With over 30 years experience in natural resource management, the N.M. Sadguru Foundation, headquartered in Dahod, Gujarat, is one of India’s most reputed NGOs. Yet, it opted for accreditation by Credibility Alliance, a consortium of voluntary organisations committed to enhancing accountability and transparency through good governance practices.
Accreditation, however, is not the norm in the voluntary sector. This was apparent recently when the Ministry of Home Affairs (MHA) cancelled the registration of nearly 9,000 NGOs for violation of the Foreign Contribution Registration Act (FCRA) and for not filing income tax returns.
“At such times, reputation doesn’t work. Your account details, balance sheets and FCRA details speak for you,” says Kanhaiya Chaudhary, Chief Executive Officer, N.M. Sadguru Foundation.
Annual reports, accounts, FCRA details and project reports can be produced anytime if they are prepared under expert guidance. “The laws are complicated and require intensive knowledge in order to avoid violation, even unintentionally,” says Chaudhary, whose organisation has been accredited by Credibility Alliance (CA).
The Sadguru Foundation had approached CA because its director, Harnath Jagawat, was part of the inception team that led to the formation of CA. “He knew the importance of getting accredited by CA,” says Kanhaiya, who believes that CA has helped the organisation maintain transparency not only financially but also at the level of governance.
He points out that being accredited by an umbrella organisation doesn’t necessarily bring in donors but cements ties with them by endorsing the NGO’s work.
Of the two million registered NGOs, only 518 have been accredited by CA. “Half the NGOs are running only on paper and do not have any presence on the ground. Many are working in remote corners and are not aware of accreditation and its benefits,” points out Tejinder Kaur, Deputy Manager, CA.
Accreditation of NGOs is a relatively new concept in India. “Over the last 10 years we have observed greater acceptance towards it from the voluntary sector. Every month, we receive requests from 25-30 organisations for accreditation. Earlier, it would be much less. We have also evolved in the last few years, making ourselves more approachable,” says Tejinder.
CA was conceptualised 15 years ago when likeminded people from within the social sector came together to make the voluntary sector more transparent. “But before it was registered in May 2004 as an independent, not-for-profit organisation, a lot of hard work had gone into developing a set of ‘Minimum Norms for Good Governance, Accountability and Transparency of the Voluntary Sector,’ which were then circulated to over 15,000 partners, members and affiliates. More than 500 organisations provided feedback, with 94 per cent agreeing on the need for minimum norms for the voluntary sector,” said Cherag Chatwal, Director, Finance and Operations, CA.
Many donors approve of an organisation only when it has been accredited by CA. “Reputed organisations like Oxfam India, before giving a grant to any NGO, make sure it has been accredited by us. This has also helped NGOs approach us on their own to get the accreditation,” says Chatwal.
NGOs approach CA as they want to work transparently but are hampered by lack of information and awareness about the law and seek guidance. “There are many organisations who have invested their heart and soul in their work but for them documentation, board meetings and accounts is just another world,” says Tejinder.
The process of accreditation takes 20-25 days. “The NGO sends us the filled-in accreditation form available on our website along with all the required documents like annual reports, minutes of board meetings, annual audited accounts and so on. After review, an introductory letter, MoU and final accreditation form are sent to the NGO. Our regional assessors then visit the organisation for two days to check their on-ground presence, meet their board members, interact with the beneficiaries, check accounts and, based on their evaluation, share the report with CA,” explains Chatwal.
CA’s coordinator then prepares a factsheet based on the minimum norms related to identity, objectives, operations, governance, accountability and transparency. It is presented before a Central Accreditation Committee (CAC) that comprises four-five experts from the sector who meet every month to review the cases. If satisfied with the documents and the fact sheets, they approve the accreditation. If they have doubts, the file is put on hold for further clarification.
Cases put on hold require extra effort. Instead of rejecting them, CA works towards building the capacity of such organisations. “Based on the documents sent by the organisation, we identify the weak areas and hold workshops to strengthen their skills and capacities on how to demonstrate greater transparency and accountability,” explains Tejinder.
Accreditation is for five years. CA follows up with the NGOs-VOs regularly so that following the norms becomes a habit. Accredited organisations receive benefits like wider reach with the Credibility Alliance and GuideStar India websites displaying their profiles, enhanced prospects of attracting financial and other forms of support from various stakeholders, and discounted fees to access capacity-building support through various workshops.
A fee is charged for the service, depending on the grant the NGO-VO receives.
Website: www.credibilityalliance.org Phone: 011-6472 2849
Source: http://www.civilsocietyonline.com/pages/Details.aspx?754
Accreditation, however, is not the norm in the voluntary sector. This was apparent recently when the Ministry of Home Affairs (MHA) cancelled the registration of nearly 9,000 NGOs for violation of the Foreign Contribution Registration Act (FCRA) and for not filing income tax returns.
“At such times, reputation doesn’t work. Your account details, balance sheets and FCRA details speak for you,” says Kanhaiya Chaudhary, Chief Executive Officer, N.M. Sadguru Foundation.
Annual reports, accounts, FCRA details and project reports can be produced anytime if they are prepared under expert guidance. “The laws are complicated and require intensive knowledge in order to avoid violation, even unintentionally,” says Chaudhary, whose organisation has been accredited by Credibility Alliance (CA).
The Sadguru Foundation had approached CA because its director, Harnath Jagawat, was part of the inception team that led to the formation of CA. “He knew the importance of getting accredited by CA,” says Kanhaiya, who believes that CA has helped the organisation maintain transparency not only financially but also at the level of governance.
He points out that being accredited by an umbrella organisation doesn’t necessarily bring in donors but cements ties with them by endorsing the NGO’s work.
Of the two million registered NGOs, only 518 have been accredited by CA. “Half the NGOs are running only on paper and do not have any presence on the ground. Many are working in remote corners and are not aware of accreditation and its benefits,” points out Tejinder Kaur, Deputy Manager, CA.
Accreditation of NGOs is a relatively new concept in India. “Over the last 10 years we have observed greater acceptance towards it from the voluntary sector. Every month, we receive requests from 25-30 organisations for accreditation. Earlier, it would be much less. We have also evolved in the last few years, making ourselves more approachable,” says Tejinder.
CA was conceptualised 15 years ago when likeminded people from within the social sector came together to make the voluntary sector more transparent. “But before it was registered in May 2004 as an independent, not-for-profit organisation, a lot of hard work had gone into developing a set of ‘Minimum Norms for Good Governance, Accountability and Transparency of the Voluntary Sector,’ which were then circulated to over 15,000 partners, members and affiliates. More than 500 organisations provided feedback, with 94 per cent agreeing on the need for minimum norms for the voluntary sector,” said Cherag Chatwal, Director, Finance and Operations, CA.
Many donors approve of an organisation only when it has been accredited by CA. “Reputed organisations like Oxfam India, before giving a grant to any NGO, make sure it has been accredited by us. This has also helped NGOs approach us on their own to get the accreditation,” says Chatwal.
NGOs approach CA as they want to work transparently but are hampered by lack of information and awareness about the law and seek guidance. “There are many organisations who have invested their heart and soul in their work but for them documentation, board meetings and accounts is just another world,” says Tejinder.
The process of accreditation takes 20-25 days. “The NGO sends us the filled-in accreditation form available on our website along with all the required documents like annual reports, minutes of board meetings, annual audited accounts and so on. After review, an introductory letter, MoU and final accreditation form are sent to the NGO. Our regional assessors then visit the organisation for two days to check their on-ground presence, meet their board members, interact with the beneficiaries, check accounts and, based on their evaluation, share the report with CA,” explains Chatwal.
CA’s coordinator then prepares a factsheet based on the minimum norms related to identity, objectives, operations, governance, accountability and transparency. It is presented before a Central Accreditation Committee (CAC) that comprises four-five experts from the sector who meet every month to review the cases. If satisfied with the documents and the fact sheets, they approve the accreditation. If they have doubts, the file is put on hold for further clarification.
Cases put on hold require extra effort. Instead of rejecting them, CA works towards building the capacity of such organisations. “Based on the documents sent by the organisation, we identify the weak areas and hold workshops to strengthen their skills and capacities on how to demonstrate greater transparency and accountability,” explains Tejinder.
Accreditation is for five years. CA follows up with the NGOs-VOs regularly so that following the norms becomes a habit. Accredited organisations receive benefits like wider reach with the Credibility Alliance and GuideStar India websites displaying their profiles, enhanced prospects of attracting financial and other forms of support from various stakeholders, and discounted fees to access capacity-building support through various workshops.
A fee is charged for the service, depending on the grant the NGO-VO receives.
Website: www.credibilityalliance.org Phone: 011-6472 2849
Source: http://www.civilsocietyonline.com/pages/Details.aspx?754
