In NGOs, we should be able to trust
Trust is in crisis in the key institutions of business, government, NGOs and media. looks at the trends and how this affects charities closer to home.
There’s been a lot written recently questioning just what New Zealand charities do and whether we can trust them. The recent Charities Services survey shows that, while overall New Zealanders have ‘‘moderate’’ trust in nongovernment organisations (NGOs), nearly a quarter of those surveyed are troubled by negative media coverage, lack of information, and a perception of over-spending on administration.
Add to the picture the results of a JBWere Cause Report this year looking at the state of New Zealand’s $20-billion-a-year NGO sector. The report said, to some people’s alarm, that there is one NGO per 170 New Zealanders – 27,380 in total. It asked whether these organisations are using their assets for maximum impact and return.
The disparate NGO sector encompasses everything from your local football club to an academic think tank. Too many, said the report. But this diversity is to be celebrated, as long as each organisation is accountable.
Speaking on behalf of one group of NGOs – the humanitarian aid and overseas development organisations – a lot of hard work is going into ensuring that we are effective and transparent. After all, we’re accountable not only to the people we serve, but also to the donors who give us money.
Some New Zealand-based organisations have been working with partners in the developing world for more than half a century.
Forty of them have come up with a self-regulating code of good practice, the Council for International Development’s (CID) Code of Conduct.
Like all Codes, it’s a public statement of principles and standards against which these NGOs are willing to be judged. They sign up to be accountable for the money they spend, and to make sure it gets to the right places and is spent on the right things, including when they work with partner organisations outside New Zealand.
Without this quality stamp for professional standards why should NGOs expect to be more trusted than small business? At a time when the public is turning its back on established organisations, it’s more important than ever to convince the public we can be trusted with their money.
The CID Code is based on the Australian counterpart organisation’s Code, one of the most credible and long-standing in the sector internationally.
The Code requires NGOs to be transparent about how donations are spent during fundraising appeals, and through their annual reports. For faith-based NGOs, the CID Code requires them to be clear about the difference between their development work and religious work, and not use development funds to evangelise.
All NGOs must also show they have systems in place to make sure children are protected in all of their activities, and that they are protecting the rights of other vulnerable groups.
The Code means that NGOs must explain how they will use funds responsibly, even when they are passed on to other organisations overseas.
While risk can never be eliminated entirely, the public can be sure that NGOs that have signed up to the CID Code are taking all reasonable steps to identify risks and manage them appropriately, to reduce the likelihood of misuse of funds, especially those working internationally in situations of emergency or conflict.
And each organisation must show it has easily accessible complaints-handling systems set up so that if problems do occur, they can be dealt with quickly.
Organisations should not pretend that the planning, design, implementation, monitoring and evaluation of effective and accountable programmes is free. It costs money, and organisations that cut corners will end up wasting public money with failed projects that can cause real harm to vulnerable people.
Development and humanitarian NGOs don’t want to just tick boxes. They want a Code that actively encourages them to do it right from the start.
They want the public to know they will hold themselves accountable – from how they set up their governing boards, to the way they run their fundraising campaigns and tell their stories.
New Zealanders should have no hesitation in trusting those organisations willing to sign up to the highest standards.