1 Accountability Structures in NGOs and CSOs A self instructive PowerPoint Presentation for CSO and NGO practitioners Picture from an Accountability Workshop in India, March 2010

2 Accountability Structures in NGOs and CSOs  Please note, that this presentation also exists in a version without guiding text for the facilitator  Find it here

3 Why Accountability?  A CSO without proper accountability systems is fragile and open to rumours about mismanagement and abuse of power. Picture from Accountability Workshop in India, March 2010

4 Why Accountability?  Worst of all, it will prevent it from enjoying respect and full legitimacy in the eyes of its stakeholders, including the duty bearers whom they intend to engage in i.e. advocacy. Picture from Accountability Workshop in India, March 2010

5 Why Accountability?  Furthermore, a sound accountability structure is the most important aspect of prevention and detection of corruption. Picture from Accountability Workshop in India, March 2010

6 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

7 The Sports Club or a Community Based Organisation The simplest accountability structure:

8 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

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

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

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

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

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

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

15 The Sport Club or a Community Based Organisation Members Activities Board Resources Accountability - feed back 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?

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

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

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

19 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

20 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 might be limited to members.

21 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

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

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

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

25 The Typical NGO or CSO Members Board Management We can ask questions like: How often does the board meet? Is the board elected by the member base through annual general meetings? Do management report properly to the board? Are members of the board capable of understanding financial and narrative reports?

26 The Typical NGO or CSO Members Board Management Management leads activities with the help from staff or volunteers Activities, operations and staff

27 The Typical NGO or CSO Members Board Management Management leads activities with the help from staff or volunteers Activities, operations and staff

28 The typical NGO or CSO Members Board Management Does our management promote open, inclusive and respectful behaviour within the staff team? Is staff capable of reporting back to management? activities, operations and staff.

29 The Typical NGO or CSO Members Board Management Activities, operations and staff Community Members Staff or volunteers work directly with the communities

30 The Typical NGO or CSO Members Board Management activities, operations, staff, Community Members Is the community ready and capable of holding the organisation accountable? What can staff and management do to secure this?

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

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

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

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

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

36 The Typical NGO or CSO Members Board Management Activities, operations and staff Community Participants The accountability structures are: CBO Govern- ment Private donations

37 The Typical NGO or CSO Members Board Management Activities, operations and staff Community Members The accountability structures are complex! CBO Govern- ment Private donations

38 The Typical NGO or CSO Members Board Management Activities, operations and staff Community Members And if we only look at the money flow chain… CBO Govern- ment Private donations

39 The Typical NGO or CSO Members Board Management Activities, operations and staff Community Members And if we only look at the money flow chain…we see how long it is… CBO Govern- ment Private donations

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

41 Comparing the two models we find at least three things:

42 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 NGOs the members are not equal to the end users as is the case with the football club  In the football club model there is an obvious owner of the resources, namely the members, whereas the other model lacks such obvious ownership

43 The ‘Aid Chain’ invites to corruption!  Dramatically speaking, we can conclude that the ‘Aid Chain’ actually invites to corruption!  The fact that corruption isn’t widespread is probably due to: 1.High moral standards of people involved 2.Good accountability structures with proper checks and balances put in place in spite of the challenges