SS4111 Management & Supervision in Human Services PDF

Codependence between Government and NGOs in Social Welfare Services Provision After WWII SS4111...

Codependence between Government and NGOs in Social Welfare Services Provision After WWII SS4111 § Departmental Report of Social Welfare Department (1948- MANAGEMENT AND 1954): SUPERVISION IN HUMAN o“the full story of Hong Kong’s Social Welfare Services during the period SERVICES under review would mean devoting far more space to a great range of non- government activities” (Social Welfare Office, 1955, para 1) Prof. M ichelle Shum Assistant Professor, Departm ent of Social and behavioural sciences, CityU § In 1965, first White Paper on Social Welfare: the Aims and Policy for Social Welfare in Hong Kong was published by the government o Recognized its “certain basic responsibilities in social welfare” (para 10). § What happened between 1948-1964? Social Welfare Department. (1955). Departmental Report for the Period 1948-1954. Hong Kong: Govt. Printer. Civic Engagement Emergences of Community centres §The Government published a second White Paper on Social Welfare in Hong Kong: The Way Ahead in 1973 o “ultimate responsibility” for ensuring that Hong Kong had satisfactory social welfare services available to everyone Ø Community halls in public estates with population of 20,000 or over Ø Communit centres in other areas of population of 100,000 and more oThe voluntary sector was “integral part of the provision of * Citizens participation in the life of a community social welfare services as a whole in Hong Kong [emphasis * Identifying and addressing issues of public concern added]” (Hong Kong Government, 1973, para 1.5) * Individual VS Collective actions Crowley, D. (2007). Summary of youth engagement strategy. Woburn, MA: Social Capital, Inc. cf. Richard P. Adler and Judy Goggin. (2005). “What Do We Mean By "Civic Engagement"?”. Journal of Transformative Education, 3, 236- 253 What is non-governmental organizations What is non-governmental organizations (NGOs)? (NGOs)? ◦ The many terminologies: ◦ Non-state, not-for-profit, voluntary organizations formed ◦ Non-governmental organization by people State ◦ Voluntary agency ◦ The different terminologies: ◦ Civil society organization ‘non-governmental’, ‘third sector’ or ‘not-for profit’ ◦ Philanthropic agency ◦ A wide of array of organizations: Market ◦ Tax exempt organization ◦ community groups, non- NPOs ◦ Third sector governmental organizations (NGOs), labor unions, indigenous groups, charitable organizations, ◦ What are the differences in their meaning? faith-based organizations, ◦ Can nonprofit organization make profit? professional associations, and foundations What is non-governmental organizations What is non-governmental organizations (NGOs)? (NGOs)? ◦ Henry Hansmann’s Non- ◦ Lester M. Salamon and Helmut K. Anheier profit Theory: ◦ Structural-operational definition of non-governmental organizations (NGOs): ◦ Categorizing nonprofit ◦ (1) formal, organizations according to ◦ (2) private, (1) the sources of their income; and (2) the way in ◦ (3) non-profit-distributing, which they are controlled ◦ (4) self-governing and ◦ There are four categories of ◦ (5) voluntary. nonprofits: (1) donative mutual; (2) donative ◦ Lester M. Salamon and Helmut K. Anheier, ‘Toward a common definition’ in Lester M. Salamon and Helmut K. Anheier (eds), Defining the nonprofit sector: a cross-national analysis (Manchester : Manchester University Press, 1997) 33 entrepreneurial; (3) commercial mutual; and (4) Henry Hansmann. (1980). “The Role of Nonprofit commercial entrepreneurial. Enterprise" Yale Law Journal, 89, 835-901. Defining characteristics of NPO Charitable Status in HK ◦ A Charity must be… 1) Established charitable purposes ◦ Private inurement doctrine Ø Income Tax Special Purposes Commissioners v Pemsel AC 531 (HL) ◦ the entity be organized and operated so that “no part of... [its] net a) the relief of poverty; earnings... inures to the benefit of any private shareholder or b) the advancement of education; individual” (e.g., Internal Revenue Code of 1986, as amended, c) the advancement of religion; and d) other purposes of a charitable nature beneficial to the community not section (IRC §) 501(c)(3)). falling under any of the preceding heads. ◦ Profit at entity level VS Profit at ownership level 2) Wholly and exclusively charitable 3) For the public benefit ◦ A compulsory “objects clauses” precisely and clearly stating its objects ◦ As an “Approved Charity” from the Inland Revenue Department (“IRD”) and are entitled to exemption from profits tax in Hong Kong under section 88 of the Inland Revenue Ordinance (Cap 112). Charitable purposes under the UK The privileges associated with charitable Charities Act 2011 status a) the prevention or relief of poverty; b) the advancement of education; ◦ Tax privileges c) the advancement of religion; d) the advancement of health or the saving of lives; ◦ Tax exemption status e) the advancement of citizenship or community development; ◦ Tax deductions for charitable donations (must be a donation of money) f) the advancement of the arts, culture, heritage or science; g) the advancement of amateur sport; ◦ Exemption from stamp duty h) the advancement of human rights, conflict resolution or reconciliation or the promotion of religious or racial harmony or equality and diversity; ◦ Court's broad discretion to uphold charitable gift i) the advancement of environmental protection or improvement; ◦ Exemption form business and society registration j) the relief of those in need because of youth, age, ill-health, disability, financial hardship or other disadvantage; ◦ Private treaty grant of land: k) the advancement of animal welfare; l) the promotion of the efficiency of the armed forces of the Crown or of the efficiency of the ◦ A nominal land premium to non-profit making institutions for operating police, fire and rescue services or ambulance services; schools, hospitals and social welfare and other community facilities. m) provision of facilities for (a) recreation, or (b) other leisure-time occupation in the interests of social welfare. Regulatory oversight: Overseas experiences How to establish an NPO in Hong Kong ◦ The English Charity Commission in England and Wales: 1) An unincorporated association: ◦ a register of charities contains the name of every charity a) A society registered under the Societies Ordinance (Cap 151); or registered and other particulars and information relating to each b) A society exempted by the Societies Officer from registration (exempted such charity society) under the Societies Ordinance; ◦ maintain regulatory compliance of charitable organisations with 2) A company incorporated under the Companies the Charities Act Ordinance (Cap 32): a) A company limited by guarantee, b) A company incorporated overseas; ◦ The New Zealand Charities Commission 3) A trust ◦ No mandatory registration, but only charities registered with the Charities Commission are eligible for tax exemption status. 4) A statutory body incorporated under a specific Ordinance A company incorporated under the An unincorporated association Companies Ordinance ◦ Any organization established in Hong Kong may register as a society under the Societies Ordinance (Cap 151) ◦ Separate legal entity with an independent existence ◦ A local society shall apply to the Police Licensing Office in Hong Kong ◦ Company limited by guarantee for registration or exemption from registration within 1 month of its (1) A company is a company limited by guarantee if— establishment (Section 5 of the SO) (a) it does not have a share capital; and ◦ A society may be exempted from registration if it is satisfied that the (b) the liability of its members is limited by the company’s articles to the amount that the members undertake, by those articles, to society is established solely for religious, charitable, social or contribute to the assets of the company in the event of its being recreational purposes or as a rural committee or a federation or other wound up association of rural committees (Section 5A of the SO) (section 9 of the Companies Ordinance, Cap 622) Corporate Personality Segregation of Responsibilities ◦ A legal fiction ◦ The two principal organs in a corporation: v That processes capacity and the rights, powers and privileges of a natural person i. The board of directors ◦ A company has legal capacity to ii.The shareholders of the corporation in general v hold property owned by itself meetings v enter into contracts with other parties and have normal rights and liabilities as a contracting party v take legal proceedings in its own name Membership association Constitution of an NPO ◦ In an NPO, members, instead of shareholders, participate in general ◦ Memorandum of association and articles of association meetings. ◦ Legal effect ◦ Member in a company is…. ◦ Founder member is…. ◦ Bylaws Corporate Governance Importance of the NPO Board ◦ The system by which companies are directed and control ◦ Preface of the Leading Your NGO– Corporate Governance: A (the Cadbury Report, 1992) Reference Guide for NGO Boards, by Social Welfare ◦ Concerns the principles and practices that assure its key Department in June, 2002 stakeholders that the organization is being managed ◦ “Hong Kong’s community should take pride in having dedicated volunteers serving as Board members on a large number of Non- effectively, so as to achieve certain objectives governmental Organisations (NGO) providing a wide range of welfare services. Their contribution is a strength of our social welfare system. They are the stewards and leaders of the services valued by our community. Through their collective acts and deeds, we are building Hong Kong into a caring community.” Structure of the board Composition of the board Unitary/ one-tier, board structure is commonly found in countries ◦The chairman with a common law tradition, such as the United States, the United ◦Executive Directors (ED) Kingdom and Commonwealth ◦Non-Executive Directors (NED) countries. It delegates day-to-day business ◦ The board usually consists of a majority of NEDs. to the CEO, management team, or ◦The chief executive officer (CEO) executive committee Efficiency Unit (2015) Guide to Corporate Governance for Subvented Organisations, HKSAR. Responsibilities of the board ◦ Setting the company’s strategic aims ◦ Providing the leadership ◦ Supervising the management of the business ◦ Reporting to shareholders on their stewardship. ◦ The board’s actions are subject to laws, regulations and the shareholders in general meeting. Srinivas, H. (2015). Organizational Structure of an NGO. GDRC Reseaarch Output E-104. Kobe, Japan: Global Development Research Center. Retrieved from https://www.gdrc.org/ngo/org-chart.html Corporate Governance of BGCA The House of Corporate Governance Efficiency Unit (2015) Guide to Corporate Governance for Subvented Organisations, HKSAR. https://www.bgca.org.hk/page.aspx?corpname=bgca&i=509  Legal duties of directors ◦ Hong Kong Airport 1. The duty to exercise care skill and diligence Authority’s ◦ compared to the standard that would be exercised by a reasonably reporting and diligent person having – communication lines (a) the general knowledge, skill and experience that may reasonably be expected of a person carrying out the functions carried out by the director in relation to the company (465(2)(a)of the CO); and Efficiency Unit (2015) Guide (b) the general knowledge, skill and experience that the director has to Corporate Governance (section 465(2)(b)of the CO). for Subvented Organisations, HKSAR. 2. The duty to act in good faith in the interests of the company. 3. The duty to exercise powers for a proper purpose. 4. The duty to avoid conflicts of interest. Legal duties of an incorporated organization Challenges faced by nonprofit sector ◦ The duty to keep proper accounting records ◦ New Public Management: efficiency, effective and economy ◦ The duty to prepare annual financial statements and directors’ report ◦ The duty to appoint an auditor for an annual audit ◦ Fundraising ◦ The duty to file documents with the Companies Registry ◦ Autonomy ◦ The duty to call an AGM and GM ◦ Fiscal balance ◦ Nonprofit mission  Capacity building of the Nonprofits Excel 3 (HKU). Capacity Building (CB): Conceptual Framework for Organisational Capacity Assessment Project