ANNUAL REPORT2016

Pakistan Centre for Philanthropy

ANNUAL REPORT2016

Pakistan Centre for Philanthropy

Table of Contents1. CompanyProfile2. Directors’ Report3. Research Portfolio4. Philanthropy Support Services5. Certification6. Communication and Outreach7. Human Resources and Administration8. Board Meetings9. Picture Gallery10. Our People11. Financial Statements

COMPANYPROFILE

Board of DirectorsMr. Zaffar A. Khan, S.I.Chairperson, PCP Board of DirectorsEx-Chairman, Engro Chemical, Ex-Chairman, KSE, Ex-Chairman, PIA

Mr. Mueen Afzal, H.I.Former Secretary General, Finance & Economic Affairs, Government of Pakistan

Syed Hyder AliManaging Director and CEO, Packages Limited, Lahore

Mr. Arif HabibPresident, Arif Habib Securities Limited

Dr. Attiya InayatullahFormer Federal Minister for Women Development, Special Education, Social Welfare and Population Welfare

Dr. S. Sohail H. NaqviVice Chancellor, Lahore University of Management Sciences

Dr. Sania Nishtar, S.I., FRCS, Ph.DPresident, Heartfile

Mr. Ahsan M. SaleemChief Executive, Crescent Steel & Allied Products

Mr. Jawwad Ahmed CheemaChairman/Managing Director, Shell Pakistan Ltd.

Mr. Badaruddin F. VellaniChairman-National Committee, Aga Khan Foundation (Pakistan)

Mr. Arshad ZuberiChief Executive and Editor, Daily Business Recorder

Mr. Sohail G. KhojaMember National Council, Aga Khan Foundation Pakistan

Mr. Abdul Wajid RanaMember, Federal Public Service Commission

Mr. Iqbal WaljiMember National Council, Agha Khan Foundation Pakistan

Mr. Osman WaheedPresident, Ferozsons Laboratories Ltd

The Centre is led by Ms. Shazia Maqsood Amjad, Executive Director PCP

PCP Board Committes

Program Development and Research Committee

2015 - 2018

Dr. Attiya Inayatullah (Chairperson) Dr. Sania NishtarDr. Sohail H. Naqvi Mr. Jawwad Ahmed CheemaMr. Osman Waheed

Budget, Finance and Investment CommitteeMr. Zaffar A. Khan (Chairperson) Mr. Badaruddin VellaniMr. Arif HabibMr. Arshad ZuberiMr. Sohail G. Khoja

Audit Committee Dr. Attiya Inayatullah (Chairperson) Dr. Sania NishtarDr. Sohail H. Naqvi Mr. Jawwad Ahmed CheemaMr. Osman Waheed

CertificationCommitteeMr. Mueen Afzal (Chairperson) Dr. Attiya InayatullahDr. Sohail H. NaqviDr. Sania NishtarMr. Abdul Wajid Rana

H.R and Governance Committee Mr. Zaffar A. Khan (Chairperson)Mr. Mueen AfzalMr. Ahsan M. SaleemMr. Badaruddin VellaniMr. Iqbal Walji

Resource Development and Communication Strategy Mr. Ahsan M. Saleem (Chairperson)Mr. Arshad ZuberiMr. Arif Habib Mr. Osman WaheedSyed Haider Ali

ED,isex-officiomemberofallBoardCommittees

Resource Development and Communication Strategy

Directors’ Report2016

The Board of Directors of Pakistan Centre for Philanthropy (PCP) are pleased to present the overview of PCP’s journey through the year ending December 31, 2016. PCP is the first and only Government of Pakistan authorized CSO (Civil Society Organizations) certifying agency working towards fostering an enabling environment for philanthropy and support for donor funded social development. The year 2016 saw a renewed effort on the part of the Government to regulate NGOs. For the implementation of the National Action Plan, Ministry of Interior developed an INGO registration mechanism to regulate International Non-governmental Organizations (INGOs) in Pakistan. The required documentation included approval of Commissioner Inland Revenue concerned under section 2 (36) of the Income Tax Ordinance, 2001. This action prompted INGOs to seek PCP certification.

PCP was not only agile in meeting the demands of the INGOs certification, but it also supported the Government and FBR by undertaking expeditious evaluation of INGOs. In the year 2016, PCP certified 50 INGOs, 176 NPOs, and 90 LSOs, bringing the total number of certified CSOs to 484. With enhanced capacity and vigour, PCP stands as a credible and trustworthy partner, not only for its stakeholders but also for Government and FBR.

PCP’s Certification program evaluates CSOs in the areas of internal governance, financial management and programme delivery against rigorous sector-wise objective standards based on international best practices. Best practices demand that PCP revisits its certification standards periodically. The year 2016 saw the urgency of standards review exercise. The matter was discussed with FBR, after which a committee was notified to review the process for realignment of the evaluation standards with the prevalent global practices, for which, in-house discussions, stakeholder sessions and review meetings with FBR were held in 2016. Review of standards is expected to conclude by mid-2017. In recent times, fast changing technology is yet another factor that necessitates adaptability to change. PCP has kept pace with the advancements in technology and has started accepting online applications since July 2016. PCP has also planned a Business Process review of the Certification process in the year 2017, which will enable the process to become more time and resource efficient. Simultaneously, IT Solutions will ensure that for the first time, a data base of evaluation reports as well as a digitised record of all documents submitted by NPOs will be maintained. In keeping with progressive IT solutions, PCP also launched an updated website in 2017. PCP has also invested in maintaining its presence at the global level. For this, Executive Director PCP attended International Society for Third-Sector Research (ISTR) Conference in Sweden and presented a paper on the subject “Building capacity of Local Support Organisations”. PCP not only became a member of the ISTR group but also of the Asia Pacific Group within the ISTR Network. The conference was very useful in terms of creating linkages with leading researchers in the field of Philanthropy. PCP also attended the “Philanthropication thru Privatization” Conference which was held at the Volkswagen Foundation Conference Center in Hanover, Germany. This year, PCP contributed to the International Data Charter exercise by contributing a case study from Pakistan which highlighted the challenges which are faced while mapping the Civil Society landscape in Pakistan.

Moreover, PCP became a member of WINGS (Worldwide Initiatives for Grantmaker Support) and participated in the WINGS report, “Global Picture of Organizations Serving Philanthropy” for the very first time. In the year 2016, PCP produced a number of quality reports and publication on trends and patterns of Philanthropic giving by the corporate sector, individuals at the household level, and giving at shrines which highlighted issues and challenges of channelizing this potential resource for more productive outcomes. The Corporate Philanthropy Survey (CPS)-2015 was completed during the year 2016. The purpose of CPS is to generate knowledge, update existing information, recognize and promote the generous support of the business community for social development. A distinguishing feature of the current survey was that for the first time, attempt was made to include Corporate Social Responsibility data on not only the public listed companies, but also public unlisted, private limited and some companies from telecom sector as well. The findings of the report affirm the continuous growth in philanthropic donations by Public Listed Companies (PLC). The volume of giving has increased from a mere Rs.0.2 billion in the year 2000 to Rs.6.9 billion in 2015. Philanthropy is now a key component of the CSR programs of many PLC’s reflecting the growing interest & commitment of the business community towards the social wellbeing of the societies they serve. PCP also completed a study on “The State of Individual Indigenous Philanthropy in Pakistan” and launched it in February 2017. This study reports on the giving trends at a national level after 15 years. According to its findings, the quantum of individual giving in Pakistan has been estimated at PKR 240 billion with people giving in whatever form they can afford; through cash, zakat, in-kind contributions or time-volunteerism. This report provides deep insights into integral questions for this sector including who gives, how much, in what forms and to whom. Understanding these trends will enable the Pakistani philanthropic community to leverage this sector more effectively for sustainable development in the future. Another recent publication by PCP, “Giving at Shrines in Pakistan” is a subject of great interest for social scientists and development practitioners because of its linkages with religious and cultural practices and development initiatives. In Pakistan where Islamic faith and practices are deeply embedded in everyday life of individuals, shrines (together with other institutions such as mosques and madrassahs) usually get a significant share in voluntary acts of giving by Muslims such as sadqa, khairat and waqf which are studied in this monograph.

PCP has continued its efforts to deepen its linkages with academia and other institutions including universities at national and international levels, thereby having future prospects of leading its research initiatives towards developing mechanisms for promoting institutional giving for social development. PCP signed an MoU with Social Sciences department, QAU Islamabad to promote collaborative research and advocacy on philanthropic issues. PCP also signed an MoU with School of Social Sciences (S3H) NUST with the objective to promote collaborative research on topics of common interest and hold joint seminars and discussions on philanthropy related themes to raise awareness on the subject.

The Sustainable Development Goals are a set of 17 goals spearheaded by the United Nations that hope to guide sustainable development at the intergovernmental and global civil society level. They have been introduced in an effort to pursue focused and coherent action on the development agenda which incorporates all three dimensions of sustainable development (environment, economics and society) and their inter-linkages in a balanced way. Goal 17 of the SDGs aligns with PCP’s vision of strengthening partnerships between three sectors of society (Corporate, NGOs and Government) for social development. PCP is currently working on its Third 5-Year Strategic Plan (5YSP) to give direction to its work in the coming years within the changing global landscape.

PCP set up the Communications and Partnerships unit during 2015 with the purpose of improving visibility and networking of PCP and to establish new partnerships. This unit successfully completed the assignment of conducting CSOSI (Civil Society Organizations Sustainability Index) 2015 report which has been published by USAID and shared with stakeholders at the international level. A certificates distribution ceremony for the local and international NGOs was arranged by the unit. Marketing through low cost means like emails and postal services has become a regular feature at PCP. Philanthropy Matters (a six monthly newsletter) was also published and shared with stakeholders across Pakistan. PCP is also sending a regular E-letter highlighting the happenings at PCP to over 4000 recipients at local, national and international levels. Orientation sessions on PCP certification programme have also been organised in different cities. PCP also conducted 5 sessions on Public Private Partnerships in various cities of Pakistan. New collaborations were sought with NUST and Quaid e Azam University and MOUs were signed for joint ventures. Moreover, PCP is in the process of creating a shared platform for its certified partners. The platform would allow members to share opportunities, information, and achievements with the network. For 2017, in addition to the newsletters and e-marketing, the communication unit would be leveraging the potential of social media to create visibility for PCP and is also planning on making a documentary introducing PCP’s work.

Financially the year 2016 ended well for PCP. Its aggregate income was Rs 82.8 million compared to Rs 54.3 million recorded last year. The increase is attributed mainly to the stepped up certification activity undertaken by PCP. This was done as a consequence of & in support of GOP’s policy to have INGO’s operating in Pakistan registered with the Ministry of Interior. During the year PCP’s overall expenses increased by 13% versus the previous year made up of 7% increase in general & administrative expenses and an 18% increase in program activities. As the increase in income far exceeded the increase in expenses PCP was able to record a surplus. This bodes well for the financial stability of PCP going forward. In order to comply with SECP licensing requirements, the Board of Directors has approved the transition of PCP’s financial year from calendar year to fiscal year. The Board of Directors on the recommendation of the Audit Committee has recommended the appointment of KPMG Taseer Hadi & Co., Chartered Accountants, as external auditors of PCP for Year ending 30 June 2017.

PCP is fortunate to have a Board of Directors made up of very experienced & committed persons from various segments of society. Board meetings were held on a quarterly basis and the Directors were kept fully abreast of PCP’s activities. In turn, the Directors had the opportunity to offer their guidance to take forward PCP. The Board Committees also met as needed to facilitate the working of the full Board.

PCP’s success and achievements for the year would not have been possible without the hard work and the initiatives taken by its management and employees. The Board wishes to express its appreciation and full faith in the PCP team. The Board also wishes to thank the Federal & Provincial Governments, the Civil Society Sector and the donors for their continued support to PCP.

Zaffar A. Khan, S.I. Chairman, Board of Directors

OUR VISION,MISSION & GOALS

OUR VISION,MISSION & GOALS

VISIONThe three sectors of society-business, civil society and the government work in a strengthened partnership for social development in Pakistan.

MISSIONTo increase the volume and effectiveness of indigenous philanthropy for social development in Pakistan

GOALS Creating a policy, legal and fiscal environment that enables giving for development and promotes the growth and development of citizen organizations.

Facilitating linkages between corporate philanthropists, citizen organizations and government for increased social investment.

Enhancing citizen organizations’’ capabilities as reliable and effective implementing partners of grant makers through a certification system.

Assisting philanthropists (corporations, foundations, Diaspora communities) in increasing the volume and impact of their giving.

Raising broad societal understanding of philanthropy through research.

RESEARCHPORTFOLIO

ResearchConducting evidence-based research on various dimensions of philanthropy is a priority programme area of the Pakistan Centre for Philanthropy. The core objective of our research programme is to generate a knowledge bank on giving patterns of individuals, corporates and foundations in the form of cash, in-kind, and time-volunteering that could become potential source for enhancing social investments in the country. Sharing and disseminating information on philanthropy through effective communication channels is also an integral part of our mandate which has great utility for all stakeholders including the government, non-government and private sectors and development practitioners to plan and organize social investment for civic benefit in Pakistan.

The State of Individual Philanthropy in PakistanThe Pakistan Centre for Philanthropy is proud to have completed its long awaited study, the State of Individual Philanthropy in Pakistan, which brings to light not only the volume of individual giving in different forms but also the patterns and motivations of household giving behavior across four provinces. The study is a pioneer comprehensive exposition of trends of individual giving and its channelization towards individuals and organizations. PCP envisions this research playing a vital role in raising awareness about the magnitude and different modes of giving as a potential means to supplement government resources towards social development. The process of exploration on this topic has been long and challenging but also rewarding as it shed light on a valuable resource that may be harvested for greater social impact.

The turnover of philanthropy is not just about its volume of donations in millions; more importantly, it expresses the individual acts of generosity in terms of monetary, in-kind or volunteering time to help others. Defined this way, this study confirms that philanthropy is universal in Pakistan with nearly 98 percent of households reporting giving for various social causes in one form or the other providing opportunity for civil society organizations to tap this practice of charitable giving and volunteering.

The preparation process of the study, guided by the PCP Board of Directors and its Program Development and Research Committee, has included a nationally representative survey of about 10,000 households, focus group discussions and interviews with relevant stakeholders to collect data on pertinent questions related to philanthropic giving practices in Pakistan. The information in the report will provide a basis to initiate national level conversation to inform policy actors about the critical importance of philanthropy in the development landscape of the country.

Keyfindings

Magnitude of Giving

Household giving in Pakistan is estimated at about Rs. 240 billion in 2014. Most of this comes from monetary (non-Zakat) contributions, Zakat and time volunteerism. Of the total national giving, Rs. 113 billion is the estimated contribution from Punjab, Rs. 78 billion from Sindh, Rs. 38 billion from KPK, and Rs. 10 billion from Balochistan.

Percentage of Households that Give

Individual philanthropy is a universal practice among Pakistanis. About 98 percent of households reported giving in cash, kind, or time-volunteered. Monetary giving is the highest in Punjab with approximately 50 percent of donations made in cash. In all other provinces, volunteerism is the largest form of contribution in individual philanthropy. In Sindh, where poverty is pervasive and thus contributing in cash may be harder, volunteering one’s time accounts for 48 percent of provincial giving.

Major Recipients of Philanthropy

In terms of size, individual recipients receive the major share of total donations as compared to organizations. Households tend to give directly to individuals who are needy, disabled and/or beggars, especially in case of non-Zakat monetary contributions. When contributing to organizations, households prefer to donate to mosques and Madrassahs that are nearby and address local needs.

Motivations for Giving

Individuals in the sampled households have reported that their giving stems from religious reasons, but that compassion also matters. Reciprocity and informal insurance concerns generally drive time volunteerism with the most frequent recipients falling in the givers’ immediate circle including relatives and neighbors.

FactorsthatInfluenceGiving

Focus Group Discussions suggest that mistrust of non-profit and philanthropic institutions is a major constraining factor in making effective use of individual contributions. If mechanisms are put in place to ensure greater transparency and local involvement in decision making, respondents would be willing to give more to organizations committed to social causes. Some respondents in the discussions also stated that they would donate more if there are greater tax incentives in return for their contributions.

Public Policy and Giving

The research found that most Pakistanis are unaware of existing charitable organizations as well as the new policy initiatives aimed at increasing philanthropic giving. Therefore, wide spread education is needed to raise awareness about factors that facilitate individual giving.

Corporate Philanthropy – 2015: A survey of Public Listed, Unlisted and Private Companies in Pakistan

PCP has been regularly documenting corporate giving in Pakistan since the year 2000 and took this chance to compile an overview of corporate philanthropy over the last 15 years. The report, ‘15 Years of Corporate Philanthropy in Pakistan’, was launched in November 2015 by Prof. Ahsan Iqbal, Federal Minister for Planning, Devel¬opment & Reform. These survey reports not only try to ascertain the volume of giving by the business community but also highlight the trends and patterns shaping over the years. The reports also provide a ranking of companies based on their giving which serves as the basis of recognizing their good work at PCP’s Corporate Philanthropy Awards.

This year’s survey report is special because for the first time, PCP made an active attempt to include giving by Public Unlisted Companies (PuLCs) and Private Limited Companies (PvLCs) in addition to giving by Public Listed Companies (PLCs). It is interesting to note that about 99 percent of the corporate sector comprises of PuLCs and PvLCs while PLCs constitute just 1 percent of the whole universe. However, collecting information on CSR contributions of companies other than PLCs was quite challenging as they are not bound to publicize their financial records. This pioneer effort to collect data on a small sample of PuLCs and PvLCs is the first step to ascertain its potential for philanthropy and identify the gaps. The findings of the present study would be useful in enhancing awareness about corporate philanthropy and in present¬ing an action agenda for PCP, the government, and other stakeholders who are engaged with social development initiatives. Philanthropic donations of PLCs, for this year, have increased to nearly Rs.7 billion from previous year’s estimate of Rs. 5.9 billion, which speaks volumes of the con¬tinued interest and commitment of the business community towards social well¬being.

KeyfindingsofCPS2015

0.23 Billion 7.0 Billion

31 XINCREASEin total corporate

philanthropy by PLCs

55%of total PLCs are

making philanthropic contributions

Largest contributing sub-sector:Oil and Gas Exploration

with an average donation of

635 MILLIONRUPEES

social causes

0.7%PROFIT

contributed by PLCs before tax for

in 2015

PLCs give

of total donations80%

25top

$ Rs.

Total cumulative volume of giving by PLCs during 2000 – 2015

41 BILLIONRUPEES

donated by Public Utility Corporations

during 2015

0.47 BILLIONRUPEES

donated by Private limited Corporations

during 2015

1.28 BILLIONRUPEES

$ Rs. $ Rs.

Evaluation of Local Support Organizations (LSOs) in Gilgit, Baltistan and ChitralThe study on Local Support Organizations’ assessment was funded by the Aga Khan Rural Support Program (AKRSP) which works closely with a number of Local Support Organizations (LSOs) in Gilgit, Baltistan and Chitral. A total of 40 LSOs were evaluated by the Certification Unit of PCP based on 51 evaluation parameters.

As a second step to the assessment program, PCP’s research team prepared a report that analyzed the performance of those 40 LSOs in terms of governance, management, program efficiency and sustainability. Following are the key highlights of the report which was shared with AKRSP in the month of August 2016.

Democratic Governance: An ideal governance system ensures transparency and participation in decision making at all levels within the organization, reflects the organization’s values and identifies gaps in its performance. Democratic Governance was the largest section with 400 total scores on 22 parameters including; democratic process of selection of General Body, selection criteria of Executive Body (EB), women representation in EB, youth participation, audit of financial accounts, etc. • The grading of LSOs by score achievement on democratic governance revealed that 18 percent of LSOs obtained an A rating (above 80 percent of scores), 48 received a B rating (65% to 79%), 23 percent had a C rating (50% to 64%) and 13 percent were rated in the lowest grade at D (below 50%). • Among the regions, Chitral got the highest score achievement with 50 percent LSOs rated as A compared with only 12 percent in Gilgit and none in Baltistan.

Management CapacityUnder the management capacity, LSOs were given scores against 12 evaluation parameters such as monitoring systems, annual plans of program activities, financial records of income and expenditure, etc., with a total score of 250. Overall 20 percent of LSOs obtained an A rating, whereas 43 percent were rated B, 20 percent were rated C and only 18 percent were rated in the lowest grade at D. LSOs in Chitral secured the highest score in management capacity followed by Gilgit and Baltistan.

Network and VolunteerismTo gauge network and volunteerism, LSOs were evaluated against the following five parameters: i) Linkages with Stakeholders, ii) Volunteer Services of EB and GB Members, iii) Promoting Volunteerism, iv) Staff Training, v) performance review of the volunteers. Based on performance on these indicators, they were assigned a total score of 130; 29 percent of LSOs obtained an A rating, 41 percent obtained a B rating, 12 percent were rated C and 18 percent obtained a D rating. Chitral led amongst the regions while Gilgit and Baltistan stood second and third respectively in networking and volunteerism.

Effectiveness and ImpactLSOs were scored against the following 4 evaluation parameters with a total score of 70: i) impact of programs and services ii) strengthening the member base, iii) procedure to assess the impact, and iv) lower tier organizations being satisfied with the work. Only 8 percent of LSOs were rated A, 28 percent were rated B, 8 percent were rated C and the majority (58 percent) were rated D. Chitral, which ranked high among the regions on other indicators, performed worse on this front with 60 percent of LSOs being rated at D compared with 53% percent in Gilgit and 62 percent in Baltistan.

SustainabilityA rotal of 8 parameters including contribution to sustainability of LSOs, projects for sustainability, income sources, etc., with a total score of 150 were used to gauge sustainability. Overall about 30 percent of LSOs are rated A and another 30 percent are rated B. Performance of LSOs on this indicator is comparatively stronger in Gilgit as 41 percent of them were graded A compared to 23 percent in Baltistan and 20 percent in Chitral. MonographsThis monograph series was initiated as a follow up of a number of monographs published by the Pakistan Centre for Philanthropy in the year 2002, each focusing on a particular dimension of philanthropy and its link with social development. The revival of the series by PCP aims not only to continue with the process but also to keep abreast all its stakeholders and general audience of the rapidly emerging developments in the discourse on philanthropy. The first monograph ‘Giving at shrines in Pakistan’ has already been published, and another two are in the pipeline.

Giving at Shrines in PakistanThe study on ‘Giving at Shrines in Pakistan’ is a byproduct of another study, ‘the State of Individuation Philanthropy in Pakistan’. This report forms the first completed part of the monograph series which PCP has decided to publish. It not only highlights the giving behavior of individuals at shrines but also the motivations behind this giving. The findings of the study reveal that although shrine visitation is practiced across Pakistan, it is most common in the Punjab and Sindh provinces. Offerings at shrines most frequently take the form of cash contributions. The most frequently cited reasons behind shrine visitation/giving are fear of God, religious obligation and spiritual satisfaction.

PHILANTHROPYSUPPORT SERVICES

Pakistan Centre for Philanthropy (PCP) value relationships and consider them fundamental to its work. The wide network of our partners (national and international) enables us to leverage complementarities to offer broader portfolio of services and mobilize resources quickly. PCP’s associates include but not limited to academic and research entities, think tanks, corporates & private sector, I/NGOs and others. We continue to expand and add more resources to our partners and associates base. We also aim to build linkages with Pakistani diaspora who want to support our trustworthy and credible civil society partners.

PartnershipsWe value relationships and consider them fundamental to our work. The wide network of our partners (national and international) enables us to leverage complementarities to offer broader portfolio of services and mobilize resources quickly. Our associates include academic and research entities, think tanks, corporates & private sector, INGOs and others.

Establish local and international linkages

InternationalThe Foundation Centre (FC)PCP entered into a MoU with The Foundation Centre (FC) to explore a strategic alliance, whereby their collaboration results in increased understanding, knowledge, and transparency of the philanthropic sector in Pakistan.

Give2Asia (G2A)PCP entered into a partnership agreement with G2A to help manage their regular grant making activities in Pakistan. Under this, PCP conducts due-diligence, project / budget evaluation and monitoring for G2A’s grantees in Pakistan.

InternationalCentreforNon-ProfitLaw(ICNL)Under the partnership agreement with ICNL, PCP monitors civic freedom developments and files quarterly reports detailing developments and recommending revisions to the country report and ensures the list of materials ICNL has compiled on Pakistan in its online library database is fully up-to-date.

WINGS ForumThe Worldwide Initiatives for Grantmaker Support (WINGS) is a network of almost 100 philanthropy associations and support organizations in 38 countries around the world whose purpose is to strengthen, promote and provide leadership on the development of philanthropy and social investment.

NationalLahore University of Management Sciences (LUMS)The collaboration between SEDC/LUMS and PCP aims at engaging relevant stakeholders to better understand the dynamics of individual, corporate and private sector giving in the country, thereby, contributing towards effective planning, implementation and promotion of philanthropy in Pakistan.

Quaid-i-Azam University (QAU)The collaboration between QAU and PCP is to develop long term relationship between the two institutions in order to promote academic research and enhance knowledge on issues surrounding philanthropy as a means of achieving social progress and community development in the country.

National University of Science and Technology (NUST)The collaboration between NUST and PCP is to develop long term relationship between the two institutions in order to promote academic research and enhance knowledge on issues surrounding philanthropy as a means of achieving social progress and community development in the country.

Benazir Income Support Programme (BISP)The collaboration between BISP and PCP aims to promote collaboration between BISP and PCP to develop long term relationship between the two institutions in order to promote philanthropy/CSR as a mean of achieving social progress and community development in the country.

CorporatesPCP facilitates giving by leading corporates to the trusted NPOs and enables them to successfully invest in the communities in which they do business. This year, PCP awarded 18 top corporate givers.

Initiatives/New VenturesDigital Services PlatformPCP’s digital services approach revolves around three key online-based services: certification, giving and learning. Specifically, the approach aims to:

Improvethecertificationprocess

Make the certification process simpler, quicker, cost-effective, more user-friendly, responsive and predictable.

Establish a national e-Philanthropy platform for Pakistan

Create a nationally-shared asset for civil society where PCP-certified organisations can share their stories and seek funds for their initiatives.

Establish a blended learning platform for CSOs

Create a video-based blended learning platform which CSOs can access to improve their chances of becoming PCP-certified, and strengthen their fund-raising and communications skill-sets so that they can utilise the ePhilanthropy platform most effectively.

PCP’s Five Year strategic plan (2017-2021)PCP’s strategic plans have been the principal instruments for guiding and shaping the direction and agenda of the organization over successive years. Ever since its inception, operational-level working of PCP has been guided by two Strategic Plans (2006-10 and 2011—16). Both these Strategic Plans were informed by and predicated upon decisions and guidelines by Board of Directors which covered all core areas where PCP has been working. PCP has just completed tenure of its second Strategic Plan and is poised to finalize the process of developing third Strategic Plan and incorporate into various units’ action plans.

CERTIFICATIONCSO

CertificationPCP is the first and only certification agency authorised by Federal Board of Revenue, Government of Pakistan to undertake performance evaluation of non-profit organisations in Pakistan. PCP’s certification programme is aimed at fostering an enabling environment for philanthropy and thereby supporting social development. PCP’s certification programme promotes best practices across not for profit sector and is a kind of credibility index signifying seal of good housekeeping. Moreover, it also aims at minimizing the trust deficit between non-profit organisations, donors and the government. The Federal Board of Revenue (FBR) recognizes certification as a basis for grant of various tax benefits. Certification is entirely a voluntary process involving a detailed, thorough and objective evaluation against set standards aimed at promoting best practices among non-profit sector in areas of internal governance, financial management and programme delivery. In addition to these, it also helps to bridge the information and credibility gap between grant makers and grant recipients, build CSOs’ capacity to meet international standards of governance, transparency and accountability and last but not the least, build a credible pool of CSOs that are reliable and effective development partners.

Reviewing Evaluation StandardsCertification process encompasses evaluation of CSOs in areas of internal governance, financial management and programme delivery against objective standards based on international best practices. PCP’s certification programme was developed after thorough deliberations with stakeholders and review of different certification models as being practised in Asia, America and other regions of the world. On account of changes in regulatory environment governing non-profit organisations both within and outside Pakistan as well as to bring its certification standards in conformity with recent developments in not-for-profit sector, PCP undertakes periodic review of its certification standards. Presently, review of PCP Certification standards is in process in consultation with stakeholders involving civil society organisations, government and experts. The Federal Board of Revenue has constituted a technical committee for reviewing PCP’s certification standards. Review process is expected to be completed and concluded by May, 2017.

DirectoryofPCPCertifiedOrganisationsPCP publishes a periodic directory of certified organisations which is circulated widely among all key stakeholders. The aim is to disseminate and promote the good work being done by CSOs that has led to build synergies and partnerships ultimately contributing towards social development in Pakistan. Moreover, record of certified organisations is continuously updated on PCP’s website.

CertificationofINGOsandEvaluationofLSOsPresently, PCP’s certification programme caters to entire pyramid of civil society organisations in Pakistan starting from Local Support Organisations (LSOs) at the bottom to the local civil society organisations in the middle and to international NGOs at the top. These three tiers of civil society organisations are different in terms of maturity of their systems and structures with local support organisations, being the smallest and least mature and INGOs being at the highest level of maturity. Considering the gap in level of maturity among these organisations, PCP evaluation tool takes into account their peculiar characteristics and distinct features relevant only for that particular tier. PCP has therefore developed customized tools for each of these three tier organisations.

Performance Evaluation of INGOsPCP initiated performance evaluation of INGOs after the Government of Pakistan introduced a new policy for regulating International Non-Governmental Organizations (INGOs) working in Pakistan in October, 2015. In addition to other requirements, INGOs were required to seek approval of Commissioner Inland Revenue under section 2(36) of Income Tax Ordinance, 2001 and for that matter get their performance evaluated for achieving their aims and objectives from an independent certification agency which is approved by the Government of Pakistan. Since January 2016, PCP has also started performance evaluation of INGOs working in Pakistan.All required documents pertaining to application procedure, guidelines and FAQs are available on PCP’s website: www.pcp.org.pk

Certification-ACriteriaforGrantsbyDonors: Give2Asia (G2A)Considering the quality and utility of PCP’s performance evaluation, various donors tend to accord preference while making grants to non-profit organisations. PCP’s certification model acts as a due diligence process and helps to identify credible partners. Give2Asia is one such organisation which regards PCP’s performance evaluations as an important credibility assessment tool for making a decision about grants to local non-profit organisations. Currently, there are 12 Pakistani CSOs receiving grants through G2A.

Study Tour by Afghan Institute of Civil Society (AICS)In order to learn from PCP’s experience, a team from Afghan Institute of Civil Society (AICS) visited PCP for a study tour in May, 2016. During the visit, AICS team was exposed to PCP’s Certification Programme and different processes involved in the certification process. AICS team also interacted with PCP evaluators, panel and board members, certified organisations and regulators including SECP (Securities & Exchange Commission of Pakistan) and FBR (Federal Board of Revenue). It was also a good opportunity of cross learning for both PCP & AICS teams.

COMMUNICATION & OUTREACH

Civil Society Organization Sustainability Index (CSOSI) Study: 2015 PCP has successfully completed the assignment of conducting CSOSI 2015 report which has been published by UISAID shared with the stakeholders at international level. The fifth edition of the CSO Sustainability Index for Pakistan reports on the strength and overall viability of the civil society sector in Pakistan based on the assessment of local civil society representatives and experts. The CSO Sustainability Index is an important and unique tool for local civil society organizations (CSOs), governments, donors, academics, and others to understand and measure the sustainability of the CSO sector. This publication complements similar publications covering other regions, which in 2015 include reports on twenty-four countries in Central and Eastern Europe and Eurasia; thirty-one countries in Sub-Saharan Africa; seven countries and territories in the Middle East and North Africa; and nine countries in Asia, including Pakistan. 1 These editions of the CSO Sustainability Index bring the total number of countries surveyed to seventy-one. This Index used the same methodology as that of other editions of the CSO Sustainability Index. A panel of local experts met to discuss progress and setbacks in seven interrelated dimensions of CSO sustainability: legal environment, organizational capacity, financial viability, advocacy, service provision, infrastructure, and public image. As part of their discussion, the panel assigned scores to the seven dimensions on a scale of 1 to 7 — with 1 representing the highest and 7 the lowest level of sustainability – which were then averaged to produce an overall CSO sustainability score. Based on the expert panel’s discussions as well as its own knowledge of the sector, the implementing partner then drafted a narrative report that describes CSO sector sustainability, both overall and for each dimension. An Editorial Committee of technical and regional experts reviewed the country report and scores.

Findings show that CSO sustainability has changed little in the five years that the CSO Sustainability Index for Pakistan has been carried out. The most significant changes have been in the legal environment. Over the past few years, the government has introduced increasingly stringent measures on CSOs in response to high-profile terrorist attacks and allegations of international interference in the country. In particular, new regulations seek to regulate the flow of foreign funding and the work of international NGOs. At the same time, the sector’s public image deteriorated somewhat in 2015 as the public, media, and government all increasingly associate CSOs in certain parts of the country with serving foreign interests.

Communication & Outreach

Other dimensions of sustainability have changed little over the past half-decade. Local sources of funding are scarce. Instead, many CSOs continue to rely on short-term, project-based donor funding in order to survive. As a result, they lack long-term strategic plans and generally have broad missions. While CSOs continue to advocate on various issues and campaign on a large scale, democratic institutions remain underdeveloped, limiting CSOs’ ability to influence policy. CSOs continue to provide diverse services in various sectors, including health, education, water, and sanitation, and are the primary responders to crises and natural calamities, including the floods, heatwave, and earthquake that plagued the country in 2015.

Collaboration with IFCCommunications and Partnerships unit and International Finance Corporation agreed to collaborate for enhancing the outreach of IFC’s Lighting Pakistan Project. As per the understanding, PCP shall facilitate Lighting Pakistan Partners to connect with the service providers at the grass root level in the selected districts of Southern Punjab, Sindh and Islamabad Capital territory. IFC agreed to pay an amount of PKR 100, 000/- as management fee (for the events to be organized in cities other than Islamabad) and shall also bear expenses incurred on the travel and boarding/lodging of concerned PCP staff. The only activity in this regard was organized on November 08, 2016 in Multan which was attended by over 75 civil society organizations working in the districts of Bahwalpur, Multan, Dera Ghazi Khan, Rajan Pur, Layyah, Bahawalnagar, Muzaffar Garh etc.

Partnership with CAPS PCP and Center for Asian Philanthropy and Society (CAPS) based in Hong Kong has signed a contract to collaborate for an international study on “Doing Good Index”. The Index was jointly developed (during a workshop in New Delhi India) by the representatives of organizations working in 18 Asian countries including China, India, Pakistan, Bangladesh, Japan, Vietnam etc. Manager Communications and Partnerships attended the meeting and made a presentation on behalf of PCP and Pakistan. As per the contract, PCP would conduct a survey of 61 organizations to measure Doing Good Index in Pakistan.

Philanthropy Matters Philanthropy Matters is a newsletter of PCP that is published every six months and is disseminated among the stakeholders. Every edition is dedicated to a theme and then relevant topics are covered in the corresponding edition. During the year 2016, two editions were published and were themed around environment and health issues. PCP certified organizations contributed through sharing of organizational profiles and success stories.

Public Private Partnership ProjectUnit conducted capacity building workshops for the officials of government departments at federal and provincial levels including AJK and Gilgit Baltistan. These workshops were part of Pakistan Reading Project and were conducted in collaboration with Creative Associates – USAID. Pakistan Reading Project (PRP) assumed the responsibility of promoting effective private sector involvement in the education sector, primarily in improving the reading outcomes in Pakistan. PRP intended to provide guidance and support on key policy implementation issues on primary education in different regions, focusing particularly on PPPs, to formulate innovate PPP models and to identify potential entities that might invest or assist in improving quality of education in the country. PCP was responsible for assessing and developing a report encompassing detailed provincial analysis for the existing framework/policy for PPPs in the education sector. Eight provinces/regions (Sindh, KPK, Balochistan, AJ&K, ICT, FATA, GB and Punjab) were examined for their existing education policy and for the measures taken for the involvement of PPPs in the education sector. Provincial analysis concluded that various initiatives are being taken in all (eight) regions in Pakistan for the provision of education for all. Different measures are being taken and policies are being put in place to encourage PPPs in the education sector. Sindh is the only province which has a comprehensive Public Private Partnership policy in place with a detailed framework for PPPs in the education sector. However, there is no framework for PPPs in the education sector plan for ICT. With support of the USAID-funded Pakistan Reading Project (PRP), the GB government has recently formed a taskforce on PPPs for education. Further attention ought to be given to these regions in order to ensure provision and quality of education. AJ&K, on the other hand, has recently adopted a framework for PPPs in the education sector. Although great initiatives in the education sector have been taken over time, there was no material documentation due to the absence of a defined policy. With due attention paid in this region, all identified gaps could be addressed, improving the standard of education in the region immensely. Finally, Punjab is considered to be the most industrialised province and is the highest contributor to the total GDP of Pakistan. It has a well-defined education policy in place, and even though there is a detailed framework for PPPs, it encompasses infrastructure in general. Considering the fact that Punjab witnesses the highest rate of CSR, it is important to have a comprehensive framework for PPPs in the education sector in particular. Under partnership with USAID, unit conducted trainings on public private partnerships in five cities including Islamabad, Gilgit Baltistan, Karachi, Quetta, and Peshawar. The sessions were attended by government officials, civil society organizations and USAID representatives.

PCPCertifiedNetworkPCP is in the process of creating a shared platform for its certified partners. The platform would allow members to share opportunities, information, achievements with the network.

Mapping of the Civil Society OrganizationsPCP has accepted the challenge of developing a comprehensive data base of the civil society sector in Pakistan. Unit in collaboration with Research Unit has designed a comprehensive format to collect data from the certified and non certified organizations, thereby determining the nature and size of the sector. Unit has so far been able to collect information from 140 certified organizations and 219 non certified organizations.

Orientation session on NPO TaxationPCP has been receiving requests from civil society organization to help them learn the process of seeking tax exemption from the revenue department. In response, communication unit and certification unit organized sessions for NGOs in Multan, Hyderabad. These sessions were organized in collaboration with Pakistan Humanitarian Forum. One session was organized in partnership with Regional Tax office Quetta and was attended by tax officials and civil society organization based there.

Publicity and Marketing of PCP Programme • Unit prepared a one page flyer for marketing of certification programme. Apart from hard copies, unit has been sharing soft copies with the stakeholders through emails that are sent after every 4 weeks. • Directory of PCP certified organizations is under preparation where details of over 550 certified organizations will be published. • Unit has developed a database of international stakeholders and engages them through sharing of updates about the activities of PCP.

BOARDMEETINGS

PCP Board Meetings

Name Total Attended Leave granted

ATTENDENCE RECORD

Mr. Zaffar A. Khan Mr. Mueen AfzalSyed Hyder AliMr. Arif HabibDr. Attiya InayatullahMr. Sohail G. KhojaDr. Sohail H. NaqviDr. Sania NishtarMr. Abdul Wajid RanaMr. Jawwad Ahmed CheemaMr. Badaruddin F. VellaniMr. Osman WaheedMr. Ahsan M. SaleemMr. Iqbal WaljiMr. Arshad Zuberi

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

4

0

0

3

2

3

0

3

0

4

0

3

4

1

0

0

4

4

1

2

1

4

1

4

0

4

1

0

3

58th - 61st MEETING

PICTUREGALLERY

OUR PEOPLE

Our People

FinanceMs. Rabia JameelManager Finance & Company Secretary

Mr. Rashid RafiqSenior Officer Finance

CertificationProgrammeMr. Rashid ImtiazProgramme Manager

Mr. Maaz Ul BariSenior Programme Officer

Mr. Syed Muhammad KamranProgramme Officer

Mr. Raheel AwanJunior Programme Officer

Ms. Ayesha Qamar Junior Programme Officer

Mr. Bilal RasulJunior Programme Officer

Mr. Fareed AghaFinancial Analyst

Ms. Palwasha JPO Contract

Research Programme Ms. Narmeen Adeel Manager Research

Mr. Muhammad AliProgramme Officer

Mr. Saad Mustaneer KhanResearch Associate

Ms. Shazia Maqsood AmjadExecutive Director

Ms. Saima Sabir Secretary to Executive Director

Philanthropy Support Services ProgrammeMr. Arsalan KashfiSenior Programme Officer

Human Resources and AdministrationMr. Muhammad Noman AwanHead of HR/Administration

Communication and Outreach Mr. Ahmad NadeemManager Communication & Outreach

Mr. Husnain AliJunior Programme Officer

Mr. Abdul Malik Nazir AlviFinance Officer

Mr. Farhan ShamimProgramme Officer

Ms. Anam AtiqProgramme Officer

Mr. Sajjad HaiderJunior Programme Officer (MR)

Mr. Faisal AliJunior Programme Officer

Mr. M. Faizan Hassan JPO Contract

Ms. Maryam Arshad Khan JPO Contract

Ms. Falak RajaFinancial Analyst

Mr. Sheikh Mustafa JavedFinancial Analyst

Mr. Muhammad AshrafSenior Programme Officer

Mr. Muhammad Ali Masood JadoonJunior Programme Officer

Ms. Baseerat Sohail Junior Programme Officer

Ms. Shams-un-NisaIntern

Ms. Shagufta MariamFront Desk officer / Receptionist

OUR PARTNERS

ContributorsMian Mohammad Abdullah, Chairman, Sapphire Group, KarachiMr. Towfiq Chinoy, Chairman, Jubilee General Insurance Company LimitedMr. Arif Habib, Chairman, Arif Habib Corporation, KarachiMr. Ahsan M. Saleem, CEO, Crescent Steel & Allied Products, KarachiMr. Mohsin Nathani, CEO, Standard Chartered Bank KarachiMr. Mohammad Ali Tabba, CEO, Lucky Cement KarachiMr. Allaudin Feerasta, Chairman, Soneri Bank Ltd. KarachiSyed Hyder Ali, Chief Executive, Packages LtdMr. Khalid Awan, Chairman, TCSAKF – USA & Pakistan

GovernmentFederal Board of Revenue; Economics Affairs Division; Ministry of Finance; Provincial Social Welfare Departments; Provincial Department of Education, Sindh; Planning Commission; Provincial P&D, SECP

NetworkingCIVICUS; Give2Asia; GlobalGiving; Global Philanthropy Forum; WINGS Network; WWF; World Congress of Muslim Philanthropists, International Centre for Non-profit Law (ICNL), LUMS, PPAF, IFC, British Council, SDPI, NUST, QAU

MediaAaj TV, APR, Business Recorder, Farhan Bokhari, PTV Global, Radio Pakistan

DonorsCommunity Development Program, Govt. of Sindh, AKF(P) / AKDN, AKRSP, Government of Pakistan, PRP - USAID

FINANCIALSTATEMENTS

Printed by Strengths Innovations IslamabadPublished in May, 2017

Layout & Design: Saad Khan | saadnama

PCP reserves all rights of ownership of this document.

Pakistan Center for Philanthropy1st Floor, RDF Centre, 31 Mauve Area, G-9/1 Islamabad

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