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Pakistan Centre for
Philanthropy
Asad Zia IqbalTeam Leader, Certification
A Regional Forum“Revisiting CSO Governance and Accountability in South East
AsiaDecember 13-14, 2011
Bridging the Gap for Social Development
o A brief introduction of PCP
o Certification Programme
LAY OUT
Mission
To increase the volume and effectiveness
of philanthropy for social development in Pakistan
Pakistan Centre for Philanthropy
VisionThe three sectors of society
Business, Civil Society and Government work in a strengthened partnership for social development in
Pakistan
• Established in 2001
• Licensed under Section 42 of the Companies
Ordinance 1984
• Independent support organisation
• First GoP authorised NPO certification agency
• Led by an eminent Board of Directors
Pakistan Centre for Philanthropy
“Study on Indigenous Philanthropy” 1998 AKDN & Johns Hopkins Institute
“Steering Committee” Review findings & determine a way forward
“International Conference on Indigenous Philanthropy” 2000
“Need for an enabling environment for civil society” Endorsed the creation of PCP
Conception of PCP
Our Programmes
Certification Bridge information and credibility gap
Research Inform and influence decision making
Philanthropy Support Services
Facilitate partnerships for development
Communication &Advocacy
Raise societal understanding of philanthropy
NPO CERTIFICATION PROGRAMME8
“The NPO Certification scheme is an important asset for PCP
and its future work”
IBLF, External Evaluation of PCP, 2008
Certification
Pakistan Centre for Philanthropy
Setting Standards in Non-Profit Sector
Overview of Nonprofit Sector
o A growing sector, duly recognised as partner in development.
30000
65000 45000
Total Active
Registered
Not Registered
(Source: John Hopkins study 1998)
Revenue of NPS Rs. 16.4 bn.
6%7%
38%
49%
Government
Donor
Indigenous
Self Generated
37%35%
20%16%
11%8%
0
10
20
30
40
Social Sector
Health
Education
Environmental Protection andpreservation
Child Welfare
Other
Water and Sanitation
Source: AKDN 2000
Major Sectoral Interventions by CSOs in
Pakistan
Major Sectoral Interventions by C.CSOs
Source: PCP data
Others, 14% Micro Credit, 7%Special Educa-
tion, 4%HR Devel-
opment, 6%Advocacy, 8%Environment,
9%
Community Development,
7%Health, 56%
Education, 49%
Rural Support De-velopment, 10%
• Financial
Sustainability
• Credibility
• Capacity
• Legitimacy vis-à-vis
Government
Issues and challenges
Objectives of Certification
o To strengthen Civil Society Sector
o To bridge the information and credibility gap between grant makers and grant seekers
o To help professionalise grant making
o To help CSOs become more effective grant seekers
• Developed after collective consultations
• Optional and voluntary
• Standardized parameters (80)
• Setting sector wide standards
CSO Certification
• Certified CSOs = 226
• Evaluated CSOs = 347
• Cases Under Process = 90
o Registered, Functional for three years at least.
o Audited accounts of last three years
o Does not propagate views of any political party or religious sect
o Tax specific requirements
Evaluation StandardsMandatory Requirements
Minimum documents required for filing application
o Registration Certificate
o Memorandum & Articles of Association/Constitution/Trust deed
o Minutes of Governing Body meeting
o Audit Report for last three years
o Certification Fee
EvaluationParameters(80 Parameters)
InternalGovernance
(26 parameters)
Financial Management(25 Parameters)
ProgrammeDelivery
(29 parameters)
Approved
Rejected
Parameters Met
Desk Review Field Evaluation
Evaluation
NPO
PCP
Initial scrutiny
Parameters Not Met
Mandatory Legal Requirements Met
Taxation Authorities
Certification Panel (GoP-Non GoP)
Enhanced Credibility
Increased Donor
Assistance
PCP Directory
Tax Benefits
Mandatory Legal Requirements Not Met
Deferred
CERTIFICATION
Process
Ready reference of CSO’s
Quality AssuranceRisk Management
Identifying Credible Partners in development
Value Creation
Enhanced Credibility
Determining eligibility for Tax credits
Public Good
Promotion of GovernmentAgenda: Good Governance
Transparency Accountability
Indirect Capacity Building
Tax Benefits
Access to Philanthropy / Resources
Promotion through:Gateway to Giving
PCP WebsitePhilanthropy Portal
For Government For CSOs
Benefits of Certification
21
Directory of C.CSOs
“Gateway to Giving”
Directory of the Certified NPOs published, launched and disseminated. (2006-09)
Work on third edition underway
Applied to PCP for Expected Achieved
Improvement in Organisational System
60% 89%
Evaluation for Tax benefits 73 % 86%
Access to donors 46% 55%
Expectations and Actual Benefits Accrued to CNPOs
Certification Fee Structure
Certification is a highly subsidized activity.
SN Size of NPO Income Slab Fee Rate
1. Small Up to 1 mln. Rs. 10,000
2. Medium 1 1 to 5 mln. Rs. 30,000
3. Medium 1 5 to 10 mln Rs. 75, 000
4. Large1 1o to 50 mln. Rs. 100,000
5. Large2 10 to 100 mln. Rs. 150,000
6. Large3 100 mln. & above Rs. 250,000
Essentials for Success
Involve stakeholders at formative stage
Identify benefits for CSOs & other stakeholders
Credibility of the certifier
Make changes to suite the local environment
Recognition by government & donor(s)
PCP Certification Programme Replicable in other Regions?
PCP Certification Programme Replicable in other Regions?
Factors that can Jeopardize
Mandatory Certification
High Certification Fee
Discretion-Equal values not applied across the board
Non- Participatory Processes
PCP Certification Programme Replicable in other Regions?
PCP Certification Regime is Replicable
We learnt from Australia, New Zealand &
Philippines
Tajiks & Afghans are learning from us
Thank youThe three sectors of society –
Business, Civil Society and Government work in a strengthened partnership for social development in
Pakistan
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