The Guiding Principles Voluntary Development Organizations

The Guiding Principles
Voluntary Development Organizations

VOLUNTARY ACTION NETWORK INDIA
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Greater Kailash Enclave - II
New Delhi - 110048
Tel : +91-11-29226632, 29228127
Fax : +91-11-41435535
E-mail: info@vaniindia.org
Web site: http://www.vaniindia.org/

Table of Contents

Foreword
Introduction

1. Characteristics
2. Vision and Mission
3. Governance
4. The organisations should have the following traits:
5. The Organisations should foster three common values
6. The organisation should support two basic values
7. Organisational Integrity
8. Accountability
9. Transparency
10. Financial Management

1. Decision of the General Body of VANI
2. Membership Review Committee
3. Check list for Membership
4. Organisation Profile
5. Follow up and updating

Foreword

Since early 1980’s several attempts have been made to develop a common code of conduct for Voluntary Organisations. The members of VANI felt the urgent need for it, and planned to initiate a process of dialogue to develop a consensus on this issue. The present document is the outcome of this effort.

Initiated at the General Body meeting (September 1995) at Patna, a draft was presented at the national convention of voluntary activists in February 1996 in Delhi and subsequently at the Annual General Body meeting at Jaipur (September 1996). It has been thoroughly discussed at the East Zone meeting in Puri (May 16-17, 1997) South Zone meeting in Bangalore (June 14-15, 1997) West Zone meeting in Ahmedabad (July 14-15, 1997) and North Zone meeting (August 09-10, 1997) in New Delhi.

The immediate objective is adoption by VANI members only. Simultaneously, other important Networks which are close to VANI will be requested to consider the principles.

The members of VANI at the 9th General Body meeting in Lucknow on Saturday the 13th September, 1997 unanimously approved the document entitled: "Voluntary Development Organisation: The Guiding Principles" and authorised VANI Secretariat to take necessary action for its adoption by VANI members and other voluntary organisations in India.

VANI Secretariat put this document into extensive trial and after testing for complete two years by the members themselves, make finer adjustments before printing for general use by the voluntary organisations working in India.

October 2, 1999
Anil K. Singh, Executive Secretary

Introduction

India has always been at the forefront of upholding democratic values and traditions. It is undoubtedly one of the largest democracy in the world. Despite numerous challenges, several pillars ensure that Indian democracy remain entrenched. Voluntarism is one of those essential pillars.

Several far-reaching changes in the last several decades have affected every aspect of Indian life. In this backdrop, there is a visible erosion of ethics in public life and also within the institutions of governance. This situation of turmoil and distress, compounded with large scale poverty,unemployment and illiteracy, demands proactive social action to ensure the advancement of the deprived sections in particular and the well being of the people in general.

At this juncture, voluntary organisations, upholding the basic principles of the general good of the common people, would definitely be able to play a very crucial role in safeguarding public interest and advancing human development. Such organisations with the power of conviction, knowledge and ability have already demonstrated the viability of voluntary development action. They also are dedicating themselves to the task and the challenge of building a nation based on values such as transparent and accountable governance, social justice, equity and dignity and respect for diversity.

The vast voluntary sector in India is trying to address the diverse needs of almost every section of the society and they themselves represent the diversity that establishes India’s uniqueness in the comity of nations. The voluntary groups are named differently, e.g. People’s Organisation, Grassroots Organisation, Resource Organisation, Human Rights Organisation, Social Action Group, Support Organisation, Network and others. They have various norms and work rules, but have the commonality of being driven by vision and commitment. There is no sharp line of demarcation between the groups and one organisation can have various roles.

The need for evolving the fundamental guiding principles based on the commonality of vision and commitment has been accepted by all. VANI members strongly advocated a slow and steady evolutionary process to develop a consensus. The present document is the outcome of such an effort.

For the time being, the document is focusing on organisations which have institutional base and legal entity, organisations who raise operational costs and act either singly or in a network mode with field implementation agencies.

These are named as Voluntary Development Organisations.

The purpose is not to isolate others, but only to ensure that the initial operation covers a limited number of organisations. There is a need to learn from the process to make necessary corrections and then go for a holistic large-scale coverage. Then only the document will be covering the whole voluntary sector.

The immediate objective of the Guiding Principles is adoption by VANI members only. Simultaneously, other important networks which are close to VANI would be requested to consider the principles for acceptance.

The new nomenclature, Voluntary Development Organisation (VDO) has become important in the Indian context. In the absence of a clear policy regarding voluntary organisations, all organisations outside direct administration channel and industries/business have been clubbed together. The spirit of voluntarism has been severely eroded in the process. It is necessary to revive the basic values and principles of operation, and an identity is necessary to introduce changes. Hence the new name.

A Voluntary Development Organisation derives its Constitutional Strength from the provision of Right to Freedom of individuals. [Clause 19(a) to (e) and (g)], and is essentially the physical manifestation of the vision of an individual or a group of individuals.

1. Characteristics

They are formed voluntarily to fulfill a socially committed mission, especially to work for the betterment of the marginalised sections in the society.
There may be an element of voluntary participation in the organisation, (e.g. on the part of Board Members), but they may not be entirely or largely dependent on voluntary labour.
They are not for the personal or private profit or gain (political or economical) of those who control and manage the affairs, although -

a) they may have paid employees ;

b) they may engage in income-generating activities solely in pursuit of the organisational goal, so as to sustain the organisation and run it efficiently.

They function on the basis of a set of values like public interest, service , transparency, participation and accountability and in pursuance of their aim to:

a) improve the circumstances and prospects of disadvantaged people who are unable to realise their potential or enjoy their full rights in society;

and/or

b) act on concerns and issues which are detrimental to the well-being, circumstances or prospects of people or society as a whole.

Such organisations may receive funds, without compromising the values of voluntary social/developmental action but they are not fund-driven organisations.

2. Vision and Mission

The organisations should adopt and regularly review a clear written statement of their Vision and Mission

The organisations should adopt and regularly review a clear written statement of the group(s) it intends to benefit and how they intend to do so.

The organisations should adopt and regularly review a clear written statement of the geographical areas and also the thematic areas of action, and the level of their operations.

3. Governance

Members of the Board may either be nominated or elected, according to the provisions of the legal structure adopted.

The Board may delegate responsibility to others (e.g. a managing committee, or even the paid staff), but must accept ultimate responsibility for governance over all aspects of the organisation. This will include responsibility for:

a) Safeguarding the vision, integrity, objectives and policies of the organisation, ensuring that its identity, integrity, methods and activities are not distorted , subverted or taken over or corrupted by external or internal vested interest;

b) Ensuring high standards of planning, operation, administration, evaluation, and reporting in the organisation;

c) Ensuring that statutory obligations are met.

Members of Boards can be life members or for a defined period according to the provisions of the legal structure adopted. No Board member should be in more than five Boards in different VDOs.

The function of the Board will be democratic11, which, inter alia 12 will mean:

a) The Board should not be monopolised by a single interest group (e.g. members of one family);

b) The Board should have identified individuals and not any ex-officio members drawn from outside the organisation;

c) The statutes/bylaws of the organisation should provide for a transparent process of taking decisions, election of office bearers and members of the Board.

The underlying values of VDOs should be based on the desire to advance the well-being of the people, particularly that of the marginalised sections in the society, reflected through

a) Respect for the rights, culture and dignity of the people with whom the organisation works;

b) Ensuring that the organisation’s integrity, objectives, mandates and activities are not distorted, subverted, or corrupted by external or internal interests;

c) Maintaining high standards of honesty and integrity at both personal and organisational level.

4. The organisations should have the following traits:

a) Believe in equality and oneness of humankind irrespective of caste, creed, religion;

b) Not affiliated to any political party;

c) Advances and ensures gender equality and justice with dignity;

d) Encourages independent views and innovative thinking of men and women, served or affected by the work of the organisation, including the staff.

e) Respects the rights, culture and dignity of all human beings;

f) Promotes scientific temper, humanism and spirit of inquiry and reform;

g) Strives for excellence in all spheres of individual and collective activity.

5. The Organisations should foster three common values

a) AUTHENTICITY: Adopt and accept principles and practices being convinced that they are good;

b) OPENNESS: in dealing with people and problems;

c) BENEFICIARY PARTICIPATION14: Encourage active participation of beneficiaries in all stages of programmes - problem identification, program design, implementation and evaluation.

6. The organisation should support two basic values

a) JUSTICE AND EQUITY: Work for fairness in the distribution of resources, wealth and power and in accessibility of every citizen to development inputs;

b) SUSTAINABILITY AND EMPOWERMENT: Initiating, facilitating and fostering positive social development wherein the communities/ partners/ beneficiaries will be empowered to have adequate control over their living conditions and sustain the process of a more dignified, just, equitable and humane development.

The activities and procedure adopted by the Voluntary Development Organisations must reflect the values they champion for. Besides being registered under prevailing legal norms of the country these organisations will project organisational integrity through Accountability and Transparency.

7. Organisational Integrity

Developing and maintaining Voluntary Development Organisations that would be public ( as distinct from private ) in its scope, structure and principles, will need that :

a) The organisation should comply with all applicable statutory regulations and laws;

b) Since there is little chance for equivalence of benefits/compensations for work between the Voluntary Development Organisations and other sectors (especially the corporate, and the government), the primary motivation for the team members should be values of voluntarism and social commitment;

c) The organisation should establish a clear written policy of operation to adopt coherent decision during difference of opinion;

d) The organisation should have a clear, enabling, equal opportunity and non-discriminatory employment policy;

e) The organisation should prepare and make available annual narrative and financial reports, as well as reports on particular activities, and on results of reviews and evaluation.

8. Accountability

While the primary aim should be its accountability to the community of the beneficiaries, the organisation should also be accountable to the government and the donors.

The accountability can vastly be improved through regular, systematic and open evaluation and monitoring which can assess and strengthen the organisation’s principles and values, its commitment to people and communities, its ability to change and respond, its cost-effectiveness.

Such monitoring and evaluation should:

a) involve, wherever possible, inputs from external and independent parties to ensure that it is honest, objective and not self-serving, and appropriately critical;

b) go beyond being simple and cursory, as basic financial audits tend to be, and should address social as well as economic factors, as well as examine both intended and unintended impacts (Social audit techniques have an important role to play here);

c) evolve organisational practice by which the organisation can establish its effectiveness and credibility, and resist excessive control by donors and governments.

9. Transparency

The organisation should have transparency in purpose of work by:

a) making clearly documentation who they are, what they do and how they do;

b) explicitly following and documenting financial norms, staff and volunteer management policy;

c) preparing and making available annual report17 with financial statement about their constituencies, affiliates, etc.

10. Financial Management

The financial management practices of the organisation should be of a high standard18 to reflect its integrity and transparency.

The organisation should ensure, while negotiating with donors, that the terms and conditions of funding agreements and the procedures and timetable for reporting are mutually acceptable.

The organisation should only accept grants or contracts that are consistent with its vision and objectives.

The organisation should provide adequate and appropriate procedures for financial monitoring and review, and reporting.

The organisation should have a clear fund raising policy19 intended to assure its institutional advancement and financial sustainability.

The members of VANI demanded that the document be put into extensive trial and tested for a few years by the members themselves to make finer adjustments. During the last two years the members have been following the guiding principles and the process of practising it is emerging.

1. Decision of the General Body of VANI

a) For the Organisational membership of VANI

VANI would institute a membership review committee. The committee would meet every year and study the reports to verify that the member organisations follow the guiding principles adopted by VANI.

All member organisations will be required to submit their audited statement of accounts, annual report and other relevant information to VANI Secretariat on or before October 31 of every year.

A brief description of the structure, nature of work, activities and financial position of such organisations will be included in the Voluntary Action Year Book of VANI to be published on an annual basis.

b) For outside organisations

VANI will publish and widely disseminate posters and calenders to highlight values of voluntarism and good management practice. VANI will encourage all member organisations, networks and other major voluntary development organisations to prominently display such posters in their offices as a constant reminder for value based voluntary action and organisational practice.

VANI will actively encourage regional networks to adopt the guiding principles and also to initiate this process at state/district level. The state/regional networks can also institutionalise membership review process to verify the standard of transparent and accountable organisational practices.

2. Membership Review Committee

The Working Committee set up the Membership Review Committee choosing three of the WC members.

MRC identified two key tasks for itself

a) Build and sustain a plural, credible and responsible membership base for VANI;

b) Develop the membership criterion in tune with the guiding principles, which will be easy to follow and transparent in character

3. Check list for Membership

The Membership Review Committee identified three fundamental qualities defining a Voluntary Development Organisation, namely.

Democratic, Transparent, Accountable -

Each quality is to be judged rightly and hence a check list is prepared, divided into three parts.

Quality Indicator:

Democratic

1. General Body meets regularly and adopts collective decisions.

2. General Body has representa- tive members and does not belong to one family.

3. Organisation is secular

Transparent

1. Legally formed.

2. Clearly stated Vision Mission document exists.

3. There is a defined service con- dition and compensation package.

4. Annual report available.

5. Account report available. 6. Uphold democratic values.

Accountable

1. Key functionaries match the objectives.

2. Staff matches the functions.

3. Expenditure matches with ac- tivities.

4. Maintaining transparency

4. Organisation Profile

To collect data which will help one to assess the indicators, an Organisation Profile was prepared and after a few trials finalised. This is given in Appendix -1.

Each VANI member has to study the Guiding Principle, endorse the same in the format given in Appendix - 2 and return the duly filled in Organisation Profile to the Secretariat.

Section A. Identity and Programme is signed by the Chief Functionary because all are related to the function of the organisation.

Section B. Financial Status is signed by the Accounts in charge and provides a picture of the influence of the organisation.

Section C. Organisational Structure relates to the rules and regulations and manpower. This is the section which calls for suggestion from the members. Signed by the Secretary, the whole document is authenticated.

5. Follow up and updating

VANI has decided to print a member profile and update it each year. The profile is prepared by the Secretariat based on the Organisation profile.

Item recorded	Source from Profile
1. Identity	A 1, A 2, A3
2. Vision/Mission	A 5
3. Type of activities/themes	A 9 (First 3 priori ties only)
4. Target group	A 10
5. Personnel Total classified from	Annexe C1
6. Important achievements	Summary of C 2 and C 3
7. Annual Turn-over	B 1
8. Major Activity	A 11 for first year and U2 for subsequent year. ( 3 to 4 activities only)

Each year the member is expected to fill up the format U1. Annual Update given in Appendix 3. This helps VANI to update the member profile every year. A summary of the profile is available on the internet as well.