Do NGO Self-Regulation Mechanisms Work?

(The Philippine Context)

By: Fely I. Soledad Former Executive Director, Philippine Council for NGO Certification (PCNC)

RAISE STANDARDS OF PRACTICE?

1. Higher number of NGOs with improved level of performance after PCNC certification 2. Raising the bar and making NGOs aware 3. Evaluation/Certification is based on standards in six areas (purpose, governance, administration, financial system, program operations, networking) 4. Sharing of best practices among NGOs

Challenge: -We have raised the standards in terms of setting the bar but by themselves, some NGOs have difficulty reaching the standards Response: -handholding -peer review and assistance

PREVENT INAPPROPRIATE
-Attempts by government to regulate - Executive Order 671 (superseded by Executive Order 720) - 3 house bills in Congress

GOVERNMENT REGULATION?

-But these were successfully prevented (for the meantime) thru: - support of different sectors - advocacy

Challenge:
-Some politicians eye NGOs/ foundations either as suspect (of dubious motives) or prospect for their own interests -More bills in Congress are to be expected Response: -vigilance & advocacy

BUILD PUBLIC TRUST?

-public at large: we cannot say yet -local donors (mostly corporate): -require PCNC certification for assurance -for tax deductibility -foreign donors(some): -for due diligence -government: -requirement for qualification as donee institution (deductibility of donations & exemption from donors tax) -plus factor for inclusion in local special bodies

Challenge:
-complicated

universe -number of NGOs involved in scams & scandals (mostly founded by politicians or their relatives -indifference of some donors/funding agencies towards NGO accountability /due diligence -Response: -vigilance & advocacy

ALTERNATIVES TO SELFREGULATION
government regulation? -politicians have used NGOs for their own self-interest -corruption in government-related institutions has been rife independent monitoring bodies? -expensive -may not have the appropriate context

peer review? -an NGO review may need specialists, e.g. PCNC has volunteer evaluators from PICPA to look into financial management systems -re standards, peer-to-peer may become questionable if the one reviewing may not have the best practice -may be difficult to prevent in-breeding or in-fighting (competition or turfing)

LEARNINGS FROM THE PRIVATE SECTOR

Being market-driven -not depending on grants Improving your position based on your image and productivity Creating / maintaining your niche Coming up with higher quantity & quality of outputs

CONCLUSION (From PCNCs Perspective) Despite the challenges, self-regulation is the way to go (in a democratic society where peoples' participation, freedom, and responsibility are respected and promoted).

Thank you.