1. NGO Accountability and Good Governance:
From the Donor´s
Point of View
NGO Accountability & Good Governance
Budapest, December 2004

2. Donors are interested in:
NGO Accountability and Governance From the Donor’s Point of View
Donors are interested in:
organizational aspects
Are there both executive and governance structures?
Are they separated?
Is the oversight real, not only symbolic?
Is it clear who makes what, who is responsible for what?
Is NGO staff aware of and does it respect the above mentioned?
financial aspects and transparency
Are there effective budgeting and fiscal systems at place?
Is there an effective oversight over financial issues?
Is the NGO transparent?
NGO Accountability & Good Governance
Budapest, December 2004

3. And also, Standard tools for finding out:
NGO Accountability and Governance From the Donor’s Point of View
Standard tools for finding out:
registration documents and statutes
budgets and financial statements
names of statutory representatives and staff
annual reports, audited statements
other promotional materials and web
 verification by the signature of the statutory representative
And also,
direct contacts with the NGO
„soft knowledge“
NGO Accountability & Good Governance
Budapest, December 2004

4. Additional tools for finding out:
NGO Accountability and Governance From the Donor’s Point of View
Additional tools for finding out:
planning documents
organizational charts
written statements from the management and/or Board
And, above all,
direct contacts with the NGO
„soft knowledge“
NGO Accountability & Good Governance
Budapest, December 2004

5. What can donors realistically find out?
NGO Accountability and Governance From the Donor’s Point of View
What can donors realistically find out?
 Are there both executive and governance structures?
 Are they separated?
 Is the oversight real, not only symbolic?
 Is it clear who makes what, who is responsible for what?
 Is NGO staff aware of and does it respect the above mentioned?
 Are there effective budgeting and fiscal systems?
 Is there an effective oversight over financial issues?
 Does the NGO want to be transparent?
 Is it really transparent?
NGO Accountability & Good Governance
Budapest, December 2004

6. Intervene, or not to intervene?
NGO Accountability and Governance From the Donor’s Point of View
Intervene, or not to intervene?
That is the question...
Donor has no right to intervene into the „internal organizational life“ of grantees,
BUT
Donor could and should strive to influence the overall environment - e.g. through:
establishing and promoting standards of good practice
making explicit what the minimum standards are
setting conditions reflecting these aspects in grant rounds
  
NGO Accountability & Good Governance
Budapest, December 2004

7. How can donors help NGOs?
NGO Accountability and Governance From the Donor’s Point of View
How can donors help NGOs?
through funding individual NGOs
institutional grants
general support grants and/or funding for overheads
technical assistance grants
through funding overall capacity
trainings, consultancy etc.
experience-sharing, networking
information and publication activities
And, above all, through
providing their own good example
providing encouragement and advice whenever possible
NGO Accountability & Good Governance
Budapest, December 2004