1. Thinking Through Accountability
Nilda Bullain
European Center for Not-for-Profit Law (ECNL)
Budapest

2. Why is this in the focus now?
The growth both in influence and in numbers of NGOs..
The need to generate indigenous resources..
Some publicized cases of financial mismanagement or even fraud..
The desire to take advantage of favorable tax regimes..
(Social Edge report)

3. Why should it be in the focus?
It is a principle issue: NGOs have to be accountable because
They are formed to someone’s benefit (members, beneficiaries, community, public)
They are supported by the public
(members, donors, users, taxpayers)

4. The Accountability Gap
There is usually a gap between those who support (fund) the NGO and those who receive its benefits.
Unlike in the case of the business or the government sector, there is not a direct & objective & measurable indicator of whether we are accountable.

5. So how to measure it? Approaches Idealistic / Holistic
Look at the whole system including organization and its environment
Focus on theory of change in a development paradigm
Aim to measure impact building on good process
Pragmatic / Specialized
Look primarily at the organization itself
Focus on performance of areas of organizational life that are key to accountability
Aim to measure process leading to quality impact

6. How to measure? Basic values and principles shared by all approaches.
All look at both effectiveness and efficiency.
All recognize that measuring accountability is an on-going learning process for the organization.

7. Key principles in measuring accountability
Transparency / Access to information
Honesty / Credibility / Trust
Participation / Outreach /Stakeholder involvement
Reflection / Learning / Feedback
Defining what result is being measured
Defining what process is being measured

8. (Some) Key dilemmas in measuring accountability
Regulatory, contractual or voluntary?
Standardized - to what extent? Are there non-negotiables?
How to match inherent diversity with standards?
What can we apply from the government and the business sector?

9. Element: Impact What is our theory of change (presumptions)?
What change do we want to achieve (aims)?
How will it look like (impact)?
How do we know we achieved it (indicators)?
What steps lead to such change (based on our theory of change)?
What are the principles in achieving those steps (that determine but not prescribe process)?
Strategic management, RBPM, Logframes, policy development

10. Element: Performance
What is important in the process for it to be accountable? (E.g. transparency, participation)
How to adapt in the midst of constant change? (E.g. learning organization)
How to invest the money where it will produce the best results? (E.g. SROI)
How to balance stakeholder interests and ensure stakeholder satisfaction? (E.g. balanced scorecard)
How to ensure quality in our work?(QA systems)

11. Element: Governance
Governance – a system of checks and balances to ensure accountability.
Ultimately responsible for impact and performance of the organization.
Good governance is therefore central to accountability of organizations (public or private, profit or non-profit).

12. Element: Stakeholders
Ultimate judges of the accountability of the organization.
One stakeholder group may be biased but the overall picture is likely objective.
Therefore, in being accountable it is key to have access to all stakeholders’ input and feedback on an ongoing basis.

13. Initial understanding of elements of an accountability framework
principles
Impact
Self-regulation
Governance
Stakeholders
Performance
Contractual
relationships
Regulatory
environment