1. Internews Network Ukraine Media Project (U-Media) Evidence-based Local Capacity Development in Ukraine October 2012

2. Overview To build sustainable NGO media support institutions – a core component of a U-Media program, implemented by Internews and funded by USAID Internews uses a research-based method to strengthen sustainability of Ukrainian media sector NGOs LCD priority areas: (1) readiness for international audit; (2) organizational strategic planning; (3) diversification of funding In late 2014, at least three U-Media sub-grantees should be ready to receive direct USAID funding

3. Research-based approach Internews conducted a baseline organizational capacity assessment of 12 sub-grantees using SATI and OSS methodology in 2009. After three years of assessment, in 2011, Internews increased the capacity of 11 out of 12 media NGOs. Three NGOs moved from the category of Young to Mature. In 2012, two sub-grantees significantly diversified their funds through receiving direct assistance from other big donor – SIDA (Swedish International Development Agency).

4. Organizational Capacity Assessment: SATI and OSS Methodologies by Components External systems and standards 1. Financial viability and resource mobilization 2. Service delivery 3. Productive partnerships 4. Strategic outreach and branding 5. Sector leadership Internal systems and standards 6. Leadership and governance 7. Mission and strategic management 8. Management practices and systems 9. Human resources 10. Financial management systems 11. Adaptive capacity (M&E)

5. Measuring impact QuantitativelyLCD OutcomesDirect Assistance Baseline indicators of organizational capacity Organizational strategic plans Monitoring sub-grantees funds diversification Annual tracking of indicators according to SATI and OSS methodologies Internal policies and procedures manuals Hiring external consultants to media NGOs Financial management & fundraising systems Series of trainings: e.g., strategy development & implementation; financial management & fundraising; NGO marketing Monitoring & evaluation system Peer-to-peer sharing experience

6. LCD components: Readiness to international audit ActivitiesResults Training & mentoring on what an international audit is based on Guidelines for Financial Audits Contracted by Foreign Recipients, USAID, Office of Inspector General) Sub-grantees developed internal policies & procedures manuals Training audit: one quarter of operations is a subject to a full audit by a Ukrainian company according to USAID guidelines Sub-grantees hired key financial & admin staff Site visits of Internews financial staff to evaluate internal procedures in accordance to A-133 Audit Compliance Supplement Sub-grantees improved their financial management systems

7. LCD components: Organizational strategic planning ActivitiesResults Series of trainings on the topics important for development of organizational strategies Seven media NGOs submitted strategic plans demonstrating a shift in an organizational mindset Peer-exchange to generate interest among sub-grantees hesitant to invest in strategic planning Several partners from Mature category hired external consultants and started the process of strategic planning

8. LCD components: Diversification of funding ActivitiesResults Training on fundraising and proposal writing Several Mature sub-grantees revised their communication policies and re-structured organizational charts after re- assessment of staff qualification Individual analysis and discussions with sub- grantees of organizations funding profiles and organizations goals Several Mature sub-grantees increased their non-USAID funding by 20-25%

9. Challenges Defining LCD: communicating expectations regarding capacity building Creating buy-in for LCD: local organizations should see the value added of investing resources in the capacity building components (e.g. strategic planning) Identifying Sensitivity Gaps: training audits were perceived as disruptive for local organizations. Better communication prior to the training audit would create trustful professional relations between auditors and organizations Documenting & Promoting LCD Success: local organizations need best practices from similar organizations in their countries that benefited from LCD.