Code of Conduct
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I .

All public assets are to be treated with utmost seriousness, as a

public trust.

_ HGF will recognize that its conduct and activities

impact on the public’s perception of NGOs and that it shares

responsibility for the public’s trust of NGOs.

_ HGF should exhibit a responsible and caring attitude

toward the environment in all of its activities.

B. Cooperation Beyond Boundaries

Significant progress toward world peace and global well-being

can be fostered through inter-religious, intercultural, and interracial

work, and across artificial barriers of politics and ethnicity

that tend to separate people and their institutions. HGF

will maintain ethical, cooperative relationships with other

NGOs, and will partner where possible and appropriate for

the sake of the greater public good.

_ HGF will  be willing to work beyond borders of politics,

religion, culture, race and ethnicity, within the limits of the

organizing documents and with organizations and individuals

that share common values and objectives.

C. Human Rights and Dignity

As the Universal Declaration of Human Rights states, “All

human beings are born free and equal in dignity and rights, are

endowed with reason and conscience, and should act towards

one another in a spirit of brotherhood.” (Universal Declaration

of Human Rights, Article 1) The family is the fundamental natural

group unit of society promoting human rights and human

dignity. (Universal Declaration of Human Rights, Article 16)

_ HGF will and should not violate any person’s fundamental human

rights, with which each person is endowed.

_ =HGF recognizes that all people are born free and

equal in dignity.

_ HGF should be sensitive to the moral values, religion,

customs, traditions, and culture of the communities they serve.

_ HGF should respect the integrity of families and support

family-based life.

D. Religious Freedom

“Everyone has the right of freedom of thought, conscience and

religion; this right includes freedom to change his religion or

belief, and freedom, either alone or in community with others

and in public or private, to manifest his religion or belief in

teaching, practice, worship and observance.” (Universal

Declaration of Human Rights, Article 18)

_ HGF will and should respect religious freedom.

E. Transparency and Accountability

HGF will strive for openness and honesty internally and

toward donors and members of the public. Periodic accountings

should be made.

_ HGF will and should be transparent in all of its dealings with the

Government, the public, donors, partners, beneficiaries, and

Other interested parties, except for personnel matters and proprietary

Information.

_ HGF basic financial information, governance structure,

activities, and listing of officers and partnerships shall be open

and accessible to public scrutiny and the NGO is to make effort

to inform the public about its work and the origin and use of its

resources.

_ HGF should be accountable for its actions and decisions,

not only to its funding agencies and the government, but also to

the people it serves, its staff and members, partner organizations,

and the public at large.

F. Truthfulness and Legality

HGF will be honest and truthful in its dealings with its

donors, project beneficiaries, staff, membership, partner organizations,

government, and the public in general, and should

respect the laws of any jurisdiction in which it is active.

_ HGF will give out accurate information, whether

regarding itself and its projects, or regarding any individual,

organization, project, or legislation it opposes or is discussing.

_ HGF will fulfill its obligations under the laws of the

nation in which it is organized or works, and must be strongly

opposed to, and not be a willing partner to, corruption, bribery,

and other financial improprieties or illegalities.

_ HGF will have a policy for staff and volunteers to confidentially

bring evidence to the governing body of misconduct

of anyone associated with the organization.

_ HGF will meet all of the legal obligations in the countries

in which it is organized or works. Such obligations may

include laws of incorporation, fundraising legislation, equal

employment opportunity principles, health and safety standards,

privacy rules, trademark and copyright legislation, and so

forth.

_ HGF will take prompt corrective action whenever

wrongdoing is discovered among its staff, governing body, volunteers,

contractors, and partners.

 

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Fundamental to the very character of HGF is that it be not-for-profit,

Nongovernmental, organized, independent, self-governing, and

voluntary.

 

A. Nonprofit

1. NOT-FOR-PROFIT   HGF is to be organized and operated

as a not-for-profit organization. Any surplus that is generated

through its operations is to be utilized solely to help the

organization fulfill its mission and objectives. No part of the net

earnings of HGF is to inure to the benefit of the directors,

officers, members or employees of the organization, or to any

other private persons, except that HGF may provide reasonable

compensation for services provided to the organization.

2. TRADE OR BUSINESS The organization is not to be operated

for the primary purpose of carrying on a trade or business,

unrelated to its mission and stated objectives.

3. GOVERNING INSTRUMENT HGF’s governing instrument

shall prevent the organization from distributing profits or

assets for the benefit of individuals both during operation and

when winding up.

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HGF INTEGRITY

II.

B. Non-Governmental

1. NON-GOVERNMENTAL The organization is not to be part

of, or controlled by, government or an intergovernmental agency.

2. POLITICALLY INDEPENDENT The organization shall maintain

independence and not be rigidly aligned or affiliated with

any political party, although it may share a common political or

legislative cause within the limit of its mission, stated objectives

and legal structure. By itself, being non-governmental does not

mean that HGF is prohibited from political activity, although

certain types of NGOs may be proscribed by their nations from

political and legislative activity, such as tax-exempt organizations

in the United States, which are prohibited from participating

or intervening to any substantial extent in attempts to

influence legislation or participating in political campaigns to

support or oppose any candidate(s) for political office. However,

if HGF  is permitted to do political and legislative activity, it

shall only engage within the limit of its mission and stated

objectives.

3. FOREIGN POLICY The organization shall not act as an

instrument of government foreign policy, but act independently

of governments. HGF shall not seek to implement the

policy of any government, unless it coincides with the mission

of the organization and the organization’s own independent

policy.

C. Organized

1. ORGANIZING FEATURES   HGF shall have an organizing

document, an executive board, officers, and regular meetings

and activities.

2. ORGANIZING DOCUMENTS The organizing documents

(such as bylaws, a written constitution, or memorandum of association)

shall clearly define the mission, objectives, governance

structure, membership rights and obligations, if any, and rules of

procedure.

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3. LEGAL RECOGNITION These organizing principles apply

whether or not HGF is legally recognized by any government.

D. Independent and Self-Governing

1. INDEPENDENT The organization shall be independent. Its

policies, vision, and activities shall not be determined by any

for-profit corporation, donor, government, government official,

political party, or other NGO.

2. SELF-GOVERNING The organization shall govern itself

autonomously, according to whatever governance structure it

selects for itself. It shall be equipped to control its own activities.

E. Voluntary

1. VOLUNTARY VALUES AND PRINCIPLES   Rather than

being required to exist by law, HGF was formed by private initiative,

resulting from the voluntary actions of individuals who

have chosen to pursue a shared interest or concern. The retaining

of voluntary values and principles shall remain a primary

force in the way of working for HGF.

2. CONTRIBUTIONS FROM VOLUNTEERS:   In order to

achieve its mission and objectives, the organization is to have

meaningful contributions from volunteers. These may include

both the target group and supporters.

3. VOLUNTEERISM OF GOVERNING BOARD:   Those who

are part of the HGF’s governing body (generally the board of

Directors) are to serve in a voluntary capacity, for no pay.

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An NGO’s mission is its raison d’etre—the reason or purpose why the

NGO exists and what it hopes to accomplish. NGOs have an obligation

to clearly identify and articulate their mission. This well-defined mission

should serve as the foundation and frame of reference for all activities

and organizational planning of the NGO. An NGO has an obligation

to utilize its resources in an effective and efficient manner

toward accomplishment of its stated purpose .

 

A. Mission

1. FORMAL STATEMENT The organization shall formally and

succinctly state its mission in a written statement approved by

the governing body.  This statement shall clearly

set forth why HGF exists and what it hopes to accomplish.

2. BOARD OF DIRECTORS Each member of the board of

directors shall fully understand and support the mission of the

organization.

3. PUBLIC AVAILABILITY The mission statement of HGF

shall be made available to all officers, members, staff, partners,

donors, program beneficiaries, and the public in general.

4. EVALUATION The mission of HGF shall be reviewed

 

 

 

 

 

 

 

 

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MISSION &

ACTIVITIES

III .

Periodically (every two or three years) to determine if it is still

relevant. Among issues to evaluate: (a) whether the mission has

been fulfilled, either by the organization or another entity, and

thus whether there is a need for the organization as currently

constituted to continue to exist; (b) whether the mission should

be revised to reflect societal changes; or (c) whether there is a

desire for the organization to address new needs which might

require a new mission statement.

B. Activities

1. CONSISTENT WITH MISSION: Activities shall be consistent

with the organization’s mission. HGF’s mission is to

serve as the foundation for strategic planning and as the blueprint

for the organization’s activities. The HGF’s focus shall be

directed toward making sure that its goals are met.

2. EFFECTIVE AND EFFICIENT:   The programs of the organization

shall effectively and efficiently work toward achieving its

stated mission.

3. FEEDBACK: The organization shall regularly seek feedback

on its activities from project beneficiaries, as well as other stakeholders.

4. EVALUATION:   The activities of the organization shall be critically

examined periodically to determine their relevancy to the

mission, their efficiency and effectiveness, the value of continuing

the programs or revising them, and the need for new programs.

Among issues to evaluate: (1) whether the activities are

consistent with the current mission of the organization or

whether they need to be revised or discontinued in light of

changes in the mission; (2) the efficiency and effectiveness of

the programs in achieving HGF’s objectives; (3) the outcomes

for the program beneficiaries; (4) the cost of the program

relative to its outcomes; and (5) whether new services should be

offered. Evaluations shall be open and honest and include input

from stakeholders.

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5. PROFESSIONALISM: The organization shall carry out its

activities with professionalism and centred on the concept of

serving others.

6. PERCENTAGE OF EXPENDITURES The organization shall

spend at least 65% of its total expenditures (including fundraising

costs) on program activities, and ideally more than 80%. If

the organization does not meet this 65% standard, it should provide

reasons why its higher overhead and fundraising expenditures

are reasonable. Possible explanations for not meeting this

standard could be the higher administrative and fundraising

costs of a new organization and exceptions related to donor

restrictions or unusual political and social factors.

 

 

17 An effective governance structure and a strong, active, and committed

governing body is crucial to the soundness of an organization and its

ability to achieve its mission and objectives. The plan of governance of HGF

 should reflect the core values, mission, and cultural standards

of the organization. Democratic principles should be used where appropriate

and applicable. The governing body of HGF (generally a

board of directors or trustees) holds ultimate responsibility for all

activities and resources of the organization. This includes establishing

the direction of the organization, beginning with its mission statement,

and assuring that the mission statement is appropriate and relevant as

times change. The governing body also determines the organization’s

activities and monitors their compliance with the mission. The governing

body exercises responsibility for obtaining and appropriately

employing the human and financial resources to carry out the organization’s

mission and sustain the organization, and oversee fiduciary

and legal requirements.

 

A. Governance Structure

1. PLAN OF GOVERNANCE : HGF shall establish a plan

of governance that best allows it to fulfill its mission, and

reflects the core values and cultural standards of the organization.

Democratic principles are to be used where appropriate

and applicable.

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GOVERNANCE

IV .

2. ORGANIZING DOCUMENTS : The organization’s governance

structure - including rules relating to the conducting of

business by the governing body and, if applicable, an executive

committee that acts between board meetings, and the procedure

for electing and appointing officers and their roles - is to be

clearly specified in the organizing documents (bylaws, etc.) and

available to all interested parties.

 

B. Structure of the Governing Body

1. DIRECTOR RESOURCES The HGF’s governing body

shall consist of individuals who are dedicated to the mission of

the organization, willing to volunteer their time and energies

toward achievement of the mission, and able to offer substantial

contributions to the organization. Among resources they may

bring to the governing body are experience and wisdom; prestige;

the ability to raise money for the organization; and professional

skills, such as legal, accounting, management, fundraising

and marketing.

2. UNRELATED DIRECTORS:   The governing body is to have

at least three members, who are not closely family related, and

preferably should have at least five unrelated members. Family

relationships are accepted between two members at most, but

then the board should have seven or more members.

3. POLICIES ON PAID STAFF The organization shall have a

policy restricting the number of paid staff who are voting members

of the governing body, ideally to no more than one person

or 10% of the governing body. An indirectly or directly compensated

person should not serve as the governing body’s chairman

or treasurer.

4. TERM LIMITS:   Term limits are to be established for membership

on the governing body. Consideration should be given

to both the maximum number of years that can be served in an

individual term and the number of consecutive terms allowed.

It is generally preferable to limit board service to a maximum of

three-year terms and three consecutive terms, with at least one

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year required before a member becomes eligible for re-election

after completing the maximum number of consecutive terms.

5. NOMINATING COMMITTEE The procedure for nominating

members to serve on the governing body shall be known to

members and other relevant parties.

6. DIVERSITY The governing body should have broad representation,

reflecting the diversity of the HGF’s constituencies.

HGF may enhance participation of members from diverse

geographical distances if the organization’s bylaws, and the local

or national law, allow meetings via such technologies as teleconferencing.

7. BYLAWS Each member of the governing body is to be presented

with the bylaws of the organization and be familiar with

these bylaws.

8. COMPENSATION Members of the governing body are not

to receive compensation for their board service. They may

receive reimbursement for expenses directly related to their

board duties.

 

C. Responsibilities of the Governing Body

1. MISSION STATEMENT:   The governing body shall establish

the direction of HGF, by creating or adopting the mission

statement, reviewing it periodically for accuracy and validity,

and revising it as necessary or desirable.

2. PROGRAMS AND COMPLIANCE The governing body

shall determine HGF’s programs and services, and monitor

their compliance with the mission and their effectiveness and

efficiency.

3. RESOURCES The governing body shall ensure the organization

has the proper resources to fulfill the mission.

4. ANNUAL BUDGET AND FUNDRAISING:   The governing

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board shall approve the annual budget and actively participate

in the fundraising process. In approving the annual budget, the

governing body is to ascertain the percentage of the resources

spent on administration and fundraising, versus program

expenses, and strive for a goal of at least 65% of revenue being

used for programs, and ideally greater than 80%.

5. RESOURCE MANAGEMENT The governing body shall

manage the resources effectively, and provide oversight regarding

fiduciary and legal requirements.

6. CHIEF EXECUTIVE OFFICER HIRING AND EVALUATION

The governing body shall hire the chief executive officer,

undertaking a careful search process to find the most qualified

individual. The governing body also shall set the chief executive

officer’s compensation, ensure that he or she has the moral

and professional support needed to advance the goals of HGF,

and periodically evaluate his or her performance.

7. STRATEGIC PLANNING The governing body shall actively

participate with the staff in long-term and short-term strategic

planning processes, including defining goals and objectives

and the success of HGF toward achieving its mission.

8. CODE OF ETHICS AND CONDUCT The governing board

shall approve a code of ethics and/or conduct for HGF, and

assure that the organization is in compliance with this code.

9. AMBASSADORS FOR THE NGO Members of the governing

board shall serve as ambassadors for the organization, articulating

its mission, accomplishments and goals to the public,

and garnering support for the organization.

D. Conduct of the Governing Body

1. MEETINGS OF THE GOVERNING BODY The governing

body, and any subset of the governing body (executive committee)

which is authorized to conduct the affairs of the organization

between meetings of the governing body, are to meet as

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Frequently as is necessary to fully and adequately conduct the

business of the organization. At a minimum, there should be a

least 4 meetings annually of the governing body, or the governing

body and the executive committee combined. If face-to face

Meetings are not required by local or national law and the

organizing documents, then communication technologies can

aid in conducting frequent meetings.

2. MINUTES Minutes of each meeting of the governing body

and executive committee, and reports of each committee when

acting in the place of the governing body, are to be produced,

distributed to each member of the governing board, and

archived for future reference. The minutes also are to be available

to an association’s membership, officers, staff, and the general

public, with the exception of discussions related to personnel

evaluation and other such confidential information.

3. RESPONSIBILITY FOR CONDUCT The governing body

shall be responsible for its own conduct. The governing body is

to establish written expectations for board members (including

expectations related to service on committees, attendance at

meetings, and participation in fundraising and program activities),

and annually evaluate its own performance. If not already

established in the organizing document, the governing body is

to establish job descriptions for its officers (chair, treasurer, secretary,

etc.).

E. Conflict of Interest

1. BEST INTERESTS OF HGF:   In serving on the governing

body, directors shall put organizational goals before personal

goals, and put the best interests of the organization ahead

of individual desires.

2. MATTERS IMPACTING A DIRECTOR : No director shall participate

in deciding a matter directly impacting that individual

(such as re-election to the governing body, personal remuneration,

etc.)

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3. DISCLOSURE : Each director shall disclose all potential and

actual conflicts of interest, including each institutional affiliation

he or she has that might possibly involve a conflict of interest

(such as sitting on a board of another NGO with overlapping

goals and missions). Such disclosure does not preclude or imply

ethical impropriety.

4. WRITTEN CONFLICT OF INTEREST POLICY The governing

body shall develop a written conflict of interest policy,

which is applicable to the directors and to any staff and volunteers

who have significant decision-making authority regarding

the organization’s activities or resources, as well as relevant

organizational partners.

5. SIGNATURE The governing body shall provide its members

with the written conflict of interest statement, which should be

signed by the individual at the outset of each term of service.

6. LOANS TO MEMBERS OF THE GOVERNING BODY If HGF

 has provision for making loans to members of the governing

body, there shall be a policy describing how the loans

operate. All loans or transactions with members of the governing

body are to be included in HGF’s full financial reports

and publicly disclosed.

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A committed, capable and responsible staff is vital for the success of an

NGO. The foundation for this is effective human resource policies. For

most NGOs, these should address both paid employees and unpaid volunteers,

given the use of volunteers in many roles, including in management

and as individuals rendering program and support services.

An NGO should seek qualified staff, offer them proper training and

supervision, treat them with fairness and equity, and provide them

with avenues for individual growth and development. On the other

hand, the NGO should expect employees and volunteers to maintain the

highest standards of professional and personal conduct, use information

and resources responsibly, and avoid conflicts of interest.

 

A. Responsibilities of the NGO

1. CAPABLE AND RESPONSIBLE STAFF The organization

shall seek capable and responsible employees and volunteers

(collectively, “staff”), who are committed to the mission of the

organization.

2. TRAINING AND WORKING CONDITIONS The organization

shall provide proper training and orientation for new staff,

and provide them with suitable working conditions.

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HUMAN

RESOURCES

V .

3. WRITTEN HUMAN RESOURCE POLICIES:   If the organization

has ten or more staff, it is to have written human resource

policies (or an employment manual) for its staff, including basic

aspects of employment (benefits, vacation days, sick leave,

etc.), and other fundamental policies such as confidentiality of

information, computer policies (use of computer resources for

personal work, ownership of computer resources), drug and

alcohol policy, conflict of interest, and grievance procedures. If

the organization has fewer than ten staff, it is encouraged to

have written human resource policies for its staff.

4. STAFF GROWTH AND DEVELOPMENT The organization

shall provide opportunities for individual growth and staff

development, and foster an atmosphere whereby supervisors

encourage personal growth of staff.

5. FAIRNESS AND RIGHTS All staff shall be treated with fairness

and equity, and as individuals with rights to be honored

and defended. Their rights to freedom of association, conscience

and expression must be respected and protected.

6. CODE OF ETHICS AND CONDUCT Each staff member

shall be provided with HGF’s code of ethics and/or conduct

and any written human resource policies.

7. COMMUNICATION OF SERIOUS CONCERNS Key staff

shall be enabled to communicate serious concerns to a member

of the governing board or officer.

8. STANDARDS AND RESPONSIBILITY Staff shall be

encouraged and guided in maintaining the highest standards of

professional and personal conduct, and in taking personal and

professional responsibility for their actions and decisions.

9. CONFIDENTIALITY Guidance shall be provided staff with

access to official documentation or information regarding maintenance

of the integrity, confidentiality, and privacy of such

information to protect any individual concerned.

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B. Conflicts of Interest

1. WRITTEN POLICY The governing body shall provide staff

who have decision-making power a written statement of how

they shall handle potential conflicts of interest. Ideally, this

statement will be signed by each individual at the time of their

beginning service with HGF and periodically thereafter.

2. DISCLOSURE Each officer shall disclose each institutional

affiliation that he or she has that might possibly involve a conflict

of interest.

3. GIFTS: HGF shall establish a policy regarding gifts to

staff members, such as requiring that staff refuse all significant

gifts connected with their position, or turn them over to the

organization.

4. USING POSITION FOR PERSONAL BENEFIT:   Staff members

shall refrain from using their official position, either regular

or volunteer, to secure special privilege, gain or benefit for

themselves.

5. LOANS:   If the organization has provision for making loans to

staff, there is to be a policy describing how the loans operate

and all loans shall be disclosed to the governing body.

6. BEST INTERESTS OF HGF:   Employees and staff

should put organizational goals before personal goals, putting

the best interests of the entire program ahead of individual

desires.

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Trust is the lifeblood of an NGO - trust by the public, trust by the media,

trust by the government, trust by corporations, trust by donors, trust by

other NGOs, trust by beneficiaries, and trust by its employees and those

who volunteer their time. To develop and maintain trust, each NGO

should exhibit genuine public accountability and transparency, and

should be honest in the information that it makes available to the

public.

 

A. Public information of HGF

1. ACCURACY AND TIMELINESS:   Information provided

about the organization to donors, members, clients, staff, and

the general public shall be accurate and timely.

2. ANNUAL REPORT:   At least annually, the organization shall

prepare and make available to the public information on its programs

and services, and provide public access to appropriate

records of those programs and services.

3. FINANCIAL INFORMATION: HGF annually shall prepare

and make available to the public basic financial information

on the organization, including the source of its funding; the

use of those funds; the percentage of the funds used for service

and programs, administration activities, and fundraising; and

any compensation provided to the governing body. The HGF

shall also provide public access to appropriate financial records.

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PUBLIC TRUST

VI.

4. LISTING OF GOVERNING BODY AND OFFICERS:   The

organization shall make available the names of its governing

body and management staff, publicize any changes in its governing

board, and provide access to appropriate minutes of

meetings of its governing board.

5. PARTNERSHIPS:   The organization shall make available, in

a timely and accurate manner, information on any partnerships

or other joint ventures into which it has entered.

6. CONFIDENTIALITY:   The organization shall maintain the

confidentiality of personal information on staff, clients and others,

unless the individuals waive this right, or disclosure is

required by law.

7. COMPARISON:   The organization shall describe itself in

terms of its own merits, not in depreciation of other NGOs.

Communications regarding another NGO shall not be made

with the purpose of creating a self-benefit at the expense of the

other.

8. COMMUNICATIONS CHANNEL:   The organization shall

provide a communication channel for the public should they

wish to make inquiries regarding the NGO and its activities.

9. DISCLOSURE:   The NGO shall assign at least one person to

assure that the organization is complying with national and local

laws regarding disclosure of information to the public.

B. Public advocacy

1. ACCURACY AND IN CONTEXT:   Information that the organization

chooses to disseminate to the media, policy makers or

the public must be accurate and presented with proper context.

This includes information presented by HGF with respect

to any legislation, policy, individual, organization, or project it

opposes, supports, or is discussing. Forward-looking projections

are to be presented clearly as such, and not as fact.

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2. VERBAL AND WRITTEN STATEMENTS:   The organization

shall have clear guidelines and approval processes for the issuing

of verbal and written statements.

3. DISCLOSURE OF BIAS:   The organization shall present

information in a fair and unbiased manner. Where a possible

bias is unavoidable or inherent, it is to be disclosed.

4. AUTHORITY FOR STATEMENTS:   HGF’s statements

must reflect its actual authority. A membership NGO may be

able to represent its membership, if such a role is provided in its

organizing document and the views of the membership are

determined by proper means.

 

NGOs should have proper financial and legal procedures and safeguards

in place, not only to stay within the law, but also as a measure

of the organization’s health and to assure donors, members, and the

general public that investments in the organization are safe and being

correctly used. NGOs should employ sound internal financial procedures,

maintain financial records carefully, and make financial statements

available to the public. They should also have their financial

records reviewed periodically by a qualified examiner who can certify

that the organization is operating legally and according to generally

accepted accounting practices. NGOs must be diligent that they are complying

with applicable federal, state and local laws.

 

 

A. Financial Transparency and Accountability

1. FISCAL RESPONSIBILITY:   Members of the governing body

hold ultimate fiscal responsibility for their organization and are

to understand the organization’s financial statements and

reporting requirements.

2. ANNUAL BUDGET:   The organization’s annual budget is to

be approved by the governing body, and is to outline projected

expenses for program activities, fundraising, and administration.

The NGO is to operate in accordance with that budget.

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FINANCIAL &

LEGAL

VII.

3. INTERNAL FINANCIAL STATEMENTS:   Internal financial

statements shall be prepared regularly and provided to the governing

body. Any and all significant variations between budgeted

expenses and actual expenditures, and between budgeted

revenues and actual revenues, are to be identified and

explained to the governing body.

4. FINANCIAL POLICIES:   HGF shall have established

financial policies, suitable for the size of the organization,

regarding the receiving and disbursement of financial resources,

investment of assets, purchasing practices, internal control procedures

(such as policies for signing checks), and so forth.

5. INTERNAL CONTROL PROCEDURES:   The organization’s

internal control procedures shall have a safeguard against a person

having the power to issue a check to himself or herself, such

as requiring an additional signature. The organization’s internal

control procedures shall have a safeguard against one person

being able to issue a check over a certain amount (such as two

signatures being needed over (£1,000 0r N250,000) and shall have restrictions on checks made out to cash.

6. AUDIT:   If the organization has substantial annual revenue,

the accuracy of the financial reports shall be subject to audit by

an independent, qualified accountant. If HGF makes a small gross

incomes will be  reviewed by a qualified accountant. For

very small revenues, an internally produced, complete

financial statement may suffice.

7. PROFESSIONAL STANDARDS:   The organization shall

Adhere to professional standards of accountancy and audit procedures

as stipulated by the law in its nation, and fulfill all

financial and reporting requirements.

B. Legal Compliance

1. LAWS AND REGULATIONS:   The organization’s activities,

Governance, and other matters shall conform to the laws and

Regulations of its nation and locality. (HGF may seek to

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change those laws and regulations, if such activity is consistent

with its mission.)

2. ATTORNEY REVIEW:   The organization shall obtain attorney

review of the organizing documents of the NGO to make sure

that they are in compliance with existing laws and regulations,

and shall make recourse to attorney services as appropriate to

ensure continued legal compliance.

3. LIABILITY INSURANCE: The organization should consider

having liability insurance, if available and applicable.

 

4. INTERNAL REVIEW:   The organization periodically shall

conduct an internal review regarding compliance of the organization

with current laws and regulations and summaries of this

review should be presented to members of the governing body.

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In order to fund their operational and program costs and reach their

objectives, most NGOs raise funds from outside their organization, via

seeking voluntary financial support from foundations, corporations,

individual donors, and government agencies. However, such financial

support is not simply the movement of money from these sources to the

NGO. It is a two-way street, involving value for and obligations to the

donor. As a recipient of such funds, it is important that the NGO be

open and transparent, be accountable to the donor, use the funds

responsibly and according to the intent of the donor, and allow the

funding individuals and organizations to be able to have insight into

the project at all times. It is important that the fundraising activity also

be consistent with the mission of the NGO.

 

A. General Fundraising Principles

1. GOVERNING BODY:   The governing body should be very

active in the fundraising effort, including being active in solicitations

and in making individual contributions.

2. CONSISTENCY WITH MISSION : The organization shall

only accept funding that is consistent with its mission, does not

compromise its core principles, and does not restrict its ability

to address relevant issues freely, thoroughly, and objectively.

3. TRUTHFUL:   The organization must be truthful in all matters

relating to the raising of funds and their use.

 

33

FUNDRAISING

VIII.

4. MISSION PRIORITY:   Programs shall be designed to meet

the mission of HGF and never designed simply to meet the

needs of a funding source.

5. UNETHICAL ACTIONS:   The organization must not tolerate

any unethical activities such as double funding for one project,

diversion of dedicated funds to uses other than the project for

which funds were approved, or overstatement of achievements.

B. Solicitations

1. SOLICITATION MATERIALS: The organization shall be careful

to ensure that all solicitation and promotional materials are

accurate, and that they clearly and truthfully present the NGO,

its mission, and its programs. All solicitations are too correctly

reflect HGF’s planned use of the solicited funds, and

fundraising solicitations shall only make claims that the organization

can fulfill. There shall not be any exaggerations of fact or

material omissions, nor any communication or images that

would create a false or misleading impression.

2. TAX BENEFITS:   The organization shall ensure that donors

receive informed, accurate, and ethical information regarding

the tax implications of potential gifts.

3. FUNDRAISING PRINCIPLES : Fundraising shall be for the

purpose of HGF’s mission, and free of coercion, improper

motive, inappropriate conduct, unreasonable reward, or personal

Inurnment.

4. EXCESS FUNDS:   When funding for a particular purpose is

invited from the public, there shall be a plan for handling any

excess funds, and, where appropriate, the appeal should include

information on how any excess funds will be used.

5. COMPENSATION TO FUNDRAISERS : The organization

shall not provide compensation to fundraisers that is based on a

percentage of charitable contributions raised or expected to be

raised, nor should it provide a finder’s fee. Percentage-based

34

compensation can be an impediment to keeping the donor’s and

HGF’s best interests primary, and may foster unethical behaviour

or inappropriate conduct on the part of the fundraiser. It

likewise can be a hindrance toward maintaining a volunteer

spirit and keeping the mission of HGF at the forefront, and

may offer reward without merit in the case of a large donation

that may be the product of many individuals. The organization

may provide compensation based on skill, effort and time

expended, and performance-based compensation, such as

bonuses, provided such bonuses are in according with prevailing

practices of HGF and not based on a percentage of charitable

contributions raised.

6. SALES PROMOTIONS:   Fundraising promotions involving

the sale of products or services shall indicate the duration of the

campaign, and the actual or anticipated portion of the purchase

price that will benefit HGF or program.

7. PERCENTAGE OF FUNDRAISING COSTS:   The costs

involved in fundraising shall be reasonable relative to the revenue

generated. Over the course of a number of years, HGF’s

average expenditure on fundraising activities should be

one-third or less of the amount of revenue generated from these

activities, and ideally fundraising costs should be less than 25%

of fundraising income. If HGF does not meet this

ceiling of 33 1/3% (fundraising costs/fundraising revenue) over

a five-year period, It should demonstrate that it is progressing

toward this goal or explain why its fundraising costs are reasonable

(such as the higher fundraising costs of a newly-created

organization, or unique donor, social or political factors).

8. INFORMATION ON SOLICITORS : HGF shall have

policies in place to protect the donor’s right to be informed

whether the solicitors are paid staff, volunteers, or agents of the

NGO.

C. Use of Funds

1. USE OF CONTRIBUTIONS:   The organization shall ensure

35

that contributions are used as promised or implied in fundraising

appeals or for the purposes intended by the donors.

2. GRANT COMMITMENT:   When the organization accepts a

grant, it is entering into a contract to carry out the program activities

in an agreed-upon manner, and has an ethical and legal

responsibility to honor that commitment.

3. DONOR CONSENT FOR CHANGES : The organization

may alter the conditions of a gift or grant only by obtaining

explicit consent by the donor.

4. EFFICIENT AND EFFECTIVE USE:   The organization shall

ensure efficient and effective use of grants and charitable contributions.

D. Accountability

1. TRACKING EXPENDITURES : The organization shall set up

an organized system to track grant expenditures.

2. TIMELY REPORTS:   The organization shall produce timely

reports on the use and management of funds.

3. FINANCIAL STATEMENTS:   Financial statements regarding

donations shall be available upon request by the donor and

interested parties.

E. Relationship with Donor

1. DONOR RELATIONSHIP:   The directors, management, staff

and volunteers of the organization shall not exploit any relationship

with a donor or prospective donor for personal benefit

or the benefit of any relative, friend, associate, colleague, and so

forth.

2. CONFIDENTIALITY:   Privileged or confidential information

regarding the donor or donation must not be disclosed to unau-

36

thorized parties.

3. DONOR PRIVACY:   A donor’s privacy shall be respected and

HGF must safeguard any confidential information regarding

the donor or the gift. Donors are to have the opportunity to

remain anonymous, and to not have their names added to any

lists that are sold, rented or given to others, unless the donor has

had an opportunity to approve such lists or have their names

removed.

4. PRIVACY POLICY:   The organization shall have a clear and

easily accessible privacy policy that informs the public what

information is being collected on individuals and donors and

how that information will be used, how to contact the organization

to review personal information collected and to request corrections,

how to inform HGF that the individual does not

wish his or her personal information to be shared outside the

HGF, and what security measures are in place to protect personal

information.

5. UNETHICAL SOLICITATIONS: HGF or its agents must

not use excessive pressure, coercion, undue influence or other

unethical means in their solicitations.

37

When appropriate, NGOs may find that cooperation with other civil

society organizations, government and intergovernmental agencies, and

for-profit corporations may be beneficial in advancing their missionrelated

objectives. Such collaboration for common good may reduce

duplication of services and eliminate using resources for competitive

purposes rather than serving constituencies. Collaboration may allow

pairing diverse strengths and resources and promote effectiveness in

tackling priorities. However, an NGO may enter into such a relationship

only if it is consistent with its mission.

 

A. General Principles of

Partnerships and Collaboration

1. MISSION CONSISTENCY:   The organization shall collaborate

with other entities only if the relationship is consistent with

the mission of HGF.

2. SHARED VALUES : The organization shall collaborate on the

basis of shared values, common ground, and for the good of

society.

3. MUTUAL BENEFIT:   HGF shall collaborate on the basis

38

 

PARTNERSHIPS,

COLLABORATION

& NETWORKING

IX.

of equitable and genuine mutual benefit to each organization.

4. TRANSPARENCY:   HGF collaboration shall allow financial

transparency and a two-way flow of information, ideas, and

experiences.

5. ADAPTIVE TO CHANGE:   Collaborations are to be adaptive

to change. Changes in the relationship are to be developed

through cooperation, and not forced by one or the other organization.

B. Relations With Other NGOs

and Civil Society Organizations

1. COMMON OBJECTIVES:   When appropriate, HGF will seek other NGOs with

overlapping missions, values, and target groups should partner

with each other and civil society organizations, when it would

be beneficial for the common target groups and for the achievement

of common objectives.

2. COMPETITION AND SERVICE DUPLICATION: HGF will seek other NGOs with

overlapping missions, values, and target groups and will refrain

from competing with each other and with other civil society

organizations, and will refrain from unnecessary duplication

of services and disruption of each other’s projects.

3. INFORMATION SHARING:   HGF will seek other NGOs

 with overlapping missions, values and target groups should share relevant project

information with other NGOs and civil society organizations,

and mutually support each other.

4. SUPPORT FOR OTHER NGOS : HGF shall express

solidarity with campaigns and actions of other NGOs, and promote

the effectiveness and success of other NGOs, when it

does not compromise the integrity or values of the NGO.

5. NETWORKING:   The organization shall network with other

ethical NGOs as a means for promoting the growth, effectiveness

and efficiency of the NGO sector and the ability to

advance the public good.

  C. Relations with Government Agencies

and Intergovernmental Bodies

1. NGO OBJECTIVES AND INDEPENDENCE : The organization

shall enter into a partnership agreement with a government

or intergovernmental body only when it is beneficial to achievement

of HGF’s objectives and does not compromise the

independence or self-control of the organization.

2. APPROPRIATE AND MUTUALLY BENEFICIAL:   The organization

shall seek to dialogue and cooperate with government

and intergovernmental agencies when such cooperation would

be both appropriate and mutually beneficial and could increase

HGF’s effectiveness in dealing with issues and priorities in

its agenda.

3. MISSION-LED:   The organization shall not enter into a partnership

with a governmental or intergovernmental body solely

to promote the sustainability or competitive advantage of the

HGF independent of achieving its mission objectives.

4. POLITICAL FAVOR:   The organization shall not change its

policies or non-partisan nature in order to curry political favor.

D. Relations with For-Profit Corporations

1. HGF OBJECTIVES AND INDEPENDENCE : The organization

shall enter into collaboration with a for-profit corporation

only when it is beneficial to achievement of HGF’s objectives

and does not compromise the independence or self-control

of the organization.

2. MISSION-LED:   The organization shall not enter into collaboration

with a for-profit corporation if motivated by financial

reasons that are independent of achieving its mission objectives.

3. MARKET ADVANTAGE:   The organization shall not enter

into collaboration with a for-profit corporation if the main motivation

of the corporation is to gain a market advantage over

competitors.

40

 


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