NGO Power point

Presentation on structure and governance of a typical local NGO Greg Martin, AVI advisor, Feb 2010

1. Background (from Member Committee meeting 22 January, 2010) “...during the discussion it became clear that there is no common understanding of the roles and responsibilities within XXX especially concerning the responsibilities of the Management Committee and the Co-ordinator / Manager” “...points out that initially ...the founder of XXX had the ultimate decision power about all matters concerning XXX”.

2. NGO’s general • • • • •

The basic structure of NGO’s is common across many countries.

The Articles, sometimes called By-Laws, Statutes or Constitution is the “Rule bookHow to manual”.

NGO’s that operate following the “Rule book-How to manual” are efficient, transparent, legal and promote and encourage good governance...

Make it easy for members, staff, donors and associates to understand what they are doing and how they will do it...

Which promotes trust and confidence for donors, members, stakeholders and staff ensuring a long term productive future.

3. Working Structure • • • • •

The basic structure consists of Members who...

Elect a board or Management Committee (MC) who...

Set the direction, act as a review body via the Articles and appoint, guide and direct the Co-ordinator / Manager who... guides and directs staff and associates

4. Articles (The Rule book­How to manual) • • • • • •

Describes What the organisation is about and How it will be done.

Contains the vision, mission and objectives statement of the organisation Contains who does what - the roles and responsibilities of office holders Contains the broad structure of the organisation Is not only a legal document (it should be registered) but a “HOW TO MANUAL” on the organisation Can be used as a decision making filter or template 1

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All MC members and senior staff should have a copy and refer to it to make decisions.

5. Vision statement, Mission and Objectives •

Tells everyone the purpose of the organisation, what it will be like and how it will be done.

From the XXX Articles or Bylaws (CHANGE to your own NGO)

Vision (What we want it to be / look like) A strong ecotourism network organization dedicated to sustainable tourism that empowers community and promotes local livelihood, conservation and visitor satisfaction.

Mission (What we need to do) Strengthen the ecotourism network by serving the needs of its members, communities and visitors.

Objectives (How we will do it) ¾ ¾ ¾ ¾

To facilitate sharing and exchange of information, experiences and resources To provide capacity building to its members and other relevant stakeholders To conduct marketing and promotion of XXX sites To encourage dialogue between community, private sector, civil society and relevant authorities and to engage in relevant public policy formulation process ¾ To develop XXX accreditation system ¾ To continue to strengthen XXX organisation policy framework

6. Vision statement, Mission and Objectives: A Decision Making Tool.

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Can be used as a decision making tool, filter or template Example. To make money it has been suggested that XXX go into partnership with a man who has a shop selling cigarettes at the Russian Market?

Does it fit the Vision?

Mission?

Objectives?

7. Structure and governance of the organisation (how it should do things) • • •

Is set out in the Articles.

Are legal rules and guidelines The Articles (and their use) are often used by donors and stakeholders to assess an organisation (e.g. is the organisation properly set up so I can donate money knowing it will be managed transparently and appropriately) 2

8. Important structure and governance points for XXX (Note you will have to insert your own organisation here from the articles or by laws but many will be similar) 6.1 General 6.1.5 “...The members define the vision and guide XXX towards it by being the ultimate authority in XXX. The members are concerned with guiding the development of strategies and policies which ensure that the goals and activities of CCBEN have relevance and importance to the promotion and advancement of community based ecotourism in Cambodia”.

9. Roles and Responsibilities of the Management Committee 6.3.1 “The Management Committee is required to ensure that the aims and objectives of XXX are being implemented...”

6.3.3 “Adopt and oversee the policies and procedures of XXX”.

6.3.6 “To oversee the proper utilization, management, accounting and auditing of the income and expenditures of XXX.” 6.3.8 “... delegate tasks to recruited staff (via co-ordinator or manager) and to terminate staff when necessary”

10.

Composition of the Management Committee

6.4.1 “...shall ultimately be composed of 5 organization members...including the following officers...”

11.

Qualifications of Management Committee Members

6.5.1 At least half of the members of the Management Committee shall be Cambodian Nationals.

12.

Terms of Office

6.6.10 Management Committee Members who are unable to attend a MC meeting shall provide an explanation in writing in advance of the meeting. If a member accumulates 3 absences per calendar year the organization member is required to select a replacement representative.

13.

Duties Of MC Officers

6.7.1 through to 6.7.5 sets out the duties of MC officers

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14.

Management Committee Meetings

6.8.3 “At least half of the Management Committee members must be present to constitute a quorum....and all decisions shall be recorded in the minutes ...”

15.

Management Committee Records

6.9.1 “...Minutes of meetings shall be distributed to all members...The minutes of each meeting shall be approved at the next regular members or Management Committee meeting respectively”.

16.

Discussion •

As stated in 6.1.5 “...The members define the vision and guide XXX towards it by being the ultimate authority ...” and 6.3.1 “The MC is required to ensure that the aims and objectives of XXX are being implemented...” therefore as elected by the Members it is the MC who set the direction and define its activities (via the Articles) of XXX not employed staff.

Employed staff of XXX can and should research and advise on the direction and activities of XXX but it is the members representatives, the MC who make the decision on direction and activities.

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The management committee is comprised of 5 representatives from Members of XXX. This provides important checks and balances as decisions in the MC have to be voted on and a majority is needed to pass a resolution. This structure; ¾ Gives the Members via their representatives on the MC decision making power and a voice. ¾ Increases knowledge and experience in decision making (i.e. 5 peoples knowledge and experience not one ) ¾ Promotes good governance (not one person making decisions)

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Employed staff carry out the directions of the MC and provide them with information that is requested. (Note this is usually only done through the Coordinator to save time and confusion) How detailed the directions are to staff is up to the MC. They can be broad suggestions to step by step directions. They should be recorded in the minutes.

The co-ordinator’s role is to manage the day to day operations and staff and to implement the directions from the MC. He can and should analyse,

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prepare and submit ideas, directions and strategies to the MC for their consideration and approval within the guidelines they have given him.

17.

Funds of XXX

8.3 All funds of XXX shall be its property and no staff or member shall whether in an official or personal capacity misuse the funds.

8.5 It is the responsibility of the MC or their delegated representative to ensure that staff are managing the funds of XXX properly and in a transparent and accountable manner.

8.6 No core members of XXX shall receive any funds or property as remuneration by virtue of being a member of XXX. Management Committee members and core members shall only be reimbursed expenses incurred in carrying out the official business of XXX as authorized by the members in XXX policies.

18.

Amendment of the By­Laws

13.2 To request an amendment to the Bylaws at least two thirds of the members of XXX shall agree to sponsor the resolution of amendment, alteration or modification.

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Summary

The structure of an NGO like XXX has been around for a long time in many different countries and situations and if followed provides checks and balances, diversity of knowledge and experience and ensures good and legal governance.

The Articles (Rule book-How to manual) sets out the governance of XXX and if followed enables smooth, efficient running of the organisation with ¾ Less confusion in roles and objectives by members, donors and stakeholders ¾ Less confusion in roles and objectives by office holders and staff ¾ Provides important checks and balances ¾ Ability to act quickly and decisively ¾ Ability to deal with problems quickly Donors (who provide the majority of funds to keep NGO’s operating) are increasingly demanding guarantees and demonstrations of good governance.

Any changes to XXX structure, rules or guidelines and therefore the Articles need to be voted on as set out in the Articles

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