Building Sustainable Ukrainian NGOs NGO training prepared by: United States Peace Corps, Ukraine Community Economic Dev

1. Building Sustainable Ukrainian NGOs NGO training prepared by: United States Peace Corps, Ukraine Community Economic Development Project

2. Agenda • Introduction to NGO Sustainability • Components of NGO Sustainability • NGO Sustainability Handbook • Development of Handbook • Practical Application for NGOs • What are the next steps?

3. What is Sustainability? • In the context of NGOs, sustainability is the ability of an organization to develop and manage sufficient resources and relationships to fulfill its mission effectively and consistently over time. • Successful NGOs work towards long-term sustainability by developing resources and relationships that meet both today’s and tomorrow’s needs. • This concept applies to large NGOs, as well as very small NGOs with a 1-2 volunteer staff.

4. Types of NGO Sustainability • Financial Sustainability • Includes: less dependence on international and start-up funding; greater reliance on local funding obtained through various means. • Operational Sustainability • Includes: a stable organizational structure; effective leadership; employees and volunteers with needed skills; a system to help people improve their skills; good management practices. • Also includes: adequate facilities and equipment; good relationships and a positive reputation in the community, and with other organizations; open and honest reporting; a focus on fulfilling the core mission of NGO.

5. Why is Financial Sustainability Important? • Currently, Ukraine is the recipient of large amounts of funding through foreign governments and foundations. • NGOs in Ukraine are eligible for this funding through grant competitions, many of them have specific funding requirements that may not fit with the mission of the NGO. • As development continues and civil society grows, this funding will shift from Ukraine to less-developed countries with greater need. • NGOs that diversify their funding sources before this shift occurs find it easier to continue the important work of the organization without interruption.

6. Why is Operational Sustainability Important? • Operational sustainability assists NGOs to fulfill their mission through the following features: • Dedicated staff and reliable volunteer force • Stable facilities and equipment (including ability to pay necessary ongoing expenses) • Partnerships in the community necessary to make their work successful • Trust from donors and other supporters that NGO funds are allocated to appropriate expenses

7. Components of NGO Sustainability Proper management of each of these areas contributes to the long-term sustainability of an NGO: • Strategic Planning • Human Resources • Operational Efficiency • External Relationships • Fundraising • Marketing • Transparency • Advocacy (includes Lobbying)

8. Strategic Planning • Strategic Planning is a process for setting and managing priorities for the NGOs future. • Process includes: situation assessment; creation of NGO vision and mission statements; creating NGO goals and objectives; writing Strategic Plan; implementing Strategic Plan; regular reviews and tracking. • A written “Strategic Plan” provides focus for the NGO and outlines desired results of overall NGO activities. • Process is typically directed by NGO leaders, with participation from staff, volunteers, community members, local government officials, target audience of NGO and board members (if appropriate).

9. Human Resources Human resources refers to your NGO’s people, how to find them, how to help them do their best, and how to keep them. All of the following are a part of developing good human resources practices within your NGO: • Staffing and Recruiting – Finding the Right People • Training – Helping your People Grow • Personnel Management – Taking Care of Your People • Performance Management – Guiding Your People • Retention – Keeping Your People • Volunteers and Paid Employees – All Your People are Important • Planning and Conducting Meetings – Making the Most of People’s Time • Organizational Structure – Documenting What Your People Do • Boards and Their Role in NGOs – People Who Can Help Your People

10. Operational Efficiency Operational efficiency means an NGO has reviewed and revised daily activities in a way that gets the most productivity from all the NGO’s resources. This can be accomplished by: • Creating an environment that promotes operational efficiency • Listening to all staff and volunteer ideas • Examining your current methods • Doing research • Experimenting with new methods and ideas • Recognizing and rewarding good ideas

11. External Relationships • Building external relationships includes initiating and continuing communication with individuals in your community who have an interest in your NGO. • These relationships could include other NGOs, local professional associations, coalition groups, government institutions, private business and international organizations. • Benefits of external relationships include sharing of resources, information, knowledge, skills and even funding; improved reputation in the community; broader communication network for marketing activities and events.

12. Fundraising • Good fundraising strategy is an organized and effective approach to obtaining the money, goods and services an NGO needs to support its activities so it can meet it’s goals on an ongoing basis. • Financial sustainability is achieved through identifying diverse sources of funding such as: • Local Fundraising – collection box, concert event, car wash • National and International Fundraising – expatriates, Ukrainians living overseas • Private Business – requests for specific or general funding • Fees for Service / Membership Dues – from your target market • Product Sales – sales of arts and crafts; copies/printer service • Physical Assets – rental of NGO space, computers, LCD projector • Grants – used for funding specific projects, not operational expenses

13. Marketing Marketing helps NGOs understand what people they will serve, what they want or need, and how they can be motivated. It also helps you “sell” your services or ideas you are promoting in the community. • Conduct market research – What is needed? • Develop your “product” – What will you offer? • Promote your NGO and your “product” – How? • Ideas for NGO promotion include small brochures, media fact sheets, news releases, media invitations, flyers and posters, speeches, personal networking, websites, mailings, print and radio advertising, your friends • Measure your progress – Is it working?

14. Transparency Transparency involves organizing and reporting accurate information about an organization and its activities, and then giving that information to people or groups that have an interest in the NGO and it’s success. • Transparency creates a sense of trust; NGOs seen as honest. Donors are more willing to fund, reputations are improved in the community, and employees and volunteers are more supportive of NGO management. • Examples of transparency include: • Annual Financial Reports, including donations and expenditures • Strategic Plans, Organizational Charts • Schedule of Activities • Organizational Reports • Share information with donors, Boards, employees, government officials, members and other interested parties.

15. Advocacy and Lobbying Advocacy for NGOs means representing the interests of people whose needs might not be otherwise represented to individuals and groups who are community decision-makers. Lobbying is advocacy in the context of government officials. Examples of advocacy and lobbying activities include: • Programs to raise public awareness, build community understanding and change attitudes about special concerns • Programs to educate specific groups about your concerns • Programs where your NGO joins with other local and national NGOs with similar concerns • Relationships with public officials who can influence legislation • Citizens writing or calling government officials about need for action, holding media briefings • Petitions for government action, civic demonstrations

16. Handbook Development • Ukrainian NGO Sustainability project initiated by several Peace Corps Volunteers in 2003 • Volunteers worked with 31 NGOs across Ukraine, conducting interviews and compiling data on sustainability techniques of successful NGOs • NGOs ranged from very small to large, newly created to well established • With information gathered, volunteers wrote NGO Sustainability Handbook in 2005 • Editing and final publication completed in partnership with Ukrainian advisory organizations

17. Ukrainian Advisory Organizations • GURT Resource Center • Counterpart Creative center • Ukrainian Citizen Action Network (UCAN) • Institute for Non-Profit Management • International HIV/AIDS Alliance • American International Health Alliance • Center for Philanthropy

18. Practical Application for NGOs What are the next steps? • Read “Achieving Sustainability: Real Stories from Ukrainian Non-Governmental Organizations”. • Pay special attention to the steps listed in each chapter’s final section, “Looking Ahead”. Follow steps as appropriate. • Evaluate your NGO in the context of other NGOs. Determine your goals as an NGO and take the necessary steps to achieve those goals. • If appropriate, contact NGOs listed in the back of the book for assistance, development of NGO network and partnership projects. • Watch your NGO grow into a sustainable organization!

19. THANK YOU… …for your time and participation today …for your leadership in the community …for your dedication to the development of Ukraine …for your interest in creating sustainable NGOs

20. To access an electronic version of this document, as well as the English and Ukrainian versions of the NGO Sustainability Handbook, go to: http://tefl.pcukraine.org/resources.php?cat=Manuals