Non-Governmental organisation performance : financial governance and its impact on funder policies.

The overall aim of this research was to understand, explain and document a theoretical and practical framework integrating funding and financial governance and management as vital components of the way Northern Non-Governmental Organisations (NNGOs) measure performance of Southern Non-Governmental Organisations (SNGOs) they fund. This was done by exploring: - how NNGOs measure performance of SNGOs they fund, the role of financial governance / management on NGO performance assessment as well as on the success or failure of NGOs and how it impacts on the policies funder NNGOs impose on funded SNGOs.

The research was conducted by way of a telephone survey of a selection of 28, from a database of 183, UK- based NNGOs and detailed case studies involving II NGOs in the UK, Kenya and India. It focused on the study of 16 different NNGO/SNGO relationships to determine patterns distinct to more successful and less successful SNGOs as defined by the funder NNGOs. Data were collected by means of a telephone survey, interviews and review of documentation and analysed using pattern matching and explanation building strategies.

The research found that in practice NNGOs attached importance to the state of government regulation, NGO sector self-regulation and self-accreditation environments in which SNGOs operate when assessing their performance. They also attached significant importance to financial governance and management of SNGOs; often distinguishing more successful from less successful SNGOs on that basis. SNGOs which exhibited fraud and corruption were often avoided or denied funding going forward. It also established that in general NNGOs formulated their policies towards SNGOs independently of their performance. However, the enforcement of the policies and the level of mutual learning reflected the performance levels of SNGOs.

The research documented 'Focus SNGO Performance Measurement Model' which explains the role of financial governance / management in assessment of NGO performance. This level of assimilation in a transparent way is a new dimension. It is argued that this model has major implications for the understanding of NNGO/SNGO relationships.