NGO Grants and Accounting go hand in hand
Posted by Silicon Cloud on Fri, Jan 21, 2011
Nongovernmental organizations supply grants to enable recipients to improve and assist the community. Adapted to the needs of NGOs, these grants are an additional form of grant assistance and typically include small projects, and the necessity of independence from government constitutions to expedite and ease the application process. Grants are dispensed from NGO funds for proposed applicants.
NGO funds should compliment not replace existing sources including local grants, subsidies or subsidised facilities, bank loans or export credits. Accordingly, NGO funds provide additional funding. All non-governmental organizations constituted as legal entities operating in the public interest can apply for nongovernmental organizational grants.
An intermediary to manage the NGO funds must be accessible. Qualifications for this intermediary must include an independent legal background, and a high involvement with the NGO community, also include grant-building experience. In respect of the fund, operational preferences will normally be consulted by the NGO community and monitoring arrangements for the fund will be stipulated in the grant agreement. The focal point will ensure these arrangements are implemented sufficiently and if needed, steps to strengthen them will apply.
Advance payments may be made in part as disbursements to end recipients from the NGO fund. Typically, there are limits as to the amount set for each withdrawal unit of funds. This is a responsibility of the intermediary; arrangements are put in place ensuring satisfactory cash flow to the end recipients under the NGO fund. Correct use and distribution of funds and guarantee of authenticity of proof of expenditure is another responsibility of the intermediary, also establishing separate bank accounts for the resources to be granted and management costs.
The above conditions set out for NGO accounting grants is a very small part of the procedure that must be followed when applying for and setting up an NGO grant. NGO grants requires paperwork, which requires systems. Therefore if you are looking to make the best use of time then look to a ERP system like Sage ERP Acccpac.