CERTIFICATION

Building Confidence – Adding to Credibility and Trust

A Programme of ‘Pakistan Centre for Philanthropy’ (PCP)

CSOs

Building Effective Development Partners

PAKISTAN FACT SHEET

(Source: UN Human Development Report 2011 – The World Fact Book , 2012)

190 Million population

10th Largest Labor Force

15% Population is unemployed

24% Population lives below poverty line

140 Countries have a better literacy rate than Pakistan

100 Countries have a better ratio in “Human Poverty Index”

145th on Human Development Index

PAKISTAN FACT SHEET

1. Individuals gave $ 820 Million in cash and goods

(Pakistan – 1998)

2. Individuals gave $ 1.17 Billion in cash and goods (Punjab

– 2009)

3. Corporate Giving for Social Development is $ 37.1 Million

(2010)

4. Total giving by Pakistanis in USA is to the tune of $ 1

Billion (2005)

Source: “Individual Indigenous Philanthropy” AKDN study 2000“Individual Indigenous Philanthropy in Punjab” PCP Study 2011“Corporate Philanthropy in Pakistan” 2010

A Giving Nation…

2nd Largest Development Aid Recipient in Asia

PAKISTAN FACT SHEET

Source: Organization for Economic Co-operation and Development (OECD) – Aid Statistics, 2012

Overview of Civil Society Sector

(Source: John Hopkins study 2002)

Active CSOsIn Pakistan

A growing sector, duly recognised as partner in development

30,000

65,000

45,000

Total CSOsIn Pakistan

Not Registered

Registered

Active CSOs

No recent data available…

Overview of Civil Society Sector

(Source: John Hopkins study 2002)

20% 16%

37%

8%

35%

11%

Health Education Environment Child Welfare

Other WaterSanitation

Major Sectoral Interventions by CSOs in Pakistan

1. Limited Credibility

2. Lack of Transparency

3. Governance – Capacity to deliver is limited

4. Financial Sustainability

1. Trust deficit

2. Lack of information

3. Limited capacity of CSOs

… Donors

Obstacles… CSOs

1. Weak regulatory regime

2. Lack of knowledge of CSO sector

1. Need to inform society on citizen led developments initiatives

2. Show casing success stories and lessons learnt

… Media

… Government

Obstacles

CSOs

CERTIFICATIONSetting standards in nonprofit sector

Road to Credibility

Road to Credibility

Road to Credibility

Road to Credibility

1.To strengthen Civil Society Sector

2.To bridge the information and credibility gap between grant makers and grant seekers

3.To help professionalise grant making

4.To help CSOs become more effective grant seekers

Objectives of Certification

Helping to build an enabling environment embedding Knowledge and Trust

1.Developed after Research and Study of different

models

2.Designed after collective consultations

3.Optional and voluntary

4.Standardized parameters (80)

5.Setting sector wide standardsi. Certified CSOs = 237

ii. Evaluated CSOs = 361

CSOsCertification

Major Sectoral Interventions by Certified CSOs

Source: PCP data, 2011

Others, 14% Micro Credit, 7%

Special Education, 4%

HR Development, 6%

Advocacy, 8%

Environment, 9%

Community Devel-opment, 7%

Health, 56%

Education, 49%

Rural Support Development, 10%

1.Registered, Functional for three years at least.

2.Audited accounts of last three years

3.Does not propagate views of any political party or

religious sect

4.Tax specific requirements

Mandatory Requirements

EvaluationStandards

1.Registration Certificate

2.Memorandum & Articles of Association/

Constitution/ Trust deed

3.Minutes of Governing Body meeting

4.Audit Report for last three years

5.Certification Fee

Minimum Documents

Required for Filing Application

Internal

Governance

(26 parameters)

Financial

Management(25 Parameters)

Programme

Delivery (29 parameters)

Evaluation

Parameters

Win WinFor All

Govt. – CSOs –

Donors

Ready reference of CSO’s

Quality AssuranceRisk Management

Identifying Credible Partners in development

Determining eligibility for Tax credits

Public Good

Promotion of GovernmentAgenda: Good Governance

Transparency Accountability

For Government

Benefits of Certification

Value Creation

Enhanced Credibility

Indirect Capacity Building

Tax Benefits

Access to Philanthropy / Resources

Promotion through:Gateway to Giving

PCP WebsitePhilanthropy Portal

For CSOs

Benefits of Certification

Donors

Benefits of Certification

Certification

Fee StructureSN Size of

CSOIncome Slab

(Rs.)Fee Rate

(Rs.)

1 Small Up to 1 Million 15,000

2 Medium 1 1 – 5 Million 45,000

3 Medium 2 5-10 Million 100,000

4 Large 1 10–50 Million 175,000

5 Large 2 50 – 100 Million 225,000

6 Large 3 100 Million and above 325,000

Applied to PCP for Expected Achieved

Improvement in Organisational System60% 89%

Evaluation for Tax benefits 75 % 86%

Access to donors 45% 55%

Expectations and Actual Benefits Accrued to C-CSOs

Bridging the Information Gap

“Gateway to Giving”

o Directory of the Certified CSOs published, launched and disseminated. (2006-10)

o Work on third edition underway

CSO Certification Updates

Over 2000 Government officials oriented

Over 60 orientation sessions with stakeholders held

Govt. funding certification to the tune of Rs. 58.3 million (2006-2011)

• Donors making certification a requirement for funding

• Govt. also sporadically asking for certification before funding

• Number of NPOs seeking certification on the rise

CSO Certification Updates

PCP Certification Programme Replicable in other Regions?

PCP Certification Regime is Replicable

We learnt from Australia, New Zealand &

Philippines

Tajiks, Afghans and Canadians learning from us

Our Mission “We aim to increase the volume and effectiveness

of philanthropy for social development”

Our Vision “The three sectors of society – business, civil

society and government – work in a strengthened

partnership for social development in Pakistan”

Programmes

Certification of CSOs

Research Studies

PhilanthropySupportServices

Communication& Advocacy

THANK YOUPakistan Centre for Philanthropy