USAID Support for NGO Building- Approaches, Examples, Mechanisms

8/6/2019 USAID Support for NGO Building- Approaches, Examples, Mechanisms

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USAID SUPPORTFOR NGO CAPACITY-BUILDING

Approaches, Examples, Mechanisms

Office of Private and Voluntary CooperationUSAID

July 1998


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Thls report was prepared by Lou Stamberg under a contract fromthe Office of Private and Voluntary Cooperation

The Enabling Environment section was m t t e n by Ann Hudock in the Democracyand Governance Center in the Global Bureau

Oversight and Coordmation was provided by John Grant and Gregory Pern erin the Office of Private and Voluntary Cooperation


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CONTENTS

I Introduction11 USAID'S Conceptual Framework for NGO Capacity-Bluldmg111 USAID-Supported Approaches and Mechmsms

A U S PVO - Local NGO Mentomg Genenc ModelsB Buldmg Networks and CoahonsC lmprovlng the Enablmg EnwontnentD Inst1tubonal~ahon f Local NGOs/Support of Extt StrategesE The GEM ApproachF NGO Semce CentersG Umbrella ModelsH ConsorhaI EndowmentsJ Vouchers

IV USAID-Supported Assessment Tools for NGO Capacity-BuldmgV Re~onal xamples of USAID-Supported Capacity-Bddmg

* Ahca* Asia* Latm Amenca and the Cmbbean* Europe and the New Independent StatesVI Centrally-Funded Examples of USAID NGO Capacity-Bwldmg


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USAID SUPPORT FOR NGO CAPACITY-BUILDINGApproaches, Examples, Mechanisms

I INTRODUCTIONUSAID has worked closely wth nongovernmental orgamzations for many decades, but thenature, focus, and magnitude of USAIDINGO collaborative efforts have changed substantiallyWlule imtial emphasis was on humamtman relief and emergency food distribution programsc m e d out by U S private voluntary orgamzahons, in the past two decades the relationshp hasevolved to emphasize the role of non-governmental orgamzations m addressing the issues oflonger-term development USAID played a cntical role, begmng in the late 1 9 70 '~~strengthemng the capacity of members of the U S pnvate voluntary commumty to plan,implement, and evaluate development programs The depth and magmtude of the USAIDIU SPVO partnershp has increased commensurately U S PVOs and other nongovernmentalorgamzations are now major components of the U S foreign assistance effortCoupled wth the strengthened USAID/US PVO partnershp has been a sigmficant increase inthe development and potential of the nongovernmental sector abroad indigenous NGOs andcommwty-based grassroots organizations (CBOs) Whde the role and size of the indigenousNGO sector vanes wdely between regions and on a country-by-country basis, USAID hasincreasmgly turned its attention to building the capacities of such indigenous orgamzations, as aprereqwsite to broad-based sustainable development The post-Cold War decade of the l99O's,in particular, has seen major changes in the context for the USAID's work wth the NGO sectorNon-governmental organizations have been increasingly recogmzed as indispensable to creatingand sustaimng the civil society framework fundamental to long-term sustainable development inthe newly independent nations of the former Soviet Umon as well as in traditional developingcountnesThe growng number and mportance of local NGOs has had sigmficant implications for the roleofU S PVOs and for the USAIDIPVO partnership U S PVOs remsun major USAID partners inboth developmental and humanitman assistance Today, however, USAID looks to U S PVOsless for direct service delivery than as partners and facilitators of NGO-implemented activitiesThs has brought the importance of local NGO capac~ty-bmldingo the fore, as a matter both ofUSAID policy and practiceThs paper discusses USAID support for NGO capacity-building, particularly over the pastdecade Ths support has taken a variety of forms and utilized a range of assistance mechamsmsCapacity-building encompasses a wide-ranging spectrum of activities, ranging from a smalltraimng component or a limited techcal consultancy as part of a much larger assistanceprogram aimed at sectoral change, to a comprehensive package of training, technical assistance,and small grants amed at changing the recipient orgamzations themselves Thus, in one sense,


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virtually any training program or consultancy w hc h benefits an NGO or c o m m u t y basedorgamzation can be termed capacity-building T h s paper takes a more focused perspective,consistent with the defirutlon of capacity-building as "a r~ xplicit intervention that aim s toimprove an organzzatzon 's (emphasis supplied) effectiveness and sustamability in re lat~o no itsmission and contextyyINTRA C) From t h s perspective, NGO capacity-building is geared to theorgm za tio n, not the project or the individual It must be a deliberate focus of the program itselfauned at the ability of the orgmza tion to carry out ~ t s ission Capacity-building can also bedirected to estab lishng or strengtherung NGO networks or coalitions, or to helping an NGOwork ou t or clarify its mission This perspective best lends itself to the basic purpose of thispaper to discuss approaches, examples, and mechamsms utilized by USAID in support of NGOcapacity-building, in a way that is useful for the broader donor and NGO c o m m u t yThe sections that follow elaborate on the current USAID conceptual framework for NGOcapacity-buildmg, descnbe various approaches and mechamsms utilized by U SAID in support ofNGO capacity-building, dlscuss several tools developed w t h USAID support to assessorgamzational capacity, and offer examples of USAID-supported capacity-building draw n fromeach geographic region in which USAID works

I1 USAID'S CONCEPTUAL FRAMEWORK FOR NGO CAPACITY-BUILDINGWhile USA ID has an extenswe history of support for NGO capacity-building over the pastdecade, the current conceptual un de rp im ng s are perhaps best embodied in USA IDysNewPartne rshps Initiative (NPI), announced by Vice President Gore at the United Nations SocialSummit in Copenhagen in March 1995, and expressed m vm ou s documents prepared as part ofthat initiative NPI recognizes the centrality of NGO empowerment, along with sm all businessdevelopment and democratic local governance, to buildlng the civil society framework essentialto sustainab le developmentAs stated in the "Core Report of the New Partnershp s Irutiat~ve" USAID, July 1 9 9 9 , the goalof the NPI is to "stimulate lasting economic, social and political development by building localinstitutional capacity" NPI focuses on three sets of local institutions that can enhancedevelopm ent efforts NGOs, small busmesses, and local governm ents All are strengthenedthrough capacity buildlng and creation of an enabling environment The Core Report describesNPI as an Agency-wide effort to make local capacity building a central concern in all Agencyprograms It states that USAID w l l pursue programs w hch foster at all levels of government anenabling environm ent favorable to NGO empowerment and which dlrectly bolster the capacity oflocal NGOs, utilizing intermediaries, especially U S PVOs, to carry out much of h s workWhile the report recognizes that the nature and roles of NGOs w l l differ significantly fromcountry to country, the overall goal is to create a large, diverse community of local NGOscapable of promoting sustainable development


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The conceptual fiamework for USAID-supported NGO capacity-building is mostcomprehensively elaborated in the "NPI Resource Gwde A Strategic Approach to DevelopmentPartnenng" (USAID, January 1997) T h s extensively documented report bnn gs together theresults of NPI field tests in 15 pilot USAID M issions and provides a number of program mm gtools to assist in mcorporating NPI Into Misqion portfolios It offers detailed discussion of theways in w h c h the three NPI building blocks - ocal capacity building, strengthening the enablingenvironment, and fo ste m g strategic partnerships- an improve the ability of local actors toenergize development Chapter Three of the Resource Guide provides a detailed discussion ofhands-on USAID-supported local capacity-building w it h n the NPI conceptual framework, andincludes a set of tools for Missions to use in assessing orgm zati ona l capacity and buildingcapacity for partnershipW l e ull implementation of NPI concepts remsuns a sigmficant USAID challenge, the ResourceGw de offers a stnlung illustration of the centrality of NGO capacity-bmldmg as a comp onent ofUSA ID's current development efforts, together w t h numerous recent examples of how NGOcapacity-building has been incorporated into USAID w orldm de programm ing

I11 USAID-SUPPORTED APPROACHES AND MEC HANISMSUSA ID supports NGO capacity-building in many ways and through a vanety of funding andmanagement mechanisms To a large extent, USAID has looked to U S pnvate voluntaryorgm za tio ns as the principal implementors of NGO capacity-building, but such programs havebeen c m e d out as well by contractors, universities, and by USAID Ahssions themselves T h ssection discusses and offers examples of some of the major ways m which USAID has suppo rtedNGO capacity-buildingA U S PVO -Local NGO Mentonnrr Generic ModelsPartnerships or mentoring relationships between a U S PVO and local NG Os are perhaps themost comm on mod e of USA ID support for NGO capacity-building Such relationsh ps takemany d ifferent forms, utilize many of the m ec hm sm s described in the succeeding sections ofthis report, and a re highly specific to the country, regional and sectoral contexts for w h c h theyare designed For this reason, generic models of NGO capacity building can be difficult todocum ent Nonetheless, a sigmficant and increasing number of USA ID-supported U S PVOshave been successful in describing the broad approaches that charactenze theirNGO capacity-builhng effortsThe U S PVO Pact, or exam ple, states that it looks at capacity-buildmg as a three-stage processthat m oves NGO s from foundation/development, to consolidation, and finally toinstitutionalization The first stage is accom plished through project proposal reviews, strategicp l m n g , feasibility studies, funding, and momtormg of individual NGO s The second stage isconsolidation of individual NG Os through building coalitions, consortia, and strategic partners


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The h r d stage is institutionalization of the NGO c o m u m ty , including participation in policyadvocacy and legislation to build an enabling external environment Program s frequently worksimultaneously on activities in each stage to coordinate development of internal capacity w t h theexternal environmentMore specifica lly, Pact builds capacity by mobilizing and channeling technical, maten al andhuman resources into indigenous NGOs that lrnplement development projects, acting as anumbrella grant managing organization that promotes both the grow th of individual NGO s andalso the NGO sector as a whole At the org mzatio nal development level, the tools it usesinclude organizational assessment, technical assistance, tr am ng workshops and seminars, studytours, tutoring and organizational development consultancies, and direct grant support to allowservice delivery and org mzatio nal development to go hand in hand At the NGO sectorallevel, activities include coalition-building and networking, policy reform, advocacy,strengthemng NGO-government relations, and developing domestic resources (Pact ProgramResource Handbook, March 1996)Cou nterpa rt International similarly describes a replicable model for NGO capacity-building,denv ed from expenence in the South Pacific and the NIS, that is adaptable to diverse localenvironments Counterpart summarizes its capacity-building strategy as an mtegrated package ofservices that a) strengthens the internal capacity of NGOs both to provide services and toadvo cate on behalf of clients, and b) strengthens NGO s as viable partners and coalition mem bersat the local, reg ional, and international levelsCounterpart emphasizes the crltical role of the enabling environment in fostering andstrengthening the NGO sector It emphasizes as well the creation of NGO coalitions andprofessional associations, through the provision of technical assistance and financial resources todesign and undertake servlces to members and advocate on behalf of the sector Train ing is anintegral part of its capacity-bullding program, with modules keyed to traimng levels as well ascultural context, and w t h a focus on trainmg of local trainers Microenterprise has an importantrole in Counterpart's effo rts to build NGO s fmancial sustainability Partnerships and strategicalliances are v~ ew ed s an essential mechanisms for capacity-building, to give a local NGOaccess to knowledge and slulls, innovative and proven methodologies, networking and fun dingopporturuties, replicable models for addressing c o m u m t y needs and managing resources,options for organizational management and governance, and strategies for advocacy , governmentrelations , and public outreach (1996 Annual Report, Counterpart International)The Christian Reformed W orld R elief C ommittee takes a somewhat different approach to N GOcapacity-building The handbook "Partnenng to Build and Measure Organizational Capacity"(CRWR C, 1997) discusses a USAID-supported three-year inquiry into best practices ofpa rtn ershp and organizational capacity-building, conducted collaboratively by the Case WesternUniversity's W eatherhead School of Management, the CRW RC, and more than 100 local NG Osworlung with CRW RC around the world CRWR C identifies six principles of capacity-building that, while not a b lueprint, form a se t of normative guidelines grounded in theexpe rience of the study participants They include the need to begin with mutual partnershipbetween organ izat~ons,he finding that orgm zatio nal capacity-building works best when it is


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appreciative rather than evaluative, 1e ,when it focuses on the strengths and value-based factorsof an orgamzation, as well as techmcal factors, the need to contextualize everythng, slncecontextual variation is a key element in orgamzational capacity-building, the necessity ofthdung of the orgamzation as a living organlsm rather than a mechmcal model, thefundamental importance of inter-orgamzational l e m g , 1e , nteracting wth a wde variety ofother orgamzations at all levels to learn how best to strengthen orgamzational purpose andperformance, and the need to create and ensure systems for mutual accountability mrelationshps

B Bulldmg Networks and CoalitionsSupport for the formation and strengthening of NGO networks and coalitions has beenincreasingly recogmzed as an essential component of USAID-supported capacity-building for theNGO sector as a whole as well as lndivldual orgamzations themselves Thls recogruhon bothreflects and responds to the rapld increase m the number and effectiveness of such coalitions andnetworks around the world Expenence to date shows that building networks can be key to theimpact, sustainability, and continuty of NGO programs, facilitating thes h m g of lessons learned and outreach to partners and affiliates at all orgmzational andgeographic levelsThe Small Enterpnse Education and Promotion (SEEP) Network IS a USAID-supportedassociation of 42 North Amencan pnvate development orgamzations whch support mcro andsmall enterprise programs in the developing world SEEPS mission is to promote professionalstandards of practice, conduct an educational program for ~ t s embers and other practitioners,create and disseminate publications wth hgh field applicability, and serve as a center forcollaboration on a broad range of sector-related issues Over the past decade, SEEP has playedan increasingly active role, wlth its member institutions, in strengthening the outreach and impactof small and mcro enterprise NGOs around the world SEEP has prepared numerouspublications on the institutional development of small-enterprise NGOs (e g ,An InstitutionalGuide for Enterpnse Development Organizations, SEEPIPact Pubhcations, NEXUS, SEEP'Squarterly newsletter)USAID/Philippines offers the example of an assistance program with a major PVO/NGOcomponent that has evolved over many years to a strategy that now places principal focus oncoalition-bullding The Mission has funded four "PVO CoFinance" programs since 1980, andwhle each has had a different emphasis, an overall goal has been the institutional strengtheningof NGOs The Co-Finance program has increasingly supported partnerships between and amongNGOs In FY 1995, the Co-Fi program funded three coalition-building projects and anotherthree in FY 1996 In these grants, aU S PVO or local PVO serves as the grant recipient wth anational coalition as project implementor The coalition-building projects are diverse, includmgfisherfolk advocacy for sustainable aquatic reform, enhancing people's initiatives for housingand urban development, advancing the participation of upland indigenous peoples in thedemocratic process, empowermg women and chldren in the informal sector, building w t y for


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coconut industry reform, and developing standards for the microfmance sector (Evolution of APVO Co-Financing Program Lessons Learned at USA IDPhilippmes, CripeP erne r, 1997)A new USA ID program, PVOLNGO Netw orks, is designed to mcrease the use of familyplannmg, reproductive health, ch ld survival and HIV (FP/RH/CS/HIV ) services throughenhanced capacities of PVOLNGO networks and partnersh ps The program w11 work onlythrough in-country networks of PVOs and NGOs that partner with other sectors or orgam zations,rather than supporting individual PVO or NGO proposals or t e c h c a l assistance needs Buildingon considerable USAID family p l m n g and reproductive health expenence w t h PVOs andNGOs, it responds to increased demands for te c h c a l assistance and capacity-building from theprivate voluntary sector Among the specific results it seeks to ac he ve are sustained PVO /NGOcapacity for quality service delivery, accurate community FP/RW CS/HIV know ledge andsustained behavior change, expanded, productive PVOLNGO networks for service delivery , andexpanded service delivery coverage through PVOLNGO networks' partn ershp s with the publicsector (PVO/NG O Networks, USAID Bureau for Global Programs, May 1997)The African Women Leaders in A ~ nc ul tu re nd the Environment (AWLAE) program,implemented by Winrock International, works at both the macro and m icro level to create a pan-Afhcan cadre of w omen scientists and leaders committed to the well-being and productivity ofthe wom an farmer As part of a trsuning program in Leadership for Change, women leaders aremob ihzed in n ew sustainable Afncan N GOs and professional associations to continue to servethe woman farmer The program does this in three ways preparing women leaders w t hacademlc scholarships and a two part training program, plus professional development supportthrough sk ills workshops and an electronic learning network building an enabling professionalenvironment to which the wom en return after traimng and study, and creating sustamablemecham sms to continue the work of AW LAE through (1) establishment of AfricanNGOs/professional associations, (2) gender networlung and resource centers attached to existinginstitutions, and (3) career guidance and mentoring program (Winrock International, Arlington,VA )The Center for Development and Population Activ ~tie sCED PA), with USAID support, alsoc m e s out capacity-building programs that aim at the creation of networks CEDPA's capacity-building strategy is two-fold working with individuals to develop their leade rsh p practices andmanagem ent skills, and w orking wlth organizations for increased effectiveness andsustainability CED PA's capacity-bmlding activities are integrated with programs in the fieldand conducted with a l u m and partner orgamzations Leaders of international organizationsparticipate in CEDPA 's training workshops in the U S each year Follow-up traimng andtechnical assistance activities w t h alumni of these workshops, partners, and other stakeholdersare conducted in several of their countries each year CEDPA fac ilitates an average of 20 to 25regional and country-based workshops annually in countries where CEDPA , alurrrm, and partnerorgamzations are implementing development programs These workshops, as well as specifictechnical assistance, offer traimng in virtually all major areas of orgamzational capacityCE DPA 's goal is to create a network that fosters continued communication, support, and follow-up ac tivities, and that participates with other programs in an expanding network of advocates forwomen's partne rshp in development (CEDPA, Washmgton, D C )


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activity profitable and stimulating prlvate ph lanthro py, government encourages the formation,strengthening and long-term sustainability of local CSOs

2 Freedom of Association An essential condition for the emergence and development ofeffec tive NGO s and a dynam ic civil society is a legal framework that guarantees free associationand assembly The right to free assoc iat~on ,ncluding the formation of NGOs and intermediateassociations, is one of the pillars on w h ch society's entire legal and regulatory structure rests andis a key freedom guaranteed by extant international law3 Adoption an d Enforcement of Appropriate Laws and Regulations Though lawsaffecting associational life may be favorable for NGO growth and developm ent, such laws andadm ms trative rules may not be enforced in an even-handed manner at the national or local levelLax enforcement and oversight or differentiated application can render constitutional nght shollow Very bureaucratic, centralized governance traditions may also id ub it the vitality andinfluence of the NGO sector NGO s require a specialized and flexible regulatory structure tothrive T h ~ s ay include special tax codes, registration and incorporation laws, liability rules,codes of conduct and management Opportunities for NGOs to form partnershps w t h groupsoutside the country should also be facilitated Generally, NGOs are required to register ul th thecentral governm ent in order to be officially recogruzed and accorded certain ngh ts In somecountries, certain types of local or cornrnunlty-based associations must seek legal recognitionfrom m w c ip a l officials In either case, it is important that the process of acquiring legalrecogrution not be onerous, curnbersome,or expensive lest it impede NGO development Sometest of 'reasonableness' should be devlsed taklng into account such factors as the number of stepsrequired, length of process, cost, and degree of bureaucratic cooperation In the Philippines ,public policy encourages NGO development through simple registration procedures, the absenceof project approval procedures, and legal recognition of the importance of NGOs in publicdeliberations It is important to note that having good laws for NGOs is a necessary but notsufficient condition for the existence of a vibrant NGO sector Of equal importance is that thelaws be understood and falrly enforced4 Supportive Tax Codes The tax status of NGOs can be cntically important for thelrability to grow and to take on new roles and responsibilities Charltable behavior and voluntaryactivities are encouraged when NGO s have tax exem pt status and when c itizens are permitted todeduct contributions to NGOs from their own taxes Because phlan thropic traditions andvoluntary particip ation vary from society to society, it is not clear that favorable tax law s alonew l l stimulate behavioral change Still, clear and equitable tax laws are needed before authenticempowerment of local NGOs can occur For those NGOs involved in direct productive ac t~v ities,such as agricultural production and marketing, it is also important that the tax code providepositive economic incentives Moreover, it is important that local NGOs have the sam e, or morefavorable, tax s tatus as that of international NGOs5 Freedom of Press and Expression NGOs and other clvil society orgam zations are muchmore likely to prosper in a setting where there is a free flow of information and broad parametersfor public discourse An unfettered and independent media is the linchpin and key


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indicator of informational freedom Ths is particularly true for human nghts and advocacygroupsThe importance of NGO self regulation should not be overlooked in discussions of the NGOenabling environment Proactive efforts of self-regulation can stave off government attempts atrepression of NGO activity In order to strengthen the sector's effectiveness and integrity,umbrella orgamzations or other consortia of NGOs can adopt and enforce standards m thefollowing areasInternal governanceorganuatlonal mtegrltymanagement pracbces and human resourcesfinancescommun~cat~onso the publrcfundralslngprogramsSome of the most comprehensive efforts to address the legal enabling environment for NGOshave been undertaken by the EN1 Bureau through their work wth the International Center forNot-for-Profit Law Through the Democracy Network activities, ICNL has workedcollaboratively wrth missions, NGOs, and governments to facilitate the development ofsupportive policies and legislation regardmg NGOs and related tax and fiscal regulation Anexample of successful work by ICNL can be found in Estonia, where the NGO status laws wereextremely restrictive, providing little legal space for the creation or operation of NGOs Inresponse, ICNL provided techcal assistance to a workmg group compnsed of mmstry officials,Members of Parliament, and NGO leaders, whch led directly to the drafting of a progressiveLaw on Foundations Revealing sustainable in-country capacity, the Mimstry of Justice on itsown imtiative then drafted a compamon law govermng associations Both drafts were passed inDecember 1995 They serve as models not only in Central and Eastern Europe, but also in placesas diverse asVletnarn and West Bank/Gaza The contribution of ICNLRJSAID was explicitlyrecognized by the Estonian Mimster of Justice and the Acting Chancellor of the GovernmentIn Macedonia, ICNL provided technical assistance and promoted citizen participation in thedrafting of a new NGO law As a result, the Macedonian government recently selected the draftas one of its six "priority" laws for passage th~sear In Hungary, ICNL co-sponsored townmeetings around the country to discuss a draft NGO law The collaborative process resulted in anextremely well-drafted, comprehensive NGO law that is now on the Parliamentary agenda InAlbama, during the height of the recent crisis, President Berisha proposed a restrictive licensinglaw to curtail NGO activities In conjunction with one of the DemNet in-country grantees andwth the assistance of the US Ambassador and the USAID Representative in Albama, ICNL wasable to hold a seminar in Budapest for the Albman mimstry drafters and select NGOrepresentatives As a result, the mimstry liberalized the draft


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ICNL has also helped to address fiscal and tax policies related to NGOs ICNL has providedt e c h c a l assistance on pro fithc om e tax exemptions for NGOs, income tax deductions or creditsfor donations, and the taxation of economic activities ICNL has also provided t e c h c a lassistance on legal issues relating to the value added tax (VAT), customs duties, procurement,endowments, and common investment funds for small foundations In ad dition, ICNL projectshave addressed the legal framew ork for local government-NGO partnerships and the lawsgo ve m ng the provision of social services by NGOsTo s trengthen the implementation of supportive legislation, ICNL has trained judges andprosecutors involved with NGO registration in Bula m a, using progressive Bulgarian judges toeducate their peers To promote fiscal reform, ICNL has arranged for a hgh -rad un g official ofthe Internal Revenue Service to work on NGO tax issues w t h a counterpart at the CzechMinlstry of Finance ICNL has also provided traimng and technical assistance to EstoruanMinistry of Finance officials, who, as a result, issued a decree liberalizing the tax treatment ofNG Os Finally, ICNL provided substantive, t e c k c a l assistance to a campaign that defeated arestnc tive m terpretabon of tax laws affecting NGO s in PolandIn M adagascar, the U SAID-supported KEPEM Program identified the old 1963NGO law as aimpedim ent to strengthenmg local NGOs as effective partners m local natural resourcemanagement USAIDIMadagascar supported local NGO s in their efforts to engage theGovernment of Madagascar (GOM) in a dialogue about improving the NGO law Thls dialogueresulted in a dec ision to develop a new law instead of revising the existing law The M issionprovided a technical support to the NGO community to com plete an analysis of the legislationand to elaborate a draft new NGO legislation Then one national and a senes of six regionalworkshops were organized to present and discuss the draft legislation Based on the results ofthese workshops, the NGO com munity finalized the draft new NGO legislation and subm itted itto the GOM for approval The new law establishes rights as well as accountability for NGOs torece ive public and private grants, bequest and charge fees for services, lease and hold property,establish partnership or contractual agreements with governmental or pnvate entities The GOMapproved the draA law and subm itted it to the National Assembly who in turn, passed it as theMalagasy NGO lawSince 1995, the USA ID m ission in Indonesia has assisted NGOs through theus uppo rtingDem ocratic Initiatives" Project The primary objective of this project is to help local NGOsdevelop skills in policy change, rule of law, and advocacy Through umbrella m ec hm sm s, theMission provides funds to mature Indonesian NGOs and three US PVOs to provide grants toemerging , indigenous organizations These nascent NGOs then promote constituency buildingand policy reform in sector specific areas so that they can support democratic change andtransparency By building advocacy skills w t h n the NGO sector, the Mission is taking theinitial step toward addressing issues related to the enabling environment for NGOs in IndonesiaThe project m onitors public awareness of the issues being advocated as well as actual impacts onpolicy


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D Institutionalization of Local NGOs/Support of Exit StrategiesMany international NGOs increasmgly realize that true sustamability of their work mvolvesshfiing their governance, management, and financing to local NGOs together wth donormstitutions, they believe that sustamable development programs depend on exlt strategies, 1e ,the carefully planned and phased hand-off of mternational programs to locally managed,~ndependentNGOs The design and implementation of sustainable local programs has taken ongrowng mportance w th the increased capacity of local NGOs and community institutions toresponsibly carry out their own development programs, as well as recent reductions in publicfunding for mternational development assistance There is increasing recogmtion ofthe necessity and desirability of mcorporatmg exit strategiesas an integral component of NGOcapacity-buildingThe USAID-funded Private Rural Initiatives Project (PRIP] in Bangladesh, managed by Pact,offers an example of the institutionaliza~on f an exit strategy into the program plantung anddesign process From 1988 to 1997 USAIDBangladesh funded Pact under a CooperativeAgreement to manage the PRIP project, to build capacity wthm the NGO sector in BangladeshAs the project evolved, its design was revised to embody an exit strategy for transition of thePactlPRIP program into a locally governed and managed Bangladesh orgmzation In 1995 Pactformally transferred management of the PRIP project to the newly formed PRIP Trust Whde thecomplex transition process is still unfolding, the Bangladesh expenence offers a useful examplefor the broader NGO and donor comm~~ll ty,nd serves as one model for mplementing an exitstrategy The Bangladesh exit strategy and process have been carefully documented as a casestudy in "Exit Strategies Transitionmg from International to Local NGO Leadershp" (RchardHolloway, Pact Publications, 1997) The publication offers guidelines dealing wth the basicrequirements for pursuing successful exit strategies It focuses on the topics of governance,leadership, legal identity, management, programming, budgeting and funding, including asynopsis of Pact Bangladesh expenence related to each topic

The Microenterprlse Implementat~onGrant Program (IGP), part of USAID'S MicroenterpnseInnovation Project, addresses institutionalization of NGO capacities wthm the microenterpnsesector The focus of the IGP is on the increased ability of local mstitutions to deliver financialand non-financial services on a sustamable basis and wth expanding outreach It is designed toexpand microenterpnse service provision by local institutions, particularly by increasing thefinancial viability of those institutions that provide financial services and the cost effectivenessof those institutions that provide other inputs All supported activibes have the explicit objectiveof sustained service delivery to microenterpmes that results in the reduction and elimination ofdonor dependenceby service providers The IGP provides both start-up and expansion grants Anew modality, grants for technical development activities, are available to applicantsmthestablished capacity in microenterpnse, but which need focused assistance to prepare localinstitutions for expansion, introduction of new products, or hgher levels of financialindependence (Request for Applications, FY 1998 Microenterpnse Implementation GrantProgram, USAID Office of Microenterprise Development)


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tra m ng of trainers, both in-house and wt h m local NGOs,t ram ng of NGOsmob ilization of U S ,European and other donor resources,mobilization of hum m taria n assistance linked to NGO capacity-building,facilitation of networlung and n ationalhegional conferences and alliances,promotion of NGO coalitions to strengthen grassroots advocacy for legal and po licyreform of the enabling environment,leveraging the support of volunteers through existing sources such as the InternationalExecu tive Service Corps in the U S and its Canadmn counterpart,leveraging the support of international NGO s where complementary inputs can m aximizecapacity-building impact w th m mdividual NGOsService centers often have a regional hub w t h satellite offices Using t h s model, Counterpartbecomes a partner w t h USAID m providing support to the NGO sector To encourage theexpansion and sustamability of local capacity bmldmg, and to avoid duplication, Cou nterpartstaff work closely wrth local NGOs wh ich themselves seek to become NGO supportorgam zations In these cases, Counterpart partners with the local NGO s, sharmg complementaryresources such as tramers, educational materials, databases, and com puter stations for e-mail andInternet access The goal is ultimately to localize country operations, putting mechamsm s inplace, such as staff training and development, that prepare local staff for eventual management ofthe service centers, and/or creating an alliance w t h another local NGO support orgamzationThe new ly formed entity would then become part of Counterpart's international affiliatenetwork (Counterpart Foundation, Waslungton, D C )

G Um brella M odelsAs U SAID cooperation w t h PV Os and NGOs has increased over the past two decades,many Missions have used an "umbrella" approach for their expanded PVO /NGO support Mostcommo nly, an "umbrella project" is a funding, management, and suppo rt mecham sm designed todeliver relatively small amounts of USA ID funds to each o f a number of o rgamzations throughone financial award to a lead organization A cooperative agreement or contract is received fromUSAID for subseq uent smaller subgrants to NGOs or PVO s for project implem entation, with thelead orgamzation responsible for adm imtrat ive and technical assistance to subg rantees Thelead organization can be a PV O or local NGO, an association of PVOs or NGOs, or a contractorUm brella mo dels have been used in a variety of forms by m any USAID m issions Whdeexpenen ce has varied, the umbrella mechanism has frequently proved an effective means tostrengthen the capacity of local NGO sUsing the um brella mechamsm, a m ission can conceivably have direct funding arrangemen tsw t h a number of PV Os/NGOs, and through them reach hundreds of local NGO s and grassrootscomm unity orgamzations In Bangladesh, for example, USA ID's Family Planzllng and HealthServices project provided direct funding to five PVO/NGO orgamzations, w h c h in turnsupported 106 indigenous NGOs operating at over 300 project sites USAID Bolivia'sPRO COSI activity, started in 1988, offers a further example of an inn ovative umbrella approach


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w t h a strong capacity-bmldmg component A Bolivian umbrella organization, PROCOSIconsists of a network of 24 Bolivian and international NGOs Involved in c h ld survival andmaternal health activities, w h c h supports programs benefitting over 400,000 people primarily inisolated rural areas The PROCOSI model has been extended to El Salvador and, more recently,to ZambiaUSAID has undertaken a number of studles and evaluations of the umbrella model "Designs forCollaboration A Study of PVOINGO U mbrella Projects in Afnca" (Otto and Drabek, DATEX,Inc ,1992) exam ines the track record of 13 USAID-supported PVOINGO um brella projects inAfiica in order to docum ent the diversity of approaches , to identify their successful and lesssuccessful aspects, and to provide the basis for developing strategies w t h regard to this fundingm ec hm sm The study concludes that umbrella projects have proven to be a flexible m ec hm smfor enlarging PVO /NGO operations, improving those agenc~e s' apacities, and openlngpossibilities for USAID involvement wlth beneficiary groups not easlly reached by otherprogramming approaches It emphasizes that design and inter-orgamzational collaboration aretwo aspects crucial to the success of umbrella programs, including investment m ocal institutionbuildmgMore recently, a study by USAID'S Center for Development Information and Evaluationassessed USAID experience with the umbrella funding me ch m sm as part of a broadermanagem ent study of USAID-supported PVO/NGO activities ("Strengthemng the Public-PrwatePartnership An Assessment of USA ID7sManagement of PVO and NGO A ctivities", USA IDProgram and Operations Assessment Report No 13, 1996) Among its findings was theincreasing importance of capacity buildmg of subgrantees as a part of um brella activities, both mtraditional developing countries as well as in the newly emerging democracies which have begunonly recently to develop or restore the institutions of civil society The study noted that aprimary advantage of um brella models for NGO subgrantees is the opportunity for networlungand institutional strengthening, with assistance fiom the lead organlzatlon

H ConsortlaThe formation and promotion of consortla and strategic alllances has offered USAID an effectlveway to support NGO capacity-building, particularly where programs w t h capacity-buildingobjectives involve a broad sector or the NGO sector as a whole, as IS often the case In em ergmgdemocracies or transitional societies Consortla have many of the same characteristics andfunctions as um brella programs, but the umbrella model usually involves a single leadorganization worklng with and managing finding to a large number of local subgranteeorgm zation s, whlle a consortium normally wdl comprlse a group of U S PVOs, w t h one In thelead role and others carrying out specific sectoral or subsectoral roles w t h local NGOs andcom tnm ty-b ase d orgamzations Properly structured and managed, consortia can maximlze theimpact on NGO capacity-buildmg through synergistic collaboration among the partnersConsortla also allow for accessing the expertise of U S NGOsIPVOs who may not have a longtrack record m managing USAID-funded programs The multlple partners in a consortiumadd it~on ally an maximize the leveraging of donor and constituency resources w t h n a given


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program In 1994, for example, USAID awarded a cooperative agreement to Save the Chl dr en(SAVE) to lead a consortium of U S nonprofits to implement a Civic Irutiatives Program forDemocratic and Economic Reform in Russia ("CIP") The consortium consists of five U Sorgamzations-- SAVE , Counterpart, The Center for D emocracy, the E ducation D evelopmentCenter, and the Institute for Policy S tudies of Johns Hopluns Umversity Each organizationbnn gs specialized technical expertise to the program, whlle SAVE provides overall programmanagement and coordination CI PY s oal is to support the creation of a diverse, self-sufficientnonprofit sector to facilitate the em ergence of a strong civil society in R ussia

For consortia to work well, mutual commitment and trust are essential from the start, as in allpartner rela tions hps Further, the overall management approach must be flexible enough toaccom moda te the often differing mdividual styles of the partners Frequent field-based andperiodic headquarters-based m eetings among the partners are necessary to identify and resolveissues in a timely way, along m t h other active forms that promote ongoing c om rnm catio n suchas e-mail, bulletins and newsletters Less formal strategic alliances with other orgamzations alsoenhance the effectiveness of consortia, and can be useful in promoting the interests of particularsectors or subsectors, as well as helping to leverage supportA variation on the consortium model that has been used by USAID to support the strengtheningof civil society institutions is the "Indefinite Quantity Contract" (IQC ) me ch m sm , w hich makesavailable to field m issions the services of multiple partners to carry out ca pacity-b uldm gactivities around the world on an as-needed basis An example is the D emocracy andGovernance IQC managed by World Learning, w h c h offers rapid response assistance to supp ortcivil society programs in institutional capacity-building, including assistance and training inadvocacy and policy reform, as well as conferencing, networlung, and exchange of experiencebetween and am ong indigenous, U S , nd international civil society organization s IQC partnerorgamzations include five U S PVOs and NGO s, along w t h a larger number of resourceorgamzations m th expertise in specific focus areas, and network affiliates m t h ties to reg ionaland grassroots orgamzations around the worldI Endow men ts and Local FoundationsAn endowm ent is a fund that has been set aside for a specific purpose Generally, endow mentsare designed to dlsburse only the income from the assets, the principal of the fund remains intactand invested Endowments can serve both as ve hc les to form local grant-making foundationsand as vehicles to build and sustain the capacity of specific NGOs to d o development work,mcreasing their long-term stability and financial self-reliance Som e endowments cover alloperating costs of NGOs, others provide only enough Income to cover core ad min lstrat~ve osts,w t h the expectation that income for operating programs will come fkom additional projectgrants In both cases, the endowm ent increases the local organizations' sustam ability and allowsit to mak e long-term decisions on staff development, program strategies, and policy reformEndow men ts are cited as offenng a number of advantages to specific NGO s as an assistanceinstrumentality


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8 providing a se cure funding source for an orgamzation, thus helping it m ove to fina ncialsustainability, and insulating it from donor agency budget fluctuations,suppo rting local capacity building, by helping an NGO expand its financial management,programmatic, and fund-raising capabilities,8 expanding sectoral support, by broadenmg the fun ding base where long-termcomm itment is necessary for sustained impact, e g , n the environment,8 developing civil society, through encouraging the participation o f NGOs and com mum tyorgamzations m development,encouraging local philanthropy, particularly in countries where phla nthro pic traditionsare not well estabhshed,leveragmg other sources of funds from local sources as well as external donorsUSAID has had substantial experience with endow ments, particularly in the past decadeBecause of legislative restrictions, most pre-1990 USAID endowments were financed w t h host-country owned local currency However, the U S government now can directly grantappropnated dollars for an endowment A recent study by USAID'S Center for Developm entInformation and Evaluation (CDIE) identified about 35 endowm ents funded directly by USA ID,including nme funded with dollar appropriations and the rest w t h local currency Most of theUSAID endowm ents are for act~vitie sn the environment and agriculture, and the largest numberare located in Latin Am erica and the Caribbean The CDIE study examines at some lengthUSAID exp enence in establishing endowments, providing an overview of the types funded anddescribing each of the USAID-funded endowm ents (USAID Center for Developm entInformation and Evaluation, Working Paper No 221, July 1996)Where the objectw e was to support local grant-making foundations, a new organ ~zatio n assom etimes been established to house an endowm ent In these cases, USAID usually hasprovided c ons~de rable apacity-building assistance to prepare the foundation to m anage theendowment funds and ~ t srant-making programs For example, m Mexico USAID provided$19 5 mil l~ono establish an endowment for an environmental grant-making foundation, theMexican Fund for the Conservation of Nature (FMCN ) The endowm ent will enable FMC N tofinance biodiversity grants to M exican NGOs for projects lnvolvlng conservation of ecosystem sand species, sustam able use of natural resources, and capacity building and environmentaleducation As a prelude to establishmg the endowm ent, USAID provided a separate grant to theMexican NGO PRONA TURA to strengthen the capaclty of the new NGO to manage theendowm ent and to tram Mexican organizations in grant writing and project conceptualization toprepare them for participation in the FMCN program (Mexican Nature Conservation Fund,Project No 523-4007)

J VouchersUSA ID has recently developed and field-tested a new tool invo lving the use of research vouchersas a way to support NGOs and foster their partrcipation in projects Developm ent of the researchvoucher methodology drew on the observation that many local NGOs and com munity basedor gm za tio ns w hich lacked the technical, analytical, and financial reporting sh ll s to realize their


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USA ID'S New Partnersh ips Irutiative (NPI) offers a set of capacity assessment tools that suggestthe form and components that an o rgamzation could take at various stages of its development(NPI Resource Guide, Volume 1, USAID, 1997) These tools categorize organizations intodistlnct stages of development according to their competence in each of several key areas oforganizational effectiveness The NPI model recognizes that there is no o rgannational ideal, thatcapacity-building is an ongoing, incremental, ind~vidualized, nd non-linear processThe five assessmen t tools presented by NPI are designed to help USAID missions carry out whatare likely to be the most frequently o c c m n g tasks associated with organizational capacity-buildmg

oraan izations or partnerships to receive capacity-building: assistance Thistool offers procedures for assessing and selecting orgmz atio ns for support, it evaluatesorg m za tio ns by four criteria fit, program attractiveness, coverage exclus~vity , ndcompetitive advantage(2)Assessing the current capaclty of an organization T h s tool provides (a) proceduresfor assessing organizational capacity, and (b) a process through w h c h relevant, context-specific indicators can be developed in a collaborative manner It includes seven areas oforgamzational competence, which are fiuther broken dow n into specific subcomponentsFor each subcomponent, critena of organizational capacity or performance are developedin collaboration with staff from the organizatlon that is being assessed(3) Determinm g an orrzanizat~on's eadiness to engage in s trategic planning, includingentering into partnerships The strategic planning checklist offered by t h s tool isdesigned to help an organizatlon plan for tra m ng and technical assistance useful inovercom ing obstacles to partnering(4)Designing capacity-building trainme opportunities T h s tool, a decision-malungmatnx, focuses on the tasks associated with the design and management of trsumngprograms in support of capacity-burlding It contams a list of major decis ions to be madein designing and implementing training programs, suggesting options w t h respect toeach, and offering guiding principles for selection among op tions(5) Designing: echnxal assistance programs for capacity-building Sim ilar to thepreceding matnx, th is tool llsts major decisions that have to be made in des igning andimplementing a capacity-bu~ldingechnical assistance program, suggests op tions andoffers guidelines for cholce

One of the organizations at the forefront in developmg tools for assessing NGO capacity, Pact,has refined a methodology -Organizational Capacity A ssessment {OCA)- hat has been appliedto several USAID-supported field programs targeted to building the NGO sector, e g , n Ethiopiaand Botswana USAID's NPI Assessment Model incorporates the OCA tool in large part OCArecogruzes that in order to be effective, an institution has to have certaln components ormanagement functions performing at certain agreed-upon standards, and that each o f thecomponents may reach these standards at different times It identifies seven aspec ts oforgamzatlonal effectiveness governance, management practices, human resources, financialresources, service delivery, external relat~onq, nd su stainab ~lity It breaks each o f thesefunctional categories into subcomponents OCA fkrther identifies four stages of NGO


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development-nascent, emerging, expanding, and mature- each of whch has its owncharacteristics or indicators that can be translated into measurable standards The steps orappropnate interventions to be taken to lmprove the level of functiomng of any aspect of anorganization will vary according to its stage of development and depend on the agreed-uponstandards of performance for that stage of development Through a hlghly participatory process,responses to a series of questions are scored and an organizational capacity profile is generated,either wth a paper-based system, or utilizing a compamon software programInformation collected wth the OCA Tool can be used m a vanety of ways

as a diagnostic instrument, to determine the stage of organizational development of anNGO, to indicate specific changes needed to strengthen it, and to provide management,staff and partners of the NGO wth the basis for improving the functionmg of theorgamzationto establish a baseline measure of the exlstmg structure and capability of an NGOto momtor and evaluate progress toward the NGO's organizational developmentobjectives at regular intervalsas an educational tool for NGO members and staff about the components and attributes ofan effective NGO, and to provide a framework for follow-up to an assessmentto help create a strong and shared commitment to change w t h n the NGOto assess the training/techcal assistance needs of the NGO's staffto complement financial audit and program impact reports by providing a comprehensiveevaluation of an NGO's viability, potential for growth, or capacity for partnershpas the basis for des~gn f improved systems and procedures

A Pact handbook describes the OCA tool in detail, including ways in whch the assessmentprocess can be carr~ed ut, how to analyze the OCA information, and sample assessment resultsand reports (Assessmg Organizational Capacity Through Participatory Momtonng andEvaluation, Booth and Mom, Pact, 1996)Bulldmg on the OCA base, Pact and the Education Development Center, Inc have recentlydeveloped, wth USAID support, a new assessment instrument- he Discussion-Onented SelfAssessment (DOSA) tool- designed to be utilized wth a cohort of U S PVOsDJGOs ,both topromote orgamzational le m n g and capacity-building wthm the PVO community and to enableUSAID'S Office of Pnvate and Voluntary Cooperation to measure its own capacity-buildingimpact through its PVO support programs (DOSA Webpage,www edc org/INT/CapDev/dosapage htm)OtherU S PVOs have developed their own methodologies for assessing NGO orgaruzationalcapacity, many of which share substantial points of convergence and others tailored to theparticular organizational and pldosophical contexts in whch they operate For example, theChtlstian Reformed World Relief Committee, as part of its USAID-supported project onpartnering and orgamzational capacity in collaboration wlth Case Western Reserve Umversity,identified four regional capacitv assessment tools, each representing the work of partnerorgamzations in different parts of the world (East Africa, West Ahca, Asia, Latin America)


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Though all four share comm on values, each reflects the region's particular cultural norms andprocesses, and illustrates how partner organizations can design their ow n capacity indicatorsOne result of this collaborative ac t~ vi ty as CRW RC's design of a revised capacity assessmentsystem for its own use, and embracing the capacity assessment tools of its partner organizations(Partnenng to B uild and Measure Organizational Capacity, CRWRC, Grant Rapids, MI, 1997)A different lund of NGO assessment tool - he NGO sustainability index - has been developedby USAID's Bureau for Europe and the New Independent States (ENI) The purpose of theindex is to gauge the strength of the NGO sector as a whole m he transition societies of EastCentral Europe and the former Soviet states It enables comparison of progress across countriesas well as comparison of trends and identification of problems across the region, thusstrengthenmg USA ID's ability to judge performance as well as to justify and plan futureprogrammingUsing a ratlng system and accompanying narrative, the sustainability index ana lyzes five aspectsof each country's NGO sector

the lenal environment, which dictates what NGOs are allowed to do, including the ease ofregistrat~on,he legal nghts and conditions regulating NGOs, and the degree to w h c htaxation, procurement, information and other laws and regulations benefit or deter NG Os'effectiveness and viabilityorp;anizational capacity, which determines what NGOs are ab le to do, includmg whetherthere is an indigenous infrastructure to support NGOs, and w hether a core group of NGOsexists with well-developed structures and capacityfinancial viability, including the state of the economy, the extent to w h c h philanthropyand volunteerism are nurtured in the local culture, and the extent to w h ch governmentprocurement opportunities are being developedadvocacy, which looks at NG Os' track record in influencing public policy, including theextent to w h ch c oal it~o ns f NGOs have formed around issues and the extent of freedomfrom fear of persecutionpublic image, includmg the extent and nature of the media's coverage of NGOs, theawareness and w~llingn ess f governmental officials to engage Ngos, and the generalpublic's perceptions of the NGO sector as a wholeFor each of the five aspects of the NGO sector, three generic stages of development aredescribed For each country, each aspect is numerically rated according to its stage ofdevelopm ent, accompanied by an explanatory narrative Talung each of these factors intoconsideration, the coun try's NGO sector as a whole is rated and substantively described (NGOSustainability Index, EN1 Bureau Office of Democracy, G overnance and Social Reform, 1997)

V REGIONAL EXAMPLES OF USAID-SUPPORTED CAPAC ITY-BUILDINGUSA ID has supported NGO capacity-building in a w d e variety of ways and through a plethora


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of activities over the past two decades Ths section briefly summarizes examples of suchsupport in each of USAID'S four geographic regions Illustrations of NGO capacity-buildmgefforts are drawn fiom reports of pilot missions participating in the New Partnershps Irutiative(NPI), fiom interv~ewsw~th, nd documents gathered fiom, informed sources inUSAIDIWashngton and the U S PVO commumty, and from the research and reference databaseof USAID's Center for Development Information and Evaluation

AFRICAIn most African states, the post-Independence legacy has been one of extremely centralized, one-party states With several notable exceptions (e g ,Kenya and South Afhca, whlch have manyactive NGOs), most African nations are charactenzed by small and mstitutionally weaknongovernmental sectors In recent years, t h~situation has been changing rapidly in a numberof countries as more pluralistic modes of governance have been accepted and pursued Manynational leaders and development planners now realize that top-down, nation-level developmentand reconstruction programs may not be the most appropnate models At the same time, there isa mde range of African institutions not previously associated wth formal developmentprocesses These include a multitude of membership-based orgamzations and a vanety ofcommunity self-help orgamzations and social movements In an increasingly pluralistic politicalenvironment, these organizations have greater opportunity to participate in public fora and toplay a role in defining the content and direction of local development Over the past decade,USAID has worked intensively wth and through the African NGO sector, consistent with theexponential growth in the number and potential roles of African NGOs Programs in health,education, and natural resource management have been particularly notable Capacity-buildingsupport has been a key component of USAID programmingA good example of USAID support for sector-focused capacity building is the PVO-NGO/Natural Resources Management Support (NRMS) Project, managed by a consortium ofthree U S PVOs-World Learning, CARE, and World Wildlife Fund Through core fundingfrom USAID, the Project worked wth NGO consortia in sub-Saharan Afrrca fi-om 1989-95Cameroon, Madagascar, Mali, and Uganda were the focal countries for project actwities, whichalso included special initiatives under a regional program The purpose of the project was tostrengthen the techtllcal and organizational capacity of NGOs to design and Implement bothproven and innovative approaches to NRM, through techcal assistance, traimng, informationservices, pilot and demonstration projects, and subproject mechmsms to supportNRMactivities An expostfacto analytical assessment, prepared collaboratively by northern andsouthern NGO partners, offers detailed findings concemng the program's accomplishment andissues The major conclusion is that in most African contexts, NGO capacity-building is anessential component of NRM programming (Non-Governmental Organizations and NaturalResources Management Synthesis Assessment of Capacity-Building Issuesm Africa, MichaelBrown, World Wildlife Fund, Waslungton, D C , 1996) An additional document of mterest


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produced by the project is "A Gmde to Strengthening Non-Governmental OrganizationEffectiveness in Natural Resources Management" (Michael Brown and JoEllen M cGann, editors,World Wildlife Fund, 1996) The Guide provides NGOs worlung in NRM with a broad andcomprehensive overview of fundam ental institutional and technical issues relevant to successfulNRM w ork in Africa While the Guide focuses on Africa, its intent is to be generic and thusapplicable to NGO s and donors in developing countnes around the world

A study prepared for USAID ysAfrica Bureau looks at capacity-building for NGO s in the healthsector with particular focus on lessons applicable to Sub-Saharan Afrlca It descnbes six9projects for w h c h capacity-building of local NGOs is either the main or a principal objective,including among others the Services for Health, Agriculture, Rural and Enterprise Development(SHAR ED) project, administered by W orld L earn ~n g,n M alawi, the PVO /NGO S upport project,managed by the New Transcentury Foundation, in Senegal, and the PV O Cofinancing project,w t h Save the Children leading the child survival component The projects vary sigmficantly interms o f approaches to implementation, but tend to use common strategies in worlung with localorganizations, including assessment of the institutional strengths and needs of the orgam zations,support for strategic plannmg, support for mon itonng and evaluating actlv~ ties ,rarm g, andtechnical assistance The paper discusses key issues involving constraints and op po rt u ti e sfacing capacity-building projects (Capacity Buildmg for NGOs in the Health Sector LessonsLearned for Sub-Saharan Africa, Hugh W aters, Support for Research and Analysis in AfricaProject, Bureau for Afiica, 1995)USA IDIGuinea offers a case study of USAID support for strengthening: health-related NG OsManaged by P opulation Services International (PSI), the ac tiv ~ty as designed to address theabsence or w eakness of health-oriented NGOs m Gw nea, critical to the de livery of basic healthcare to the poor, by creating linkages between locally actwe NGO s and m ternational ones wthgreate r capacity With sustainability as a goal, PSI helped create a local NGO to eventuallyreplace it as the primary contraceptive social marketmg ins titution in Gumea, worked wth aGmnean association to integrate family p l m n g services into public sector health clinics,collaborated with a midwives association to improve family p l m n g education at thecommun ity level, supported the local chapter of an NGO that carries out AIDS ed ucation, andworked with a number of other NGOs to promote mformation sharing (Strengthening HealthNGOs An NPI C ase Study in Capacity Building and Partne rshps , NPI R esource Guide, 19 97,Population Services, Intl ,Washington, D C )The W orld H ealth Organization's G lobal Program on AIDS sponsored a consultation wh c hlooked at the role of the umbrella mechan ~smm trengthen in^ NGO HIVIAIDS initiatives Thepurpose of the consultation was to examine and consolidate existing knowledge and experienceabout um brella initiatives for HIVIAIDS prevention and care, to extract lessons learned, andformulate gu~ danc eor countnes, donors and the NGO c o rn rn u ty Nine umbrella initiativesfrom eigh t countries in Africa and Asia were represented, including USA ID-supported programsin Uganda, Tanzania, and Indonesia The consultation Identified common core characteristicsshared by the country-specific umbrella designs, including their role in strengthening theorgamzational capacity of partners, and In strengthenm g collaborative linkages between actors,


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and makes overall recommendations involvmg the use of the umbrella m ec hm sm in HIV/AIDSprogramming (Consultation on Strengthenmg NGO HIVIAIDS Umbrella Imtiatlves, FinalReport, WHO, Geneva, 1995)One of the U S N D programs examined in the WHO consultation, the Uganda AIDS P reventionand Control Project [APCP) m anaged by World Learning, supported a vane ty of education andsupport activities through subgrants to international and local NG Os, through worlung with theUgan dan government, and through research imtiatives Managing the APCP subgrant fund,World Learning worked closely w t h subgrantees on project design and mplementation,financial and program repo rting, fundraising and other managem ent slulls to help developlonger-term institutional and program viability Several World L e m n g case studies describethe types of sup port provided to the local orgamzations, including specific capacity-buildmgcontnbutions (Case Study, The Uganda AIDS Prevenbon and Control Project, World Learmng,Washn gton, D C ,1996)USA ID Keny a offers a fwther example of USAID support for African NGO capacity-building inthe health sector With a major decrease in the level of USAID funding for Keny a's health andpopulation sector, the U SAID mission sh fte d its strategy to place special attention oninstitutional capacity-building and financial sustamability Building the capaclty of KenyanNGO s, in particular the Fam ilv Planning Association of Kenya (FPAK ) became the priontyWorlung m close collaboration w t h FPA K, USA ID engaged the services of a local firm toanalyze FPA KY smanagement structure, orgamzational strengths, financial status, and mcome-generating potential The result was an action plan designed to enable FPAK to become lessdonor-dependent and donor-driven, and to operate in the fbture m t h a business approach toproviding services USAID increased the roles and responsibilities of an mstitutional contractorassigned to the Health Ministry to include te c h c a l assistance to FPAK to put into place thenecessary f inancia l systems, update organizational structures, and develop marketing plans(FPAK Building Local Capacity for Service Delivery, NPI Resource Guide, 1997,USAID/Nalrobi)The B enin Indigenou s NGO Strengthening: (BINGO ) Project, begun m 1994, illustrates acountry-specific program to strengthen the capacity of indigenous NGOs across a broadspectrum, to Implement grassroots self-help activities and to serve as intermediary orgamzationsin channeling and processmg grassroots social demands Implemented by AfIlcare, the projectincludes management tram ng of NGOs, networkmg and advocacy support, and support forgrassroots development projects It calls for Afiicare to train some 20NGO s in financialmanagement, project management, mom tonng, backstopping, and evaluation, and com puterslulls, and to provide institutional support grants to 20-25 NG Os A h c a re is to help NG Os todesign and implement 15-25 responsive grassroots development activities each year for fundmgthrough the projec t, and others for support by outside sources The project is designed toenhance NGO s' ability to process grassroots issues and serve as advocates for grassrootsdevelopment, as well as promoting cooperative linkages between and among NGOs (BermIndigenous NGO Strengthemng Project,USAID Office of West and Central Afnca, AFRICARE,Washmgton DC )


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The partnership in Guinea between VITA. a U S PVO. and PRIDE. a Guinean NGO,demonstrates the impact ofNGO capacity-building in the mlcro and small-scale enterpnsesector Through USAID financing, PRIDE provided entrepreneurship trsumng and microcreditto small groups of both rural and urban entrepreneurs b eg im n g in 1991 VITA and PRIDE weresuccessful in building, expand ing, and sustaimng microenterpnses and small businesses, and increating a self-sustaining indigenous NGO that responds to and represents the need s of itscornm un~ty By 1996, almost 11,000 loans had been provided to small entrepreneurs, themajonty of them wom en, with a repayment rate close to 100% The partnershp also planned andmanaged PRIDE'S trans~tion iom a small, personal or g m z a t~ o no a larger, more structuredsuccessor orgamzation - he U n ~ o n f Specialized Financial Institutions- based on well definedrules and procedures, in the process l e m g how to nav igate and change the enablingenvironment for decentralized financial institutions The VITA-PRIDE par tne rsh p proved aneffective means of increasing PRIDE'S institutional capacity and creating a h g h level ofcomm unity support for loan repayment and successful business practices by loan recipients (APartner shp for Meeting Micro and Small Producer Needs An NPI C ase Study in Local CapacityBuildmg, NPI Resource Guide, 1997, VITA, Arlington, VA )The Kenva Rural Enterprise Promam &-REP) offers a strilung example of NGO capacity-bullding in micro enterpn se K-REP, a local NGO that specializes m microenterprise finance,was established w t h USAID funding in 1984, to strengthen microenterprise credit programs andinstitutions and increase employment and Income oppo rtumt~ eshrough loans, traimng, andtechmcal assistance that facilitate microenterprise development Capacity-bmlding supportincluded staff training, research and developm ent of new ways to promote sm all business,development of management information and tracking systems, design of mom toring andevalua tion systems, funds for microenterprise lending, equipment, and establishment of amicroenterprise information center K-REP has now reached the point of s p i m n g off its creditprogram into a commercial bank, wth USAID techmcal assistance to help insure the success ofthe transition, includmg upgrading the management information system, tr a im g semormanagement and other staff, and development of a capacity building unit and trsumng materialson microfinance The transition of the K-REP credit program into a comm ercial bank replicatessimilar experience in other countries, particularly in Latin America, in the micro enterpn se sector(K-REP Building Local Capacity, NPI Resource Guide, 1997, USAID/Nsurobi)Streng thenm g of an indigenous community developm ent association- he N~g ena n armersDevelopment Union (FADU) -- through the U S PVO Technoserve's USA ID-supportedprogram helped it to become the largest NGO in the country Tcehnoserve's capacity-buildingac t~v itie s ocused on two areas the development and strengthening of service delivery capacityfor enterprise development, and strengthening of institut~on almanagement capacity Aninstitutional diagn osis of technical and managerial capacity was the first step, to determinecapac ~ty-bu ilding eeds and to develop a package of techmcal assistance that both FADU andTechnoserve agreed to With Technoserve strengthening, FADU grew fiom less that 1500mem bers and a staff of 4 to more than 280,000 members and more than 70 employees Its loanportfolio and savings grew dramatically Contractual and collaborative working relationshipswere established with a variety of international donors, and FADU developed the first


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collaboration between a grassroots orgamzation and the Nigerian Government (FarmersDevelopment Umon Nigeria, Technoserve, Nonvalk, Connecticut)

The SAVEM !Sustainable Approaches to Viable Environmental Management) Project inMadagascar illustrates an approach to capacity-building for NGO environmental activitiesm acountry where the NGO sector is still relatwely underdeveloped The SAVEM projectis using cornmumty management approaches to help conserve biodiversity at six national parksin Madagascar One of the project's primary objectives is to support the development ofrepresentative local NGOs by encouraging internafional NGOs to take a more pro-active stancein the identification, capacity-buildmg, and shmng of management responsibilities with localNGOs A parallel program provides traimng and te chcal assistance to local NGOs in strategicplanrung, project development, financial management, and techrucal shlls TheU S PVO Pactcreated a planning team to design an action plan for an NGO capacity-building program w t h nSAVEM The objectives of the actlon plan are to identify and strengthen 25 local developmentand/or conservation NGOs or commun~ty rgmzat~ons,ncreasing their program, financial,management and leadershp slulls, improving their understanding of community developmentand conservation strategies and approaches, developing a team of master traners, and facilitatingNGO access to potenhal funding sources The program uses a range of PVO and NGO partnersin carrying out its activities It maintams an ongoing, interactive relationshp with NGOs, ratherthan a formal bureaucratic relationshp SAVEM includes six large grants, administered by Pact,that team international conservation organizations (World Wildlife Fund, CARE, ConservationInternational, VITA, the State University of New York at Stonybrook, the Institute for theConservation of Troplcal Environments) with developmental NGOs to enhance participatorymanagement of the protected areas (LOVA Building Capacity of Environmental NGOs, NPIResource Guide, 1997, Pact, Washngton, D C )TheREAD !Reaching; Out with Education to Adults in Development) Proiect in Namibia, startedin 1992 through a grant to the U S PVO World Education, offers an example of an NGOcapacity-buildmg program in the field of education In keep~ngwrth USAID'S strategy to usePVOs and local NGOs to address development needs in Namibia, READ was designed toprovide a combination of grants, training, and techmcal assistance to NGOs to increase theircapacity to deliver services and educat~ono hstorically disadvantaged adults The traimngcomponent of the project places emphasis on fostenng and strengthening the human andinstitutional capacity of local NGOs engaged in adult traimng and or civic advocacy across awide range of sectors The program includes several workshop senes designed to increase boththe t echcal skills and professional qualifications of NGO personnel, as well as enhance theirabdity to transfer these slulls to others Participants were drawn fiom the staff of approximately40NGOs and two government ministnes, and most programs were designed and cofacilitatedwith NGO input Building institutional capacity wthm the NGOs to implement these workshopsin the future has been a central part of the overall implementation strategy The READ Projectalso has supported the establishment of a national trainers network for Namibia, to help mamtain,expand, and build on connections established during training between individuals andorganizations involved m training in the country (Traimg as a Development Tool, Cecelia


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Otero, USA ID Research and Reference Serv~ ces , enter for Development Information andEvaluation, 1997)The G roup Pivot project in M ali illustrates a USA ID a ctiv ~ty esigned to build the capacity ofPVO/NG O service dellvery networks and other collaborative PVO/NG O arrangements forworlung m partnershp w t h the public sector Created m 1993 with only 5 NGOs, the ChildSurwval Group Pivot now brings together more than 60 internat~on al nd local NGOs involvedin the health sector These organizations are workmg in the areas of family p l m g , maternaland child health, community mobilization, and information~education~communications SAIDsupport alms to strengthen NGO imtiatives, promote collaboration between the Mim stry ofHealth and NGOs, and p rov~ de e c h c a l assistance to NGOs and associations In thedevelopment, implementation, and evaluation of health projects A 1996 evaluation showed thatthe Group Pivot network had acheved mpressive results m arget areas, and was providingservlces to a substantial and Increasing po rt~ on f the population (Group P~ vo t, SAID/Mall)USAID /Ancola demonstrates how USAID uses the Indefinite Q ua nt~ ty ontract (IOC)mechanism to support NGO capac~ty-buildmg Through the Strengthening Civil Society IQC,USAID /Angola awarded World Learmng a two year contract to as s~ stm improving the enablmgenvlronrnent in which c ivil society organizations operate, and supporting their abillty to engageboth cit~z ens nd government in policy dialogue Project ac tm t~ esnclude ~den t~fyi ngotentla1partner organizations and responding to t h e~ rraimng and technical assistance needs Areas forcapacity-building support include the regulatory environment, advocacy, CIVIC and human rightseducation, med~araining and media regulatory environment, conflict prevention and med ~a tionnegotiation A grant fund IS available to support the most promising local orgam zat~on s oth tocarry out activities and to build an adequate organizational infrastructure (Democracy andGovernance IQC Strengthening Civil Society, World Learning, Washn gton, D C , 1996)South Afrrca offers a special example of USAID support for NGOs and comm unity basedorgan ~zation s The strength of its NGO sector is unlque in Afiica and unusual in the developingworld In the apartheid era, USA ID asslstance, directed to black South Africans, was providedentirely to and through NGO s and cornmumty groups From 1986 to the early 1990s USA IDasslstance focused on co m m u t y and leadership development, human rights, education, supportfor black pnvate enterprise development, and housmg In the course of del ~v en ng h sassistance, USAID developed extensive relations with Sou th African NGOs and comm urutygroups With the establishment of a new democratic majority-based government, the purposes ofU S assistance changed, as did the role of NGO sector and its rela tions h~pw t h the governmentIn general, there has been a search for new ways to tap the capabilities of NGOs and co m m m tybased orgam zat~o ns USAID no w places spe c~ al mphasis on supporting sustamable roles forNGOs in South Af r~ ca , nd on helpmg them work out viable relationsh ps w t h the GovernmentUSAID remalns the most NGO-focused of the major donors, channeling a large share of ~ t sassistance resources through NGOs, either through direct grants or through bilateral agreem entsto meet needs ~den tified y the Government (USAID/South Africa Report, NPI ResourceGu~ de, 997)


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Severa l Pact-admlmstered programs illustrate USAID support for NGO capacity-bmlding du m qthe transitional period in South Africa An NGO Strengthemng Project, started in 1991, wasdesigned to increase the leadersh p and management sh ll s of black NGO leaders to enable themto shoulder responsibility at the local and national level, principally through extendedorganiza tional development traimng in strategicmanagement and p la m ng , project design,mon itolrng and evaluation, group and organizational behavior, and managing change Theprogram also offered strategically targeted grants and te c h c a l assistance m sectoral areas aimedat building the capacity of local groups to respond to developm ent needs A BlackEntrepreneu rshp and Enterprise Support Facility, started in 1993, was aimed at genera tingIncome and employment through the development of small and microenterpnse orgm zat ion sgenerally, and strengthening exlsting small and microenterpnse support o rg m za t~ on sspecifically The project provided te c h c a l assistance and advisory services to increase theeffectiveness and impact of key enterprise development org m za tion s B egi m ng in 1995, aDeveloping Grantmalung Capacities Project was designed to train South A b c a n NGOs ingrantmalung, emphasizing contracting and project and financial managem ent systems, with theultlmate goal of transferring grantmakmg responsibilities from USAID to South A h c a n NGO s(Pact, Washmgton, D C )

ASIAThe Asia region presents a picture of substantial diversity in the role, status, and evolution ofNGO s and civil society organizations USA ID7s ole in support of NGO capacity-building hasvaned accordingly Several countries have well-developed NGO sectors, the role andimportance of which are widely recognized and accepted (e g ,The Philippines and India)Others have less fully evolved NGO sectors, and less supportive enabling environments (e g ,Indonesia) And some are transitional countries where the task of bullding a civil societyframework remams at the most fundamental stage (e g ,Cambodia) USAID'S programs in anumber of countries with the most evolved NGO sectors offer valuable experience in approachesto NGO capacity bullding In the Phlippines, for example, USAID has moved increasingly to afocus on coalition building of NGOs and cornrnumty based orgmz atio ns, seeking to promotecollaboration among a w ide variety of g roups that have had little contact with USAID and oneanother in the past, and thus to enable parhcipants to define common ground, identify feasibleapproaches, and move toward ac tion USA ID/Sri Lanka and lts partners have developedmechanisms to foster collaboration at the local level in the managem ent of natural resourcesUSA ID/India and USA IDIBangladesh have been active in the development and evolution ofvibrant indigenous NGO support organizations that have played key roles in the development ofthe NGO sector as a who le, or in key developmental subsectors such as health andmicroenterpnseUSAID /Phihppines offers one of the best examples of the evolution of USAID support for theNGO sector, wrth a strong focus on capacity-building of NGOs and community basedorgmzations A recent report describes the changing nature focus of USAID'S work wthPhlipp me NG Os over the past two decades, mcluding lessons that may be more broadly


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applicable to NGO capacity-building (Evolution of a PVO Co-Financing Program LessonsLearned at USA ID/Ph~lipplnes, Cnpe and G Perrier, USAID Office of Pnv ate and V oluntaryCo ope rat~o n, 997) In 1980, USA ID/Phdippmes established a grants mechan~ smhrough wh ~c hU S PVO s and local NGOs cou ld dlrectly receive fundmg to design and implement developmentprojects Since then, the Mlssion has funded four "Co-Finance" (Co-FI) programs Wh de eachhas had a different emphasis, an overall goal has been the institutional strengthening of NGOs

Co-Fi I responded to the basic needs of disadvantaged sections of the Philippine population, Co-Fi I1 stressed building the capacity, especially of local NGO s, to engage in more diversedevelopment ac t~ v~ t~ es ,he m ajor focus of C o-Fi I11 was o n building the capacity of Intenne dlateInstitutions (w hc h provide funding, management oversight and t e c h c a l support to smallergrassroots su bgrantees) to more effectively servlce the rural areas of the Phd ippines, and Co-FIIV encouraged popular part~cipa tionm local decrs~on-m alung nd strengthemng dem ocraticinst~tutionshrough coallt~on-building rantsSmce the Co-Fmnancing program was established, the NG O sector in the P hil~ pp ine s asundergone sig n~fic ant rowth and transformat~on, nd IS now one of the most sophisticated suchsectors among the developing countries The Mission found that investment m t r m m g has pay-offs for the e n t~ re GO sector long after a grant ends Through Co-FI grants three NGO tranmngcenters have been established that now are themselves important sources of NGO strengthenm gThe C o-Fi program also provided valuable experience concerning financial su sta na b~ lity ,grantees are now pursuing a number of effective sustamability strategiesC a y z Wom en. Inc (CWI) offers a specific lllustratlon of capacity-building success in thePhilippines Organized m 1990 in the province of Ca p~ z, WI today is a movement of 11,000wom en from all walks of life who are now m he mainstream of development as advocates ofgrassroots democracy Organized and guided by the Gerry Roxas Fou nda t~on ith USAIDsupport, CWI IS a strong partner of local government units and NGO s It has mobilized multi-sectoral alllances and coalitions in developing and su stam ng advocacy and a ct ~ on rograms inenvironm ent, health, nutrition,microen terprise credit, and local governance As members oflocal development councils, CWI women serve as co m m w ty watchdogs of local governmentconstruction projects They are assisting an indigenous comm unity to reclaim ancestral rightsover their domaln Through partlc~pationn the Roxas Foundation's m icrolending program,CWI has begun a transition from borrower to owner and manager of a program to serve the creditneeds of wo men m lcroentrepreneursUSAID-Fmanced PVO Co -Fln anc ln Projects in the Ph~lippines nd Indonesia Reshaping theTerms of PVO Collaboration (J Cotter, Bureau of A sla and the Near East, 1988)offers a usefulhistorical perspective on the cha racter~stics, ccompl~shm ents, nd Issues regarding two ofUSAID7spremler PVO co-financing programs after a decade of implementation The Reportbegms with the recognit~onhat the strengthemng of local pnvate in stitutions is a com moncontnbu tion of all PVO co-financing projects to natlonal development It notes that t h sassistance permitted dlverse intervent~o nsm multiple development sectors, and that it took avariety of forms of capac~ ty-building upport grants to U S PVOs for capacity-buildmg of


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indigenous NGOs, grants to larger, more experienced indigenous NGOs for their operations, andgrants to larger, more experienced indigenous NGOs for capacity-bmlding of smaller indigenousNGOs The Report assesses the role, evolution, and accomplishments of local NGOs in bothcountries, USAID fundmg of and accomplishments m the NGO sector, contextual issuesinvolving local NGOs, challenges and issues regarding to the relationship between U S PVOsand local NGOs, and implications wt h respect to the mode and charactenstics of USAIDsupportThe EPOCH Project in Indonesia (Enablmg Pnvate Organizations to Combat HIVIAIDS)illustrates USAID-supported capacity- building m a health-related sector of rapidly increasingimportance in recent years A collaborative effort between Project Concern International, Pact,and a number of Indonesian NGOs, EPOCH integrated techcal, orgmzational, andinterorgamzabonal capacity-budding into the assistance provided to 10 Indonesian NGOs Theproject's pnmary objective was to provide intensive institutional development and techcalservices to a group of NGOs in order to build NGO institutional capacity to undertake HIVIAIDSprojects This included direct support for and facilitation of the development of NGOHIVIAIDS interventions, policy advocacy for the formulation of informed policies andregulations that protect rights, slulls enhancement for selected NGOs in designmg, managing,evaluating, and documenting HIVIAIDS programs, and development of HIVIAIDS coalitionsand networks at the local and national level A related achievement was the establishment of oneof the largest HIVIAIDS resource centers in Southeast Asia, housing over 2000 publications,including books, videos, journals, newsletters and reference sourcesAn article in AIDScapt~ons, publication of USAID's AIDSCAP program (Capacity-Bmldingfor HIVIAIDS Prevention, L Loughran, July 1995), citing the EPOCH Project, notes thatcapacity-building has moved up on the list of priorities in most HIVIAIDS prevention programsIn some cases, activities are woven into the day-to-day work of technically based initiatives, inothers, programs are designed exclusively to meet capacity-building objectives It notes thatwhile formerly HIVIAIDS programs directed resources almost exclusively to transferringtechcal skills, there is a growing trend to link three areas under the banner of capacity-buddingfor HIVIAIDS prevention sh ll bmlding for individuals w i t h orgamzations, orgmzationaldevelopment more broadly, and development of networks It also discusses some specialconstraints involving capacity-bmldmg for HIVIAIDS preventionThe Pnvate Rural Initiatives Project (PRIP) in Bangladesh offers an interesting -- some sayunique -- example of a program designed to strengthen the capacity of the NGO s

Documents

USAID Support for NGO Building- Approaches, Examples, Mechanisms