Pakistan Centre for

Philanthropy

Asad Zia IqbalTeam Leader, Certification

A Regional Forum“Revisiting CSO Governance and Accountability in South East

AsiaDecember 13-14, 2011

Bridging the Gap for Social Development

o A brief introduction of PCP

o Certification Programme

LAY OUT

Mission

To increase the volume and effectiveness

of philanthropy for social development in Pakistan

Pakistan Centre for Philanthropy

VisionThe three sectors of society

Business, Civil Society and Government work in a strengthened partnership for social development in

Pakistan

• Established in 2001

• Licensed under Section 42 of the Companies

Ordinance 1984

• Independent support organisation

• First GoP authorised NPO certification agency

• Led by an eminent Board of Directors

Pakistan Centre for Philanthropy

“Study on Indigenous Philanthropy” 1998 AKDN & Johns Hopkins Institute

“Steering Committee” Review findings & determine a way forward

“International Conference on Indigenous Philanthropy” 2000

“Need for an enabling environment for civil society” Endorsed the creation of PCP

Conception of PCP

Our Programmes

Certification Bridge information and credibility gap

Research Inform and influence decision making

Philanthropy Support Services

Facilitate partnerships for development

Communication &Advocacy

Raise societal understanding of philanthropy

NPO CERTIFICATION PROGRAMME8

“The NPO Certification scheme is an important asset for PCP

and its future work”

IBLF, External Evaluation of PCP, 2008

Certification

Pakistan Centre for Philanthropy

Setting Standards in Non-Profit Sector

Overview of Nonprofit Sector

o A growing sector, duly recognised as partner in development.

30000

65000 45000

Total Active

Registered

Not Registered

(Source: John Hopkins study 1998)

Revenue of NPS Rs. 16.4 bn.

6%7%

38%

49%

Government

Donor

Indigenous

Self Generated

37%35%

20%16%

11%8%

0

10

20

30

40

Social Sector

Health

Education

Environmental Protection andpreservation

Child Welfare

Other

Water and Sanitation

Source: AKDN 2000

Major Sectoral Interventions by CSOs in

Pakistan

Major Sectoral Interventions by C.CSOs

Source: PCP data

Others, 14% Micro Credit, 7%Special Educa-

tion, 4%HR Devel-

opment, 6%Advocacy, 8%Environment,

9%

Community Development,

7%Health, 56%

Education, 49%

Rural Support De-velopment, 10%

• Financial

Sustainability

• Credibility

• Capacity

• Legitimacy vis-à-vis

Government

Issues and challenges

Objectives of Certification

o To strengthen Civil Society Sector

o To bridge the information and credibility gap between grant makers and grant seekers

o To help professionalise grant making

o To help CSOs become more effective grant seekers

• Developed after collective consultations

• Optional and voluntary

• Standardized parameters (80)

• Setting sector wide standards

CSO Certification

• Certified CSOs = 226

• Evaluated CSOs = 347

• Cases Under Process = 90

o Registered, Functional for three years at least.

o Audited accounts of last three years

o Does not propagate views of any political party or religious sect

o Tax specific requirements

Evaluation StandardsMandatory Requirements

Minimum documents required for filing application

o Registration Certificate

o Memorandum & Articles of Association/Constitution/Trust deed

o Minutes of Governing Body meeting

o Audit Report for last three years

o Certification Fee

EvaluationParameters(80 Parameters)

InternalGovernance

(26 parameters)

Financial Management(25 Parameters)

ProgrammeDelivery

(29 parameters)

Approved

Rejected

Parameters Met

Desk Review Field Evaluation

Evaluation

NPO

PCP

Initial scrutiny

Parameters Not Met

Mandatory Legal Requirements Met

Taxation Authorities

Certification Panel (GoP-Non GoP)

Enhanced Credibility

Increased Donor

Assistance

PCP Directory

Tax Benefits

Mandatory Legal Requirements Not Met

Deferred

CERTIFICATION

Process

Ready reference of CSO’s

Quality AssuranceRisk Management

Identifying Credible Partners in development

Value Creation

Enhanced Credibility

Determining eligibility for Tax credits

Public Good

Promotion of GovernmentAgenda: Good Governance

        Transparency          Accountability

Indirect Capacity Building

Tax Benefits

Access to Philanthropy / Resources

Promotion through:Gateway to Giving

PCP WebsitePhilanthropy Portal

For Government For CSOs

Benefits of Certification

21

Directory of C.CSOs

“Gateway to Giving”

Directory of the Certified NPOs published, launched and disseminated. (2006-09)

Work on third edition underway

Applied to PCP for Expected Achieved

Improvement in Organisational System

60% 89%

Evaluation for Tax benefits 73 % 86%

Access to donors 46% 55%

Expectations and Actual Benefits Accrued to CNPOs

Certification Fee Structure

Certification is a highly subsidized activity.

SN Size of NPO Income Slab Fee Rate

1. Small Up to 1 mln. Rs. 10,000

2. Medium 1 1 to 5 mln. Rs. 30,000

3. Medium 1 5 to 10 mln Rs. 75, 000

4. Large1 1o to 50 mln. Rs. 100,000

5. Large2 10 to 100 mln. Rs. 150,000

6. Large3 100 mln. & above Rs. 250,000

Essentials for Success

Involve stakeholders at formative stage

Identify benefits for CSOs & other stakeholders

Credibility of the certifier

Make changes to suite the local environment

Recognition by government & donor(s)

PCP Certification Programme Replicable in other Regions?

PCP Certification Programme Replicable in other Regions?

Factors that can Jeopardize

Mandatory Certification

High Certification Fee

Discretion-Equal values not applied across the board

Non- Participatory Processes

PCP Certification Programme Replicable in other Regions?

PCP Certification Regime is Replicable

We learnt from Australia, New Zealand &

Philippines

Tajiks & Afghans are learning from us

Thank youThe three sectors of society –

Business, Civil Society and Government work in a strengthened partnership for social development in

Pakistan