A non-government organisation is defined as an organisation undertaking activities not done by the state or private sector. Such an organisation is not-for-profit and there is no dividends paid to shareholders.
There was a proliferation of NGO’s created during the pre-Independence and immediately thereafter. They are involved in business development, cultural groups, agriculture, Aids, etc. They include international organisations such as the Red Cross, or local chapters of internationally accepted bodies such as the Namibian Society for Human Rights (NSHR). Local NGO’s can work at gender issues such as the Women’s Action for Development (WAD), or animal rights such as the SPCA. They also include a variety of welfare organisations such as the Blood transfusion service or industry interests such as the NCCI or ICT Alliance.
While most NGO’s are doing a good job in Namibia, unfortunately, some have not. They have abused their mandate or become a vehicle for an individual who is seen as the driving force or even “responsible for the success of the organisation”. This leads to the next question, “How do we distinguish between a good and bad NGO?”
The following questions provide us with a litmus test:
•Are their financial statements open for scrutiny?
•What percentage of their budget is spent on salaries and perks for the organisations employees?
•What part of the budget is contributed by governments, directly or indirectly?
•How many of the NGO's operatives are in the field, catering to the needs of the NGO's ostensible constituents?
•Which part of the budget is spent on furthering the aims of the NGO and on implementing its promulgated programs?
I suggest that we have Non-Government Organisation Bill. In this Bill should be addressed the issues of mandate and good governance, and the mechanisms in the case of abuse. It should include a restraint on creation of new frequently unnecessary NGOs (that are mostly more helpful to the creators of the NGO than the people they are designed to serve).
Not-for-profit can still be a business
There are different types of social entrepreneurs; grassroots activists mobilising for social change; relief workers; grant makers; and even corporate teams who work on social responsibility issues.
The value of their work, however, is often undermined because of poor leadership and organisation, which leaves them struggling to cope with changes driven by technology and increasing social complexity.
In a changing world, social entrepreneurship is essential for the future sustainability of NGOs and non-profit companies.
Social entrepreneurship sounds like another free-market concept to some, and indeed, does borrow threads from business-school ideology. But it is aimed at instilling a way of thinking about organisation, rather than changing the motives that are its reason for existence.
Running organisations along market-oriented business principles often creates a natural tension with their goals of pursuing objectives for the political and public good [...]
However, the use of sound managerial and organisational tools does not translate into ideological assimilation and the adoption of the profit motive. There is also a lot that can be transferred from the business world about accountability and governance.
Source: Saliem Fakir, Mail and Guardian, 30 July - 5 August 2004, p.34