, and how it may differ from other similar

or competitive products. Products must be modified or adjusted from time to time to

correspond with market forces, change in consumer demographics or demand, shifts in

funding priorities of government and donors, or adaptations of information technology as

well as other marketplace additions. The challenge for successful NGO managers is to be

nimble in adjusting the product to accommodate changes without compromising the mission,

vision, and values of the organization.

Place

An emerging strategic challenge in the delivery of health and social services related to the

physical or virtual place of service delivery, where customers or clients can receive services

bears most significantly on the overarching issue of accessibility. If customers or clients are

not aware of the service available, cannot physically get to the location of service delivery, or

are otherwise constrained by other barriers such as stigma, cost, and cultural factors, the

NGO is at risk of failure. The older thinking of “build it and they will come” is no longer

relevant to the health and human services. Innovations such as programs for assertive

community treatment or pact teams reach out to serve seriously mentally ill individuals in

acommunity or street settings as opposed to offices or hospitals family preservation services

in child welfare serve families in their own homes for significant periods of time rather than

in professional offices. Finally, in remote areas with extremely limited access to mainstream

healthcare, psychiatrists and other physicians assess and treat their patients in virtual

locations made possible by today’s technology. Leaders must constantly assess, analyze and

change the location of service delivery as may be necessary to remain relevant and

competitive in a rapidly changing marketplace.



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Price

The concept of return on advancement has clearly spread from the for-profit sector to the

world of NGOs. The investments and returns must be thought of broadly and not just focus

on the monetary requirements of producing, distributing and marketing a specific product.

One must compare the investment of time, finances and efforts associated with the latter to

the outcomes for families, individuals, and communities. Choosing to engage in a specific

activity, for example, has an “opportunity cost” meaning the possibility of engaging in

perhaps more mission-related or lucrative future activity might be lost by the commitment to

the one at hand.

In any case, effective leaders must constantly manage the costs of all investments and

activities to make the very best of what is available and to remain competitive. For example,

public procurement processes used by many governments for the acquisition of goods and

services from NGOs often use the standard of “lowest cost responsible bidder” to choose

among various competitive proposals. The relative quality of products to be delivered and

competence of the bidders may be speculative or opaque, whereas actual financial price is

clear.

Promotion

Leaders need to promote or market their organization and the goods and services they provide

by exercising the marketing competency described above. They must carefully assess

strategies and venues to promote, shape and disseminate the brand of their NGO and the

specific goods and services it provides. Promotion takes time and incurs costs so that

decisions must be carefully made to delimit the audiences one promotes to the ones most

relevant, determine the specific message that best conveys the brand, and chooses the venues

for promotion. Websites, media, printed materials, meetings, conferences, open houses and

etc. can all be used but must be adjusted to the audience.

Experience in promotion reveals that one of the most effective health and human services

marketing strategies is to personalize or humanize the brand The effective leader must

constantly strive to “put a human face” to the NGO and the services it proves thus graphically

demonstrating the value added to the quality of life of those that are affected. Outcomes are



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stressed rather than means or methods. The smiling face of a child often conveys a far more

powerful and attractive NGO brand than technical descriptions of strategies, methods or

means.

Performance

The competency in management of this function as described above must also be a sustained

area of focus for the executive of the NGO. Building an “electronic dashboard” or devising

effective ways to judge the performance of the organization up to the moment in real time is

essential. Noting trends in performance, quickly diagnosing and redressing barriers and

identifying and expanding effective methods are essential in order for an NGO to remain

competitive. In order to drive employee performance, leaders must be skilled in motivating

personnel, setting clear expectations, and bringing to bear all the power and authority granted

by the organization as well as the competencies of the leader.

Performance may be gauged by measuring certain specified organizational outputs or

products and comparing these to quantified benchmarks that are established or required for

such performance. Recent U.S. federal social welfare legislation has specified such

performance levels for states in their operation of a variety of programs such as public

welfare (Temporary Assistance to Needy Families), child welfare (The Adoption and Safe

Families Act) and others. Another approach is to establish standards for national accreditation

and measuring the performance of organizations seeking such accreditation against the

established standard. Receipt of such accreditation implies superior service and enhances the

organization’s competitiveness for customers, superior employees and outside funding. In the

U.S., the Joint Commission on the Accreditation of Health Care Organizations accredits

healthcare providers, the Commission on Accreditation accredits organizations serving

children and families, and the Council on the Accreditation of Rehabilitation facilities

accredits organizations serving individuals with disabilities.

The successful executive not only focuses on the performance of the NGO she or heleads but

also that of competitor organizations as well as vendors, subcontractors, and partners. She or

he must be prepared to expeditiously take corrective actions to assure performance meets

expected benchmarks and standards.



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The Imperative for Cultural Competence

The globalization of the economy, immigration and diversity also affect NGOs providing

health and social services in very significant ways. These organizations must develop the

cultural and linguistic competence to serve the growing diversity of individuals seeking

assistance and provide services and products in a manner that is both accessible and

acceptable to such individuals. Well intended and thoughtful employees and services may be

perceived as offensive or stigmatizing unless this issue is understood and addressed.

Cultural competence thus extends beyond simple respect and sensitivity to cultures different

from those traditionally engaged. It requires an understanding of the culture and language of

applicants and recipients of products and services so these may be best positioned for

acceptance and use. The need for cultural competence is driven by the need to serve new

immigrant groups and also to address the needs of underserved minorities whose access has

been historically blocked by cultural factors.

There are a variety of ways for leaders and managers to enhance the cultural competence of

the organizations they direct. These could include the provision of systematic training to

employees within their workforce so that the barriers of language and culture are minimized

or eliminated in the delivery of service. Sound training and development might also lead to

the tailoring of specific products and services so that they are more understandable and

attractive to diverse groups. This might also lead to enhanced marketing strategies to promote

the services to targeted populations.

An additional approach would be to diversify the organizational workforce so that employees

reflect the diversity of customers. Hiring qualified employees of differing cultures, valuing

their cultural expertise and engaging them in the design and delivery of service is an effective

strategy and sends a powerful message to prospective applicants. It communicates to them

that people of their race, ethnicity or culture are embraced by the organization and they will

be both welcomed and understood.

Finally, organizations may choose to reach out to engage minority groups and begin a

dialogue with the express intent of finding common ground, defining mutual requirements

and tailoring services and communications services in a mutually beneficial manner.



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The Ecology of Leadership and Management

In order to be successful over time and build a sustainable organization that is mission and

vision driven, leaders and managers must understand the dynamic forces in the environment

that affect their organizations and have the ability to position the organization to adapt to and

harness these forces. Change is constant, advances geometrically at times, and those unable to

adapt will likely fail. Some of the particular forces affecting NGOs are listed below.

The Political and Policy Environment

Within each country, the thinking relative to the role and functions of NGO, the types of

health and social services that should be funded and provided, the social welfare policies to

be pursued, what forms of income transfer might be used to effectuate selected policies and

related issues shift over time. Anticipating and adjusting to such shifts in a proactive rather

than reactive manner assures the continued relevance and success of the organization. The

goal here is not to change the organizational mission, vision or values to comport with such

changes – but rather to adjust means and methods to do so. A key change here is the move

internationally to engage NGOs in a broader array of what traditionally had been government

services.

The Social Service Marketplace

The marketplace for health and social services involving governmental, for-profit and NGO

organizations has become far more competitive in both developed and developing countries.

In many instances, traditional monopolies of one sector or one organization controlling

specific services have been broken up. Organizations compete vigorously for resources,

employees, and customers. Government procurement processes drive competitiveness by

awarding contracts to organizations based on price, capacity and anticipated quality of

services to be delivered. Further, governments and foundations, especially in the U.S., now

employ new means to organize and finance services. Grants have evolved from simple

awards for general purposes and activities to highly structured contractual agreements in

which defined products or deliverables are specified in return for a set sum of compensation.



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Competition in the marketplace has been furthered by the issuance by governments of

vouchers to eligible recipients for specific services. Consumers may then choose which

specific organization to select to obtain the service. Vouchers, which have a fixed monetary

value, are then redeemed by the providing organization. Consumer choice in this instance

vastly enhances competition. Another form of provision is the utilization of a managed care

approach. This applies to situations in which the government or other purchaser wishes to

procure a broad array of related services, such as healthcare, for a defined population. A

contract is negotiated with an insurance company or allied entity which defines the scope and

array of services, eligible recipients, standards of care and methods and levels of

reimbursement.

The goal here is to enhance quality and accessibility of services while controlling costs at the

same time. Lead organizations must assure that recipients receive the services they require in

a coordinated manner and that costs are controlled by the avoidance of unnecessary and

inefficient or ineffective care. Providers may be granted a flat or capitated rate of payment for

every recipient, unrelated to what care the recipient does or does not receive. Thus, providers

are at financial risk if the aggregate cost of the care provided to those enrolled exceeds the

amount actually received. Conversely, a profit may be experienced if the reimbursement

payments exceed the costs.

Finally, in some instances, payment is made only when specified levels of performance or

outcomes are achieved by the organization providing the healthcare or social service. Real

costs incurred to appropriately achieve the specified purposes may not be reimbursed if the

performance or outcome is not achieved. For example, workforce development service

providers may only be paid when participants become employed – not just because they

received training and supports.

The Economy

The economy continues to have an enormous impact on NGOs engaged in the delivery of

social and healthcare services. The most obvious and profound effects relate to diminished

governmental economic capacity to underwrite NGO services along with the corresponding

diminished capacity of the private philanthropic sector in this same regard. For many NGOs,

outside financial support has stagnated or declined, leaving behind the hard choices of “doing



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the same or more with less” or, more realistically, reducing organizational services. At the

same time, demand for many services has dramatically escalated as other economic factors

such as persistent unemployment, the collapse of the housing bubble and changes in the

global marketplace have all created a class of newly needy citizens turning to NGOs for

assistance.

In the U.S., health and pension costs, for example, are often borne by the employer. The

growing costs of these latter items have escalated at a far greater rate than organizational

revenues causing NGOs to modify, reduce or even eliminate their coverage of these items for

their employees. Excessive costs in this area detract from the competitiveness of goods and

services in a global economy. Finally, the economy has a limited turnover of employees and

caused many senior workers to defer their retirements. This has inhibited efforts to conduct

succession planning to identify and cultivate future managers and leaders in an orderly

manner. It has also constrained efforts of organizations to enhance the diversity of their

workforces to meet the changing demographics of the individuals, families, and communities

that are served.

Changing Demographics

Immigration and the focus on cultural groups that have traditionally been underserved as

noted above drives the demand for cultural competence for organizations to stay relevant to

their communities. Another profound change experienced globally at differing levels is the

growth in individual longevity coupled with the decline or stabilization of birth rates resulting

in a larger percentage of elderly in the general population. This change undercuts the

actuarial assumptions underlying many nations’ social safety net programs – especially those

dealing with healthcare and retirement benefits. This demographic is inextricably intertwined

with economic stability. Also, the demand to buttress core safety net programs will likely

detract from what might be available to NGOs serving other populations.

A final demographic factor relates to the change in families. The vast preponderance of

families in most nations consists of either single parents or households in which both parents

are employed. Parents may likely commute further distances to work, work longer hours; and

due to wage stagnation in a number of nations, must have more to purchase major items such



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as homes, automobiles and higher education. Thus, NGOs may encounter families more

affected by stress, economic instability, and limited choices.

Workforce Issues

Labour markets have changed significantly and the workforce of NGOs and other entities has

evolved considerably. One is more likely to encounter women, minorities, individuals with

disabilities and other groups represented in considerably greater numbers in NGO

employment situations. Further, generational changes in attitudes and values towards work

among employees are also emerging. Baby boomers, for example, think very differently

about loyalty, commitment, career and balance of work and family life than do younger

employees.

The challenge for leaders is to create a work environment that is nurturing and accepting of

the differences and is able to harness the energy and creativity of workers with significantly

different backgrounds and life experience. Extra effort is required to foster a harassment and

discrimination workplace that supports and values diversity along with organizational and

individual learning.

Service Trends

A universal value for many NGOs is to design and deliver services that empower recipients

and provide choice and self-direction in the selection and utilization of services. In addition,

many nations have adopted the concept of serving individuals in the least restrictive and most

appropriate environment. For many, the thrust is to reduce reliance on institutional care for

such populations as the elderly, mentally ill, developmentally disabled and emotionally

disturbed youth in favor of supported care in a community setting. Further, the trend has been

to individualize services through a concept referred to as case management. The idea here is

for one trained professional individual to work with a service recipient to craft an individually

tailored service plan that fits the unique needs of a particular individual or family. Finally,

government and other funders now are more likely to consult the research literature before

deciding to finance a particular service or intervention to be sure there is a basis of evidence

that documents its efficacy in addressing the targeted problem or issue.

Applications of Information Technology



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There perhaps is no greater transformative force affecting the nature and content of services

provided by NGOs than adaptations of information technology (IT) to the delivery of

services. As noted above, IT applications have enormous potential in serving clients,

supporting workers and aiding management. Today, in many venues, access to services is

through the internet; healthcare is provided remotely through fiber optic cable; individuals

with disabilities and others use “smart cards” with microchips that contain important service

records and information; managers utilize biometric imaging and artificial intelligence to

assure program integrity and prevent fraud and abuse; workers use decision support systems

to organize and analyse case material in a manner that guides superior case outcomes; and

leaders and managers use “executive dashboards” or systems that provide real-time only data

as to various aspects of organizational performance and status. This clearly is only the

beginning.

Summary

It is clear that NGOs dedicated to the provision of health and human services are proliferating

in many nations throughout the world. This phenomenon is driven in some countries by the

desire to privatize services previously provided by government or to address unmet needs of

citizens. The specific role, structure, regulation, governance and function of NGOs vary from

country to country; however, all require sound management and leadership to survive and

thrive in a rapidly changing and challenging environment. Individuals charged with these

functions must develop the necessary competencies as detailed in this chapter and which are

required by their organization and the environment in which it operates.

Management and leadership needs of organizations vary over time. A different mix of

competencies may be required in organizations that are just starting up as compared to those

required by organizations that are either foundering and need extensive remediation or are

simply moving along smoothly in a stable environment. Organizations need to plan for

continuity of leadership and sound management by engaging in succession planning to

develop future leaders and offer training to permit employee growth and development. The



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leadership and management competencies interconnected in the wheel depicted in this report

are essential to support NGOs in moving forward to achieve their mission and vision.



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Student Exercises

1. Fill in the blanks.

I. NGO are two types _______________ and _________________.

II. ______________, ________________ and ____________ are three categories of

accountability conceptualized by Najam.

III. Performance management is required for ______________ management.

IV. ___________, ____________, _____________ and ___________ are the part of human

resource management.

V. Two types of competencies ___________ and __________ are required for NGO

management.

2. Explain the different competencies required by the manager for managing the NGO.

3. Discuss the term NGO accountability in detail.

4. Match the Following

A B

I. Charitable Trust I. Principle of NGO accountability

II. Community-based organization II. Core humanitarian principle

III. Responsibility and authority have to III. Personal management

be clearly specified

IV. Humanitarian imperative IV. NGO type by level of operation

V. Staff development V. NGO type by orientation



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CHAPTER 4

PROBLEMS OF NGO

Research into this area produced a number of common problems that NGOs

experienced. This topic has been explored in detail by various researches and authors. One of

the most mentioned was that of the decision making processes. Tensions often occurred

between staff and senior managers because of the staff expectations that they would be equal

partners in the decision making process.

Another common problem was to do with the governance of the organizations and the

relations between board members and staff. These stemmed largely from the

board'sinabilityor unwillingness to carry out their responsibilities of governing the

organizations. Board members often tacked the time or the expertise to be able to carry out

these responsibilities effectively. As a result, senior staffs were often left to make policy

decisions with little or no support from board members. The governance picture of many

NGOs is quite complex. Most nonprofits are governed by self-perpetuating, largely self-

appointing boards of directors.

There are other numbers of problems faced by NGOs and few are mentioned below:

1. PROBLEMS IN TRAINING

Schedule: Scheduling training can be one of the most difficult challenges a human

resource department can face. Many managers are reluctant to letanemployee take much

time away from their duties for training.

Rapid Changes: Rapid changes in technology, corporate initiatives, and programs can

make it difficult to adequately prepare training materials and deliver training before

employee need information and new skills.

Language Problem: Language comprises of both spoken and unspoken means of

communication. The best of the best training programme will fail ifthetrainer is not well

versed in communicating trainee’s language. Language is one of the most important

ingredients of culture.



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2. PROBLEMS IN FUNDING

Funding such large budgets demands significant fundraising efforts on the part of most

NGOs. Major sources of NGO funding include membership dues, the sale of goods and

services, grants from international institutions or national governments, and private

donations. Even though the term 'non-governmental organization' implies independence

of governments, some NGOs depend heavily on governments for their funding.

Lack of funds

Most of the NGOs in India are suffering from paucity of funds. The government does not

give cent percent grants in aid or make delay in sanctions of grants for numerous

programmes. NGOs have to make matching contributions which they are sometimes

unable to manage and are, therefore, unable to avail themselves of the grants. Nowadays,

charity is not so strong in the minds and hearts of the people as it was in the ancient

society. This was another region for languishing of funds for NGOs.

Misuse of Funds

It is the matter of fact that some unscrupulous elements have made fortunes by floating

NGOs for their personal gains and managing grants from the government. It is a common

experience that there have been serious charges of misuse and misappropriation of funds

received as grant-in-aid from the government, foreign donors and raised through their

own resources by the most of the NGOs. These NGOs may reflect its image to other

NGOs who are working with dedication and commitment.

3. PROBLEMS IN RECRUITMENT

NGOs were found to be weak at staff career development. Often organizations lacked a

career structure in which staff could develop.

Inadequate Trained Personnel

http://en.wikipedia.org/w/index.php?title=Membership_due&action=edit

http://en.wikipedia.org/wiki/Product_%28business%29

http://en.wikipedia.org/wiki/Donation

http://en.wikipedia.org/wiki/Independence



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It is believed that the personnel working in NGOs may be of personnel working in such

organizations is a sense of dedication and commitment and interest in the social services.

NGOs earlier were assumed to be served by unpaid social workers imbued with the spirit

of service and did not require any special education or training. But the present trends

that are having a professional education are not interested to work with NGOs. Their

visions have been changed and are interested to work in urban areas only. Therefore, it is

very difficult to get trained persons who are either willing or trained to work in the rural

society where most of NGOs work. Moreover, these professionally trained persons have

high expectations in terms of salaries, status, opportunities for their growth in the career

of their choice. Moreover, most of NGOs due to lack of funds cannot able to spend some

more funds for giving training to the personnel employed in the organization. Some of

NGOs are in fear of personnel who may shift to another big NGO after taking training

from it.

4. PROBLEMS IN RESOURCE MOBILIZATION

Lack of Public Participation

NGOs are meant to provide opportunities to the citizens for democratic participation but

they have not been able to fulfill this obligation due to the method and manner in which

they function, and failed to attract people, interested in construction work and develop

channels for people’s enthusiastic participation. Some of the factors responsible for such

a state of affairs are general backwardness of the people, absence of adequate number of

dedicated persons, overemphasis on targets and time-bound programmes, political

interference and vested interests, easy availability of funds without proper planning and

assessment of felt needs and safeguards for the community, distrust of agencies and

workers who do not have a base in the community and are unable to win its support and

lack of decentralization which could give a feeling of being partners in development

rather than development being thrust from above.

Lack of Volunteerism/Social work among Youth

The basic characteristic of NGO is volunteerism. In early days, youth are making their

career in volunteerism but that enthusiasm seems to have faded these days. The extent of



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volunteerism is declining day by day and turning it into professionalization. Even the

young graduates from social work are interested in making their career in

professionalism. This leads to lack of efficient volunteers in NGOs.

Modernization

Because of modernization, professionalization, and introduction of management

techniques, the traditional NGOs need acertain minimum, infrastructure, and

administrative expenses. Unfortunately, grants-in-aid rules do not allow for such

administrative expenditure except contingencies. This leads to evaporation of traditional

NGOs in the country which used to lead by great leaders.

Lack of Coordination

The absence of coordination between NGOs existing at local, state and national level has

laid to the common problems such as overlapping, duplication, non- coordination etc, the

absence of such a common forum also incapacitates NGOs to offer united stand against

the government when it humiliates them by extraneous considerations at the behest of

politicians and egoistic government officers. Moreover, the state of affairs also does not

facilitate the exchange of information, data collection, research, training, and publication

and also does not create favorable conditions where common difficulties can be placed

before the government.

5. PROBLEMS IN DOCUMENTATION

Documentation is a major part of NGO projects or programmes. To a complete project, an

end result of the construction process is reams of documents. From initial project concept

through completion, an extensive paper trail is generated.

Most documentation problems stem from, three basic conditions:

1. Getting the proper amount and type of information (content)

2. Getting this information to the appropriate individual (recipient)

3. Delivering it on proper time.



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Change in Schedules

Schedules are often plagued with both content and currency problems. One common

failure in project management is dependence on inaccurate schedule reports. For

example, a field level worker is implementing the schedule properly but he could not

report a detailed plan of major activities. During the implementation, he has to change or

use alternatives. Here he has to report properly otherwise project manager could not

prepare reliable and meaningful documents.

Lack of the data

Beneficiaries are not interested to provide whole information. Incomplete information

cannot provide us the right information. Without whole information, cannot reach to the

exact results. Sometimes field level worker is not enough smart to take out information

from them.

Language barrier

Beneficiaries are using their local language for day to day communication. It is very

difficult to translate their exact terms of local language in English or commonly accepted

language. For example, a field level worker is working in thetribal area but he/she cannot

understand the tribal dialects, it becomes very difficult for the worker to translate it.

Student Exercise

1. What are the problems in recruitment?

2. Enlist the problems in resource mobilization.

3. Which are the major drawbacks of documentation?



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Other Problems

Lack of Dedicated Leadership

Leadership qualities of the leaders in NGOs determine the quality and condition of the

services rendered by any organization. Especially dedicated leadership, ‘Leadership for

the sake of Leadership’ is a most important governing factor in this regard. In the post-

independence era, unfortunately, the NGOs faced the crisis of leadership as the leaders

who pioneered voluntary action and worked for it withthespirit of devotion and

dedication choose to enter politics to find berths in legislatures and parliament thus

creating a vacuum for dedication leadership in NGOs. With some expectations, the

leadership is concentrated in the hands of elderly people. The style of functioning of

these elderly people exhibits authoritarianism and frustrates younger people who are

embodiments of new ideas, initiatives, and innovation which are not allowed to

Expressed and practiced (Mehta etal, 2010)

Monopolization of leadership

It has been observed that there is a growing tendency towards monopolization and

interlocking of leadership at the top level of voluntary action groups and organizations as

is reflected in the same person being the president in one organization, secretary in the

other, treasurer in the third and a member of the executive in the fourth. This interlocking

of leadership can be advantageous in formulating, coordinated policies, programmes, and

activities, facilitatingtheexchangeoftechnical know-how and experience and mobilizing

people for a common goal. But thegreatest disadvantage of such leadership is that fresh

blood is not allowed to flow into theorganization and leadership.

Target orientated and time-bound Programmes

It has been observed that the donor or government who sanctions grants will put target

and time-bound programmes in front of NGO. Those NGOs will take the period but the

qualities of service there are offering. This leads to deteriorating in quality of service and

is below expected standards.



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Area of Interest

Sometimes, NGO will prefer the donor area of interest in welfare activities going beyond

his own interest or working in more than one programme. This also leads to deterioration

inthequality of service in particular programmes.

The Evaluation Problem:

This is most immediately a problem for donors, but failed to resolve it reflects back on

NGOs eventually and should be provided as their problem. Performance evaluation is

relatively easy in post office type organizations where a) activities are routine b)

objectives are few and clear, c) there is no great distinction between immediate outputs,

medium term, effects, and long-term impacts and d) outputs, effects or impacts can be

measured relatively cheaply and reliably without the measurement process itself

distorting the objectives of the organization or the goals of the staff. Many development

NGOs are very different, their activities are experimental rather than routine, their goals

are often intangible, they may be operating in the face of official obstruction and hostility

and it may be difficult to find other organization with which their performance can

usefully be compared in any quantitative sense.

Sate NGO relationship:

There are also internal problems as well as external problems like state NGO

relationships. Following presents the barriers to a state NGO relationship.

a) A highly political environment

b) NGOs preferences for isolation

c) Jealousy of civil servant towards the NGOs access to resources.

d) Pressure on successful NGOs from major donors to receive more funds, leading to

declining in performance.

e) The NGO constituency being often very narrow.

f) NGOs capacity, with their work, often is not as effective as claimed.

g) Public sectors capacity, with government’s performance often marred by weak

commitment a shortage at local levels of competent staff and corruption and

nepotism.

h) Dependence on foreign donors, with NGO motives guided by a foreign aid.



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CHAPTER 5

PROFILE OF DEVELOPMENT AGENCIES

NGOs Working in India

UNICEF

UNICEF is fully committed to working with the Government of India to ensure that each

child born in this vast and complex country gets the best start in life, thrives and develops to

his or her full potential.

The organization began its work in India in 1949 with three staff members and established an

office in Delhi three years later. Currently, it advocates for the rights of India’s children in 16

states.

UNICEF India recognizes that the health, hygiene, nutrition, education, protection and

social development of children are all connected. Targeting efforts for them at all stages of

their growth – infant and mother, child and adolescent – and on a range of traditional

programme fronts will see that inroads are made to ensure children not only survive but

thrive too.

Child Survival Growth and Development

Reproductive and Child Health

Maternal Health

Neonatal Health

Immunization

Polio

Child Development and Nutrition

Women Nutrition

Infant and Young Child Feeding

Micronutrient Nutrition

Stunting

Water Sanitation and Hygiene

Eliminate Open Defecation

Protective and Learning Environment

Quality Education

http://unicef.in/Whatwedo/1/Maternal-Health

http://unicef.in/Whatwedo/2/Neonatal-Health-

http://unicef.in/Whatwedo/3/Immunization

http://unicef.in/Whatwedo/5/Polio

http://unicef.in/Whatwedo/6/Women-Nutrition

http://unicef.in/Whatwedo/7/Infant-and-Young-Child-Feeding

http://unicef.in/Whatwedo/8/Micronutrient-Nutrition

http://unicef.in/Whatwedo/10/Stunting

http://unicef.in/Whatwedo/11/Eliminate-Open-Defecation



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RTE and CFSS

Teacher Education

Gender and Inclusion

Early Childhood Education

Child Protection

Child Protection Systems

Child Labor

Violence Against Children

Wash in Schools

Gender Segregated Functional Toilets in Schools

Hand washing With Soaps in Schools Before Midday Meal

Clean India- Clean Schools

Adolescent Empowerment

Protecting Adolescents

Violence Prevention and Response

Empowering Adolescents

Secondary Education

Child Marriage

Adolescents Health & Nutrition

Adolescent Health

Adolescents Nutrition

Evidence-Based Policy Influencing & Advocacy

Advancing Evidence-Based Inclusive Policies

Data and Evidence for Policy and Equity Focused Programming

Strengthening Evaluation Capacity and Knowledge Management

Planning and Monitoring of Child Rights and Equity through Decentralized

Governance

Promotion of Social Inclusion and Social Protection

Reducing Neonatal Deaths

http://unicef.in/Whatwedo/13/RTE-and-CFSS

http://unicef.in/Whatwedo/15/Teacher-Education

http://unicef.in/Whatwedo/16/Gender-and-Inclusion

http://unicef.in/Whatwedo/40/Early-Childhood-Education

http://unicef.in/Whatwedo/20/Child-Protection-Systems

http://unicef.in/Whatwedo/21/Child-Labour

http://unicef.in/Whatwedo/23/Violence-Against-Children

http://unicef.in/Whatwedo/24/Gender-Segregated-Functional-Toilets-in-Schools

http://unicef.in/Whatwedo/25/Handwashing-With-Soaps-in-Schools-Before-Midday-Meal

http://unicef.in/Whatwedo/39/Clean-India-Clean-Schools

http://unicef.in/Whatwedo/28/Violence-Prevention-and-Response

http://unicef.in/Whatwedo/29/Secondary-Education

http://unicef.in/Whatwedo/30/Child-Marriage

http://unicef.in/Whatwedo/32/Adolescents-Health

http://unicef.in/Whatwedo/33/Adolescents-Nutrition

http://unicef.in/Whatwedo/34/Data-and-Evidence-for-Policy-and-Equity-Focused-Programming

http://unicef.in/Whatwedo/35/Strengthening-Evaluation-Capacity-and-Knowledge-Management

http://unicef.in/Whatwedo/36/Planning-and-Monitoring-of-Child-Rights-and-Equity-through-Decentralised-Governance

http://unicef.in/Whatwedo/36/Planning-and-Monitoring-of-Child-Rights-and-Equity-through-Decentralised-Governance

http://unicef.in/Whatwedo/37/Promotion-of-Social-Inclusion-and-Social-Protection



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PRATHAM

Pratham is an innovative learning organization created to improve the quality of education in

India. As one of the largest non-governmental organizations in the country, Pratham focuses

on high-quality, low-cost, and replicable interventions to address gaps in the education

system. Established in 1995 to provide education to children in the slums of Mumbai,

Pratham has grown both in scope and geographical coverage.

Pratham means 'first' in Sanskrit. True to its name, it is the first major organization to

achieve lasting, wide-scale success in India's educational landscape. This has been made

possible due to various policies and strategies adopted by the organization.

Dedicated to large-scale change

The mission to improve the quality of education in India and ensure that all children not only

attend but also thrive in school is being accomplished by working in collaboration with the

government, local communities, parents, teachers, volunteers and civil society members. Our

programmes aim to supplement rather than replace governmental efforts. They are

implemented on a large scale to not only reach as many children as possible but also to create

an adoptable demonstration model for state governments.

A focus on innovation

Pratham's strategies reconfigure teaching methodologies, break down traditional tactics, and

challenge the current rote learning mechanisms in our schools. Our programmes are

innovative and outcome-driven. In its early years, Pratham developed innovative teaching-

learning methods, materials and measurement methods. In 2005, we pioneered a nationwide

survey of schooling and learning that has had a major impact on national and international

policy discussions.

Low-cost, replicable models

Pratham has worked to develop low-cost, replicable models that can easily spread and be

adopted by other organizations. Thousands of volunteers work with Pratham to implement



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learning 'interventions' at the grassroots level. These volunteers are mobilized, trained and

monitored by the Pratham team. They are also provided with teaching-learning materials and

books developed by Pratham. Not only does this ensure more effective implementation of the

programs, but it also helps to build an infrastructure focused on providing quality education

to children.

Programme results and accountability

All programmes are designed to ensure that learning levels in schools and communities

increase, education reaches all children who are in school or unable to use school facilities,

and youth gets well trained for job opportunities. Testing tools are also developed by the

Pratham team to check the learning levels of children so as to determine the course of action

best suited to each child and to assess the impact of our programs.

A powerful voice in the education sector

Over the years, Pratham's advocacy in the education sector has become well recognized and

regarded. The Annual Status of Education Report (ASER) has become an important input in

the education policies of both the central and state governments with several state

governments using the findings to help define their education programs each year. It has also

been significant in defining a qualitative agenda in education and is widely acknowledged in

government and policy circles inside and outside of India.

A diverse team unified by a common goal

Pratham comprises of development professionals, media professionals, corporate

professionals, workers, activists, PhDs, MBAs, CAs, civil servants, bankers, consultants and

anyone else who brings their experiences, expertise, and perspectives to the organization.

What unifies them is the common goal of improving the future of our children and youth.



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SEWA

SEWA is a trade union registered in 1972. It is an organization of poor, self-employed

women workers. These are women who earn a living through their own labor or small

businesses. They do not obtain regular salaried employment with welfare benefits like

workers in the organized sector. They are the unprotected labor force of our country.

Constituting 93% of the labor force, these are workers of the unorganized sector. Of the

female labor force in India, more than 94% are in the unorganized sector. However, their

work is not counted and hence remains invisible. In fact, women workers themselves remain

uncounted, undercounted and invisible.

SEWA’s main goals are to organize women workers for full employment. Full employment

means employment whereby workers obtain work security, income security, food security

and social security (at least health care, child care, and shelter). SEWA organizes women to

ensure that every family obtains full employment. By self-reliance, we mean that women

should be autonomous and self-reliant, individually and collectively, both economically and

in terms of their decision-making ability.

At SEWA we organize workers to achieve their goals of full employment and self-reliance

through the strategy of struggle and development. The struggle is against the many

constraints and limitations imposed on them by society and the economy, while development

activities strengthen women’s bargaining power and offer them new alternatives. Practically,

the strategy is carried out through the joint action of union and cooperatives. Gandhian

thinking is the guiding force for SEWA’s poor, self-employed members in organizing for

social change. We follow the principles of Satya (truth), ahimsa (non-violence), sarvadharma

(integrating all faiths, all people) and khadi (propagation of local employment and self-

reliance).

SEWA is both an organization and a movement. The SEWA movement is enhanced by its

being a Sangam or confluence of three movements: the labor movement, the cooperative

movement, and the women’s movement. But it is also a movement of self-employed workers:

their own, home-grown movement with women as the leaders. Through their own movement,

women become strong and visible. Their tremendous economic and social contributions



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become recognized with globalization, liberalization and other economic changes, there are

both new opportunities as well as threats to some traditional areas of employment.

More than ever, our members are ready to face the winds of change. They know that they

must organize to build their own strength and to meet challenges. There are still millions of

women who remain in poverty and are exploited, despite their long hours of hard labor. They

bear the brunt of the changes in our country and must be brought into the mainstream, so as

to avail of the new opportunities that are developing with regard to employment.

Also, there is much to be done in terms of strengthening women’s leadership, their

confidence, their bargaining power within and outside their homes and their representation in

policy-making and decision-making fora. It is their issues, their priorities, and needs which

should guide and mold the development process in our country. Toward this end, SEWA has

been supporting its members in capacity-building and in developing their own economic

organizations.

SEWA Services

Supportive services like savings and credit, health care, child care, insurance, legal aid,

capacity building and communication services are important needs of poor women. If women

are to achieve their goals of full employment and self-reliance, these services are essential.

Recognizing the need for supportive services, SEWA has helped women take a number of

initiatives in organizing these services for themselves and their SEWA sisters. Many

important lessons have been learned in the process of organizing supportive services for and

by poor women. They provide these services in a decentralized and affordable manner, at the

doorsteps of workers. Further, supportive services can be and are themselves a source of self-

employment. For example, midwives charge for their services and crèche workers collect fees

for taking care of young children.

Also, women are ready to pay for the services and in fact, this results in the financial viability

of the supportive services. They do not have to be totally dependent on subsidies and grants.

Some supportive services like savings and credit, health, and child care have formed their

own co-operatives. These cooperatives have gained operational self-sufficiency.



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SEWA bank has achieved financial viability for many years now, while the other

cooperatives are steadily moving towards this.

SEWA Bank

Legal Services

Health Care

Capacity building of SEWA Members

Child Care

Housing and Infrastructure

Vimo SEWA (SEWA Insurance)

Video SEWA

CHETNA

CHETNA meaning “awareness” in several Indian languages and an acronym for Centre for

Health Education, Training and Nutrition Awareness, is a non-government support

organization based in Ahmedabad, Gujarat.

Initiated its work in 1980 CHETNA was established in 1984, CHETNA addresses issues of

women’s health and development in different stages of their lives from a “Rights”

perspective. CHETNA is an activity of the Nehru Foundation for Development, which is a

public charitable trust, registered under the Bombay Public Trust Act 1950.

CHETNA supports the Government and Non-Government Organizations (GO and NGOs)

through building the management capacities of educationists /health practitioners/supervisors/

managers enabling them to implement their programmes related to children, young people

and women from a holistic and gender perspective and advocate for people-centred

policies. Our core activities are capacity building, at regional and national level. CHETNA

also does advocacy, development, and dissemination of materials. CHETNA works primarily

in Gujarat and Rajasthan States.

Identified as a Regional Resource Centre (RRC) for Gujarat State and the Union Territories

of Daman, Diu and Dadra Nagar Haveli to provide technical assistance to NGOs to improve

http://www.sewa.org/Services_Bank.asp

http://www.sewa.org/Services_Legal_Services.asp

http://www.sewa.org/Services_Health_Care.asp

http://www.sewa.org/Services_Capacity_Building.asp

http://www.sewa.org/Services_Child_Care.asp

http://www.sewahousing.org/

http://www.sewa.org/Services_Work_Security_Insurance.asp

http://www.sewa.org/Services_Video.asp



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Reproductive and Child Health (RCH), facilitate GO-NGO partnership, document and

disseminate successful approaches and provide inputs to Government of India to ensure

effective implementation of policies.

In 2014 CHETNA is designated as State Training and Resource Centre (STRC) for Gujarat,

Daman and Div and Dadra and Nagar Haveli, to support NGOs in implementing targeted

interventions program related to HIV/AIDS.

Commitment

To the cause, taking initiative to achieve the vision and mission and the sustainability of the

organization

Honesty and Transparency

With each other and the partners; in the expression of views and opinions, in work and use of

resources, readiness for receiving and giving feedback, for an open and enabling work

environment thus enhancing organizational integrity.

Enhancement of Capacities

Believing in people, their capacity to learn and deliver and an understanding of their strengths

and limitations, instilling self-worth and confidence in them

True Value of Resources

Time, human resources, funds, and assets resulting in optimal utilization of resources

Non-Discrimination

Equal opportunity to express, be heard, to growth and development, access to resources,

observance of culture and norms within the organization, thus creating a feeling of fairness/

non-discrimination

Accountability and Sincerity

In work, deliverables; ensuring optimum quality of output in the most cost-effective way.

Vision

CHETNA envisages an equitable society where disadvantaged communities are empowered

to live healthy lives.

http://chetnaindia.org/?page_id=6348





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Mission

To empower children, young people, and women, especially from marginalized social

groups, so that they become capable of gaining control over their own, their families' and

communities' nutrition, health and wellbeing.

Lifecycle Approach

Issues addressed by CHETNA

Improving Access to Food and Enhancing Nutrition: Every individual has the right to

adequate food and nutrition, a foundation for healthy living. The increasing prevalence of

undernutrition indicates the need to safeguard this right across the life cycle.

Improving Maternal and Newborn Health: The high rates of maternal and neonatal

mortality indicate the need to address the right to life and survival of women and newborns.

Poor maternal nutrition has a direct impact on pregnancy outcomes. Empowering women and

community stakeholders to access their entitlements from the public health system is critical.

Ensuring Health and Development in Childhood: Every child has the right to survival and

dignified life. To safeguard this right, there is a need to ensure that children have a healthy

and equitable social environment within and outside the family. They should have access to

adequate nutrition, health, and developmental services. Specific intervention is required at

different ages.

Saving the Girl Child: The skewed sex ratio in the age group of 0-6 years indicates the need

for social transformation to stop the heinous practice of sex selection and promote an

enabling environment for valuing the girl child.

Promoting Reproductive and Sexual Health of Adolescents and Youth: Adolescents and

Youth are a heterogeneous group and constitute 22% of India’s population. This phase of










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transition from childhood to adulthood requires significant efforts from all stakeholders.

Information regarding their health and development, along with life skills, helps them to

adopt healthy and responsible lifestyles.

UNITED WAY OF BARODA

Vision

United Way of Baroda envisions creating an enabling and sustainable environment for

improved quality of life of less privileged people.

Mission

To serve as a catalyst by providinganopportunity for optimal health, education, and livelihood

generation especially for the vulnerable and less privileged community in Gujarat.

Higher education towards poverty eradication

Fusion Study Foundation project came into existence when Stitching Fusion Study

Foundation of Netherlands joined hands with United Way of Baroda to provide financial

assistance to the less privileged aspiring students of Gujarat. Students pursuing graduation

and post-graduation in Engineering, Pure Sciences, Applied Sciences, Medical Science,

Business Administration, Accountancy and various other streams of education are supported.

The students who are selected are also provided continuous mentoring support till they

complete their education and achieve their dreams. Apart from alleviating the education level,

the project improves the economic and social status of the students and their families. The

project was initiated in 2005

A support stick for the elderly

Population aging is becoming a global phenomenon and along with it, social trends are also

changing. This is making the elderly more vulnerable. Senior citizens are a treasure to our

society owing to their rich experience and their immense contribution to our nation. They

need care and support during this vulnerable period of their lives. United Way of Baroda

provides several benefits to the Senior Citizens of Vadodara through its Gold Card Scheme.



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Every year 600-700 elderly members who have registered avail the services under the

scheme. A token amount is taken from each member for registration to ensure that the

members genuinely need the services.

Primary Education... The Right of every Child

United Way of Baroda (UWB) with the support from funds donated by Shri Vishnu Bhai

Amin, a philanthropist, is providing educational and overall development support to orphans

and destitute primary school children of Vadodara every year. The project has been

undertaken since 2006 and implemented till date. Every year about 400-500 children is

identified and supported.

1. Educational material distributed

2. Uniforms, raincoats, footwear, and woolens provided

3. Birthdays and festivals celebrated

4. Educational tours organized

5. Recreational activities were undertaken

6. Health care and nutritional services provided

BAL BHAVAN SOCIETY

Bal Bhavan – a landmark for children in Baroda – provides children in the age group of 5 to

16 years (both normal and special) with various activities and opportunities to nurture and

enhance their creative potential and physical abilities. It provides a platform to interact,

experiment, create and perform according to their age, aptitude, and ability. It offers a barrier-

free and stress-free environment with immense possibilities of innovation. They offer a wide

range of activities for children, all under one roof, on all days of the week (except

Wednesdays).

Activities include:

Creative Arts: Drawing, painting, mixed Media, collage, craft, clay modeling.



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Performing Arts: Vocal music and Bharatanatyam (with certificate examination from

Bruhad Gujarat Sangit Samiti. A children's orchestra is trained for Navratri.

Library: They have lots of books for children in English, Hindi, Gujarati, and Marathi. The

library also has lending facilities.

Innovative Science: Offering hands-on experiences to children with facilities for

experiments, model making and exposure to science in daily life. They also have an

Astronomy club.

Sports: Regular technical and quality coaching by qualified coaches in badminton, table

tennis, cricket, athletics, tennis, basketball, skating, chess, and karate.

Welfare Programme: They have a Special Education and Recreation programme for

differently abled children (mentally challenged children) on a daily basis.

Registered under Foreign Contribution Regulatory Act (FCRA)

FRIENDS SOCIETY

In the July of 1969, in Baroda, while some students of The Maharaja Sayjirao University of

Baroda were busy in keeping ongoing strike, some M.S.U. hostel students were seeking

something else in the ongoing intense strike and keen for making the most of their leisure

time. During that episode, two students from a different background; an engineering student

Neeraj Dave and Social faculty-student Gidhar Vasvani joined hands for taking an initiative.

After having a conversation, they decided to visit the mental hospital and spend some time

with crippled children as well as with blind children. Neeraj Dave shared this initiative to

many other students for voluntary participation. Fortunately, some agreed to join hands with

them. This was the unique step taken by students of M.S.U. When volunteers reached the

venue, they created such an amusing ambiance to rejoice them. Volunteers left no stone

unturned in giving a sense of satisfaction and pleasure. Finally, when they were about to

leave, beneficiaries asked volunteers to visit again. It was just a first step. Those enthusiastic

volunteers were very much happy for the beneficiaries and hoped to continue this initiative

and new other activities. Every volunteer was sharing his/her ideas for the society people.

And the best achievement so far came when two children from juvenile home become a



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professor in M.S.U.’s arts faculty and a worker in S.S.G. through their initiative of adopting a

family friend; an unprecedented attempt! It was still unnamed and unorganized. After having

many activities under them, an organization was indispensable. They created a loose structure

with the secretary, joint secretary, and treasurer. In addition, they formed four basic

objectives and named their organization as Friends Society too. This was how a seed sprout

into a plant. Everything was consolidated and actual Friends Society came into existence. The

deluge of new ideas kept afloat. At that time, one of the students came up with the idea of

arranging a blood donation camp in the M.S.U. hostel. The concept was too hard to sell in the

1970 but volunteer efforts got to succeed in arranging a camp for the very first time. They

collected 40% of the total needed blood. Moreover, they kept continue to organize many

blood camps every year to serve the need, and it is still being organized. Then one day, a

medical student volunteer realized a need of X-Ray plates of patients who could not afford it.

For this project, they required huge amount in order to implement. It was one of the

volunteers, who gave anidea to invite every member of society for contributing to their

initiative. The aim of that project was an involvement of the smallest member of society.

Fruitfully, the collected amount was enough and it served the needs of all patients. A true

meaning of voluntarily what they justified from their efforts. Surprisingly until that time, all

meetings were taken at different places, because there was no permanent venue for them to

handle everything they decided.

In 1972, when all associative volunteers became graduated, permanent place to handle all

activities was a necessity. Tribhuvan Dasji one of the noblest men, after witnessing their

efforts, agreed for giving his owned venue in condition to maintain a library of that venue.

From then onwards, Friends Society handled all state of affairs at that place only. From 1977,

all volunteers started to do initiatives for the amusement of differently abled children, for

better health of poor people and for serving the education to pre-school age socially-

economically disadvantaged children. In 1979,theworld was celebrating international year of

children, and as part of the contribution, we started film club and Balwadi exclusively for

children. Kamini Kaushal, that time, the chairperson of children films in India, inaugurated

Balwadi. For the betterment of health, Friends Society started running a program like a

mother and child health care, hospital services group, counseling to pregnant-lactating

women and young children of adjacent slums. Moreover, in order to add some fun in the life

of the patient, they arranged in sports like carom, volleyball; they also surprised children



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patient with toys, spent the time to entertain them. Meals on wheels, a unique initiative for

serving food to poor patients and their relatives at S.S.G. hospital was about to implement but

it did not happen as the hospital had already arranged food for them. Never the less, the road

did not end there. In the year 1985, UNICEF offered a health project to friend’s society. It

was a remarkable achievement so far. In the year 2001, during an earthquake, Kutch was

absolutely demolished, at that time Friends Society arranged a medical camp over there.

Moreover, some very important initiatives by the unsung heroes of friend’s society have been

running on since its inception. For women empowerment, sewing and embroidering; for

serving education, a youth club activity; for future leaders, a special seminar on leadership;

for reading, a facility of the library; program for youth development of society, income

generation program and cheer up activity for differently abled children. This is how a plant

becomes a tree with many branches to give shadow to the community. A true meaning of

voluntarily has been justifying by Friends society. Since its inception, they have adopted a

below principle. “Friends society is of the people, by the people and for the people.”

SMILE FOUNDATION

Mission

Smile Foundation is to empower underprivileged children, youth, and women through

relevant education, innovative healthcare and market-focused livelihood programmes.

Smile Foundation is to deploy best possible methodology and technology for achieving ideal

SROI (social return on investment), to practice and promote good governance. To link

business competitiveness of the corporate with social development initiatives; also to

sensitize privileged children, youth and citizens in general to promote Civic Driven Change.

LIFECYCLE APPROACH: CHILDREN, THEIR FAMILIES, AND THE

COMMUNITY

Smile Foundation believes that education is both the means as well as the end to a better life:

the means because it empowers an individual to earn his/her livelihood and the end because it

increases one's awareness on a range of issues – from healthcare to appropriate social

behavior to understanding one's rights – and in the process help him/her evolve as a better

citizen. Education is the most effective tool which helps children build a strong foundation;



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enabling them to free themselves from the vicious cycle of ignorance, poverty, and disease.

Smile Foundation realized that education for children cannot be achieved without the family,

particularly, unless the mother is assured of health care and empowered. Moreover, when an

elder sibling is educated and relevantly skilled to be employable and begins earning, the

journey of empowerment continues beyond the present generation.

Smile Foundation extended its thematic areas of intervention by supporting family health,

livelihood and women empowerment. Children, their families, and the community become

the target group for Smile Foundation’s activities as child education cannot be done in

isolation and nothing else but education for children can bring long-lasting change in the

society.

Children are the future of a nation. For an emerging country like India, development of

underprivileged children holds the key to the progress of the nation itself, and their education

is the cornerstone of this progress. But education for children cannot be achieved without

ensuring the welfare of the family – a child can go to school regularly only when the family,

particularly the mother is healthy and empowered; the family has decent livelihood

opportunities and a steady income.

Realizing this, Smile Foundation, beginning in the corridors of education, has adopted a

lifecycle approach with intensive programmes focused on family health, livelihood and

women empowerment, which address the needs of children, their families, and the larger

community.

Addressing the areas of education of children, healthcare to the poor, livelihood for the youth

and empowerment for women, Smile Foundation has evolved as an Education NGO,

Livelihood NGO, Medical NGO as well as NGO for Women Empowerment.



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CSR INITIATIVE

GAIL INDIA LIMITED

In terms of the guidelines issued by the Department of Public Enterprises, GAIL has

allocated an annual budget of 2% of the previous year’s Profit after Tax for CSR activities,

which is effectively used for carefully chosen programmes. Socially useful programmes have

been undertaken in GAIL since its inception in and around the areas adjoining its major work

centers under the SCP/TSP Plan. But over the years, the scope of the CSR activities, the

nature of programmes undertaken and the systems adopted for the implementation of these

programmes have been streamlined and strengthened and the work under SCP/TSP came

under the wider scope of CSR. Today, CSR and sustainable development is accorded high

priority in the organizational ethos and attempted to be interwoven in all the business

activities and the projects that are being undertaken by the company. During the year 2010-

11, the company has taken up programmes of a value of approximately Rs.57.5 Crores for

implementation under the seven thrust areas, which include Community Development,

Infrastructure, Healthcare/Medical, Skill Development/Empowerment, Educational Aids,

Environment Protection, Drinking Water/Sanitation.

Objectiveand Principles

In alignment with vision of the company, GAIL, through its CSR initiatives, will continue to

enhance value creation in the society and in the community in which it operates, through its

services, conduct and initiatives, so as to promote sustained growth for the society and

community, in fulfillment its role as a Socially Responsible Corporate, with environmental

concern. The objective of the GAIL CSR policy is to: ensure an increased commitment at all

levels in the organization, to operate its business in an economically, socially and

environmentally sustainable manner, while recognizing the interests of all its stakeholders.

To directly or indirectly take up programmes that benefit the communities in and around its

work entrées and results, over a period of time, in enhancing the quality of life and economic

well-being of the local populace. To generate, through its CSR initiatives, a community

goodwill for GAIL and help reinforce a positive and socially responsible image of GAIL as a

corporate entity.



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Funding and Allocation:

For achieving its CSR objectives through implementation of meaningful and sustainable CSR

programmes, GAIL will allocate 2% of its previous year’s profit after Tax (PAT), as its

Annual CSR Budget. From the annual CSR budget allocation, a provision will be made

towards the following expenditure heads, on a year on year basis: contribution towards

corpus of GAIL Charitable and Education Trust: An amount of Rs. 5 Crores will be

earmarked each year, a contribution towards the corpus of the GAIL Charitable and

Education Trust, till the corpus reaches a figure of Rs. 50 Crores. (The GAIL Charitable and

Education Trust have been constituted for theaward of scholarships to meritorious and needy

students and for grant of awards to the top ranking performers in select National competitive

examinations as specified in the documents of the Trust.)Contribution towards Relief for

Natural Calamities or Disasters: allocation of 10% of the CSR budget each year, subject to a

minimum of Rs. 5 Crores, will be made for rendering relief/contribution in the event of

Natural calamities or disasters affecting the communities in and around the areas where

GAIL has its operations. Need Identification, Impact Assessment, and Sponsorship of CSR

events/publications: 3% of the annual CSR Budget will be earmarked towards cumulative

expenditure on Need Identification, Impact Assessment Studies as well as towards

sponsorship of CSR events/publications.

About seven thrust areas

CSR programmes are carefully identified through a diligent process of need identification at

the grass root level and cover a wide spectrum of welfare and developmental activities, which

fall under these seven broad ‘Thrust areas’ The distribution amongst the thrust area for the

year 2010-11 is given below



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Community Development

For the year 2010-11, under the thrust area Community Development, programmes worth

Rs. 15.68 Crores are endorsed and the implementation of these projects is in progression.

GAIL (India) Ltd. extended its support for reconstruction and renovation of numerous public

utilities/building which provided a better condition of living for not only a person or family

but whole of the villages where this project was implemented. For the sustainable

development of the whole community GAIL is also supporting integrated livelihood

programmes in villages especially for small and Marginal farmers. This would be considered

as a drop in the vast ocean but GAIL along with other Oil PSU’s is contributing towards

provision of LPG connections to BPL families under Rajiv Gandhi Gram in LPG Vitrak

Yojana. This collaborative combined effort of the Oil PSUs would be able to generate a huge

wave in the ocean in UP region. GAIL believes that for providing better tomorrow for the

community where it has its working the focus should be on the future of the community i.e.

CHILDREN and STUDENTS. So in view of this belief, GAIL is providing vehicles for

distribution of Mid-Day Meal for underprivileged children of Government schools so as to



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encourage the young girls and boys to educate themselves for their better and secured life.

GAIL in the miniscule of its efforts have tried to touch every aspect of life by providing

Night shelters and blankets to villagers, adoption of destitute tribal children of the orphanage

in the tribal area, generating Aids awareness and Behavior Change Communication

programme for truckers of national highways and providing school bus for physically

challenged students.

In just two years, more than 314000 families have benefitted from the programmes under

Community Development.

Drinking Water and Sanitation

For the year 2010-11 under the thrust area Drinking Water/Sanitation, programmes worth

Rs.1.52 Crores have been sanctioned and implementation of these projects is in progression.

Recognizing that the availability of potable drinking water is a clearly identified need in

many villages of rural India, GAIL has been taking up a number of programmes in this area.

Providing bore-wells, tube-wells, hand-pumps, overhead tanks as well as storage facilities,

are some of the efforts taken in this direction. GAIL has taken up head-on projects for

improving local hygiene and sanitation practices by construction of nalas and improvement in

drainage system at different rural areas where GAIL has its presence .GAIL is also extending

its resources for the development of sanitation system including installation tube well,

pipeline, sub-mercible pump, sanitary line, etc.

Literacy Enhancement and Empowerment

For the year 2010-11 under the thrust area Skill Development/Empowerment, programmes

worth Rs. 7.38 Crores have been embarked on and implementation of these projects is in

progression.

GAIL has attempted to address the issues of un employability through skill development and

vocational training programmes undertaken at several locations. Significant measures have

been taken for the creation of livelihood opportunities and facilitating forums for effective

empowerment and self-reliance. Empowerment of differently abled and physically challenged

persons has also been promoted through several means, such as providing them with

necessary medical aids, equipment and infrastructural support. GAIL with the help of its



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implementing partners gives training (Sewing and tailoring training) and special education

(procurement of computer based visual speech training equipment and Audio Visual

Projector) for the neglected disabled children and backward people. GAIL with the aim of

providing self-sufficiency in the lives of the differently abled people distributes specialized

motorized vehicle for making them self-reliant. With its project Padho-Badho GAIL

envisages to mainstream at least 3000 rag picker children government schools through its

non-formal Education Centers for out-of-school children .Emphasizing on women

empowerment GAIL has started projects for learning for women empowerment against

poverty and imparting training on stitching and carpet weaving.

Environment Protection

For the year 2010-11 under the thrust area Environment Protection, programmes worth Rs.

5.66 Crores have been sanctioned and implementation of these projects is in progression.

GAIL’s commitment towards the Environment forms an implicit part of its vision statement

and through its CSR initiatives it has promoted this cause through specific environment-

friendly programmes. GAIL is putting its tiny steps in the field of environment protection by

plantation of saplings and trees in various areas where it has its installation. Projects related

to Rain water harvesting, water recharging and ground water reuse system have been

supported aptly by GAIL. Outspreading its support for green energy GAIL is in the process

of building a gas based crematorium at New Delhi and provision of solar lights in the rural

areas where electricity is not yet reached. Congregating environment and hygiene factors

together GAIL is also installing Sulabh Sauchayala andbiogas plants and development of

environment parks for thousands of poor laborers’livings in slums where GAIL supplies gas.

In just two years, more than 350 villagers have benefitted from the programmes under

Environment Protection.

Health Care / Medicine

For the year 2010-11 under the thrust area Healthcare/Medical, programmes worth Rs. 8.25

Crores have been embarked on and implementation of these projects is in progression.



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Investment in health care programmes has also made a significant impact in terms of

providing better health care to the marginalized sections of our society, especially women and

children in the villages adjoining our work centers.

GAIL is up gradating of existing Telemedicine Centre, physiotherapy units as well as setting

up a community hospital in the villages of U.P. Other small programmes that are carried out

for the general awareness about health are the family planning camps, eye-camps, health

awareness/T.B., thalassemia, cancer detection camps, camps for physically handicapped

persons (distribution of artificial aids and appliance) in the numerous rural areas where the

organization has its existence. In the field of mobile connectivity, GAIL has supported

various projects by providing ambulances, mobile health outreach programmes and

distribution of medicines Nishulk Chikitsa Kendra, GAIL.

As part of its routine healthcare programmes in communities around its townships and

projects, GAIL has undertaken several healthcare projects like reconstructive surgery for

leprosy patients, eye care cataract surgeries with IOL implants, cancer screening camps,

family planning camps, T.B. eradication programmes, malaria camps with treatment and free

medicines and health check up camps. GAIL’s own hospitals and dispensaries in its

townships extend medical care and treatment to the local villagers.

In just two years, more than 67795 villagers have benefitted from the programmes under

Health care/medicine.

Infrastructure

For the year 2010-11, under the thrust area Infrastructure, programmes worth Rs. 16.25

Crores have been embarked on and implementation of these projects is in progression.

In the area of infrastructure, construction of village roads, culverts, community toilets, and

other facilities in identified villages have helped to bring a facelift to these villages and

improve the quality of life of its people. For the past many years, GAIL has been constructing

community centers and approach roads with an aim to provide long lasting and permanent

development for the villages surrounding GAIL installation. GAIL is also in the process of

setting up of a specialized training center at Assam and Guna. Majority of the infrastructure



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works are carried out in the field of education and health with the sole objective of creating a

long term impact.

In just two years, more than 31000 families have benefitted from the programmes under

infrastructure.

Skill Development / Empowerment

Out of all socio- economic interventions, education has always been considered the most

powerful tool and GAIL has been regularly and consistently active in rendering contributions

towards education, either by means of providing infrastructure support for classrooms,

playgrounds, lab equipment’s to the under-equipped schools, or through direct scholarships,

etc., it has taken this thrust forward by way of setting up a Trust to carry out the programmes

in this area in a focused manner. The GAIL Charitable and Education Trust was set up in

2009 with a corpus of Rs.20 crore for dispensing scholarships and awards to meritorious poor

students on merit-cum-means basis.

Sponsoring students belonging to the lower societal strata for specialized coaching for IIT

and Engineering entrances under its project “Utkarsh Superb-30” and setting up of 50 non

formal education centers for slum children of Delhi and Noida under project “Padho Aur

Badho” , “E-Shiksha” programme for computer literacy, participation in “Mid-day Meal”

programme of Government of Delhi and corporate sponsorship of orphan children of SOS

homes at Ahmedabad, Chandigarh and Delhi are some of the very successful and satisfying

programmes undertaken over this year for supporting and promoting education among the

rural and urban poor.

One of GAIL’s most satisfying interventions in education has been the E-Siksha programme;

wherein computer labs have been set up in a self-sustained, power equipped mobile vehicle

along with one qualified instructor and teaching aids. This has been implemented in Vijaipur

and Pata as a pilot project, reaching computer education to government schools and

facilitating these students to accomplish their regular computer school curriculum through

this mobile computer aided labs. After school hours, these computer vehicles were available

to the villagers of Pata and Vijaipur for the adults to take up a course in typing and basic

computer literacy with the assistance of a trained instructor. This programme has not only

facilitated the school children and brought about computer awareness in them but has also



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empowered the village youth to undergo basic computer literacy at the end of which a

certificate of completion was awarded to the youth by the NGO, which has helped them to

gain employment with the local contractors as clerks or book keepers. These computer

courses were registered with the Ministry of HRD.

GAIL has undertaken several other projects in this area, for example, creation of

infrastructure, providing equipment, furnishings, stationery, mid-day meals among other

things. These support activities have not only helped to enhance creativity and independence

among the students and improved the attendance of children in schools. Our support to

special children through hearing aids and by providing computer with special software for

visually challenged school children has also helped such special children to join the main

stream of education.

RELIANCE CSR

Creating shared prosperity, sustainably

Initiatives in education, health, environment and social development of the weaker sections

form a sizeable chunk of Reliance’s social outreach programmes.

They contribute to the wellbeing of people by introducing sustainable measures and

providing assistance to institutions and welfare organizations. Their activities are spread

across India and reach well beyond our business locations, impacting the lives of

marginalized communities. Their initiatives have reached millions over the years and nearly

1, 50,000 people benefit from their continuing programmes every month.

Sustainable Development

They have always considered sustainable development the cornerstone of our business

strategy. They seek to achieve sustainable and profitable growth, creating thriving eco-

systems around all their businesses. Their strategy includes fostering close and continuous

interaction with the people and communities around our manufacturing divisions, bringing

qualitative changes in their lives and supporting the underprivileged.

Community Infrastructure & Environment

A large number of initiatives are focused on developing community infrastructure and

protecting the environment. Reliance has developed infrastructure for water conservation and



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constructed community halls, schools, and health centers in various locations. Some of

Reliance's initiatives to promote environment protection include investing in renewable

energy sources, promoting green plantations and spreading environmental awareness.

Environment Protection Drives

Environmental impact assessment and qualitative risk analysis are central to all their new

projects. We have converted acres of arid lands into major green zones.

Education & Skill Enhancement

Reliance supports local schools with logistical and financial support, capacity building of

teachers and infrastructure development. Reliance also organizes skill development and

income-generating programmes for local communities. Assistance is also given to such

communities by helping them to start Self Help Groups and empowering them with

marketing knowhow.

Women & Youth Empowerment Programmes

Reliance nurtures and sponsors many projects designed to educate, employ and empower

women and youth in and around the catchment areas of its operations.

Reliance Community Development Programmes

Reliance conducts several livelihood training programmes and has provided aid and

equipment to the physically challenged

Project Jagruti

A project to uplift and bring dyslexic students from the underprivileged segment into the

main stream.

Reliance Dhirubhai AmbaniProtsaham Scheme

A scheme for supporting meritorious students and providing financial aid to the toppers for

pursuing higher studies in engineering and medical streams.



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Community Healthcare

Reliance provides affordable curative and preventive healthcare services to the community

through various healthcare programmes. It has constructed health centers, operates mobile

medical clinics and emergency ambulance services, and conducts various camps on health

awareness.

Reliance is also focusing on specific areas like addressing maternal mortality and providing

support to patients suffering from chronic ailments such as AIDS and TB.

Reliance Primary Health Centre

Reliance adopted a PHC in Gujarat for catering to the community health needs under the

National Rural Health Mission Programme.

Reliance Employee Health Care Services

Reliance Occupational Health Centers, located at plants and offices, are equipped with state-

of-the-art facilities and manned by specialists to take care of the staff and their families.

Reliance HIV/DOTS Therapy Centre

This Centre’s programme for the underprivileged is run with the support from various

governmental and non-governmental organizations.

Dhirubhai Ambani Hospital

The hospital plays a significant role in improving the quality of life with its prompt and

specialized services and by providing free lifesaving treatment.

Reliance Foundation

Reliance has always made sustainable development the cornerstone of its business strategy to

achieve sustainable and profitable growth, creating in its wake thriving eco-systems around

all its businesses. To provide impetus to various philanthropic initiatives of RIL, Reliance

Foundation (RF) was set up in 2010 as an expression of its vision towards sustainable growth

in India.

India is a nation of a billion dreams, a billion aspirations and above all great opportunities. To

turn these dreams into reality, especially for the vulnerable sections of the society, Reliance

Foundation has taken the path of inclusive development to address their basic needs. Reliance

Foundation has cumulatively touched the lives of 4 million people in over 5000 villages and

various urban locations.



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DEEPAK CHARITABLE TRUST

It was a dark evening of 1981 when C.K. Mehta, Chairman of Deepak Group of Industries

(Deepak Nitrite Ltd., and Deepak Fertilizer and Petrochemical Ltd.,) on his way back home

after a busy day at the industrial plant in Nandesari (Vadodara) witnessed a woman giving

birth in a bullock cart. This disheartening episode led to the establishment of a hospital

focused on the health care of women and children in the Nandesari industrial area of

Vadodara and later evolved into the establishment of Deepak Foundation.

Deepak Foundation, a Corporate Social Responsibility of Deepak Group, was initiated in

1982 with a vision of providing healthcare facilities to the families of workers and local

communities residing in the industrial area of Nandesari. The Foundation has progressed over

the period into a leading non-profit civil society in Gujarat and has expanded its services

nationwide with branch offices in Pune, Roha and Taloja in Maharashtra, Hyderabad in

Telangana, Indore in Madhya Pradesh and New Delhi.

Vision

Empowering underprivileged communities to ensure holistic development, economic stability

and a life of dignity.

Mission

Creating a socially inclusive and sustainable environment among the underprivileged

communities by providing health care, education, capacity building and livelihood

opportunities. We envisage a world free of distress, disease, deprivation, exploitation, and

subjugation, ensuring the overall well-being of the family, society and community.

Goal

The overall goal of Foundation is to empower women by providing healthcare and livelihood

opportunities in order to improve maternal and child health, reduce poverty and build

capacity in the areas of public health and livelihood promotion.

The Foundation implements its activities in close collaboration with communities,

government, national and international non-profit organization, research and academic

institutions, and networks of civil society organizations (CSOs), including corporate sector.



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The Foundation has been accredited by Credibility Alliance and also certified as an ISO

9001:2008 organization.

Efforts of the Foundation are guided by five inter-connected core objectives.

Capacity building of frontline functionaries in public health and livelihood sectors.

Promoting practices for safe motherhood and child survival.

Strengthening health and pre-school education services.

Ensuring sustainable livelihood for underprivileged and marginalized communities.

Providing disaster relief and rehabilitation services.

SHROFF FOUNDATION

Shroffs Foundation Trust (SFT) has successfully blended the philosophy of Mahatma Gandhi,

Ramakrishna Paramhansa and Swami Vivekananda with modern science and effective

corporate management and governance systems. This unique blend of the personal with the

professional, the traditional with the contemporary, the emotional with the rational and the

prudent with the innovative has given SFT its leading edge. Persistence and patience…

moving the boulder a little bit day by day to pursue even the very prosaic ground tasks with

utmost rigor has led to many monumental transformations.

The operative strategy of the Trust is "Sahaviryam KarvaVahey", a Sanskrit phrase broadly

translated as 'the joy of togetherness together we will achieve the best, together we will grow

and together we will prosper'. The strong belief that the liberation of the vulnerable is closely

linked to the liberation of the 'liberator' is at the heart of this philosophy. In the development

lexicon, SFT places utmost emphasis on active community participation as the key to

building an empowered community.

SFT has actively groomed local SamajShilpis (local leaders/change agents) to play

meaningful roles to change the destiny of their communities from a chronicle of deprivation

and exploitation to one of enlightenment and empowerment. With this approach, SFT strives

to ensure that the capabilities of the society are built to a level where the key driver of

development and growth is the society itself, and institutions, government and funding

agencies only remain as a support system.



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For SFT, community development is not powered by an elite leadership but is the work of

every member of the community-local, regional, national and global. SFT has striven to

mobilize the support of educational and training institutes, subject specialists, government

departments, donors and concerned citizens to generate expertise and resources that are

needed to respond to the aspirations of the communities they are working with.

The commitment of the community to the long-term vision has ensured program sustenance

and resulted in remarkable and exemplary success in Vadodara, tribal Chhotaudepur district

and Banni region of Kachchh district.

Vision

The teaching of Ramakrishna Paramhansa and Swami Vivekananda:

"Each soul is potentially divine. The goal is to manifest this divinity within, by controlling

nature. Do this either by work, or worship or psychic control, or philosophy – by one, or

more, or all of these – and be free. This is the whole of religion... Doctrines or dogmas or

rituals or books or temples or forms are but secondary details."

Mission

"To assist the village population in improving their productivity, efficiency and creativity

through services and goodwill, with the support of industries, academic institutions,

voluntary and government agencies and with the guidance of competent and committed

experts by knowledge, inputs and effective management of available resources viz. land,

water, energy, livestock and people. To upgrade the quality of lives of everyone in the

villages: the children, the youth, women, men and the aged, mainly through their own

involvement, interest and initiative."

To evolve such a society through transformation of

Garibi Mukt (Poverty free )

Nyay Yukt (Fair Justice)

Shoshan Mukt (Exploitation free )

Poshan Yukt (Healthy and Nutritious)

Pradushan Mukt (Pollution free)



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Initiatives

Community Development

Natural Resource Management (NRM)

Livelihood Programs

Medical & Public Health

Education & Training

Corporate Social Responsibility

GOVERNMENT ORGANISATIONS

National Bank for Agriculture and Rural Development

Genesis

At the instance of Government of India Reserve Bank of India (RBI), constituted a committee

to review the arrangements for institutional credit for agriculture and rural development

(CRAFICARD) on 30 March 1979, under the Chairmanship of Shri B.Sivaraman, former

member of Planning Commission, Government of India to review the arrangements for

institutional credit for agriculture and rural development. The Committee, in its interim

report, submitted on 28 November 1979, felt the need for a new organizational device for

providing undivided attention, forceful direction and pointed focus to the credit problems

arising out of integrated rural development and recommended the formation of National Bank

for Agriculture and Rural Development (NABARD). The Parliament, through Act 61 of

1981, approved the setting up of NABARD. The bank came into existence on 12 July 1982

by transferring the agricultural credit functions of RBI and refinance functions of the then

Agricultural Refinance and Development Corporation (ARDC). NABARD was dedicated to

the service of the nation by the late Prime Minister Smt. Indira Gandhi on 05 November

1982.

NABARD was set up with an initial capital of Rs.100 crore. Consequent to the revision in the

composition of share capital between Government of India and RBI, the paid-up capital as on

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31 March 2013, stood at Rs 4000 crore with Government of India holding Rs.3,980 crore

(99.50%) and Reserve Bank of India 20.00 crore (0.50%).

Mission

Promote sustainable and equitable agriculture and rural prosperity through effective credit

support, related services, institution development and other innovative initiatives.

National Bank for Agriculture and Rural Development (NABARD) is an apex

development bank in India having headquarters based in Mumbai (Maharashtra) and other

branches are all over the country. The Committee to Review Arrangements for Institutional

Credit for Agriculture and Rural Development (CRAFICARD), set up by the Reserve Bank

of India (RBI) under the Chairmanship of Shri B. Sivaraman, conceived and recommended

the establishment of the National Bank for Agriculture and Rural Development (NABARD).

It was established on 12 July 1982 by a special act of the parliament and its main focus was

to uplift rural India by increasing the credit flow for the elevation of agriculture and rural

nonfarm sector and completed its 25 years on 12 July 2007. It has been accredited with

"matters concerning policy, planning, and operations in the field of credit for agriculture and

other economic activities in rural areas in India". RBI sold its stake in NABARD to the

Government of India, which now holds 99% stake. NABARD is active in developing

financial inclusion policy and is a member of the Alliance for Financial Inclusion.

Role

NABARD is the apex institution in the country which looks after the development of the

cottage industry, small industry and village industry, and other rural industries. NABARD

also reaches out to allied economies and supports and promotes integrated development.

Inorder to help NABARD discharge its duty, it has been given certain roles as follows:

1. Serves as an apex financing agency for the institutions providing investment and production

credit for promoting the various developmental activities in rural areas.

2. Takes measures towards institution building for improving absorptive capacity of the credit

delivery system, including monitoring, formulation of rehabilitation schemes, restructuring of

credit institutions, training of personnel, etc.

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3. Co-ordinates the rural financing activities of all institutions engaged in developmental work

at the field level and maintains liaison with Government of India, State Governments,

Reserve Bank of India (RBI) and other national level institutions concerned with policy

formulation

4. Undertakes monitoring and evaluation of projects refinanced by it.

5. NABARD refinances the financial institutions which finances the rural sector.

6. The institutions which help the rural economy, NABARD helps develop.

7. NABARD also keeps a check on its client institutes.

8. It regulates the institution which provides financial help to the rural economy.

9. It provides training facilities to the institutions working the field of rural upliftment.

10. It regulates the cooperative banks and the RRB’s, and manages talent acquisition through

IBPS CWE.

NABARD's refinance is available to State Co-operative Agriculture and Rural Development

Banks (SCARDBs), State Co-operative Banks (SCBs), Regional Rural Banks (RRBs),

Commercial Banks (CBs) and other financial institutions approved by RBI. While the

ultimate beneficiaries of investment credit can be individuals, partnership concerns,

companies, state-owned corporations or co-operative societies, production credit is generally

given to individuals. NABARD has its head office at Mumbai, India.

NABARD operates throughout the country through its 28 Regional Offices and one Sub-

office, located in the capitals of all the states/union territories. Each Regional Office[RO] has

a Chief General Manager [CGMs] as its head, and the Head office has several Top executives

like the Executive Directors[ED], Managing Directors[MD], and the Chairperson. It has 336

District Offices across the country, one Sub-office at [Port Blair] and one special cell at

Srinagar. It also has 6 training establishments.

NABARD is also known for its 'SHG Bank Linkage Programme' which encourages India's

banks to lend to [self-help groups] (SHGs). Because SHGs are composed mainly of poor

women, this has evolved into an important Indian tool for microfinance. As of March 2006

22 lakh SHGs representing 3.3 crore members had to been linked to credit through this

programme.

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NABARD also has a portfolio of Natural Resource Management Programmes involving

diverse fields like Watershed Development, Tribal Development and Farm Innovation

through dedicated funds set up for the purpose.

Rural innovation

NABARD role in rural development in India is phenomenal. National Bank For Agriculture

and Rural Development (NABARD) is set up as an apex Development Bank by the

Government of India with a mandate for facilitating credit flow for promotion and

development of agriculture, cottage and village industries. The credit flow to agriculture

activities sanctioned by NABARD reached Rs 1,57,480crore in 2005-2006. The overall GDP

is estimated to grow at 8.4 per cent. The Indian economy as a whole is poised for higher

growth in the coming years. Role of NABARD in overall development of India in general

and rural and agricultural in specific is highly pivotal.

Through assistance of Swiss Agency for Development and Cooperation, NABARD set up the

Rural Infrastructure Development Fund. Under the RIDF scheme Rs. 51,283 crore have been

sanctioned for 2,44,651 projects covering irrigation, rural roads and bridges, health and

education, soil conservation, water schemes etc. Rural Innovation Fund is a fund designed to

support innovative, risk friendly, unconventional experiments in these sectors that would

have the potential to promote livelihood opportunities and employment in rural areas. The

assistance is extended to individuals, NGOs, cooperatives, self help group, and panchayati raj

institutions who have the expertise and willingness to implement innovative ideas for

improving the quality of life in rural areas. Through member base of 25 crore, 600000

cooperatives are working in India at grass root level in almost every sector of economy.

There are linkages between SHG and other type institutes with that of cooperatives.

The purpose of RIDF is to promote innovation in rural and agricultural sector through viable

means. Effectiveness of the program depends upon many factors, but the type of organization

to which the assistance is extended is crucial one in generating, executing ideas in optimum

commercial way. Cooperative is member driven formal organization for socio-economic

purpose, while SHG is informal one. NGO have more of social color while that of PRI is

political one. Does the legal status of an institute influences effectiveness of the program?

How and to what an extent? Cooperative type of organization is better (Financial efficiency



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and effectiveness) in functioning (agriculture and rural sector) compared to NGO, SHGand

PRIs.

Recently in 2007-08, NABARD has started a new direct lending facility under 'Umbrella

Programme for Natural Resource Management' (UPNRM). Under this facility financial

support for natural resource management activities can be provided as a loan at reasonable

rate of interest. Already 35 projects have been sanctioned involving loan amount of about Rs

1000 crore. The sanctioned projects include honey collection by tribals in Maharashtra, tussar

value chain by a women producer company ('MASUTA'), eco-tourism in Karnataka, etc.

DISTRICT RURAL DEVELOPMENT AGENCIES

DRDA has traditionally been the principal organ at the district level to oversee the

implementation of anti-poverty programmes of the Ministry of Rural Development. This

agency was created originally to implement the Integrated Rural Development Programme

(IRDP). Subsequently the DRDAs were entrusted with number of programmes of both state

and central governments. From 1 April 1999a separate DRDA Administration has been

introduced to take care of the administrative costs. This aims at strengthening the DRDAs

and makes them more professional in managing the anti-poverty programmes and be an

effective link between the ministry and the district level.

Rural development and poverty alleviation programmes are implemented on a decentralised

basis, keeping in view the large geographical areas, the administrative requirements and the

need to involve grassroots-level officials and the community in the implementation of the

programmes. At the central level the Ministry of Rural Areas & Employment has been

implementing these programmes. The Ministry is responsible for the release of central share

of funds, policy formulation, overall guidance, monitoring and evaluation of the programmes.

At the State level PRL Secretary, Rural Development and the Commissioner of Rural

Development are overall incharge for implementation of the rural development programmes.

At the District level, the programmes are implemented through the DRDAs (District Rural

Development Agencies). The governing body of DRDA includes Members of Parliament

(MPs), Members of Legislative Assemblies (MLAs), District level officials of Development

Departments, Bankers, NGO's and representatives of weaker sections of the society. The

District Collector used to be (but not always at present) the Chairman of the Governing

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Board. The Governing body at the district level provides guidance and directions to DRDA.

The body in DRDA responsible for actual implementation is headed by an Additional District

Collector.

Many Schemes of the Central and State Governments are introduced from time to time.

Several schemes are available providing support to different components of Rural

Development. Schemes are also periodically modified to reflect the experience over the

years. The task of DRDA has been to identify the needs of the rural population and reach the

appropriate schemes where they are needed. In implementing the schemes, the role of the

DRDA has been Technical, Managerial and Financial. Thus DRDA is not only a body to

disburse the funds for the schemes but also provide appropriate Managerial and Technical

support.

District Rural Development Agencies (DRDAs) are district level development execution

and monitoring agencies created under the Indian Societies Registration Act. Substantial

sums of rural development funds of government of India were transferred and routed through

them under various Centrally Sponsored Schemes. From purely a financial resource from

Rural Development point of view the DRDAs are extremely important institutions at the

district level.[

Overview

The Government of Gujarat, having realized the importance of the all-inclusive rural

development, has been constantly endeavoring to make rural life better. While it continues to

do so, it has achieved fantastic results because of this sustained effort. The basis of Gujarat

model of development is 'People's Participation', as it reflects in its pledge of 'Collective

Efforts and Inclusive Growth'. The Rural Development stories emanating out of Gujarat show

how the State Government has enabled people to uplift their livelihoods through this model.

Gujarat has effectively utilized the funding from Mahatma Gandhi National Rural

Employment Guarantee Scheme (MGNREGS), a momentous initiative towards pro-poor

growth, to create sustainable and productive assets and in turn helped boosting the rural

economy, protecting the environment, empowering rural women, reducing rural urban

migration and fostering social equity among others.

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'Mission Mangalam' is an award-winning venture aimed at poverty elimination and women

empowerment. It aims at uplifting women belonging to the poor families by giving them

enough support to enable them to utilize their skills and improve their conditions. The

programme is implemented by Gujarat Livelihood Promotion Company.

It is one of the aims of the Honorable Chief Minister, Anandiben Patel, to see that the entire

Gujarat is free of diseases. To achieve this and through the centrally sponsored scheme of

Swachh Bharat Mission (Gramin) and state sponsored Nirmal Gujarat Yojana, Gujarat has

undertaken a task of providing every rural household with a toilet by the year 2019. Every

person in the rural areas will be made aware of the importance of healthy environment and

will be encouraged to adopt sanitation facilities along with positive hygiene behavior.

Much of the area of this state remains arid with saline water which is unusable for the

agricultural purpose. This area depends mainly on seasonal rain-water. Thus, to effectively

manage and conserve rain-water, Watershed Management Programme was incorporated. It

aims at promoting agriculture by eliminating the scarcity of water resource and in turn create

employment opportunities for the rural families.

The state government recognizes the practical and social importance of one's own house and

thus, Gujarat has been pro-active in the implementation of Indira AawasYojana, which

provides pucca houses to the rural poor.

With all this and more, the Government of Gujarat has been proactive in the amelioration of

rural lives, and it aims at continuing its efforts with increased vigour.

Mission & Vision

Mission

The sustainable and inclusive growth of rural Gujarat through a multi-pronged strategy for

eradication of poverty by increasing livelihood opportunities, developing infrastructure,

giving access to improved sanitation facilities and generating employment opportunities for

growth and improvement of the quality of life in rural Gujarat.

Vision



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Sustainable and inclusive growth of rural Gujarat

Activities

Providing funds for rural poor for construction of their houses.

Offering employment opportunities through MGNREGS.

Formation and financing of SHGs (Self Help Groups).

Supplementing the SHG programme by equipping them with vocational skills training

and placement projects.

Increasing livelihood opportunities for women by training women in bee keeping,

vermin-compost production, extraction of forest produce, etc.

Facilitating animal husbandry, agro-processing, and food processing.

Financing construction of toilets in BPL and select APL families; building community

sanitary complexes.

Management of solid and liquid waste.

Improving means of water conversation and developing better drought proofing

methods.

Construction of water harvesting structures, irrigation canals, soil and moisture

conservation systems.

Building awareness about various schemes and the benefits through IEC (Information,

Education, and Communication) activities.

Improving rural connectivity.



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REFERENCES FOR FURTHER READING A Abraham (2003), Formation and Management of NGOs, Third Edition, Universal Law

Publishing Co. Pvt. Ltd, New Delhi.

Dobriyal N (2009), NGOs and Government Organization: Role, Duties and Functions,

Sumit Enterprises, New Delhi.

D. Lewis (2001), Management of Non Governmental Development Organization,

Second Edition, Rout ledge Publication, New Delhi.

Chandra P (2005), NGOs in India: Role, Guidelines and Performance Appraisal,

Akansha Publishing House, New Delhi.

Chandra S (2001), Non Governmental Organization: Structure, Relevance, and Function,

Kanishka Publishers, New Delhi.

Panigrahy R (2006), NGO for Rural Development, Mohit Publications, New Delhi.

SooryamoorthyR (2007), NGOs in India, Rawat Publisher, New Delhi

http://www.ngo.org/ngoinfo/define.html

http://business.svtuition.org/2009/11/what-is-ngo-discuss-its-type-role-and.html

http://www.ngohandbook.org/index.php?title=What_is_a_Non-

Governmental_Organization_%28NGO%29%3F

http://www.fao.org/docrep/W5830E/w5830e0p.htm

http://en.wikipedia.org/wiki/Government_agency

http://www.fundsforngos.org/free-resources-for-ngos/organizational-chart-ngo/

https://libcom.org/library/what-structure-ngo

http://www.turkishweekly.net/article/222/historical-evolution-of-ngos-ngo-proliferation-

in-the-post-cold-war-era.html

http://www.turkishweekly.net/article/222/historical-evolution-of-ngos-ngo-proliferation-

in-the-post-cold-war-era.html

http://www.yourarticlelibrary.com/sociology/sociology-of-development/ngos-and-

development-history-and-role-in-india/30699/

http://www.fundsforngos.org/ngo-operational-policies/volunteers-and-personnel-

recruitment

http://www.fundsforngos.org/ngo-operational-policies/appointment-letter-and-staff-

orientation-at-the-ngo/

http://www.amazon.in/s/ref=dp_byline_sr_book_1?ie=UTF8&field-author=R.+Sooryamoorthy&search-alias=stripbooks

http://www.ngo.org/ngoinfo/define.html

http://business.svtuition.org/2009/11/what-is-ngo-discuss-its-type-role-and.html

http://www.ngohandbook.org/index.php?title=What_is_a_Non-Governmental_Organization_%28NGO%29%3F

http://www.ngohandbook.org/index.php?title=What_is_a_Non-Governmental_Organization_%28NGO%29%3F

http://www.fao.org/docrep/W5830E/w5830e0p.htm

http://en.wikipedia.org/wiki/Government_agency

http://www.fundsforngos.org/free-resources-for-ngos/organizational-chart-ngo/

https://libcom.org/library/what-structure-ngo

http://www.turkishweekly.net/article/222/historical-evolution-of-ngos-ngo-proliferation-in-the-post-cold-war-era.html




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