Friday, June 29, 2007 NGOs must earn to fund projects, be sustainable
EVEN non-profit groups need to earn to sustain its programs.
By earning its own income, a nongovernmental organization (NGO) can achieve self sufficiency, said Gulliver Go, an investment analyst, during a session that is meant to help non-profit NGOs develop strategies to make profit.
The financial management session was part of a group of lectures sponsored by Microsoft Philippines for NGOs in Cebu.
Go said that while it seems “off” for non-profit organizations to earn money, earned income allows NGOs to obtain funds with less restrictions.
“We (NGOs) are not trained to make money. But the truth is, we have to run our organizations with money,” he said during the session held last Wednesday.
Most NGOs rely on donations and grants to finance their projects and operations. But Go cited a Yale School of Management and Goldman Sachs study in 2000 which showed that 66 percent of operating projects of non-profit groups in the United States generate income and surplus to fund programs.
The same study also revealed that 52 percent of non-profit groups use earned income to move toward self-sufficiency.
Unique
But Go stressed that NGOs which decide to make profit should come up with strategies that are not only unique but also still related to the groups’ mission.
He said the NGO has to translate its mission into a tangible product that will, at the same time, promote its advocacy.
“But don’t be another group that sells mugs and t-shirts,” he warned officials from different NGOs in Cebu.
He said NGOs can earn income by providing professional services, merchandise or fund management (stocks or interest-earning instruments).
Go said NGOs in the country have to start developing income-earning schemes as funding assistance, particularly from international organizations, are declining.
Apart from financial management, Microsoft also organized sessions on public relations, fund raising and donor research for NGOs.
Magtanggol Bawal, Microsoft Southern Philippines sales operations director, said the activity is the software company’s way of “giving back” to the community.
Microsoft also provides NGOs free software and technical assistance.
In another development, Bawal said despite the rise of open source software, Microsoft remains confident about its position in the market.
He said 95 percent of personal computers are still running on Windows.
“There’s a segment that wants to use Microsoft (products) because of its familiarity and wide use,” he said. “There are also some who find value in open source. We can’t stop them in the same way no one can stop people from using Microsoft.” (LAP)
