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Archive for November, 2009
Nonprofits and Lobbying: Wolf in sheep’s clothing?
Posted in: Blog, Non-Profits by Anand Chandrasekhar on November 24, 2009
Many non-profits spend a significant amount of time and resources on influencing policy. To some this a means to an end while for others it is the end itself. Organisations may passively contribute to policy making through conventional channels in the decision-making process as legitimate stakeholders. This is generally through consultations, serving on boards and committees and as information providers. The other method used to influence policy is through the media or by pro-active engagement with decision-makers themselves. It is this second category that is raising some issues concerning non-profit accountability.
A Breakdown of Non-profit Fraud: A Few Bad Apples or a Systemic Malaise?
Posted in: Blog, Non-Profits by Anand Chandrasekhar on November 18, 2009
Non-profit fraud has been the proverbial elephant in the room in the charity sector. Everyone within the sector knows it is happening on some level but most dismiss it as a case of a ‘few bad apples’. Ironically, charities could risk negative publicity for revealing internal fraud. Many prefer to avoid discussing fraud for fear it could damage their reputation instead of earning accolades from donors. Weak internal controls, lack of financial expertise and heavy reliance of volunteer boards make non-profits more vulnerable to fraud than businesses. Employees guilty of fraud are seldom punished severely and are usually encouraged to resign instead of being dismissed outright. This fraud indifference is harming the non-profit sector as credibility takes a beating when blatant incidences of fraud do become public knowledge.
A report published in the Nonprofit and Voluntary Sector Quarterly aims to shed light on the extent of fraud in the charity sector. Titled ‘An Investigation of Fraud in Nonprofit Organizations: Occurrences and Deterrents’, the report uses empirical research approaches to study the nature and extent of fraud in the non-profit sector. Unlike previous empirical studies that relied only on newspaper articles on fraud for statistics, this report uses data from 508 cases of occupational fraud obtained from the Association of Certified Fraud Examiners (ACFE).
The Art of Giving: Lessons for Foundations
Posted in: Blog, Non-Profits by Anand Chandrasekhar on November 11, 2009
Philanthropic giving through individuals and foundations has been a major source of funding for small and medium non-profits especially at the local level. These charities usually lack the fundraising machinery and global reach to access the big funds available through multilateral institutions. Thus foundations continue to occupy an indispensable niche in the charitable giving sector. However, foundations do face some criticism for the way they operate. They have been accused of adopting bureaucratic and short sighted approaches to giving which are often tailored for their own needs rather than those of non-profits or the public. Many believe that the role of foundations should not be limited to simple disbursement of funds. Foundations have a responsibility towards creating a more sustainable and accountable non-profit sector as they themselves rely heavily on non-profits for delivering results. It is in their best long-term interest to invest in a strong non-profit delivery system.
Calling out Corruption: A Global Effort at Risk
Posted in: Blog, Foreign Assistance, Government by Anand Chandrasekhar on November 9, 2009
With climate change, natural disasters, food shortages and economic recession wreaking havoc globally, the worst affected need financial assistance and committed governments to deliver aid. It is vital that resources reach the needy on time and intact. The diversion of funds earmarked for development discourages foreign aid and investment. It also undermines a Government’s ability to provide basic services to its citizens. As always, it is the poor who are worst affected by the scrounge of corruption.
The Story of John Githongo
Posted in: Anti-Corruption, Blog, Government by Marco Puccia on November 5, 2009
It was February of 2005, and a startled Kenyan government was in the midst of an international manhunt. Police cars scoured the streets of Nairobi in the dark of night; officers knocking on doors, barking dogs in tow. The Kenyan High Commission in London had deployed its own search team. The man they were looking for: freshly resigned Permanent Secretary of Ethics and Governance, John Githongo.
Days earlier, on the morning of February 6th, 2005, Mr. Githongo had arrived, suitcases in hand, on the front steps of a London flat owned by friend and former colleague Michela Wrong. He had snuck away from his hotel where he was staying on official business. After settling in, he told his confidant, “One of the first things I need to do is resign”.
Book Review: It’s Our Turn to Eat
Posted in: Anti-Corruption, Blog, Foreign Assistance, Government by Marco Puccia on
It’s Our Turn to Eat, by Michela Wrong, tells the story of John Githongo — the famous whistle-blower of corruption under the Kibaki Administration in Kenya. Before picking up the book, I was concerned that I would be reading a lot of what I already knew — considering A. I wrote a paper on him several months ago, and B. I had explored a lot of the inner-workings of Kenyan politics during many-a-nights after Kiswahili class at a nearby bar with my professor going hours-on-end. As I began reading, however, I was enthralled by the insider and historical perspective that Wrong presents. I suppose to be expected, given Michela Wrong is a longtime friend of John Githongo and the first person he reached out to in his self-imposed exile in London.