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NGO: From Charity to Social Enterprise
With the dwindling funds and grants that are available, many NGOs are struggling to survive. They are either shutting down their operations or moving into new fields that have nothing to do with their mission but rather are chasing the money.
Majority of the people I meet, when I tell them “NGO” the first thing that comes to their mind is “Charity”. Now the fact that most NGOs depend on donations, grants and fundraising activities to sustain make it reasonable enough to have people link the word NGO to charity. Nevertheless, new innovative ways in income generation have been making their way to the NGO world.
In this context, and for the past few years, I’ve been advising and consulting NGOs on how to adopt a business model into their operations and projects as a way to generate enough income to sustain and grow.
The point I focus on is to transform the NGO from a charity to a social enterprise. This happens when the NGO integrates into its work an income generation model that allows it to make money while leaving the positive impact it hopes for.
So here are few tips I usually share with the NGO leaders on how to cut costs and generate more income:
- Consider diversifying your income sources; not only donations and grants, but rather start considering fundraising activities, sponsorship, membership fees, and income generating activities that are aligned with your mission.
- Income generating activities can be the same exact service you give to your beneficiaries, but include in it a small fee that goes as a donation to your organization. This is step one into becoming a social enterprise. Definitely more complex models can be considered on what services are offered for free and which are billable.
- Invest in R&D to better understand what are the other players is in community, what services do they offer, where can you add value, what does the community really need and what is the best way to package your services/products.
- Invest in Marketing to have a better outreach to your users/beneficiaries, potential partners, donors, sponsors and supporters.
- Consider that your users/beneficiaries will be willing to pay for a service that fulfills their need, as long as it’s conceived value outweighs its costs. Moreover, it’s important to clarify that the fees they pay will be considered as a donation for the NGO to ensure its sustainability, so that you can serve more people for a longer period of time. This transforms the relationship with your beneficiaries to become service users and partners in the community, a win-win situation for both of you.
- Develop a Volunteer System into your organization to make it an integral part of its daily work and projects, this in turn gets you more community support and reduces running costs on human capital.
The above are just a starting point, but usually are enough to start building on them to transform the NGO from a “Charity” to a “Social Enterprise”. With good analyses, research and hard work, usually NGOs start seeing the impact within a year and will reap its benefits both on the short and long term.
So my advice to all NGO leaders, activists and good-doers, change starts with us. So start thinking of how are you going to help your organizations sustain, grow and become more self-dependent on securing its finances rather than having to constantly chase funds, grants and following donor agendas.
Other interesting posts:
3 Key Roles of NGO Board Members
For years now I’ve been involved in NGOs and I’m constantly being surprised with how people perceive Board Members and how Board Members themselves perceive their role. To some, a Board is a group of people who endlessly do meetings after meetings with no avail and to others, it’s some mythical, grandiose, elitist group who got special powers to lead the organization. So let me help you demystify all that…
My involvement ranges from small local clubs to a national organizations to branches of international organizations. Irrespective of shape, size or topic of those NGOs, I can easily draw a line of similarity among them.
To start with, the Board is sometimes called Board of Directors, Steering Committee, Executive Board or Executive Committee, so in spite of the naming diversity, the roles and responsibilities stay the same.
So let’s talk about the core of the issue. Board members have 3 key roles that form the pillars of any NGO and are as follows:
Decision Making: Board member are usually the founding members or are elected members that lead the organization. In this context, all major decision making in the organization goes through them. Now it has been noticed over and over again that many Board Members become passive and rather apathetic to decisions being taken, which makes the whole organization go biased towards the opinions of the remaining Board Members. So if you’re on a Board of an NGO and you see this happening around you, don’t freak out, you’re not alone…its a trend!
Yet it’s important to deal with this issue as it is crucial to have all Board Members involved in all decisions or else you’ll start seeing resistance and conflicts arising here and there every once in a while, especially from those same inactive Board Members.
What makes decision making in NGOs different from Private Sector or Governmental Institutions, is the fact that everyone’s opinion matters and most decisions are done either democratically or through consensus, so it should never be a one man show. If it seems to be or become a one man show, then you know it’s about time to change some things…
Organizational/Executive/Functional: In addition to having decision making role, all Board have a distribution of roles and responsibilities where the most common structure is “President, Vice President, General Secretary, Treasurer & Accountant” thus each of those individuals not only has his decision making role, but also a functional role to play, whether it’s taking care of financials, or internal communication or following up on tasks or heading committees..etc. Thus if those tasks and responsibilities are implemented properly, you would’ve successfully built the second pillar of the NGO to ensure that it stands tall and becomes sustainable. When this role is done properly, the internal dynamics of the organization start functioning properly.
Jack-of-All-Traders: Yes you read it right, as soon as you become a Board Member of an NGO you suddenly get to become a jack of all trades as your responsibilities will expand beyond what you expect. So you roll up your sleeves and you start doing tasks related to strategic planning, outreach, public relations, proposal writing, volunteer management, project management, reporting, web development, graphic design, fundraising, training, consulting, event organizing and so on and so forth. So when you’re joining the Board of an NGO, its not just about doing your decision making or your functional role, but you’re expected to be involved at all levels, in all your projects and operations and to become well knowledgeable about them to assist, support and improve what your organization does.
So in a nutshell, I can say those 3 pillars are what makes a healthy Board and thus a healthy organization if they were implemented properly and professionally. If you’re a Board Member, and you feel you’re missing out on any of those…then double check with your team as you are probably holding your organization back because are doing them. Whereas if you’re doing all three and you feel other Board Members aren’t, then its about time you share the workload with them.
On a last note, properly leading an NGO can be as consuming and demanding, if not more demanding, then leading your own company due to the social factor of it and having several decision makers with you on equal levels of authority, ownership and responsibility…
So if you’re a Board Member on an NGO… God bless you! and if you know someone who is…now you know why they do so many meetings! hehehe
Other interesting posts:
Human Capital Management in NGOs
To be honest I’ve researched for a while to get my hands on some useful material about Human Capital Management(HCM) in the NGO sector, especially in managing volunteers…not just staff. Yet I’ve failed to find substantial and relative material to build on. Therefore the following is a compilation of my personal experience in HCM in NGOs, specifically in Lebanon, through Aie Serve and other NGOs/Clubs that I train and consult.
To make the discussion more meaningful I’ll separate HCM into 5 discussable stages, read on for the details:
Organization’s Structural Design
To truly create a Human Capital strategy for the organization, work needs to start on the Organizational Structure first. In this context, a lot of NGOs have a staff based structure, or volunteers structure, or simply committees or even no structure at all aside from the “Board”. This will need to change since adopting an HCM strategy, the structure will need to be redesigned to better fit the current needs and provide space for growth in the future.
Crucial questions to ask at this stage are:
- What is the current structure and is it really implemented on the ground?
- Does the structure provide space for further growth or does it need total make over?
- Do the positions fit in and complement each other or are there gaps?
- Is the NGO based on volunteers, staff or both? Do they know how to interact?
- How is the decision making done and who has it in the organization? Centralized or diverse?
Setting Roles & Responsibilities
After setting the structure, its time to know what does each and every person do exactly. The interesting and surprising part here is that many if not most of the NGOs I work with have incomplete roles & responsibilities description of the team. Many people are left without clear delineation of what tasks shall they do, what are they responsible of, who do they report to, what decisions can they make …and so on and so forth. Therefore it is essential that each person in the organization not only knows where he/she fits in the structure but also know what role do they play. Moreover, if they wish to grow..then the path they should follow need to be clear.
Crucial questions to ask at this stage are:
- Are there Duty Descriptions or Roles & Responsibilities documents for the positions?
- Are people aware of each other’s role’s and responsibilities?
- Is regular updating and upgrading for those documents done?
- Who is involved in drafting and modifying those documents?
Setting & Implementing Recruitment Processes
Now that the structure is clear and so are the roles & responsibilities of everyone, the challenging part is how to get those people onboard. Having a consistent and clear recruitment process is essential to ensure that all potentials are tapped and the right people are recruited. To do this a recruitment process needs to be designed in a way that it reflects the culture of the organization, the way people will be dealing with each other. The process should be clear for all those in the organization so that they understand what shall they do if they want to recruit more people.
Crucial questions to ask at this stage are:
- How do people apply for the NGO?
- Does the NGO recruit volunteers or staff or ?
- Do members of the NGO join by invitation only or do they have an entry point?
- Is there a standard procedure of interviews and applications or ?
Training & Coaching
Once everyone is onboard and in place, the time comes where people need to better understand how to do what they’re supposed to do. At this point, training and coaching all the new recruits comes in place. So developing a clear and flexible training program and coaching process are necessary to ensure that the new recruits are empowered with the appropriate information, skills and tools to do their duties properly. Moreover, the coaching process shall allow the recruits to not only do their roles properly but also to excel and grow as a person, and perhaps suggest improvements to the process.
Crucial questions to ask at this stage are:
- How will the new recruits know what to do and how?
- Who will be training/coaching them?
- Is there a training manual in place?
- Is there a clear coaching procedure and standards?
Performance Evaluation & Enhancement
After having set everything and people are performing and excelling, it’s very important to measure the overall performance and growth of both individuals and the organization. It is important to ensure that both individual and organizational goals are synchronized for this process to work. Moreover, assessment metrics will need to be developed either at the “Roles & Responsibilities” stage or throughout the process of execution so that a clear evaluation can be done at important turning points and end of year assessments.
Crucial questions to ask at this stage are:
- How would you know or measure that someone is doing their role properly?
- Who is responsible of assessing/evaluating?
- Can a follow up and training process be designed to build the skills and fill the gaps according to the results of the evaluation?
Other Interesting Posts:
My Addiction: Volunteerism
Day in day out I find myself more and more indulged in volunteer work. For years now I’ve volunteered in numerous organizations, clubs, campaigns and on some personal initiatives. Yet I wonder sometimes: What makes me volunteer? What makes so many people around me volunteer as well? And how come so many others don’t even find sense and logic in why we volunteer…
At 12 years old, I started my first volunteering role in a student based organization at my school called “Student Life Organization” (SLO). I took the first step in my life-long volunteering journey but never knew that it will a life changing experience back then.
During my school years, I took several roles in the “SLO”, joined clubs and a varsity team…but I never really thought I will go this far from university and on.
University too was full of “extra curricular activities” and so I joined clubs, committees, groups, organizations and didn’t stop there…I launched even more clubs and organizations myself…and I still serve in them day after day.
Some ask me why do I put so much time and effort? How come I don’t get bored of all those meetings, activities, workshops and projects? How come all those trainings and activities are for free and we even all pay to do them?
My answer is simple, it’s an addiction. It’s both a hobby and a conviction.
Moreover I believe it abides by Newton’s Laws of Motion (I know it isn’t meant for humans but humor me here). According to Newton’s First Law of Motion, an object at rest tends to stay at rest. Without force acting on an object, nothing will change. So if I may compare, a person at rest tends to stay at rest so we could say that all people need then is a little push, some “force”, to get them going. And once in motion, people tend to stay in motion.
That is exactly why I constantly try to motivate or “push” people to volunteer, to do something, to join me or others in some organization/activity/campaign. You never know when this small thing you volunteer in becomes a life changing experience.
The beauty of it is that unlike regular work or chores, it’s not tiring but rather refreshing and invigorating. It fills you up with so much happiness and energy to know that you have helped someone, served your community or saved something in the environment. For me it has been the sole source of optimism and motivation to do everything else in my life.
If so many millions around the world volunteer everyday …and they keep doing it..then there should be something to it.
On a final note, I believe if you haven’t volunteered in something yet..take the first step and do something and do it now! 
Aie Serve: Uniting Youth Through Service
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The bellow article is featured on Youth Action Net Website
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What began in Tunisia in December 2010 led to the mass demonstrations in Egypt starting on January 25, and now the rest of the Arab world is following. Lebanon is no exception. On February 27th, many Lebanese youth activists gathered for a demonstration against the sectarian system in Lebanon, demanding changes in both the constitution and the way daily governmental business is carried out.
This rising consciousness and refusal to succumb to the status quo is rooted in the same spirit that prompted myself and a group of friends to launch Aie Serve four years ago. Instead of staying silent, we decided to take positive action. Aie Serve is a youth-based, youth-managed, and youth-funded organization dedicated to promoting a culture of volunteerism in Lebanon. Translated from Japanese, aie (pronounced “I”) means love.
The idea for Aie Serve came during the aftermath of the 2006 July War on Lebanon and resulted from the sharp polarization of Lebanese youth along sectarian, political, and religious lines. We started brainstorming ways of tackling this issue and agreed that three basic values were missing in Lebanon: Love, Tolerance, and Respect. We espouse love for others based on who they are and not which political background or sect they are from, while promoting tolerance and respect of others’ point of views and beliefs.
Over time, we started gathering more ideas and people, organizing ourselves while focusing on serving our community and society at-large. Aie Serve evolved from a group of friends, to a group of community-service minded youth, to a team and an organization. Examples of Aie Serve volunteer activities include book and clothing donation drives, reforestation and recycling projects, and assistance to orphans and the elderly.
In the last four years, we’ve experienced exceptional growth in the number of projects we do, our members, and our outreach. The impact we see on the ground is both fulfilling and inspirational. We find volunteerism is now contagious wherever we go. What’s more – in keeping with our mission – we find that caring for others is a universal value that brings people together and bridges divides.
Those around me know quite well that I am an optimist and a hard worker and so I believe that with a vision, hard work, and true commitment a small, dedicated group can achieve great things… and the biggest proof is where Aie Serve stands to day!
Afif Tabsh is Co-founder and voluntary President of Aie Serve. In 2011, he was named one of ten finalists selected for the King Abdullah II Award for Youth Innovation and Achievement.
