Startinting NGO

Starting an NGO: Introduction
Cover page: Starting an NGO You may not get it the first time ... You may not have enough money initially ... You may not know what exactly to do ... You may not be able to fight mistrust and apathy ...
Starting a non-governmental organization or a non-profit organization (NGO/NPO) can be a lengthy, time consuming process. However, the difficulties of the process can be minimized by following a consistent series of steps and seeking advice when needed. NGO/NPOs provide much needed services to their respective communities, and thorough planning during the start-up process is crucial to develop an effective and professional organization that is able to meet the myrid challenges faced by the world today. There are many classifications of NGO/NPOs as determined by individual country's laws and regulations, including co-ops, credit unions, societies, people's organizations or community groups etc. The classifications can also designate NGO/NPOs as a religious, charitable, educational, scientific, literary or other organizations. These organizations may qualify for income tax exemption, or other financial benefits. Regional and local tax exemptions may also apply on a region by region basis. This article provides an outline of the general steps needed for starting and incorporating a NGO/NPO. Detailed instructions for each of these steps can typically be obtained from local governments or a designated government agency/board, an attorney, or a local nonprofit management support organization. The issues covered here are of a very general nature, and actual situations will, of course, vary from country to country. Starting an NGO/NPO may only require a strong vision, or a need, for people to come together as a group and work to satisfy that need. NGOs can range from 1-2 persons working on a single local issue to an international NGO network with thousands of members working globally on a range of issues. This feature is primarily based on the work of GDRC, itself an NGO, and the interaction it has had with other NGOs via its programme, the "NGO Caf".
Introduction Key Ingredients of an NGO Establish the NGO's Board of Directors Develop the NGO's Bye-laws Register the NGO Funding and FundRaising Office Management Networking and Project Management
Starting an NGO: Key Ingredients of an NGO

The key ingredients that make or break an NGO/NPO, of course, are its programmes and projects. It covers the issues and themes that the NGO/NPO addresses, the target areas or communities that it works in, funding available and the activity's partners. These are influenced by, among other things:
the felt needs of target community (what are the real problems faced by the target community? How can the NGO/NPO identify them, or create a forum where it can be expressed by the community?) staff expertise available (what expertise and skills do the NGO/NPO staff posess? Are they full-time or part-time staff? How can external human resources be mobilized?) funding strategy (what sources of funding can the NGO/NPO tap into? Which of these are local and international? How can funds for short-term and long-term activities be mobilized?)
Introduction Key Ingredients of an NGO Establish the NGO's Board of Directors Develop the NGO's Bye-laws Register the NGO Funding and Fund-Raising Office Management Networking and Project Management
While it is critical that a new NGO/NPO ensure that it is properly registered with the public authorities of the country, it is of even more importance to 'register' with its target community - in terms of ensuring acceptability, building trust, programme and project effectiveness, and bringing about real change.
Starting an NGO: Establish the NGO's Board of Directors

Prior to incorporating or registering, an organization should first establish a Board of Directors or an Advisory Board and develop the organization's mission. The members of the board, as a group, have trustee and legal responsibility for the actions and operation of the organization. There are minimum levels of involvement required of board members in organizational and operational management:

financial management planning programme resource development (fund raising) human resource management information management marketing and public relations governance (board affairs)
One of the steps in incorporating is filing the NGO's bye-laws (also called articles of association or incorporation) and many authorities require multiple officer and board member signatures.
Starting an NGO: Develop the NGO's Bye-laws

Bylaws are the set of rules under which the organization will operate. They typically include such items as (a) number of members, term length, nomination process, committees, and meetings; (b) fiscal year/accounting cycles, committees, and officers' responsibilities; (c) methodologies, tools, and strategies, monitoring and evaluation etc.; and (d) how to amend the bylaws themselves. Note that Bye-laws can also be called the NGO's "constitution" , "article of association" or "statues", depending ont he law of a particular country. Typical bye-laws of an NGO will contain the following information:

Introduction Key Ingredients of an NGO Establish the NGO's Board of Directors Develop the NGO's Byelaws Register the NGO Funding and Fund-Raising Office Management Networking and Project Management
Preamble Organization name and acronym Organizational logo Basic aim and purpose of organization Mission statement Functions Membership (types, conditions/qualifications of members, status, length of service, procedure to become members, rights and obligations, termination) Advisory board (role and functions, qualitifications of board members, authority, elections, members) Organizational structure Asset mamagement (Finance and property, membership fees) Legal status Contact address Dissolution of NGO Ammendments, modifications, revisions of bye-laws
Starting an NGO: Register the NGO

The NGO's name: Check to see if the proposed name of the organization is already in use. Check with the local government registry or similar agency/board to see if your proposed name is already taken. It may be necessary to provide two or three optional names for the NGO/NPO! This also applies to the logo of the NGO, if you plan to use one. Registering or incorporating within your local government. It will be necessary to incorporate the organization within its given local government/agency by writing and filing the necessary forms. In most countries, there are specialized departments or officers within local governments that deal with registering an NGO (which may also be called by other different names: non-profit organization, voluntary organization, people's organization, etc.) There are several documents that need to be submitted, and these differ from country to country. Information on the NGO/NPO Board, its mission statement, programmes and projects info, staff members, funding sources, etc. will be necessary. A typical set of documents to be submitted to the appropriate authority for registering an NGO includes - Memorandum of Association or Bye-laws, including applicable rules and regulations; report of annual activities, financial reports/audit reports; sources and pattern of income and expenditure; minutes of the Executive Board or General Assembly that endorses the setting up of the NGO; letters of support (references) etc.
Starting an NGO: Funding and Fund-Raising

Funding and Fund raising: Remember money does not grow on trees. Even if a 'donation' is made to a programme or activity, it is done with an objective in mind - sometimes simply to get good karma. This is critical to understand when we approach a potential sponsor - why is he donating? What advantages can they obtain? What PR milage can they receive from the act? It is equally important to maintain professionalism, within the NGO, to build adequate trust with the poptential sponsor or donor. Transparancy, accountability, communication etc. should be an integral part of the NGO. A good strategy is to create a working advisory group for each project or activity. This group will have two types of members - strategic members, who will give weight and legitimacy, (and will also bring in key nonfinancial resources) to the activity, and financial members who will make the actual contribution, based on the strength of the strategic members! Do not always depend on external or large sources of funding sometimes, it can come from surprising sources in your own backyard.
Tax exemption: File for tax exemption with the national tax authority (where available). Now that you have formed your board, incorporated your organization, and developed your bylaws you are ready to file with the tax authorities for taxexemption. The national tax authority may require a number of forms for this process. Be prepared to have the following information ready: o A description of the organizations purpose and programs, including: who the organization serves and why, constituency demographics, examples of training materials, workshops, and other services, etc. o Financial information: sources of funding; financial statements (revenue and expense statement and a balance sheet) for three prior or two projected years.
Starting an NGO: Office Management

Seek staff and office supplies. Volunteers, staff secondments, retired advisors etc. help in reducing personnel costs. Bulk purchases, surplus sales, voluntary donations, are ways to reduce costs. Some common forms of support include: o Consulting services (management, advertising, marketing, promotion, legal, taxation, financial, strategic planning, project design, system development etc.) o Financial support (capital costs, feasibility studies, small business start-up costs, credit facilities for purchase of assets, sponsorships, travel grants, deficit finance etc.) o Donate equipments (machinery, furniture, computers, office equipment and other infrastructure) o Donate products (educational, health care, construction, raw materials etc.) o In-kind gifts (could be any products other than the companys line of business) o Loaned talent /executive sabbatical (paid time off to perform volunteerwork) o Public relations services (NGO branding through corporate approaches) o Technical assistance o Use of corporate services/facilities (financial and administrative support services, meeting space, mailing services, computer services, printing and duplicating etc.) o Extend dealerships of products to NGOs, have a marketing partnerships forNGO products o Sponsor salaries of NGO professionals for a certain period Applying for a nonprofit bulk mail permit. NGO/NPOs receive additional discounts on bulk mailings. To receive these discounts, an organization must apply for a nonprofit bulk mail permit. Contact a local post office and request the necessary information packet for this permit. Insure the organization. Basic insurance coverage for the organization, its directors, and officers is critical when forming an effective and responsible organization. Many associations of NGO/NPOs offer group purchasing programs for insurance and other services such as supplies, employee benefits, and banking services. Basic insurance coverage should include the following policies:
o o o
Worker's Compensation General Liability Director's and Officer's Liability
Starting an NGO: Networking and Project Management

Networking and Partnership: Networking - getting in touch with institutions, organizations, and individuals - anyone and everyone - who can be of help to the policies and programmes is a very critical aspect of an NGO's functioning. Private sector: Do not hesitate to partner with the private sector - a company, a business, a supermarket chain etc. This partnership should not be for funding purposes alone. Private sector actors can bring many other resources too. Remember that - (a) NGOs stand to gain by being efficient and productive, engaging the commercial environment in their outreach and influencing companies to be socially responsible, and (b) Companies stand to gain by being seen as socially responsible, actively participating in social development and nation building, enlightened self-interest - poverty eradication benefits the corporate sector in the long run, and also raising employee morale. BEsides, you can always learn a thing or two in project/office management from the private sector!

Startinting NGO

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Startinting NGO

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Starting an NGO: Introduction

Starting an NGO: Key Ingredients of an NGO

Starting an NGO: Establish the NGO's Board of Directors

Starting an NGO: Develop the NGO's Bye-laws

Starting an NGO: Register the NGO

Starting an NGO: Funding and Fund-Raising

Starting an NGO: Office Management

Worker's Compensation General Liability Director's and Officer's Liability

Starting an NGO: Networking and Project Management

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