The One Thing All Successful NGOs Have in Common: A Robust Financial Framework

 “The ‘financial framework’ is the term for the policies, procedures, regulations and standing orders we use to make sure we’re taking proper care of public money.” – Powys County Council

Similar to a business, it is imperative to establish a robust financial framework for an NGO. A financial framework provides an organised system that guides and supports the financial operations and structure of the organisation.  It includes internal financial control mechanisms to prevent financial mismanagement such as misuse or theft of funds and assets, non-compliance of an organisation or government policies and regulations, and inaccurate financial reporting. NGOs also face several problems, including inadequate resources, lack of capacity building, lack of performance measurement instruments, and inefficient management. Setting up a proper financial framework will help resolve some, if not all, of them.

Continue reading “The One Thing All Successful NGOs Have in Common: A Robust Financial Framework”

Tricks on How NGOs Can Survive Without Funding

Anne Frank once wrote, “No one has ever become poor by giving”.  But to give, you need to have. Every organisation needs funding to operate. Like any organisation, NGOs need money to cover their costs- capital costs, operation costs, overhead costs, staff costs, etc. NGOs, in particular, depend primarily on grants and donations for survival.

What happens when the organisation runs out of money? Donations are made at random, and grants are often subjected to conditions. With a limited budget and uncertain cash inflow, NGOs often have to curtail their spending at the cost of quantity and quality of their work. Under these circumstances, NGOs find it difficult to plan for the long term and ensure the longevity of their humanitarian programmes. Preemptively, NGOs should develop a stable funding source and steadily achieve autonomy from donor funds and grants.

Continue reading “Tricks on How NGOs Can Survive Without Funding”

Social Entrepreneurship: A Catalyst for Economic Development

In this highly materialistic and turbulent world, it is no surprise that most countries are chasing economic development as a potential panacea for our social ills.

Trade wars have erupted, global resources exploited, inequality flourished, but if there is anything that has been consistently keeping up with the caprices of capitalism while fostering wellbeing, it is social entrepreneurship. Social entrepreneurs act as a major engine in the economic machine through their business activities and fuel development by raising the quality of life of the population.

Continue reading “Social Entrepreneurship: A Catalyst for Economic Development”

6 Reasons Why Mauritian NGOs Should Convert to Social Enterprises

It is 2021, 76  years since the term NGO became popular with the founding of the United Nations in 1945. Organisations that strive for the betterment of humanity have existed since the dawn of time, though the shape they take has constantly been evolving.

In the late 1970s in the UK, social entrepreneurship emerged as an alternative business model with the traditional profit motive and a social, environmental and governance focus. Our tiny nation is blessed with more than 300 active NGOs, yet not many social enterprises. Whether out of ignorance, lack of skills, complexity or sheer refusal to mix business with the social world, many NGOs do not alter their models, even though social enterprises tend to be more scalable and sustainable.

Continue reading “6 Reasons Why Mauritian NGOs Should Convert to Social Enterprises”