In today’s world filled with multiple global crises, NGOs have been indispensable in alleviating some of the burning issues. They are a critical and highly valued component of society.Are you planning to start an NGO but confused about where to begin? You are in the right place! Read on as we explain the concepts and types of NGOs and how to run an efficient organization with a dedicated ERP system.
What is an NGO?
A non-governmental organization, or an NGO, is an organization that helps the underprivileged and socially and economically backward members of society. It helps those who may fall through the cracks in the system because of a lack of information about government schemes, insufficient budget, or a turn of fate.
Types of NGO
All NGOs are not the same. They work on different levels and in different forms. Some NGOs may offer direct services such as distributing food, medical care, and essential items during disasters. Others may work towards fighting for policy changes in governments, such as disability access. A few of them may be involved in bringing together a community and training them for self-sustenance, such as co-op groups. Others may work as a conduit for financial assistance.
The type of NGO you wish to establish depends on multiple factors. Here are some chief types for you to explore:
1. Orientation: Such NGOs are distinguished based on the kind of operations they run.
- Charity: NGOs that are oriented toward charity work primarily on collecting funds, identifying causes, and distributing them to prioritized causes.
- Service: Service NGOs are actively involved with the community and collaborate with other organizations to promote education, healthcare, etc.
- Participatory: Every volunteer is involved in daily activities. They plan the activities, collect funds and donations, and conduct events to help the people directly.
- Empowering: Such NGOs are focused on increasing awareness of the people towards their economic, social, and political rights. They work toward empowering the people to take action if they are not allowed their fundamental rights.
2. Level of operation:Such NGOs are categorized based on the scope of their reach and work. The typical types are:
- Community-based:These NGOs focus on specific communities and their problems. They are small in size and work towards improving the said community only. For example, a specific NGO may work only to educate the children of construction workers in a particular area. Local sports clubs and children's activity centres are also community-based NGOs.
- City-wide: These NGOs also work on a small scale using contacts with the target community throughout the city. They may be commercial-focused or funded by an umbrella organization. Certain coalitions of societies, communal organizations, or business coalitions also fall into this category.
- National-level: These organizations are on a large scale and focused on a particular aspect common throughout the nation. An NGO working toward promoting sports for the paraplegic community may work on a national level to spread awareness about the opportunities. These NGOs have state- and city-level chapters for local outreach.
- International-level: These are organizations with a massive infrastructure expanding across the world. They have multiple resources and can formulate activities that include charity, outreach, service, and empowerment. For example, Nurse without Borders is an international organization where registered nurses can choose to go to a war-ridden country to take care of refugees
In addition, NGOs can be categorized based on their sectors, such as adult education, disaster management, housing and slums, disability, rural development, health, and agriculture.
Steps to Run an NGO
If you wish to start and run an NGO, there are ways you can do so to make the process more efficient. Here are the steps you can follow:
1. Establish the scope and mission of your NGO
Then, you can list the purpose and scope of the NGO. For instance, if you wish to focus on underprivileged children, you may want to include scholarships, educational outreach, incentives to stay in school, and digital access. This helps to carve out the scope of your work and form your NGO's mission. You can then build on the foundation and add to your goals as your NGO grows.
It’s also important to decide where your NGO will operate from. For example, will you be working from home initially with outreach activities? Do you need a permanent place to provide shelter, such as an orphanage, old age homes, or shelters for domestic violence victims? Will you be using any particular community hall for your programs? You can determine the type of place and the budget required for it. This will help you shortlist the possible places and explore them.
2. Form a strategic plan and the framework of the NGO
Once you have decided whom you will focus on, you can subsequently plan the steps to form the NGO. You can begin by formulating the strategy, including long- and short-term goals, major outcomes, and tasks to achieve the goals. Then, you need to decide the legal structure of the NGO, such as a charitable trust, society, voluntary organization, or a firm promoting sports, arts, science, research, etc. Where your NGO falls within these categories will vary from country to country. So, it’s important to do your due diligence based on the country where your NGO is located.
Further, you can gather information about the required legalities, compliance, and approvals. There may be a bunch of forms to fill out, signatures to be taken, and people to be met. You will also need to determine the members of your NGO's governing board. The members should be sympathetic and dedicated to the cause. They must be ready to support the tasks in any way possible and work towards improving the NGO.
Finally, register your NGO with the local government and regulatory bodies. You will have to submit the forms, furnish the details of the NGO and the governing board, and pay the registration fees. In the case of a place of work, you may also need the necessary approvals for the location.
3. Concretize the governing documents
An NGO works best when guidelines and procedures are defined for each aspect. You can prepare the documents, also called Memorandum Articles of Incorporation or Association, that establish the governing rules, regulations, and guidelines. The documents can include the task allocations, responsibilities, and roles of the governing body as well as the volunteers. You can include details of funding sources, amount, and allocation.
The documents are crucial to guiding the NGO's daily operations and providing a base for its future. This is usually a data-intensive process requiring assistance from legal experts.
4. Establish your NGO
This step is when you begin to use the location of your NGO, refurbishing and preparing it to become fully functional. This may include allocating rooms for different activities, setting up equipment, and gathering volunteers. The IT setup required for the NGO will be installed during this step. This is a labour-intensive step when your NGO comes to life.
This step is the right time to explore and implement NGO management software. You can begin using the software from the get-go to organize and store all the documents properly. It assists in task distribution, target setting, and performance tracking. The information about the people being helped can also be stored immediately so that there is a record of each activity.
It is also a good idea to adopt accounting software for your NGO. The software will integrate funding and expenditure information, allowing you to track budgeting and accounting. The software must have capabilities that can assess the financial aspects of the NGO and simplify the filing of income tax returns.
5. Begin day-to-day operations
You can now begin running your NGO. Typically, there would be a plan for the daily tasks with some short- and long-term goals. You can use the system to stay in touch with your volunteers and make a record of their daily activities. Typically, there is a daily review of completed, in-progress, and future programs. You may also be involved in some activities, such as counseling, conducting workshops, teaching, etc. As the person in charge, you will handle most of the management tasks. So, your volunteers will also need your support in logistics. This step is where your NGO commences its role in the betterment of society.
6. Grow your network
An NGO requires a large network of people for multiple things—funding, volunteer recruitment, and help in kind, to name a few. Nurturing this network both online and offline is crucial. In today’s digital world, having an online presence on social media is bound to get you in touch with people of similar interests from around the world. This is helpful for additional funding sources and opportunities for your target group. For example, if you work with underprivileged students, social media may get you in touch with scholarships for studies abroad.
7. Recruit new members and support your team
Volunteering is not for the faint of heart. Your team needs constant support and appreciation so that they know the importance of their work. You can also recruit new members and train them to handle some of the workload. Your team should be made of people who are passionate about the cause and ready to work towards it, come what may.
Advantages of an NGO Management System
The typical work process of an NGO is primarily project-based, meaning they choose a project and then iron out the intricacies of logistics, spending, and activities. This results in some projects getting less funding, over-allotment of manpower, and unfinished tasks. This may make the whole process sound overwhelming. A good NGO management system is the solution! A recent survey revealed NGOs spend only 1.9% of their annual revenue on finance. They spend even less, only 1.5%, on IT. In fact, only 45% of the NGOs attested to the use of such a system.
The typical work process of an NGO is primarily project-based, meaning they choose a project and then iron out the intricacies of logistics, spending, and activities. This results in some projects getting less funding, over-allotment of manpower, and unfinished tasks. This may make the whole process sound overwhelming. A good NGO management system is the solution! A recent survey revealed NGOs spend only 1.9% of their annual revenue on finance. They spend even less, only 1.5%, on IT. In fact, only 45% of the NGOs attested to the use of such a system.
Hence, there is an urgent need to streamline the process for an equitable distribution of resources for all the projects.
Here are the key advantages of adopting an NGO management system:
Improved efficiency with automation of regular administrative tasks and digitalisation of the information with easily accessible data.
Reduced expenditure by using a single management and accounting system to lower the burden of repetitive installation and training of the staff.
Increased capabilities by a streamlined workflow for each project. You can chart out the steps, goals, task allocation, resources, project tracking and personnel.
Better transparency of the funding and expenditure to handle all the accounting from a single place and monitor the expenses.
Streamlined tax filings due to a lucid accounting system.
Greater scope for growth by using a master process for beginning any new project.
Take the next steps with the NGO management system from Matiyas
Take the next steps with the NGO management system from Matiyas
Running an NGO is no mean feat. If you have chosen this path, using systems that make your work simpler is a smart thing to do. Matiyas offers ERP software solutions for NGOs that can be customized per your needs. It can assist you in the management of workflows, donors, accounting, and social media, to name a few.
