Albert Kuruvila Lecturer amp PhD Candidate University of Waikato New Zealand albertwaikatoacnz Better Board ConferenceJuly 282012 Significant Issues challenging the Non profit sector Financial managementfunding fundraising balancing income amp expenditure ID: 156974
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Slide1
Do It Yourself(DIY):Self Assessing Management & Governance of Non Profit Organisations
Albert Kuruvila
Lecturer & PhD Candidate
University of Waikato
New Zealand
albert@waikato.ac.nz
Better Board Conference-July 28,2012Slide2
Significant Issues challenging the Non profit sector
Financial management-funding, fundraising, balancing income & expenditure
Relationship with government
Retaining and motivating staff & volunteers
The role of the board & governance issues
Compliance with financial reporting standards
Impact of IT/Internet environment-website management
, social
netwoking
and
maintenance issuesSlide3
Significant Issues contd…
Risk management & recovery plans-disasters and economic crisis
Demand for the services
Fraud activities
Compromising organisational vision/mission with contractual obligations
Legal responsibilities & awareness
Quality of service delivery
Transparency & accountability demands from public, government and other donorsSlide4
Why we should assess our practices?
To ensure
EFFICIENCY
-How are we doing things- minimum input, maximum out put
?-Process
To ensure
EFFECTIVENESS
-Are we really making
changes- Results
Accountability
and
Transparency
obligations
Good governance and proper management are the key for efficiency and effectivenessSlide5
Why-Accountability Dimensions
Sl.No
Whom
What
1
Self
To values, ethics and philosophy
2
People
To impact on the quality of the life of the poor/disadvantaged
3
Organization
To the internal by-laws, structures & systems
4
Donor
To the terms of mutual partnership agreements
5
Government
To laws, rules and regulations of the state and central governmentsSlide6
What we should assess????
Governance & Leadership-
Board, CEO, Policies & procedures
Strategic planning & management-
Vision, Mission, Objectives, Values, Culture
Service delivery & Quality assurance
-Programme planning, implementation and evaluation- Project management
Legal responsibilities & awareness
Human resource development & management
-paid staff, volunteers-recruitment, development and retention
Systems, asset & office management-
IT, procedures
Financial management
-planning ,budgeting, fund raising, accounting, reporting, auditing, controlling ,investments and compliance
Stakeholder/relationship/partnership managementSlide7
How to assess???-A Health Check-up?
Defining standards and success for NPOs is difficult
No uniform successful practices
Needs, circumstances and aspirations of individual organisations
are different
They are not only varying from industry to industry, but also within same industry
But the key aspects of good practice are the same for most organisations
Self assessment tools are based on these good practices
Different organisations have developed different tools and should be used differently as these may reflect regional/national circumstances(
Eg
; financial reporting, charity commission
etc
)Slide8
How to do a health check-up
Health check-up is about measuring how well our organisations are doing and
also assessing
the risk level
The good practices are identified as statement of best practices defined in a five –point scale or with 3-4 options for the organisations to rate their performance
The statements can also be rated on its prominence as
Essential, Recommended & Additional
Scale Score- 0-Never, 1- Rarely, 2- Sometimes, 3-Most of the time, 4- Always (% - 0, 25,50,75,100)Slide9
Some available tools
Checklist of Non Profit Organisational indicators edited by Carter McNamara published by Greater Twin Cities United Way, USA
Self Assessment Tool for organisations edited by Fay Freeman and Sandy Thompson under SCOPE project, New Zealand,2005
Financial health checklist published by Mango,UK,2009
A Handbook of NGO Governance by Marilyn Wyatt published by the European Centre for Not-for-Profit
Law,Hungary,2004
Organisational management checklists published by NGO management
association,SwitzerlandSlide10
A Sample- GovernanceSlide11
Sample : Strategic Planning
Ref No
Rating
STATEMENT OF BEST PRACTICE
SCORE
N/A
Unsure
4
3
2
1
0
C1
E
The strategic planning exercise of the organisation involves all staff and board members with either an internal or external facilitator.
C2
E
The organisation forms or reviews its mission statement based on a detailed analysis of its external environment and internal competency.
C3
R
The written vision statement reflects the desired state of the change agreed by all members of strategic planning exercise to see in the community.
C4
R
The mission statement provides a time frame and the strategies to achieve the mission
C5
E
The objectives of the organisation ensure that the organization's purpose and activities meet community needs.
C6
R
The organisation ensures that, by soliciting community input, its mission and activities provide benefit to the community in the strategic planning process.
C7
E
The board and staff have developed and adopted a written strategic plan to achieve the mission in the form of annual plans till the next round of strategic planning process
C8
A
The strategic plan establishes an evaluation process and performance indicators to measure the progress toward the achievement of goals and objectives.
C9
A
Through work plans, human and financial resources are allocated to ensure the accomplishment of the goals in a timely fashion.
C10
R
The plan is communicated to all stakeholders of the agency -- service recipients, board, staff, volunteers and the general community.
Slide12
Sample: Service delivery & Quality assurance
Ref No
Rating
STATEMENT OF BEST PRACTICE
SCORE
N/A
Unsure
4
3
2
1
0
D1
E
The annual planning exercise is conducted by the staff under the guidance of the executive director.
D2
E
The annual planning exercise begins with the review of the last year’s performance and finishes with the plan for the next year.
D3
R
The organisation uses national and international research to keep up-to-date with the latest developments in the sector for the particular community needs the organisation is addressing in its annual planning.
D4
A
The annual planning document clearly identifies the services, projects, budget and human and financial resources to meet the programme objectives.
D5
A
Clients and potential clients have the opportunity to participate in program development.
D6
R
Output, outcome, impact, efficiency and quality of each programme are predicted and performance measures are developed to verify them well in advance.
D7
R
The planning gives adequate attention in matching the work to be done and the competency to do the work in terms of staff training and capacity building
D8
R
The organisation develops a service delivery plan with time frame for each of its programmes to track its progress
D9
R
The organisation provides necessary training for the staff to implement new programmes.
D10
E
The organisation conducts periodic monitoring of each programme to ensure its effectiveness and efficiency
D11
E
The organisation evaluates each programme to establish its outcome and impact and complies with all internal and external reporting requirements
Slide13
Sample: Human Resource Management
Ref No
Rating
STATEMENT OF BEST PRACTICE
SCORE
N/A
Unsure
4
3
2
1
0
E1
E
The organization follows non-discriminatory hiring practices.
E2
R
The organisation recruits staff through a competitive recruitment process developed and guided by HR professional.
E3
E
The organization has job descriptions, including qualifications, duties, reporting relationships, key indicators of performance and review.
E4
R
The organization provides a copy of or access to the written personnel policy to all members of the board, the Executive Director and all staff members. All staff members acknowledge in writing that they have read and have access to the personnel handbook/policies.
E5
R
The organisation provides an induction programme to its entire new staff in terms of vision, mission, policies and procedures.
E6
E
The organization requires employee performance appraisals to be conducted and documented at least annually.
E7
R
The organization has a compensation plan, and a periodic review of salary ranges and benefits is conducted.
E8
A
The organisation has a systematic method for the assignment of new or existing staff members to specific jobs.
E9
R
The organization has a timely process for filling vacant positions to prevent an interruption of program services or disruption to organization operations.
E10
A
The organization has a process for reviewing and responding to ideas, suggestions, comments and perceptions from all staff members.
Slide14
Sample: Office Management
Ref No
Rating
STATEMENT OF BEST PRACTICE
SCORE
N/A
unsure
4
3
2
1
0
F1
R
Information systems are in place, providing secure, timely, accurate and relevant information to all relevant staff
F2
R
The website of the organisation is managed by an appropriate qualified or experienced person /firm.
F3
E
Computer systems (including email) are adequate and effective and there are regular backup systems in place.
F4
R
All staff members are aware of the organisation’s information systems, are knowledgeable in their use, and make use of them as needed.
F5
A
The manager holds regular staff meetings in groups or as individuals
F6
A
Each staff meeting has agenda and minutes for the same
F7
E
The organisation has a policy on keeping private information according to Privacy Act (1993
) and is explained to the clients
Slide15
Sample: Financial Management
Ref No
Rating
STATEMENT OF BEST PRACTICE
SCORE
N/A
Unsure
4
3
2
1
0
G1
E
The organisation follows accounting practices which conform to accepted standards
G2
R
Both finance and programme staff are involved in setting budgets
G3
E
The annual budget includes programme costs, administrative costs, personnel costs and overheads .This budget is reviewed and approved by board of directors.
G4
E
The organisation prepares cash flow projections
G6
R
The organisation periodically forecasts year-end revenues and expenses to assist in making sound management decisions during the year
G7
A
Funds are raised in an ethical manner for activities consistent with the organization's mission and plan.
G8
R
The Board of Directors and organization staff are knowledgeable about the fundraising process and the roles in the organization.
G9
A
The organization's Board of Directors has established a committee charged with developing, evaluating and reviewing fundraising policies, practices and goals.
Slide16
Sample: Relationship Management
Ref No
Rating
STATEMENT OF BEST PRACTICE
SCORE
N/A
unsure
4
3
2
1
0
H1
E
The organisation provides background information on the NGO including vision,mission,values,legal status, operational areas and contact information to beneficiaries and other stakeholders on a regular basis
H2
R
The organisation informs all the concerned stakeholders any significant changes to its programmes,governance,management and key contacts
H3
A
The organisation identifies representatives of the specific groups of people which aim to help in the beneficiary community through appropriate process
H4
R
The beneficiaries and other stakeholders have substantial influence on NGO decisions in programme planning,implementation,monitoring and evaluation
H5
A
The organisation documents and publicises its success stories for other NGOs for reference and adaptation
Slide17
RESOURCES
http
://
www.ecnl.org/dindocuments/18_Governance%20Handbook.pdf
– Good Governance checklist
M
anagement
checklists
http
://ngomanager.org/resources-2/library/
http
://www.mango.org.uk/Guide/HealthCheck
http://www.tindall.org.nz/scope-capacity-building-pilot-project/
http://managementhelp.org/organizationalperformance/nonprofits/index.htm
www.
tindall
.org.
nz
/assets/Resources/.../
Legacydocumentfinal.doc
http://www.grantthornton.co.nz/Assets/documents/home/NFP-report-2011-2012.pdf
www.intrac.org-
NGO training centre
Research on
NGO sector-
http://ccss.jhu.edu
/