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This case examines a variety of financing techniques for NGOs, as well as the risks attached to these techniques in a socially, economically and politically volatile environment. The case also introduces the control (accounting and reporting) framework in which not-for-profit organizations operate in a developing country like Pakistan. Students should understand that ethical and moral issues, such as those affecting the environment, need not be as important in one country or region as another. Therefore, many NGOs rely on funds from external sources, which can create political and logistical difficulties. Our focus is on the latter. Students should appreciate the importance of different sources of funding, the need to manage funds effectively, and the need for constant revisions of budgets and projections. Students should also appreciate the vital importance of the support systems, including accounting and control, reporting, technology and human resources. These elements become especially important if the organization is growing rapidly. Last, students should also appreciate the legal restrictions on NGOs/not-for-profit organizations, in terms of fund raising. |
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