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 28,2012
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 issues
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 donors
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 effectiveness
Why-Accountability Dimensions
Sl.No
Whom
What
1
2
Self
People
3
Organization
4
Donor
5
Government
To values, ethics and philosophy
To impact on the quality of the
life of the
poor/disadvantaged
To
the
internal
by-laws,
structures & systems
To the terms of mutual
partnership agreements
To laws, rules and regulations of
the
state
and
central
governments
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 management
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)
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, 3Most of the time, 4- Always (% - 0, 25,50,75,100)
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,Switzerland
A Sample- Governance
Ref
No
Rating
STATEMENT OF BEST PRACTICE
B1
E
The roles of the Board and the Executive Director are defined and respected, with the
Executive Director delegated as the manager of the organization's operations and the
board focused on policy and planning.
B2
E
The Executive Director is recruited, selected, and employed by the Board of
Directors. The board provide clearly written expectations and qualifications for the
position, as well as reasonable compensation.
B3
R
The Board of Directors acts as governing trustees of the organization on behalf of the
community at large and contributors while carrying out the organization's mission and
goals
B4
R
The Board's nominating process ensures that the board remains appropriately diverse
with respect to gender, ethnicity, culture, economic status, disabilities, and skills
and/or expertise.
B5
E
The board members receive regular training and information about their
responsibilities
B6
E
New board members are oriented to the organization, including the organization's
mission, bylaws, policies, and programs, as well as their roles and responsibilities as
board members
SCORE
4
3 2 1
0
N/
A
Unsure
Sample : Strategic Planning
Ref
No
Rating
STATEMENT OF BEST PRACTICE
SCORE
4 3
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.
2
N/
A
1
0
Unsure
Sample: Service delivery & Quality
assurance
Ref No
Rating
STATEMENT OF BEST PRACTICE
D1
E
The annual planning exercise is conducted by the staff under the guidance of the executive director.
D2
E
D3
R
D4
A
D5
A
The annual planning exercise begins with the review of the last year’s performance and finishes with
the plan for the next year.
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.
The annual planning document clearly identifies the services, projects, budget and human and
financial resources to meet the programme objectives.
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
D11
E
The organisation conducts periodic monitoring of each programme to ensure its effectiveness and
efficiency
The organisation evaluates each programme to establish its outcome and impact and complies with all
internal and external reporting requirements
SCORE
4 3 2
N/A Unsure
1
0
Sample: Human Resource
Management
Ref
No
Rating
STATEMENT OF BEST PRACTICE
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.
SCORE
N/
4 3 2 1 0 A
Unsure
Sample: Office Management
Ref
No
Rating
STATEMENT OF BEST PRACTICE
SCORE
4
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
3
N/
A
2
1
0
unsure
Sample: Financial Management
Ref
No
Rating
STATEMENT OF BEST PRACTICE
SCORE
4
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.
3
N/
A
2
1
0
Unsure
Sample: Relationship Management
Ref
No
Rating
STATEMENT OF BEST PRACTICE
SCORE
4
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
3
N/
A
2
1
0
unsure
RESOURCES
• http://www.ecnl.org/dindocuments/18_Governance%20Handbook.
pdf – Good Governance checklist
Management 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/NFPreport-2011-2012.pdf
• www.intrac.org- NGO training centre
• Research on NGO sector- http://ccss.jhu.edu/