Voluntary Action & NGO Management - Unit IV

Voluntary Action & NGO Management (Vocational/Skill Development) - Unit IV

• Voluntary action and NGO management is a vocational/skill development unit.
• NGOs require effective project proposals to access resources from various providers (community, government, donors, businesses).
• Proposal writing is crucial for NGO growth and facilitates the implementation of programs funded by external support.
• A research proposal needs to be developed considering the project's purpose.

Proposal Writing

• A proposal is a plan of action detailing an organization's work plans and activities.
• It outlines the rationale, details of various plans, and the estimated cost of implementation.
• Proposals attract external support from donors (well-wishers).
• They communicate the organization's understanding of the work plan and future programs.
• A proposal serves as a record of plans and programs for future reference and use.

Essentials Of A Project Proposal

• Programmatic Activities: Clearly defined and outlined program activities.
• Work-Focused Proposals: Proposals emphasizing the practical implementation of planned work.
• Clarity of Expression: Clear and concisely written proposals, promoting clarity in the project's message.

Pre-Requisites

• Proposals can be solicited (requested) or unsolicited.
• Before proposal writing, background information on the project concept, program details, and expenses is needed.
• A needs assessment report (or brainstorming with field staff) helps clarify the project's problem and relevance to the organization's overall direction.
• The proposal should include the project's nature, timeframe, anticipated outcomes, staffing, and volunteer needs.
• Expenses should be outlined considering activity details and timing, and estimates.
• For solicited proposals, Terms of Reference (ToR) outline project objectives, work scope, outputs, schedule, and reporting requirements.

Proposal Methodology

• Many donors have specific proposal formats and guidelines.
• Generic proposals typically include a technical proposal and a financial proposal.
• The technical proposal explains technical terms of the project, including a brief summary (300-500 words).
• The project background details the context of the problem.
• Goals and objectives define the expected changes after implementation.
• The project description (strategy/methodology) details the activities to achieve goals/objectives.

Proposal Outline (continued)

• Expected outcomes: Concrete results of the project.
• Monitoring & Evaluation Plan: How project results will be tracked.
• Work Plan: Time frame for each project activity.
• Organizational Capability Statement: The organization's past experience and skills.
• Project Staffing: Personnel needed for project implementation, including CVs if required.

Financial Proposal

• The budget aligns with planned activities.
• Budget presentation methods and resources are diverse.
• The proposal must include a table of contents and references.
• Supporting documents may include Gantt Charts, Monitoring & Evaluation Matrix/Project Log Frames, and Budget Sheets.

Tips for writing a project proposal

• Define the project clearly.
• Identify the problem and present solutions.
• Outline deliverables and goals.
• Develop a comprehensive budget and schedule.
• Highlight the organization's qualifications and understanding of the target audience.
• Review and finalize the proposal.
• Provide an executive summary for clarity.
• Include a table of contents for easy navigation.

Resource Mobilization

• Resource mobilization is a process combining organizational management, communication, prospecting, and relationship building to meet the organization's vision.
• A multifaceted effort with shared responsibility among the board, president, executive director, and resource mobilization unit.
• It involves raising local resources to increase sustainability, as local support often leads to continued involvement.
• Core expenses require consistent funding, including staff salaries, office facilities, electricity, and other essentials.
• Long-term institutional building needs for physical infrastructure, machinery, and other capital assets.

Rationale Behind Resource Mobilization

• Developing ownership: The community's investment in the organization fosters greater involvement and a sense of ownership.
• Building social capital: Strong relationships with local institutions and organizations enhance social networks, increasing support for initiatives.
• Sustainability: Increased local resources contribute to long-term program success.
• Independence and Flexibility: Organizations can tailor their programs to meet the specific needs of local communities.

Various types of means/resources

• Physical goods (office equipment, training materials, vehicles, furniture, raw materials).
• Human resources (volunteers, consultants, advisors).
• Money (grants, donations, memberships).
• Free services and facilities (office space, tools, training facilities, transportation, publications).
• Technical cooperation.

Categories of Resources

• Local Community Resources
• Private Charitable Resources (individuals, religious organizations, charitable trusts, and foundations)
• Diaspora Philanthropy
• Government
• Foreign Aid (official and private)
• Self-funding initiatives

Resource Providers

• Organizations/Institutions (NGOs, governmental bodies, international organizations) provide support with projects and resources.
• National Governments provide services like health, education, transportation, and funding for organizational development.
• Business/private sector organizations donate resources related to their business interests.
• Individuals provide support and donations in various forms.

Factors that motivate resource providers

• Politics (political influence, votes, ideology maintenance)
• Social (enhancing reputation, community development)
• Financial (personal gain, investments, tax concessions)
• Business (profit, revenue generation)
• Religious (faith-based initiatives)
• Development (societal progress)
• Cultural (preserving culture)

Steps in resource mobilization planning

• Reviewing the organizational strategic plan.
• Listing out priority-based programs.
• Determining resource mobilization targets (amount, sources).
• Identifying constituencies and stakeholders.
• Developing key messages and networking strategies.
• Reviewing and selecting resource mobilization strategies from planning to implementation.
• Gearing up for implementation.

Importance of Resource Mobilization

• Diversifying resources and creating an independent budget.
• Reducing dependency on others.
• Achieving sustainability for the organization and its programs.
• Utilizing domestic capital and skills.
• Expanding relations with stakeholders and communities.
• Meeting the genuine needs of the community.
• Promoting the organization's practices to contribute to the community.
• Developing new ideas and promoting traditional values.

Principles of Resource Mobilization

• Robust situational analysis and consensus building.
• Prioritizing resource needs.
• Meticulous planning for mobilization activities.
• Developing and maintaining good relationships.
• Promoting transparency and confidence.
• Highlighting successes in resource mobilization efforts.
• Fostering accountability and maximizing resource use.

Mechanisms of Resource Mobilization

• Submitting grant proposals.
• Organizing special events.
• Applying for donations.
• Publishing organization history, work, accomplishments, etc.
• Expanding relations.
• Personal meetings and building relationships.
• Membership campaigns targeting various parties.
• Partnership opportunities, collaborations.
• Raising fees for services offered.
• Internal mobilization and resource sharing.
• Producing audio-visual & other promotional materials.
• Self-contribution to start and grow the organization.
• Providing specific resources through the organization.
• Constitution of a technical committee dedicated to the resource mobilization effort.

Financial Management

• Financial management is important for project proposals.
• Resource utilization and management must be effective and efficient in different programs and activities.
• Funds need to be used for their respective purposes, complying with financial laws.
• Various systematic activities (monitoring, planning, and management) are necessary

Principles of Financial Management

• Disclosure
• Non-Deficit Financing
• Consistency
• Integrity
• Flexibility
• Custodianship
• Standard Documentation

Components of Financial Management

• Budgeting
• Monitoring expenditures and income
• Account-keeping

Systems of Account-Keeping

• Single-Entry System
• Double-Entry System

Steps in Maintaining Accounts

• Information gathering and classification.
• Posting to prime entry books (journal, cash book).
• Posting from prime entry books to ledgers.
• Preparing a trial balance.
• Presenting aggregated statements (receipt/payment, income/expenditure, balance sheet).

Types of Income (Exempt)

• Income from property wholly for charitable/religious purposes.
• Income from property partially for charitable/religious purposes.
• Income from property for charitable purposes outside India.
• Income of the voluntary contributions forming part of corpus.

Conditions to Claim Exemption

• Registration under section 12AA/12AB of the Income-tax Act.
• Modifications of objects (if applicable).
• Book keeping, accounting requirements.
• Audit report submission.
• Income-tax return submission in a timely manner.

Income Subject to Application (Specific examples)

• Income from trust property.
• Exempt income (except for certain exceptions).

Application of Income

• Income application for charitable/religious purposes
• Repayment of loans
• Inter-charity donation

Application of Income (Activities outside India)

• Activities of organizations created before 1952.
• Promotions of international welfare.

Social Audit

• Social audit is a formal review of a company's efforts, procedures, and code of conduct relating to social responsibility and impact on society.
• It is an assessment of the company's fulfillment of its goals or benchmarks for social responsibility.

Social Audit Scope

• Ethical issues
• Equal opportunity
• Quality of Work Life
• Consumerism
• Environmental protection

Key Ingredients in Social Audits

• Transparency: Honest about actions, reasons.
• Trust: Demonstrating commitment.
• Continuous improvement: Regularly improving policies & practices.
• Legal consequences: Facing responsibilities when needed.

Steps in Conducting Social Audit

• Preparatory groundwork
• Investigation & analysis
• Public disclosure & evidence-based dialogue
• Follow-up

Principles of Social Audit

• Transparency
• Participation
• Representative participation
• Accountability

Reasons for Social Audit

• Transparency & Accountability
• Building trust with stakeholders
• Identifying areas for improvement
• Encouraging continuous improvement

Social Audit as An Input

• Monitor social & ethical impact
• Shape management strategy
• Facilitate organizational learning & improvement
• Facilitate strategic management
• Inform community

Advantages of Social Audit

• Ensuring transparency & accountability
• Raising awareness among stakeholders
• Assessing project impact, preventing corruption
• Empowering communities & supporting engagement
• Improving public access to information

Challenges of Social Audit

• Substantial technical support needed for data analysis
• Accessing public records (political willingness is critical)
• Accurate and updated public record availability

Vouching and Verification

• Vouching: Checking accuracy of transactions by verifying source documents.
• Verification: Substantiating validity of assets/liabilities, ensuring their existence, ownership, and valuation on a balance sheet.
• Similarities: Both involve accuracy checks, utilize evidence and professional judgement.
• Differences: Vouching checks individual transactions, focusing on Profit & Loss accounts. Verification checks the organization's assets/liabilities and is carried out at the end of the financial year.

This quiz focuses on the key concepts of voluntary action and NGO management as outlined in Unit IV of the vocational/skill development curriculum. Participants will learn about the importance of effective project proposals, essential components of proposal writing, and how these proposals facilitate access to resources. Enhance your understanding of how NGOs can strategically plan for external support and program implementation.