Enhancing Credibility Presentation by Subhash Mittal Nurturing Partnerships for Developing Sustainable CSOs IIC, February 19, 2010

Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Approach  Developing a Transparency & Accountability Framework

Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Accountability Framework Overall Objective  To operate in a transparent manner and be accountable to its main stakeholders.

Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Strategy for achieving the objective  Installing a strong internal control environment which enhances transparency.  Identifying accountability needs /requirements of main stakeholders.  Putting in a system which helps fulfil these requirements.

Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Main Stakeholders  Members/Trustees of the Society / Trust  Employees  Fund Providers  Government  Communities

Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Members / Trustees  Byelaws / Trust Deed generally requires annual audited accounts to be presented and approved in General Meeting  Mostly medium to large CSOs provide Annual Reports covering audited accounts as well as activity report.

Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Fund providers Institutional Donors -Providing reports and complying with agreement terms. -Agrees to independent audits / evaluations. -Provides Utilisation Certificates

Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Fund providers………. Cont’d Individuals  Providing reports / information to the donors (challenge how to keep donor satisfied so that s/he continues to provide donations)  Keeping donor involved in what you are doing so that her / his interest in the organisation / activity continues (desired)

Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 GOVERNMENT Income Tax  Audited accounts to be filed with Income Tax authorities alongwith an annual return (Form 10B).  Applying for renewal of S. 80G exemptions. (authority to issue tax-exempt receipts to individual donors).  Compliance with tax withholding provisions.  Withholding (TDS) returns to be filed regularly. FCRA  Annual audited return to be filed with Ministry of Home Affairs.

Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Employees  Paying dues as agreed to.  Creating working conditions which are conducive to work.  Keeping employees informed of major developments within organisation.  Staff Development (desired)

Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Communities  No defined accountability parameters (challenge) From donor perspective  Best accountability of utilisation of funds can come from community – develop social audit strategies which are part of program strategies From the CSOs point of view  Sustainability of activity  Scope for community to even fund the activities

Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Transparency framework Within organisation  A good internal control system helps ensure transparency over activities after elapse of time  Documentation of procedures makes everyone aware of processes, reducing scope for arbitrariness

Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Transparency framework ……… cont’d Outside organisation  Providing sufficient details about the CSO’s activities both physicals as well as financials will help provide credibility about the organisation to the public at large  Wherever possible provide information in the format that it is easy to compare.

Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Strong Suggestion Each CSO must develop a written Accountability & transparency framework for itself. This would help generate strong credibility with its stakeholders.

Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Thank you.