What is a nonprofit organization

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What is a nonprofit organization?

• PROVIDE USEFUL GOODS AND SERVICES
• ARE NOT ALLOWED TO DISTRIBUTE PROFITS TO
  INDIVIDUALS
• ARE VOLUNTARY, CREATED, MAINTAINED AND TERMINATED
  BY MEMBERS OR BOARD
• EXHIBIT VALUE RATIONALITY OFTEN BASED ON STRONG
  IDEOLOGICAL COMPONENTS

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Ways of Categorizing NGOs

• By constituency
• Member-based (MBOs
• Member support (MSOs)
• Service delivery organizations
• Support networks
• Grassroots Organizations
• By geography
• Local, national, international, multinational
• By purpose
• Economic support and development
• Social service delivery
• Advocacy
• Networking and umbrella

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Classic INGO Dilemmas

• Funding
• Competition
• Contract-based funding versus grants
• Competitive tendering RFPs, short-term funding
• Competition with for-profit providers
• Accountability
• To donors
• To beneficiaries
• To partners
• To boards who is the owner of a nonprofit?
• Value-based programming
• Nature of relationships with partners matters
• Advocacy v. service delivery

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In this new era of globalization new kinds of
problems flow across national boundaries at an
astonishing pace
THE AIDS PANDEMIC GLOBAL WARMING
POLLUTION THE ASIAN FINANCIAL COLLAPSE
LARGE SCALE REFUGEE MOVEMENTS TRANSNATIONAL
TERROR
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The Challenge
Growing Global Population, Poverty, Inequity,
Environmental Degradation, Continued Conflicts,
Expanding Numbers of Refugees and Internally
Displaced People, Changing Role of the State,
Opportunities of New Technology
?
Insufficient Global Resources, Interest
and Alliances to Meaningfully Address These
Problems
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THE TRANSFORMATION AGENDA NGO INTERNAL RESPONSES
REEXAMINING VALUES CREATING A NEW VISION AND
MISSION
REDESIGNING RELIEF DEVELOPMENT PROGRAMS
TRANSFORMING ORGANIZATIONAL CULTURE SYSTEMS
INCREASING ACCOUNTABILITY
BUILDING GLOBAL NETWORKS
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LIVELIHOOD SECURITY AND APPROPRIATE PROGRAMS
RELIEF Families Have No Access to Essential
Services, Resources or Means
REHABILITATION Families Meet Many Basic Needs But
Require Some Outside Assistance
DEVELOPMENT Families More Than Meet Basic Needs
With No Outside Assistance
PROVISIONING
PROTECTION
PROMOTING DEVELOPMENT
PROGRAMS
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THE CONSEQUENCES OF INEFFECTIVE RESPONSE WILL PUT
BOTH CURRENT AND FUTURE GENERATIONS AT SERIOUS
RISK YET
Most of us were brought up to think within our
national and local boundaries
We have few clear solutions for border jumping
problems
National governments were never set up to
attack such problems
Multilateral institutions designed in the post
WWII period are outdated and ineffective as well
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The Goal of Emergency response helping
innocent people stay alive in times of conflict
as well as natural disaster and promoting
effective transitions to more peaceful
and productive lives
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The New World of Complex Emergencies
NEW PROBLEMS Structural-- (Internally Displaced
People Safety and Security) Ethical--
(Unwittingly Supporting War Economy) Operational
-- (Financing , Capacity Building, Peace Building)
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The World of Old Emergencies
COLD WAR Conflict Between Nations
The New World of Complex Emergencies
POST COLD WAR Conflict Within Nations
NEW POST COLD WAR Conflict Between Nations and
Transnational Non State Actors
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AN EXAMPLE OF A STRUCTURAL PROBLEM-- Who Has
Responsibility for IDPs
COLD WAR Conflict Between Nations
POST COLD WAR Conflict Within Nations
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3 OPERATIONAL PROBLEMS IN GLOBAL EMERGENCY
RESPONSE 1. PERVERSE GLOBAL DYNAMICS MAKE
FUNDING REFUGEE OPERATIONS VERY DIFFICULT 2.
FINDING AND RETAINING STAFF AND STRENGTHENING
LOCAL AND NATIONAL RESPONSE CAPACITY 3.
PREVENTING WARS AND PROMOTING EFFECTIVE POST
CONFLICT WORK
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1. PERVERSE FINANCIAL SYSTEM DYNAMICS (Emergency
Response As A Global Public Good)
THE CYCLIC NATURE OF HUMANITARIAN AND NATURAL
DISASTERS

• OLIGOPOLISTIC
• PUBLIC RESOURCESUPPLIERS
• USAID
• European Union

• NON PROFIT SERVICE
• DELIVERY
• ORGANIZATIONS
• Red Cross
• CARE
• Doctors Without Borders

• LITTLE FUNDING
• Forgotten Wars
• Post War Social and Physical Recovery
• Conflict Prevention and Peace Building

• Just in Time Funding
• And Only For Operations
• No Current Way To Anticipate and Fund Global
  Needs on an Annual Basis

• Loss Of Response Capacity In Non Crisis
  Periods
• Little Large Scale Rapid Response Capacity
  (Staff, , Supplies)

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2. LOW LEVELS OF EMERGENCY STAFF PREPARATION AND
RETENTION IN EXISTING ORGANIZATION

• THE PEOPLE
• Young Independent Value Driven
• Technically Skilled
• No Previous Experience
• High Levels Of Student Loans
• View It As An Experience Not As A Career

• THE CONSEQUENCES
• High Annual Staff Turnover
• Red Cross 25
• CARE 35
• MSF (2 Yr Limit) 50
• NW Medical 400
• Repeating The Same Operational Mistakes
  Repeatedly
• Waste Of Training Resources

• THE SETTINGS
• Increasingly Dangerous
• Unpredictable
• Highly Stressful
• Traumatic
• Temporary in Nature

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EMERGING GLOBAL HUMANITARIAN RESPONSE AND
DEVELOPMENT NETWORKS
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MOST FREQUENT SOURCES OF AFFILIATE CONFLICT
Fund Raising in a Member Country
Image Media and Advocacy in a Member country
Common Principles Norms Brand
Program Geography and Coordination of In
Country Operations
Common Systems and Structures
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Partnership

• Networking
• Cooperation/
• alliance
• Partnership
• Coalition
• Collaboration

• Loose, flexible link
• Coordinate to reduce duplication
• Formalize links, share resources
• Joint decision making, share some governance
• Interdependent system

• Decreased autonomy
• Increased cooperation
• Mutual benefit?

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N-S Partnership

• Contracting
• Franchise
• Spin-off
• Visionary patronage
• Collaboration
• Mutual governance

• Package of services
• Field office function
• Shared vision, NGO is implementer
• Share decision-making and planning
• Influence over each others policies and practices

• Decreased autonomy
• Increased cooperation
• Mutual benefit?

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THE PARTNERSHIP ARCH
Equivalent
Equivalent
Full Partnership
Institut- ionalized Partnership
Institutional Sustainability
O R G A N I Z A T I O N A L
I N S T I T U T I O N A L
D E V E L O P M E N T
P A R T N E R I N G
Institut- ionalCapacity Building
Formal Net- working
Project Replication By Others
Sub Contract- ing
Direct Funding or Grantee
Direct Service Delivery
Inequivalent Hands On
Inequivalent Hands Off
Karen Casper
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NGO Scramble

• Competitive tendering and renewable contracting
• Produce dysfunctional outcomes
• That are rational response to incentives
• Transnational environment pushing INGOs towards
  competition

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Examples of Collective Action Problems in
Assistance

• Kyrgyz Republic Technical Assistance Programs
• Donors ask beneficiaries of aid whether a
  contractors grant should be renewed, removing
  incentive for contractor to limit beneficiary
  discretion
• Competition generates multiple proposals,
  increasing donor confusion over what the best
  reform might bt
• Goma, Zaire (Dem Repub of Congo)
• Contract fever
• Major relief contracts required demonstrating
  significant field presence
• No incentive to examine by-products of their
  activities
• Collective action problem
• Withdrawal an empty gesture others
  organizations will fill in