SET UP II

Karishma Nair
Week 11
Session 2
RECAP
Find your Passion
Operational and Advocacy NGOs
Community and Health/Economic/Women/ Environmental etc.

Find the Right People

Board Members (Chairperson/Vice Chairperson/Treasurer/Secretary)

Clarify your Vision and Goals

Register the NGO

Legally Represent/Bank Account/Tax Exemption/Fund
and Capacity Development Assistance

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 STEPS

Find your Passion

Find the Right People
Clarify your Vision and Goals
Register the NGO
Conduct Local Research, Network and Form an
Action Plan
Write a Budget and Fundraise
Start your Project
Conclusion: The Goal is to become Obsolete

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 STEP 5: CONDUCT LOCAL RESEARCH,
NETWORK AND FORM AN ACTION PLAN
You have your vision statement, goals, and registration. Before jumping
in, it’s time to lay the groundwork.

Research the areas you want to work in. Identify the challenges, cultural
history, political state, and so on. This context is essential to being effective.

While you’re doing this, talk to other NGOs. Find out what challenges
they’ve faced and the progress they’ve made. These relationships can
become partnerships, allowing organizations to do more good together
than they would apart.

With this groundwork, you can then form an action plan on how to make
your NGO effective.

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PLANNING
In most of the NGOs, long term plan may not be available.
This is because NGOs are dependent on external sources of
funds like donations, grants etc.

Unless they have been sponsored by big corporate houses or

they are funded by Government. The NGOs who are always in
need of funds and face scarcity of funds cannot have long term
planning.

NGOs at a time undertake two or more projects at a time.

Project implementation requires planning, arrangement and
allocation of resources and time management.

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PLANNING
For implementing the project / achieving any goal,
thoughtful and considerate planning is essential.

In case of NGOs, planning may involve following:

a.Designing the projects to achieve the targets

b.Plan of project activities

c.Formulating strategies for implementing the project

d.Identifying various requirements like manpower, method

of implementing the project, funds requirement etc.; in short
the need of Man, Machine, Material, Money.
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ACTION PLAN
a.Marketing:
Marketing is essential for creating awareness of general public, donors
and beneficiaries about the work NGOs are undertaking and services
being offered by NGOs. Websites and brochures are some methods of
marketing of NGOs.

b.Staffing:
In NGOs, manpower comprises of paid staff and volunteers.
The volunteers could be students, social workers or any
person who is willing to work for a social cause, benefit of
society. Staffing process involves identifying jobs according
to needs of organization, recruitment of human resource based
on their qualification and skills, providing training as per need.

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 ACTION PLAN
c.Financing
In case of NGOs, funds are generated by various means like public
donations or Government / Corporate grants or sale of products produced
by them, workshops, charity shows and personal donations by the
members. They should not rely on one single source of fund, rather they
should look for more options.

d.Project Implementation
After marketing, staffing and financing, project implementation
starts. Management concept is very important for successful
implementation of project.
e.Controlling
It includes monitoring that activities are going as per the pre
decided planning, comparing the actual findings with the
estimated standards.
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Karishma Nair
 STEP 6: WRITE A BUDGET AND
FUNDRAISE
Money can be complicated, so having people on your team who
know what they’re doing is essential.

How much funding you have and how you use the money can make
or break your organization. You’ll also need to figure out where you’ll
get the money from.

NGOs have a handful of options such as loans, grants, private

donations, and membership dues.

It’s also possible to get funding from the government.

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HOW NGOs ARE FUNDED
NGOs rely on a variety of sources for funding:
 membership dues
 private donations
 the sale of goods and services
 grants

Despite their independence from government, some NGOs rely

significantly on government funding. Large NGOs may have budgets
in the millions or billions of dollars.

Individual private donors comprise a significant portion of NGO

funding. Some of these donations come from wealthy individuals.
Many NGOs, however, rely on a large number of small
donations, rather than a small number of large donations.

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SOURCES OF FUNDING
Internal Sources of Funding
Internal sources of funding are membership fees, subscriptions,
interests/ dividends, sales of products, individual donations and rent.

Membership fees – Annual fees charged for becoming a member

of the organization is the membership fees.

Subscription – Fees is charged by the organization for subscribing

in-house magazine or bulletin or any other type of publication.

 Interests/dividends – On any short term or long term investment

of NGO, interest / dividend is received.

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SOURCES OF FUNDING
Internal Sources of Funding

Sales of products – Funds are raised by sale of products like

handicraft items, food items and candles that are generally prepared
by the beneficiaries.

Individual donations – Any member of the NGO may give funds

from his pocket as individual donation.

Rent- In case the NGO leases out its property like office, rent
becomes the internal funding source.

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SOURCES OF FUNDING
External Sources of Funding
External sources: External sources include Government, Foundations,
Trusts, Funding Agencies, Corporations, Public donations, Self
financing.

Government- Funds from government to the work of voluntary

organizations
Foundations, Trusts, Funding Agencies: National Foundations/
Funding Agencies, Foreign/international foundations / Funding
Agencies and Trusts are one of the major sources of funds for NGOs.
Corporations: Corporate sector includes the corporations and
business houses acting as a funding source for NGOs.
Public donations: Donations given by an individual or a group of
individual for charitable cause, fall under this category.

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 STEP 7: START YOUR PROJECTS

The last step in establishing your NGO is to get started on a project.

You’ll want to start small at first with attainable goals.

Assign everyone a clear role, decide on a budget for the project, and
set up a monitoring-and-evaluation system.

This will let you assess what’s working and what’s not during the
project, and then afterward, you’ll be able to evaluate the final result.

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 CONCLUSION: GOAL IS TO BECOME
OBSOLETE
Any NGO should hope it becomes obsolete at some point.

This means that the need they’re addressing has been met. The
problem has been solved. If it becomes more challenging to find
issues to tackle, that’s a win.

Odds are, though, the need will outlive the NGO. When starting an
NGO, always consider the long-term. Build a strong network and
relationships that will last.

Take the time to set up a solid foundation that will hold your
organization for years to come. When you’re thorough and thoughtful
in these early stages, you’ll set your NGO up for success.

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