Working in a global environment with cross-border financial, political and social issues, the benefits of conforming to the ISO-based Global Fiduciary Standard of Excellence are clear.
NGOs are dependent on both government and private money to carry out their mission. The primary challenges that that NGO’s face, according to a recent study by Zurich Global and Population Services International (source: Zurich Global) include:
– Shortage: There are limited donor resources available and many NGOs are competing for these resources.
– Accessibility: The risks involved with performance-based contracts – where a donor makes payments to an NGO only after achieving specific outcomes – can often be too high for NGOs.
– Timing: The unpredictable nature of donor resource flows can leave NGOs without the necessary resources to implement projects at the time when the impact would be greatest.
– Restrictions: Donors often require NGOs to spend according to previously-agreed upon budget lines, limiting the flexibility with which NGOs can operate to deliver optimal impact.
Conformance with the GFSE improves the chances for achieving the “big contract” by demonstrating a higher level of fiduciary excellence. Integrating the GFSE with strategic planning can minimize the risk due to inadequate risk management and asset/liability matching.