MSP | External Certification
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For NGOs and NGO networks that have internal management systems they deem at or near national and international standards, seeking external certification of these systems can help strengthen and demonstrate the operational capacity of the organisation.
The process of certification generally requires the organisation to undergo a rigorous audit of their internal systems against the standards and benchmarks defined by the organisation issuing the certification. In case of observed gaps, the NGO will need to upgrade their system so that the standards are met before a certificate can be issued. This process of certification is often managed by an authorized third-party (often a consulting firm) that will charge a fee.
The most well-known global certification related to internal systems for non-profit organisations is the ISO (International Standards Organisation) 9001 standard, which focuses on how to establish, implement, maintain, and continually improve a quality management system. This certification applies to all kinds of organisations, including non-profit and civil society organisations.
More specific to NGOs, Humentum and The Chartered Institute of Public Finance and Accountancy (CIPFA) have recently launched the International Non-Profit Accounting Standard (INPAS), which, as the name implies, focuses on financial management. As a new standard INPAS is not yet well known but there could be incentives for local NGOs looking to be among the first to obtain certification.
Donors may also recommend or require partner NGOs to go through specifications linked to their own policies and standards. Usually, these are NGOs that are registered inside the donor country, but it may be possible (and sometimes required) for local NGOs receiving funds from that donor to go through the certification process (possibly at the donor’s expense). Examples of these standards include Zewo (Switzerland) or Charity Navigator (USA).
The Core Humanitarian Standards extend well beyond internal management systems and focuses on validating the work of non-profits from the perspective of the communities they serve. This includes the “ethical and responsible management of resources” (standard 9) and “competent and well-managed staff” (standard 8). While basic CHS certification is strongly recommended, HQAI offers a CHS+ certification that includes deeper validation of internal management systems.
Some countries may also operate national standards and certifications, either as a required part of the registration process or a voluntary measure. In the Philippines, NGOs seeking registration must be first certified by the Philippine Council for NGO Certification (PCNC), while in Uganda NGOs already in operations can opt to be certified by the NGO Quality Assurance Mechanism (QuAM). A similar initiative exists in Kenya under the name VIWANGO. This also demonstrates that NGO networks may be able to set up their own set of standards and certification processes.
PROS and CONS
Pros: Certification process as a highly effective way to identify and resolve gaps in the current systems; award of certificate conveys a high degree of trust among donors and partners; documentation of process makes donor vetting faster and simpler; international recognition may increase organisational leadership opportunities.
Cons: Certification process can be costly and time consuming, depending on current levels of systems; global standards may be hard to achieve in certain operational contexts; standards evolve over time and often require periodic re-certification.
SELECTION CONSIDERATIONS
Attainability: How likely is the organisation or network to achieve certification in a reasonable period of time? Are the standards adapted to the operating context and nature of the organisation? Are there accredited agencies operating in the country?
Commitment: Is the organisation ready and able to go through possible audit recommendations to achieve certification? Are the necessary time and resources available? Is the process prioritised by leadership and partners?
Costs and funding: What is the cost of the initial audit? What is included in that package from the certification agent? How much can the organisation set aside for system improvements in case of gaps? Can these costs be added to existing or future grants or contracts or be received on a pro-bono basis?
EXAMPLES
The Philippine NGO ANCOP (Answering the Cries of the Poor) decided to pursue ISO 9001 certification and wrote about their experience.
In Uganda, over 150 local NGOs and NGO networks have been certified through the QuAM process. Donors such as GIZ and USAID have proven willing to sponsor the certification process for local partners. This initiative (and VIWANGO in Kenya) may be particularly relevant for NGO Networks who seek to establish common standards across their membership.