What are NGOs?

• Developed world NGOs such as Oxfam and Amnesty International

  • i.e. Setup and run in the developed world

• Developing world NGOs such as BRAC

  • i.e. Founded and run in the developing world

• A recent development is that NGOs are getting involved in political debate

• Single-issue vs. multi-issue NGOs

  • Important to acknowledge that some have a less broad focus

  • Usually depends on why they were founded

• Most NGOs are small

• Can be international, national or local

• Lots of diversity

  • What do the differences mean in terms of accounting and accountability?

• Funding comes from many places

  • Affects accounting and accountability

• Many different labels: non-profits, charity, third-sector, civil society

  • E.g. British Conservative Party policy of ‘Big Society’

• Are they always non-profit?

• Blurring of private vs. public sector

  • E.g. Hinchingbrooke Hospital

• Many have marketing departments

• Brands are important

  • High public profile is important

Potential defining characteristics of NGOs

• Formal (meetings, office, office bearers)

• Private (Institutionally separate from government)

  • Are they really non-government?

    • Particularly a large part of their work may be government contracts? (Lewis and Kanji, 2009)

• Non-profit distributing

  • Financial surplus does not accrue to owners

• Self-governing

  • Able to control and manage its own affairs

• Voluntary

  • Some degree of voluntary participation in the conduct of the organization

  • Sometimes questionable given salaries of some workers

  • Can cause tension between volunteers and paid

    • Different motivations

• Governance is important

Oxfam

• Long-term development programmes, humanitarian emergencies, advocacy and campaigns

• Contracts with local partners to do development programmes

• Over 50 countries in Africa, Asia and Central/South America

• HQ in Oxford

• Makes grants to partners to run development programmes

• Direct service provision in emergencies

• Campaigning of significant issues

  • E.g. “make trade fair”

• A ‘full-service’ NGO

  • These types of work might overlap

Amnesty International

• Advocacy and campaigns regarding political prisoners and human rights

• Global movement of over 3 million supporters in over 150 countries

• Letter-writing

• Campaigning

• Demonstrations

• Vigils and direct lobbying of those with power and influence

• Came about like a social movement

• Another example is ‘Human Rights Watch’

BRAC

• Development organization dedicated to alleviating poverty by empowering the poor to bring about change in their own lives

• Founded in Bangladesh, now in 10 countries in Africa and Asia

• Largely self-funded by its commercial businesses

• One of the biggest NGOs

• Focus of work has changed over time

  • Now a hybrid firm that operates banking, department stores etc. to support its charity work

    • i.e. social enterprise

Scope

• UK charity that provides support for people with disabilities

• Providing services (housing, employment, education and training) and running campaigns

• Heavily engaged in service provision

  • Contracted by government to provide vital services

Basic Needs

• Work to bring about a lasting change in the lives of mentally ill people around the world

• 8 countries in Asia, Africa and Latin America

• Providing access to community based treatment so that illnesses can be stabilized and people can get back towards a normal life

• Help stop the stigma surrounding mental illness

Complexities of Accounting in NGOs

• 5 issues:

  • Social goals not profits

    • Mission and objectives of NGOs are related to a huge variety of...

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