All public assets are to be treated with utmost seriousness, as a
_ 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.
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.
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
“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.
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
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
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.
Truthfulness and Legality
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
HGF will take prompt corrective action whenever
wrongdoing is discovered among its staff, governing body, volunteers,
contractors, and partners.
Fundamental to the very character of HGF is that it be not-for-profit,
Nongovernmental, organized, independent, self-governing, and
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.
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
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
1. ORGANIZING FEATURES
HGF shall have an organizing
document, an executive board, officers, and regular meetings
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
3. LEGAL RECOGNITION
These organizing principles apply
whether or not HGF is legally recognized by any government.
Independent and Self-Governing
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.
The organization shall govern itself
autonomously, according to whatever governance structure it
selects for itself. It shall be equipped to control its own activities.
1. VOLUNTARY VALUES AND PRINCIPLES
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:
are part of the HGF’s governing body (generally the board of
Directors) are to serve in a voluntary capacity, for no pay.
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
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
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.
The mission of HGF shall be reviewed
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.
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
The organization shall regularly seek feedback
on its activities from project beneficiaries, as well as other stakeholders.
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
The organization shall carry out its
activities with professionalism and centred on the concept of
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.
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.
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
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.
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
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
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
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.
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.
Each member of the governing body is to be presented
with the bylaws of the organization and be familiar with
Members of the governing body are not
to receive compensation for their board service. They may
receive reimbursement for expenses directly related to their
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
The governing body shall ensure the organization
has the proper resources to fulfill the mission.
4. ANNUAL BUDGET AND FUNDRAISING:
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.
Conduct of the Governing Body
1. MEETINGS OF THE GOVERNING BODY
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
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.
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,
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,
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
4. WRITTEN CONFLICT OF INTEREST POLICY
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
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
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.
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.
Responsibilities of the NGO
1. CAPABLE AND RESPONSIBLE STAFF
shall seek capable and responsible employees and volunteers
(collectively, “staff”), who are committed to the mission of the
2. TRAINING AND WORKING CONDITIONS
shall provide proper training and orientation for new staff,
and provide them with suitable working conditions.
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
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
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.
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.
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.
Each officer shall disclose each institutional
affiliation that he or she has that might possibly involve a conflict
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
4. USING POSITION FOR PERSONAL BENEFIT:
shall refrain from using their official position, either regular
or volunteer, to secure special privilege, gain or benefit for
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
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 information of HGF
1. ACCURACY AND TIMELINESS:
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.
4. LISTING OF GOVERNING BODY AND OFFICERS:
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.
The organization shall make available, in
a timely and accurate manner, information on any partnerships
or other joint ventures into which it has entered.
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.
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
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.
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.
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.
2. VERBAL AND WRITTEN STATEMENTS:
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:
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.
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
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.
3. INTERNAL FINANCIAL STATEMENTS:
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:
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.
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.
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
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.
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.
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.
The organization must be truthful in all matters
relating to the raising of funds and their use.
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.
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
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 :
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
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
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:
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
Use of Funds
1. USE OF CONTRIBUTIONS:
The organization shall ensure
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 :
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.
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
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
Privileged or confidential information
regarding the donor or donation must not be disclosed to unau-
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
The organization shall have a clear and
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
5. UNETHICAL SOLICITATIONS: HGF
or its agents must
not use excessive pressure, coercion, undue influence or other
unethical means in their solicitations.
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.
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
3. MUTUAL BENEFIT:
HGF shall collaborate on the basis
of equitable and genuine mutual benefit to each organization.
HGF collaboration shall allow financial
transparency and a two-way flow of information, ideas, and
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.
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.
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.
Relations with Government Agencies
and Intergovernmental Bodies
1. NGO OBJECTIVES AND INDEPENDENCE :
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:
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
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.
Relations with For-Profit Corporations
1. HGF OBJECTIVES AND INDEPENDENCE :
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.
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