FINANCIAL MANAGEMENT ESSENTIALS FOR NGOs ( Adapted

Transcript:FINANCIAL MANAGEMENT ESSENTIALS FOR NGOs ( Adapted:
FINANCIAL MANAGEMENT ESSENTIALS FOR NGOs ( Adapted from Management Accounting for NGOs - Mango Training Manual) BY ATOGBON GREGORY Our goal in the NGO sector is to provide development assistance to ‘help people help themselves’. NGOs deliver quality work when their work is based on a sensitive and dynamic understanding of beneficiaries’ realities, responds to local priorities in a way beneficiaries feel is appropriate, and is judged to be useful by beneficiaries. Our work should respect people’s right to make their own decisions about their own lives. NGOs are only one factor in people’s efforts and we often do not understand local situations and priorities very well. Our work is only sustainable if it is based on local people’s priorities. It is very unlikely to persuade people to feel a sense of ownership over ‘our’ priorities. Funds are given to help beneficiaries not NGOs – It is not our money. We have a responsibility to make sure that it is useful to beneficiaries as possible. ‘Two golden rules’ ONE: NGOs’ front line staff have to maintain a good quality dialogue with the people they aim to help. The first Golden Rule requires staff to build up dialogue with all local groups of people, including the poorest and most marginalised. It requires managers to ask two key questions at each stage of the project cycle: Who is making decisions or analysing the situation? Do activities help people build up their self-confidence and ability to tackle their own priorities? NGOs can choose to make themselves accountable to the people or partners they aim to help, for example managing – and reporting – how their front line staff interact with local people and partners. This can empower local people, allowing them to increase their influence over what the NGOs do. This is sometimes called downward accountability. Downward accountability Accountability – generally – is the responsible use of power. It means that people can participate in decisions that affect them, 'have a say' in decision-making processes and complain when a decision is made poorly or has unexpected and unwelcome consequences. The Humanitarian Accountability Partnership. ‘Two golden rules’ continued TWO: NGOs depend on their front line staff and have to help them make good judgements – and check whether they do. Providing front line staff with good quality information Helping front line staff build up their own skills, especially financial Reinforcing the commitment to helping