Accountability structures in NGO’s and CSO’s A self instructive PowerPoint presentation useful for CSO and NGO practitioners Picture from accountability workshop in India, March 2010

Why Accountability? A Civil Society Organisation without proper accountability systems is fragile and open to rumours about mismanagement and abuse of power. Picture from accountability workshop in India, March 2010

Why Accountability Worst of all, it will prevent it from enjoying respect and full legitimacy in the eyes of its stakeholders including those duty bearers whom they intend to engage with advocacy. Picture from accountability workshop in India, March 2010

Why Accountability Further more, sound accountability structures is the most important aspect of prevention and detection of corruption. Picture from accountability workshop in India, March 2010

Accountability Structures – a definition Accountability is the ability to account for your actions and performance to your stakeholders Accountability includes that someone (your stakeholders) are willing and able to hold you accountable With the willing and able aspect of the definition we have an operational understanding of accountability which can guide us in asking questions to accountability structures in our organisation ccountability Obligation to demonstrate that work has been conducted in compliance with agreed rules and standards or to report fairly and accurately on performance results vis a vis mandated roles and/or plans (DAC). UM/Danida

The sport club or a Community Based Organisation The simplest accountability structure:

The sport club or a Community Based Organisation The simplest accountability structure: Football entusiasts from a small town come together – they form their own small club or association – and they become members

The sport club or a Community Based Organisation Members Football enthusiasts – or poor market venders - from a small town come together – they form their own small club or association – and they become members

The sport club or a Community Based Organisation Members Among themselves they elect a board and they develop the necessary rules of the organisation

The sport club or a Community Based Organisation Members Board Resources from members – e.g. membership fees are channeled through the board

The sport club or a Community Based Organisation Members Resources Board Resources from members – e.g. membership fees are channeled through the board to....

The sport club or a Community Based Organisation Members Resources Board Resources Activities

The sport club or a Community Based Organisation Members Resources Board Resources Activities Hiring a coach, renting a playing field. Organising a market cleaning mechanism ,

The sport club or a Community Based Organisation Members Resources Board Resources Accountability - feed back Activities It is easy for members to hold the Board accountable – did the training take place? Did the market become clean? Have they spent the resources in an efficient way? Etc.

The sport club or a Community Based Organisation Members Resources Board Resources Accountability - feed back Activities It is easy for members to hold the Board accountable – did the training take place? Have they spent the resources in an efficient way? Etc.

The sport club or a Community Based Organisation Members Resources Board Resources Accountability - feed back Activities …and they are very willing to hold the Board accountable since the resources invested is their own.

The typical NGO or CSO has a similar structure Members Board Management The typical NGO or CSO has a similar structure

The levels might be called different names… but still… The typical NGO or CSO Members Board Management The owners, the patronages Executive committee, steering group, management group, board of directors Administration, direction, daily leader, The levels might be called different names… but still…

The number of members often is limited to 10-50 members The typical NGO or CSO Members Board Management Most often the organisation has a member base consisting of appointed prominent persons from the area of operation or influential in other ways. The number of members often is limited to 10-50 members

Members Board Management The typical NGO or CSO Members Board Management Maybe the organsations was started by some of these members as in the football club / CBO case

Members Board Management The typical NGO or CSO Members Board Management Or maybe it was rather founded by a specific person who is still central at Board or management level?

Members Board Management The typical NGO or CSO Members Board Management Anyway, strong accountability structures between these levels are important

Members Board Management The typical NGO or CSO Members Board Management Anyway, strong accountability structures between these levels are important And we can ask: ”Is there ability and willingness to fulfill accountability functions?”

We can ask questions like: How often does the Board meet? The typical NGO or CSO Members We can ask questions like: How often does the Board meet? Is the Board elected by the member base through General Meetings? Do management report properly to the Board? Board Management * Are members of the board capable of understanding financial and narrative reports? etc.

activities, operations, staff, The typical NGO or CSO Members Board Management activities, operations, staff, Management leads activities with the help from staff or volunteers

activities, operations, staff, The typical NGO or CSO Members Board Management activities, operations, staff, Management leads activities with the help from staff or volunteers Also here accountability matters…

activities, operations, staff, The typical NGO or CSO Does our management promote open, inclusive and respectful behaviour within the staff team? Is staff capable of reporting back to management ? Etc etc Members Board Management activities, operations, staff, Also here accountability matters…

activities, operations, staff, The typical NGO or CSO Members Board Management activities, operations, staff, Staff or volunteers work directly with the communities Community Participants

What can staff and management do to secure this? Members The typical NGO or CSO And we can ask: Is the community ready and capable of holding the organisation accountable? What can staff and management do to secure this? Members Board Management activities, operations, staff, Community Participants

activities, operations, staff, The typical NGO or CSO Members Board Management activities, operations, staff, Sometimes a CBO is between the organisation and the community CBO Community Participants

Activities, operations, staff, The typical NGO or CSO Members Board Management Activities, operations, staff, Producing a even longer accountability chain CBO Community Participants

activities, operations, staff, The typical NGO or CSO Members Board Management When funds for activities come from outside the organisation the accountability chain becomes longer again activities, operations, staff, CBO Community Participants

Sometimes funds come through an international partner The typical NGO or CSO Members Board Management Sometimes funds come through an international partner activities, operations, staff, CBO Community Participants

Who has got the funds either from private sources or public sources The typical NGO or CSO Govern- ment Private donations Members Board Management Who has got the funds either from private sources or public sources activities, operations, staff, CBO Community Participants

The accountability structures are: activities, operations, staff, The typical NGO or CSO Govern- ment Private donations Members Board Management The accountability structures are: activities, operations, staff, CBO Community Participants

The accountability structures are: COMPLEX! The typical NGO or CSO Govern- ment Private donations Members Board Management The accountability structures are: COMPLEX! activities, operations, staff, CBO Community Participants

And if we only look at the money flow chain The typical NGO or CSO Govern- ment Private donations Members Board Management And if we only look at the money flow chain activities, operations, staff, CBO Community Participants

And if we only look at the money flow chain – The typical NGO or CSO Govern- ment Private donations Members Board Management And if we only look at the money flow chain – We see how LONG it is! activities, operations, staff, CBO Community Participants

activities, operations, staff, The typical NGO or CSO Govern- ment Private donations Members Board Management …but hold on! What happened to these two levels – are they still in the loop? Or have they become disconnected? activities, operations, staff, CBO Community Participants

Comparing the two models we find at least three things:

Comparing the two models we find at least three things: The money chain in the NGO / CSO model with international funding is very long – and accountability is complex In many NGO’s the members are not equal to the end users as is the case with the football club (or the Peoples Organisations and many CBO’s) In the football club model there is an obvious owner to the resources, namely the members. The other model lacks such obvious owner!

The ”Aid Chain” invites to corruption!! Dramatically speaking we can conclude that the ”Aid Chain” actually invites to corruption!! The fact that corruption is NOT everyday matter is probably due to: High moral standards of people involved Good accountability structures with proper checks and balances put in place in spite of the challenges