Startinting NGO

8/13/2019 Startinting NGO

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Starting an NGO:

Introduction

Cover page:Starting anNGO

You may not get itthe first time ...

You may not haveenough money

initially ...

You may not knowwhat exactly to do

...

You may not be

able to fightmistrust and

apathy ...

Introduction

Key Ingredients ofan NGO

Establish the NGO'sBoard of Directors

Develop the NGO'sBye-laws

Register the NGO

Funding and Fund-

Raising Office Management

Networking andProjectManagement

Starting a non-governmental organization or a non-profit organization(NGO/NPO) can be a lengthy, time consuming process. However, the

difficulties of the process can be minimized by following a consistentseries of steps and seeking advice when needed.

NGO/NPOs provide much needed services to their respective

communities, and thorough planning during the start-up process is

crucial to develop an effective and professional organization that is able

to meet the myrid challenges faced by the world today.

There are many classifications of NGO/NPOs as determined by

individual country's laws and regulations, including co-ops, creditunions, societies, people's organizations or community groups etc. The

classifications can also designate NGO/NPOs as a religious, charitable,

educational, scientific, literary or other organizations. Theseorganizations may qualify for income tax exemption, or other financial

benefits. Regional and local tax exemptions may also apply on a region

by region basis.

This article provides an outline of the general steps needed for starting

and incorporating a NGO/NPO. Detailed instructions for each of these

steps can typically be obtained from local governments or a designated

government agency/board, an attorney, or a local nonprofit managementsupport organization.

The issues covered here are of a very general nature, and actual

situations will, of course, vary from country to country. Starting an

NGO/NPO may only require a strong vision, or a need, for people tocome together as a group and work to satisfy that need. NGOs can range

from 1-2 persons working on a single local issue to an international

NGO network with thousands of members working globally on a range

of issues.

This feature is primarily based on the work of GDRC, itself an NGO,

and the interaction it has had with other NGOs via its programme, the

"NGO Café".

http://www.gdrc.org/ngo/start-ngo/index.html



http://www.gdrc.org/ngo/start-ngo/youmaynot-1.html












http://www.gdrc.org/ngo/start-ngo/startngo-2.html



















































Starting an NGO:

Key Ingredients of an NGO

Cover page:Starting an

NGO



initially ...


...

You may not beable to fight

mistrust andapathy ...

Introduction

KeyIngredients ofan NGO

Establish theNGO's Board ofDirectors

Develop theNGO's Bye-laws

Register theNGO

Funding andFund-Raising

OfficeManagement


The key ingredients that make or break an NGO/NPO, of course, are its programmes and projec

covers the issues and themes that the NGO/NPO addresses, the target areas or communities thatworks in, funding available and the activity's partners.

These are influenced by, among other things:

the felt needs of target community (what are the real problems faced by the target

community? How can the NGO/NPO identify them, or create a forum where it can be

expressed by the community?)

staff expertise available (what expertise and skills do the NGO/NPO staff posess? Are thfull-time or part-time staff? How can external human resources be mobilized?)

funding strategy (what sources of funding can the NGO/NPO tap into? Which of these a

local and international? How can funds for short-term and long-term activities bemobilized?)

While it is critical that a new NGO/NPO ensure that it is properly registered with the publicauthorities of the country, it is of even more importance to 'register' with its target community -

terms of ensuring acceptability, building trust, programme and project effectiveness, and bringi

about real change.







































































Starting an NGO:

Establish the NGO's Board of Directors




initially ...


...

You may not beable to fightmistrust and

apathy ...

Introduction

Key Ingredientsof an NGO



Register the

NGO


OfficeManagement


Prior to incorporating or registering, an organization should first establish a Board of Directors

an Advisory Board and develop the organization's mission. The members of the board, as a grou

have trustee and legal responsibility for the actions and operation of the organization. There are

minimum levels of involvement required of board members in organizational and operationalmanagement:

financial management

planning

programme

resource development (fund raising)

human resource management

information management

marketing and public relations

governance (board affairs)

One of the steps in incorporating is filing the NGO's bye-laws (also called articles of association

incorporation) and many authorities require multiple officer and board member signatures.





































































Starting an NGO:

Develop the NGO's Bye-laws




initially ...


...


apathy ...

Introduction




Register theNGO


OfficeManagement


Bylaws are the set of rules under which the organization will operate. They typically include suitems as (a) number of members, term length, nomination process, committees, and meetings; (b

fiscal year/accounting cycles, committees, and officers' responsibilities; (c) methodologies, tool

and strategies, monitoring and evaluation etc.; and (d) how to amend the bylaws themselves.

Note that Bye-laws can also be called the NGO's "constitution" , "article of association" or

"statues", depending ont he law of a particular country.

Typical bye-laws of an NGO will contain the following information:

Preamble Organization name and acronym

Organizational logo

Basic aim and purpose of organization

Mission statement

Functions

Membership (types, conditions/qualifications of members, status, length of service,

procedure to become members, rights and obligations, termination)

Advisory board (role and functions, qualitifications of board members, authority, electio

members)

Organizational structure

Asset mamagement (Finance and property, membership fees)

Legal status

Contact address

Dissolution of NGO

Ammendments, modifications, revisions of bye-laws







































































Starting an NGO:

Register the NGO




initially ...


...

You may not be

able to fightmistrust and

apathy ...

Introduction




Register theNGO


OfficeManagement


The NGO's name: Check to see if the proposed name of the organization is already in Check with the local government registry or similar agency/board to see if your propos

name is already taken. It may be necessary to provide two or three optional names for t

NGO/NPO! This also applies to the logo of the NGO, if you plan to use one.

Registering or incorporating within your local government. It will be necessary toincorporate the organization within its given local government/agency by writing and fi

the necessary forms. In most countries, there are specialized departments or officers wi

local governments that deal with registering an NGO (which may also be called by othe

different names: non-profit organization, voluntary organization, people's organization,etc.)

There are several documents that need to be submitted, and these differ from country to

country. Information on the NGO/NPO Board, its mission statement, programmes and

projects info, staff members, funding sources, etc. will be necessary.

A typical set of documents to be submitted to the appropriate authority for registering a

NGO includes - Memorandum of Association or Bye-laws, including applicable rules aregulations; report of annual activities, financial reports/audit reports; sources and patteof income and expenditure; minutes of the Executive Board or General Assembly that

endorses the setting up of the NGO; letters of support (references) etc.







































































Starting an NGO:

Funding and Fund-Raising




initially ...


...


apathy ...

Introduction




Register the NGO


Office Management


Funding and Fund raising: Remember money does not growon trees. Even if a 'donation' is made to a programme or activity,it is done with an objective in mind - sometimes simply to get

good karma. This is critical to understand when we approach a

potential sponsor - why is he donating? What advantages canthey obtain? What PR milage can they receive from the act?

It is equally important to maintain professionalism, within the NGO, to build adequate trust with the poptential sponsor or

donor. Transparancy, accountability, communication etc. should

be an integral part of the NGO. A good strategy is to create aworking advisory group for each project or activity. This groupwill have two types of members - strategic members, who will

give weight and legitimacy, (and will also bring in key non-

financial resources) to the activity, and financial members whowill make the actual contribution, based on the strength of the

strategic members!

Do not always depend on external or large sources of funding -

sometimes, it can come from surprising sources in your own

backyard.

Tax exemption: File for tax exemption with the national tax

authority (where available). Now that you have formed your board, incorporated your organization, and developed your

bylaws you are ready to file with the tax authorities for tax-

exemption. The national tax authority may require a number offorms for this process. Be prepared to have the following

information ready:

o A description of the organizations purpose and programs,

including: who the organization serves and why,constituency demographics, examples of training

materials, workshops, and other services, etc.o Financial information: sources of funding; financial

statements (revenue and expense statement and a balancesheet) for three prior or two projected years.

































































Starting an NGO:

Office Management




initially ...


...


apathy ...

Introduction




Register the NGO


OfficeManagement


Seek staff and office supplies. Volunteers, staff secondments,retired advisors etc. help in reducing personnel costs. Bulk

purchases, surplus sales, voluntary donations, are ways to reduce

costs. Some common forms of support include:

o Consulting services (management, advertising,

marketing, promotion, legal, taxation, financial, strategic

planning, project design, system development etc.)

o Financial support (capital costs, feasibility studies, small business start-up costs, credit facilities for purchase of

assets, sponsorships, travel grants, deficit finance etc.)

o Donate equipments (machinery, furniture, computers,office equipment and other infrastructure)

o Donate products (educational, health care, construction,

raw materials etc.)

o In-kind gifts (could be any products other than thecompany’s line of business)

o Loaned talent /executive sabbatical (paid time off to

perform volunteerwork)

o Public relations services (NGO branding through

corporate approaches)

o Technical assistance

o Use of corporate services/facilities (financial andadministrative support services, meeting space, mailing

services, computer services, printing and duplicating etc.)

o Extend dealerships of products to NGOs, have amarketing partnerships forNGO products

o Sponsor salaries of NGO professionals for a certain

period

Applying for a nonprofit bulk mail permit. NGO/NPOs

receive additional discounts on bulk mailings. To receive these

discounts, an organization must apply for a nonprofit bulk mail

permit. Contact a local post office and request the necessary

information packet for this permit. Insure the organization. Basic insurance coverage for the

organization, its directors, and officers is critical when forming

an effective and responsible organization. Many associations of NGO/NPOs offer group purchasing programs for insurance and

other services such as supplies, employee benefits, and banking

services. Basic insurance coverage should include the following policies:



































































o Worker's Compensation

o General Liability

o Director's and Officer's Liability

Starting an NGO:

Networking and Project Management


You may not get it

the first time ...


initially ...


...


apathy ...

Introduction




Register the NGO


Office Management


Networking and Partnership: Networking - getting in touchwith institutions, organizations, and individuals - anyone and

everyone - who can be of help to the policies and programmes isa very critical aspect of an NGO's functioning.

Private sector: Do not hesitate to partner with the private sector

- a company, a business, a supermarket chain etc. This partnership should not be for funding purposes alone. Private

sector actors can bring many other resources too.

Remember that - (a) NGOs stand to gain by being efficient and productive, engaging the commercial environment in their

outreach and influencing companies to be socially responsible,and (b) Companies stand to gain by being seen as sociallyresponsible, actively participating in social development and

nation building, enlightened self-interest - poverty eradication

benefits the corporate sector in the long run, and also raisingemployee morale.

BEsides, you can always learn a thing or two in project/officemanagement from the private sector!





























































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