Pakistan Centre for Philanthropy

NPO Certification Model

Pakistan Centre for Philanthropy (PCP), established in 2001 under section 42 of The Companies
Ordinance, 1984, is an independent, nonprofit, support organisation created to facilitate collaboration
among the philanthropists, nonprofit organisations (NPOs) and the government for social
development in Pakistan. It is led by an independent Board of Directors, comprising eminent citizens
and leaders from the corporate sector and civil society. Its mission is to promote the volume and
effectiveness of philanthropy for social development in Pakistan. The Centre runs a number of
programmes to achieve its objectives. The NPO Certification Programme is its flagship programme.
The certification regime developed by PCP in 2002-03 endeavours to set sector wide standards of
good internal governance, transparent financial management and effective programme delivery. The
purpose is to strengthen the civil society by bridging the information and credibility gap that exists
between the donors and recipient organisations. The Government of Pakistan in the Revenue Division
authorised PCP as the first NPO Certification Agency vide notification no 1116(1)/2003 dated
December 18, 2003.
An organisation may wish to obtain certification for enhancing its credibility in the wider public
(including donors) view or for obtaining tax benefits from the Central Board of Revenue (CBR 1) or for
both. The Certification Model (which contains the standards and process of evaluation) applies in
either case.
PCPs certification focuses on the examination of structures, systems, procedures and processes put
in place by an organisation to deliver the services it promises and to ensure sustainability of its
programmes. It falls beyond the mandate of certification process to evaluate the degree of success of
programmes except to the extent it is reflected in the standards of programme implementation.
Some important points about the certification regime are given below:
1) The pre-requisites for consideration of an application for PCP certification are contained in
Section I. An application by an NPO will only be processed if it meets these requirements.
2) An NPO applying for certification for the purpose of availing tax benefits (under Section 2(36)
and/or under Clause 58 of the 2 nd Schedule of Income Tax Ordinance, 2001) must also comply
with the requirements of the Income Tax Ordinance, 2001 and the Income Tax Rules 2, 2002.
Although it is the prerogative of the relevant authorities in the CBR to finally check an
organisations compliance with these requirements, PCP will also examine the applicant
organisations status viz a viz these provisions and submit its observations and recommendations
to the NPO concerned.
3) PCPs Certification Model consists of standards organised in three categories (Section II) against
which an NPO is assessed. The three categories relate to NPOs internal governance, financial
management and programme delivery.
4) Fulfilment of these standards fetches scores for the NPO. A maximum score is assigned to each
standard. In most cases, score assigned to a standard is further divided into smaller components
depending upon the ingredients of the standard and various aspects like degree of compliance
etc. Wherever expressly provided an NPO is assigned score on a standard on a defined range.
The maximum attainable score for all standards is 1000. Details of these standards and the
scoring system are given in Section II. An NPO must attain a total score of at least 600 (and a
minimum 50% score in each individual category) to be certified by PCP.
5) Applicability of standards varies according to the size of the NPO. This is highlighted in the
second last column of each table of Section II. For this purpose, the NPOs are divided into small,
medium or large organisations as under3:
1

The term CBR, wherever used in this Model, also includes its field offices, unless the context provides to the contrary.

Relevant provisions from the Income Tax Ordinance, 2001 and the Income Tax Rules, 2002 are available on PCP web site
(www.pcp.org.pk).
3

This categorisation of NPOs derives from the general consensus of various stakeholders expressed in the consultative
process that led to the development of this Model.

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a) If the average of total annual receipts of an NPO during the last three years is less than Rs.
1.0 million, it is a small NPO;
b) If the average of total annual receipts of an NPO during the last three years is more than Rs.
1.0 million but less than Rs. 5.0 million, it is a medium NPO; and
c) If the average of total annual receipts of an NPO during the last three years is more than Rs.
5.0 million, it is a large NPO.
6) In case a standard (or its component) does not apply to an NPO being evaluated, marks will be
assigned on a pro-rata basis for such not-applicable standard (or component thereof).
7) Appendix I and II display the workflow of certification process. These charts indicate that:
a) When an NPO applies to PCP for certification, a team of evaluators (comprising a Programme
Officer (PO) and an evaluator) is assigned to the case. For the purposes of evaluation two
basic instruments are applied the Desk Review and the Field Evaluation.
Desk Review involves examination of application and supporting documents furnished by the
NPO. The Field Evaluation (comprising a visit to the organisation (including any branches or
facilities/ outlets) on a mutually convenient date) involves examining the field records;
reviewing programme delivery; and meetings with governing body members, the executive
head(s), and managerial and programme staff of the organisation. A brief beneficiary
feedback survey is also conducted.
b) The Desk Review of the applicant NPO is conducted first. If the organisation meets the prerequisites as contained in Section I, its application is processed further. If not, the application
is returned to the organisation and the reason(s) for doing so are specified.
c) If the organisation has applied for certification for seeking tax exemptions, its compliance with
the tax related provisions given in Section I is also checked. If the organisation complies, PCP
proceeds further with the evaluation of the organisation. If not, the application is returned to
the organisation and the reason(s) for doing so are specified.
d) The NPOs case is then assessed and scored against standards contained in Section II. Once
the Desk Review is completed, Field Evaluation of the organisation is conducted and the NPO
is awarded score on relevant standards.
e) Both Desk Review and Field Evaluation, evaluate the NPOs performance in achieving its
aims and objectives during the last three years.
f)

On the basis of such evaluation, the PO prepares a detailed report. The detailed report
contains an assessment of the NPOs performance in the areas of internal governance,
financial management and programme delivery, the scores obtained by the organisation on all
the standards and its financial highlights over the last three years.

g) Once finalised, the report is shared with the concerned organisation

comments/observations/reservations/feedback on the report are duly considered.

and

its

h) The assessment report along with the feedback received by the organisation is then placed
before the Certification Panel, which is the final authority to grant or refuse the certification
application of an NPO. The Panel is a five-member independent body, three of which are
nominees of the PCP Board of Directors and two represent the Government of Pakistan 4. The
Certification Panel deliberates upon the report and recommendation of PCP 5 and examines
the comments received from the organisation. The Panel may or may not concur with PCPs
recommendation in any given case or it may send the case back to PCP for re-evaluation.
i)

If the Certification Panel decides to grant the NPOs application for certification, PCP issues a
certificate to the NPO in the prescribed format. If, however, the Certification Panel decides to
refuse the application for certification, it will advise PCP to regret issuance of the certificate to
the NPO. The Panel may also decide to defer the NPOs application for certification for a

The Board nominees for the Certification Panel are not members of the Board. Instead, the Board has identified persons of
acknowledged professional eminence and integrity to sit on the Panel. The two representatives from Government of Pakistan
are ex-officio members. Chairman, National Council of Social Welfare and the Chief Direct Tax Operations, CBR represent the
Ministry of Social Welfare and the CBR respectively.
5

In light of the score obtained by the organisation, PCP proposes that the organisation be certified or deferred or rejected. PCP
may also draw Panels attention to anything that is considered important for Panel to decide a case.

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certain period of time ranging to a maximum of 1 year. This provides the NPO concerned an
opportunity to make up some of the deficiencies and qualify for certification. In case of either
deferral or rejection, the Panels reason(s) for doing so are also duly recorded.
j)

The Panel may, on PCPs recommendation or the NPOs request or on the basis of its own
judgement, defer its decision regarding an organisation. However this deferral is for a period
not exceeding one year.

k) Once an organisation has been certified, PCP designs its web profile and places it on the
Centres website. The profiles are derived from the evaluation conducted and prepared in
consultation with the certified NPO. PCP periodically publishes these profiles in the form of a
Directory of Certified NPOs.
l)

In the event of applying for tax exemptions the NPO is required to furnish the certificate and
the detailed evaluation report to CBR authorities (i.e. Chief Direct Tax Operations, CBR or the
Zonal Commissioners of Income Tax) along with other required documents.

8) Every effort is made to complete the process of certification within 10-12 weeks of the NPO
furnishing its duly filled in application. This, however, might take longer in case of NPOs that do
not furnish some of the documents required with the application or if they do not submit their
response to PCPs evaluation report within the prescribed time.
9) Certification is valid for three years following the date on which certificate is issued. All
subsequent renewals of certification are also valid for the same period of time. The renewal is
based on a fresh evaluation.
10) A certified organisation should apply to PCP for renewal of certification within three months of the
expiry of validity of certification earlier granted.
11) PCP informs the CBR and any other Certification Agencies of the names of certified, deferred and
rejected organisations, immediately after the Panel decision.
12) All information provided by an organisation applying for certification is deemed public information
unless specified otherwise.
13) The Certification Panel may withdraw certification in case of NPOs dissolution, bankruptcy, failure
to comply with mandatory reporting requirements, utilising the funds or property of the NPO for
the benefit of people other than the stated beneficiaries, any of the information provided by the
NPO having been proved to be false, or any of the material information proved to have been
deliberately concealed by the organisation. Certification, however, shall not be withdrawn without
giving the NPO concerned an opportunity of explaining its position in this regard.
14) Certification is a highly subsidised process and the applicant NPO pays a small proportion of the
total cost of evaluation and certification (depending upon its size), the rest being borne by PCP.
The subsidy is provided on a graduated scale so that the largest subsidy goes to the smallest
NPO6.
15) In addition to certification, PCP also plays a role in the development and promotion of NPOs.
a) Capacity building is an important part of the certification regime. The capacity of an
organisation is built during the certification process itself. In case of those organisations that
do not meet the required standards for certification, PCP facilitates linkages with specialised
capacity building organisations.
b) If the certified NPO intends to apply for tax exemptions under relevant laws, PCP also
provides assistance in preparing required documents for submission to the CBR.
16) The Model is a living document, which is reviewed periodically in consultation with all
stakeholders. The first such review was conducted in 2005-06.
17) Certain concepts and definitions used in this Model are explained below:
a) Benchmark is a measurement or standard that serves as a point of reference by which
process performance is measured.
b) Beneficiaries are the men and women, communities, or organisations expected to benefit
from the projects or programmes.
6

Certification fee schedule is available in certification application form as well as on PCPs website (www.pcp.org.pk).

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c) Best Practices are the processes, practices, or systems identified in organisations that
performed exceptionally well and are widely recognised as improving an organisations
performance and efficiency in specific areas. Successfully identifying and applying best
practices can reduce expenses and improve organisational efficiency.
d) Budget means an estimate of future incoming funds, expenditure and other applications of
funds for a particular accounting period.
e) By laws are the rules governing the operation of a nonprofit organisation. By laws often
provide the methods for the selection of directors, the creation of committees, the conduct of
meetings and other matters of similar nature.
f)

Capacity means all the resources available to an organisation, including people, money,
equipment, expertise, linkages and information.

g) Capacity building is a coordinated process of deliberate interventions by insiders and/or

outsiders of a given organisation leading to (i) skill upgrading, both general and specific; (ii)
procedural improvements; and (iii) organisational strengthening. Capacity building refers to
investment in people, systems, institutions, and practices that will, together, enable
organisations to achieve their development objective. Capacity is effectively built when these
activities are sustained and enhanced with decreasing levels of external dependence
accompanied by increasing levels of goal achievement.
h) Charitable organisation is an organisation that is created and operated exclusively for
religious, scientific, literary, educational, athletic, public safety, social development, rights
advocacy or community service purposes, and does not distribute earnings, profits or
surpluses to its members or staff.
i)

Charter means a description in writing of the purposes, aims, objects and the mode of
functioning of an organisation. These may include the constitution, memorandum or articles of
association, or the trust deed, depending upon the law whereby the NPO is registered.

j)

Chief Executive Officer means the executive head of the organisation working under the
supervision and control of the governing body.

k) Directory means a Directory of organisations certified by PCP. This document contains

detailed organisational and programme information about NPOs included therein with an
intent of promoting them from PCP platform.
l)

Disclosure for the purposes of this Model, means disclosure to the general public,
notwithstanding any legal or statutory requirement to do so. There could be different means
and modes of disclosure. For evaluation purposes, information or data shall be deemed to
have been publicly disclosed once it is:
I. Published in a document which is meant for wide distribution; or
II. Placed on a website; or
III. Submitted to a government department as public information.

m) A donor is the one who gives something without receiving consideration for the transfer.
n) Endowment is the principal amount of gifts and bequests that are accepted subject to a
requirement that the principal be maintained intact and invested to create a source of income
for an organisation.
o) Evaluation means an assessment of an organisation, its programme(s) or project(s)
(irrespective of whether the same have concluded or not). Evaluation also involves
articulation of opinion and comments on the organisational structures and on the state of
programme delivery of an NPO. It is a management tool that is built around a formal process
for evaluating performance and impact that help measure progress towards achieving
intermediate targets or ultimate goals.
p) External evaluation means any evaluation conducted by an individual or organisation that is
external to the NPO being evaluated. The Terms of Reference (ToRs) are defined by an
external commissioning authority, and the evaluation report is primarily for an audience
external to the organisation. Internal evaluation, on the other hand, means any evaluation
conducted by an individual or organisation, either internal or external to the NPO, for primarily

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the internal audience of an NPO. Typically, the ToRs for an internal evaluation are also
defined by the Board or the management of the organisation.
q) Financial System is an information system, comprised of one or more applications, that is
used for any of the following: collecting, processing, maintaining, transmitting and reporting
data about financial events; supporting financial planning or budgeting activities; accumulating
and reporting cost information; or supporting the preparation of financial statements.
r)

Fixed assets include land, building, vehicles and equipment.

s) Governing body (GB) means the body, board, council or committee of directors, trustees or
executives, as the case may be, in which control of the NPO is vested. Its name, for any given
NPO, may depend upon the law whereby the NPO is registered or owes its juristic personality
(e.g. for an NPO registered under section 42 of The Companies Ordinance, the Board of
Directors is the governing body). For the purposes of this Model, any subcommittee of
governing body formed with a specific mandate is deemed to be the governing body for that
purpose.
t)

Grievance Settlement Procedure is a procedure for staff to object to and seek redressal
against an order from a colleague or a senior officer that they believe to be illegal, unethical or
counterproductive.

u) Indicator is a feature or phenomenon that can be objectively measured in quantitative or

qualitative terms as a means of gauging progress toward achieving a goal or measuring the
impact of a specific intervention.
v) Managerial staff or management of an NPO includes all persons performing organisational
functions which are (wholly or in part) supervisory in nature.
w) Monitoring is a continuous activity to keep track of and record what actually happens in a
project or programme. Monitoring systems comprise procedural arrangements for data
collection, analysis and reporting. It also defines reporting channels and requirements.
x) Nonprofit Organisation is an organisation that is formed and registered under any law for
religious, educational, health, environment, charitable, welfare or development purposes,
promotion of amateur sport or for any other purpose of general public benefit. It is a non profit
distributing concern i.e. all its income, commodities, property and other assets are applied
solely towards the promotion of its objectives and none of its assets or income are paid or
transferred directly or indirectly by way of dividend, bonus, remuneration, grant of other
benefits by way of profit or otherwise howsoever; to any of its member or the relative or
relatives of a member or members.
y) Outcome is the ultimate, long-term resulting effect both expected and unexpected of the
beneficiaries use or application of the organisations outputs.
z) Outputs are direct products of a programmes activities, generally measured in relation to
inputs. They are quantitative and are typically measured by how many, how often and over
what duration.
aa) Output Indicators are the specific characteristics or behaviours measured to track a
programmes success in achieving its outputs. They further define outputs and make them
measurable.
bb) Overall salary structure includes (but is not limited to) any established brackets or grades of
salary and perks applicable on the employees of the NPO, and average salary of managerial
and secretarial staff.
cc) Policy means a document, duly approved by the governing body (or a sub-committee or the
management, whosoever is authorised for such approval), which provides the details of
procedures and processes to be adopted by the management of NPO to address any given
issue on a specific subject, e.g. personnel policy, recruitment policy. For the purposes of this
Model, following aspects of any given policy of an NPO are included in the definition of policy
per se:
I. Approval procedure
II. Extent of implementation
III. Mechanism to put it into practice

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IV. Wide knowledge among the staff that the policy exists
dd) Pursuance of personal gain would include using official position in the organisation for
obtaining any kind of material benefit either directly or indirectly, other than the payment for
services provided.
ee) Staff unless specified otherwise includes all paid workers, consultants and advisors of the
NPO.
ff) Transparency involves sharing information and acting in an open manner. Transparency
allows stakeholders to gather information that may be critical to uncovering abuses and
defending their interests. Transparent systems have clear procedures for decision-making
and open channels of communication between stakeholders and organisations, and make a
wide range of information accessible.
gg) Unrelated persons are those who are not related to each other by relation of blood or
marriage. For the purposes of this Model, relations by blood include parents, siblings,
children, grandparents and real uncles/ aunts: Relations by marriage include spouse,
brothers/ sisters-in-law and parents-in-law.

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Section I
The Pre-requisites

These standards are non-scored, as they constitute the pre-requisites for certification. An applicant NPO must fulfil these requirements before its application is
processed for evaluation. Wherever this section requires a specific statement to be contained in the charter, the NPOs compliance to such provision in the
charter will also be examined.

No.

The Standard

Means of verification

1.

The organisation is registered (under any of the registration laws 7) and

functional for the last (at least) three years8.

This can be verified by desk review of the registration documents,

governing bodys meetings, annual reports, audit reports etc. provided
by the NPO. The organisation should be registered as well as
functional during the last three years.

2.

The organisation is established for religious, educational, health,

environment, charitable, welfare or development purposes or for the
promotion of amateur sport or for any other purpose of general public
benefit.

Desk review of the charter of the NPO may reveal this to sufficient
extent.

3.

The organisation does not propagate the views of any political party or
religious sect.

Desk review of charter, publicity materials, publications and press

coverage of the NPO would reveal direct political affiliation of the NPO,
if any.

4.

The charter of the organisation prescribes that in case of its dissolution

any assets, remaining after the settlement of debts and liabilities, shall be

Desk review of the charter will verify this fact.

E.g. The Trust Act, 1882; The Societies Registration Act, 1860; The Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961; The Local Government Ordinance, 2001; The
Religious Endowments Act, 1863; or The Companies Ordinance, 1984.
8

PCPs evaluation system is thorough and requires enough information and history of the organisation to evaluate it on certification standards. For this reason, PCP evaluates only those
organisations that have a formal work experience of three years on the least. Organisations younger than this should approach the CBR directly, should they be interested in obtaining tax
exemptions under Section 2(36) of the Income Tax Ordinance, 2001.

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transferred to a body or bodies in accordance with the applicable laws 9.

5.

The charter or other policy documents of the organisation state that it is a

non-profit-distributing organisation and that all its income, commodities,
property and other assets shall be applied solely towards the promotion
of its objectives. Further it prohibits that funds or property of the
organisation or any part thereof are paid or transferred directly or
indirectly to any of the directors/ staff of organisation or their relatives.

A desk review of the charter, policy documents, audited accounts and

annual budgets will help to verify this.

6.

All assets of the organisation (fixed as well as investments) are held in

the name of or are legally assigned to the organisation or its Governing
Body10.

An examination of the fixed assets ledger and purchase/ ownership

documents, and bank statements will provide sufficient evidence.

7.

The organisation has a functional governing body.

A governing body shall be deemed to be functional if it has formally

met at least once a year in any two of the last three years. Desk review
of the minutes of the Governing body will verify this fact.

8.

The organisation maintains its accounts with a scheduled bank, savings

centre or post office. These accounts are in the name of the organisation.

Desk review of documents related to accounting procedures and

transactions of the NPO may verify this fact.

9.

An external auditor has audited the accounts of the organisation for the
last three years.

Desk review of the NPOs audit reports of the last three years will verify
this fact. For this standard, audit refers to an organisational audit
(covering all projects and programmes and the total expense of the
organisation). Project audits are not admissible.

10.

No adverse decree has been passed* during the last ten years against
the NPO in any of the civil courts in Pakistan on grounds of fraud or
breach of trust.

The NPO will be required to certify to this effect.

Note:
* An adverse decree subsequently reviewed by the court itself or set aside by a higher court will not attract the application of this clause.

E.g. The Trust Act, 1882; The Societies Registration Act, 1860; The Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961; The Local Government Ordinance, 2001; The
Religious Endowments Act, 1863; or The Companies Ordinance, 1984.
10

Any deviation(s) where the interests of the NPO have been taken care of, will be considered by PCP

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Requirements of the Income Tax Ordinance and Rules

An NPO applying for certification for the purpose of availing tax benefits 11 is required to comply with the following requirements as contained in the Income Tax
Rules, 2002.

No. The requirement

1.

The charter of the NPO requires audit of the annual accounts of the organisation by a duly qualified auditor as prescribed by the IT Rules 12.

2.

The charter of the NPO provides for maintenance of accounts of the organisation being kept in a scheduled bank or in a post office or national
savings organisation, National Bank of Pakistan or nationalised commercial banks.

3.

The charter of the NPO prohibits any changes therein without prior approval of the Commissioner of Income Tax or CBR, as the case may be.

4.

The charter clearly states that the NPO does not propagate the views of any religious sect or political party.

5.

The quorum of meetings of the governing body of the NPO, as provided by its charter is not less than four* members or 1/3 rd of total
membership of such body, whichever is greater**.

6.

The charter of the NPO prescribes that in case of NPOs dissolution for any reason whatsoever, its assets, after meeting all liabilities, if any,
would be transferred to another NPO within three months of the dissolution under intimation to the Commissioner of Income Tax or CBR, as the
case may be.

7.

The charter of the NPO prescribes for restricting the surpluses or moneys validly set apart, excluding restricted funds, up-to twenty-five per cent
of the total income of the year.
Provided that such surpluses or monies validly set apart are invested in Government securities, NIT units, a collective investment scheme
authorized or registered under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003, mutual fund, a real estate
investment trust approved and authorized under the Real Estate Investment Trust Rules, 2006, or scheduled banks.
For the purpose of this rule, restricted funds means any fund received by the organization but could not be spent and treated as revenue
during year due to any obligation placed by the donor.

8.

11

The charter of the NPO provides for the regular maintenance of books of accounts in accordance with the generally accepted accounting
principles and for their inspection by the interested members of the public, without any hindrance, at all reasonable times***.

Under Section 2(36) and/or Clause 58 of the II Schedule of the Income Tax Ordinance, 2001.

12

For a small NPO, audit is to be conducted by a retired Audit, Accounts, Taxation or Treasury officer of the government not below grade-17 or a Bank Manager, provided its receipts and
expenditure pass through a bank; for medium NPOs the audit is to be conducted by a Cost and Management Accountant; for large NPOs the audit is to be conducted by a Chartered Accountant. An
NPO may, however, have its accounts audited by a higher category auditor.

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9.
Note:

10

Its area of operations is wholly in Pakistan***.

* Three, if the applicant NPO is a Trust as defined in the Trust Act, 1882.
** This clause shall apply only if the NPO is applying for tax exemption under section 2 (36) of Income Tax Ordinance 2001.
*** This clause shall apply only if the NPO is applying for tax exemption under clause 58 of the 2nd Schedule of the Income Tax Ordinance, 2001.

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11

Section II

The Assessed Standards

This set consists of those standards whereby the NPOs governance structures, financial management, and programmes performance and effectiveness is
assessed objectively. Salient features of the scoring regime are as under:
a) An NPO can attain a maximum score of 1000.
b) The break-up of these scores is presented in the following table:
Categories of Standards

Total

The Minima

Internal Governance

300

150

Financial Management

300

150

Programme delivery

400

200

Overall

1000

600

c) There are three broad categories of standards as shown in column one.

d) The last row indicates the total obtainable score by an NPO viz. 1000.
e) The last column is important. First, it shows category-wise minimum score which an NPO must achieve to be finally certified. Second, the lowest cell in
last column indicates that even if an NPO obtains minimum requisite scores in each category, it has to score an aggregate of 600 marks out of 1000 to be
certified. This scoring system aims to ensure that an NPO must possess institutionalised capacity to perform through systems and processes.
ILLUSTRATION ONE:
An NPO scores 250 each in internal governance and financial management, but gets only 100 marks in programme delivery certification denied.
ILLUSTRATION TWO:
An NPO scores 175 each in internal governance and financial management, and 200 in programme delivery but its total score is 550 certification
denied.

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12

Category I Internal Governance

No. The Standard

Mode of Verification

1.1

Desk review of charter, policy documents, rules, income &

expenditure statements and minutes of governing bodys
proceedings may be conducted. The field evaluators may also probe
into this matter by inquiring from the members of the governing
body, the senior managerial staff and the concerned people in the
finance department of the organisation.

The organisation is not a source of material gain

for members of governing body (GB).

Applicable
on

Weightage

All NPOs

20

All NPOs

All NPOs

10

GB members get compensation / fixed monthly honorarium/ perks

and benefits/ paid consultancy/ paid employment etc zero
GB members do not receive any payment whatsoever from the
NPO, except payment for travelling and lodging expense incurred in
connection with official work 20
1.2

1.3

The governing body consists of at least seven

members.

The list of governing body members may be reviewed.

There is adequate female representation on the

governing body.

In case of organisations serving both members of the society

presence of adequate female representation on the governing body
will be checked.

The NPO has at least seven members on the GB 5

The NPO has at least 5 (but less than 7) members on the GB 3

At least 1/5th members of GB are female 5

At least 1/3rd members of GB are female 10

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1.4

The procedure adopted for the appointment of

new Board members is democratic.

13

Desk review of the Charter may be conducted. The field evaluators

may also probe this matter by asking specific questions from the
governing body members of the NPO. They may specifically
examine the process adopted for selection/ election of any two
Board members joining lately.

All NPOs

10

All NPOs

10

All NPOs

10

All NPOs

15

Charter provides for hereditary nominations on the Board zero

Staff is involved in election/ selection of Board members zero
Nomination/ Election of new Board members by sitting members or
by General Body 10
1.5

The governing body members serve for a specific

term.
Provided that this standard shall not apply to
trusts.

1.6

1.7

Desk review of charter and policy documents may be conducted.

Specification of term of office does not exclude the provision of reelection.
The NPO has a specified term for governing body members 5
The limit is between 2 - 5 years 5

The charter of the organisation stipulates a limit

on the maximum allowable period for the
chairperson of the governing body.

Desk review of the charter and record concerning terms of office of

the chairperson may be conducted.

The governing body of the organisation meets at

least twice a year. The minutes are kept regularly
and circulated to all its members within thirty days
of the meetings.

Desk review of documents related to governing body meetings may

be conducted. Moreover, field evaluators may also verify this from
staff and governing body members.

No limit on the maximum allowable period or limit above 15 years

zero
Limit specified, but has not been complied with 3
Continuous permissible period for chairperson is specified as 15 or
less than 15 years and is also being complied with 10
No such limit exists or limit exceeds 15 years, but the GB has
selected/ elected different chairpersons during the last 15 years 5

GB has met at least twice a year in any two of the last three years
5
GB has met at least twice a year in all the last three years 10
Documentary or other evidence of issuance or receipt of minutes is
available 5

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Pakistan Centre for Philanthropy

1.8

The quorum for GB meetings, as specified in the

charter, is 1/3rd. The GB observes the quorum
requirements in its meetings as specified in its
charter or other documents.

14

Desk review of charter and minutes of GB meetings will verify this

fact. In this respect, minutes of all meetings of the governing body
and relevant sub-committees, if any, for the last three years may be
reviewed.

All NPOs

15

All NPOs

10

All NPOs

Field evaluator may also ask questions in this behalf to some of the
members of the governing body and employees during field
evaluation.
Quorum is 1/3rd 5
Quorum is not specified or is less than 1/3rd zero
Quorum requirements followed in all meetings 10
Quorum requirements followed in at least 80% of meetings 5
1.9

The pattern of absenteeism among the governing

body members is random.

Attendance registers of GB meetings over the last three years

should be desk reviewed and analysed to study the pattern of
absenteeism. Purpose of the standard is to know if the same
governing body members are always present/ absent from the
meetings.
Pattern of absenteeism is
Very random 10
Fairly random 5
Very regular zero

1.10

The organisation has a mechanism to replace the

continuously absenting GB members.
Provided that this standard shall not apply to
Trusts.

Documents relating to attendance of members of the governing

body in meetings will be examined. Specific questions may be
framed to ask whether the procedure for non-compliance has ever
been put to motion. Documents related to this may be reviewed.
Field evaluators may also put specific questions to this effect to the
staff and GB members of the NPO.
There is a provision in charter to address absence of GB members
2
If there has been any instance, the provision has been invoked 3

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Pakistan Centre for Philanthropy

1.11

At least 2/3rd of governing body is un-related to

each other.
Provided that, in case of Trusts, this standard
shall apply only for renewal of certification.

1.12

The paid managerial staff is not related to the

governing body members.

15

Disclosure of relationships by the NPO in the application may be

desk reviewed. Further, the staff of the NPO may be asked
questions to this effect by the field evaluators.

All NPOs

15

All NPOs

10

All NPOs

10

All NPOs

15

At least 2/3rd of GB members un-related 15

Between 1/3rd and 2/3rd of GB members un-related 5
Less than 1/3rd of GB members un-related zero
The Field Evaluators will ask questions from the governing body
members and the staff of the NPO.
No relationship 10
Less than 1/5th of the managerial staff related to GB members 7
More than 1/5th of the managerial staff related to GB members
zero

1.13

The process to be adopted by the Governing

Body or the General Body for amending the
charter is participatory.

Desk review of the charter will answer this question. During field
evaluation, specific cases of amendments in the charter and the
process adopted be also examined.
Governing body or general body are exclusively responsible for
amending the charter 5
Amendments can only be effected with at least 2/3rd majority of the
total members 5

1.14

The governing body appoints the Chief Executive

Officer (CEO). The governing body is also
involved in the appointment of the Senior
Management.

Letter of appointment, agenda items lists, minutes of governing

bodys meetings etc. may be reviewed. Specific questions may also
be asked from GB members, CEO and Senior Management in this
regard. Mode of appointment of the incumbents may be examined.
GB interviews the CEO and formally approves his/ her appointment
2
GB approves terms & conditions and salary of CEO 2
GB periodically evaluates the performance of CEO, especially
before renewing his/her term 3
The CEO is neither a voting GB member nor related to any GB
member 3
The GB approves appointment of Senior Management 5
(applicable only to M/L NPOs)

NPO Certification Model

Pakistan Centre for Philanthropy

1.15

The governing body approves annual budget as

well as reviews the actual expenditure of the
organisation.

16

Desk review of organisational budget documents, agenda items lists

and minutes of governing bodys meetings may be conducted. For
the purposes of this standard, only organisational budget (which
includes all programmes/ projects and covers all expense by the
organisation) will be considered.

All NPOs

20

M/L NPOs

15

Budget approved by the GB in all three years 10

Budget approved by the GB in any two of the last three years -- 5
Expenditure reviewed in all of the last three years 10
Expenditure reviewed in any two of last three years 5
1.16

The governing body approves the organisational

and financial policies of the organisation. The
organisation has shared its policies and
procedures with staff.

Desk review of the minutes of the GB meetings would reveal the

governing bodys role in approving organisational policies of the
NPO. Field evaluators will verify the sharing of policies with staff by
engaging the staff members in discussion in which questions about
the existence or otherwise of different policies, their nature, specified
principles, approval procedures, etc will be asked.
GB approved the personnel/ HR/ recruitment policy 5
GB approved the financial policies 5
No policies were placed before the GB for approval zero
Policies have been shared with the staff 5

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Pakistan Centre for Philanthropy

1.17

The organisation has a written recruitment policy.

17

Desk review of policy documents or by-laws of the NPO concerning

the recruitment procedure may be conducted.

M/L NPOs

20

All NPOs

10

Documents relating to actual recruitment of staff during the last year

may also be reviewed during the field evaluation to ascertain
whether the policy has been actually followed. The field evaluators
may also engage the staff in discussion to find out their perception of
the recruitments made. The field evaluators may interview one/two
persons recruited during the last three years to assess the level of
transparency in recruitment.
The organisation has a written recruitment policy, and the policy
covers the following:
a) Requisite Qualifications and experience 2
b) Advertisement for all vacant managerial and professional
positions 3
c) Selection criteria, short listing, reference checks and
interviewing 2
d) Issuance of formal appointment letters 3
The recruitment is transparent and merit based, and the organisation
(even if the policy does not exist) advertises vacancies, conducts
interviews and issues appointment letter 2+3+2+3=10
1.18

The recruitment of the organisation is gender

sensitive or proactively promoting employment of
women, if the nature of work so allows.

Desk review of policy documents, advertisements, recruitments

process and employee lists may be conducted.
Additional documents relating to issues allied with female gender
like grant of maternity leave may also be desk reviewed to ascertain
this standard.
Gender sensitive recruitment (or proactively promoting women
employment) policy statements in advertisements and policy
documents 5
The NPOs workforce is gender-balanced with respect to the nature
of work 5

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Pakistan Centre for Philanthropy

1.19

The organisation has clearly defined salary

structure and compensation packages for its staff.

18

Review of approved salary structure, salary sheets and budget for

the last three years may be conducted. Field evaluators may also
put specific questions to various categories of employees in this
regard.

M/L NPOs

05

All NPOs

10

As a sample check, the salaries (including benefits) of some of the

same categories employees may be examined to see if these fall
within the salary structure approved by the GB for such category of
employees.
1.20

Men and women are comparably paid within their

respective categories. They also receive
comparable staff development and training
opportunities.

The field evaluators need to ask these questions specifically from

the female employees of the NPO. Additionally, documents
concerning salary and other payments to men and women in the
same category, professional growth and training opportunities
offered and availed during the last three years may also be
reviewed.
Men and women in the same category receive comparable salaries
and benefits 5
Both men and women are offered and avail comparable professional
growth opportunities 5

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Pakistan Centre for Philanthropy

1.21

The organisation has a written personnel policy.

19

Desk review of policy documents containing various ingredients as

defined in the standard may be conducted.

M/L NPOs

20

M/L NPOs

10

Random assessment of due observance of this policy (if present)

may also be conducted and specific questions asked by the field
evaluators from managerial and other staff of the NPO. In particular,
staffs perception of fairness in the organisation may be assessed.
Also, cases of say, dismissals or promotion, may be selected at
random for detailed examination.
The organisation has a written personnel policy, and the policy
covers the following:
e) Employee benefits 2
f) Increments and promotions 2
g) Performance assessment 2
h) Retirement and resignation 2
i) Organisational discipline (including dismissal and termination)
and efficiency 2
Even if the policy does not exist, there is sufficient evidence of
implementation of the above 2+2+2+2+2 = 10
1.22

The organisation has clearly defined job

description statements for its staff.

Field evaluator may conduct a review of related documents (ToRs,

appointment letters etc.).
Job description statements are available for
Managerial positions 2
Programme positions - 2
There is some evidence of due receipt of these statements by the
employee concerned
For all staff 6
Only for about 50% of the staff 2

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Pakistan Centre for Philanthropy

1.23

The organisation has a participatory performance

appraisal system.

20

The Field Evaluators will review the documents pertaining to the

performance appraisal of the organisational staff. The staff members
will also be inquired about the nature and process of the appraisal
undertaken.

Large
NPOs

M/L NPOs

10

M/L NPOs

10

The staff is aware of the indicators and mechanism of their

performance evaluation 1
Performance evaluation is shared by the reporting officer before it is
finalised 2
Team members get the opportunity of confidentially providing formal
feedback on the quality of supervision provided 2
1.24

The organisation has a travel policy.

Desk review of the policy and documentation related to national and

international travel, approval procedures, acceptance of invitations
etc. Besides, staff and governing body members may be asked
questions in this regard. Specifically, the use of office vehicles in the
after office hours and on weekends may be checked.
Travel policy covering national and international travel present 3
Air travel, if any, in economy class 2
Office vehicles are not under unauthorised personal use 5

1.25

The organisation has a mechanism to avoid

conflict of interest.

Desk review of charter, rules, and policy documents may be carried

out to verify if the NPO has a declared conflict of interest policy and
some mechanism to implement the policy.
The field evaluators may also review record of recruitments, financial
transactions etc, to see if the policy is being implemented. Of special
interest would be large purchases made by the organisation.
There is a formal conflict of interest policy 5
GB members and staff declare conflict of interest, if any, in
recruitments, purchases disposals etc 5

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Pakistan Centre for Philanthropy

1.26

The organisation has a grievance settlement

policy for its employees and necessary
arrangements to actualise it.

21

Desk review of charter or policy documents (duly issued and

circulated) and documents regarding disposal of some of such
applications may be conducted. Field evaluators can also verify this
from employees of the NPO in the course of field evaluation.

M/L NPOs

A policy or procedure is formally laid down and approved by the GB

2
The employees generally feel that they have an opportunity to settle
their grievances internally 3

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22

Category II: Financial Management

No. The Standard

Mode of Verification

2.1

Desk review of documents related to financial transactions of the

NPO may be conducted.

The organisation has a joint signatory system,

duly approved by its governing body.

Applicable
on

Weightage

All NPOs

15

Joint signatory system exists 3

No joint signatory system exists zero
Pool of signatories is larger than the minimum required for signing
cheques 5
Joint signatory system has financial brackets of signing authority 3
The system is duly approved by governing body 4
2.2

The cheques made payable to a nominated

signatory are not signed by him/ her.

Review of documents relating to payments to signatories would

provide evidence to this effect. (May not be applicable on salary
withdrawals).

All NPOs

10

2.3

All payments exceeding Rs. 10,000 are made

through cross cheques.

Review of financial documents concerning purchases, payments to

consultants and staff etc. would provide sufficient information.
Specific questions be also asked from staff regarding payment of
their salaries. Payment of utility bills can be, however, made in cash.

All NPOs

10

2.4

The governing body authorises the appointment

of auditors and opening of bank accounts. The
organisation appoints a different external auditor
after at most five years.

Field evaluator may examine relevant documents and put questions

to GB members and finance personnel. List of auditors during the
last five years should also be examined.

All NPOs

15

GB approves appointment of auditors 6

GB approves opening of accounts 4
The auditor is changed after at most five years 5

NPO Certification Model

Pakistan Centre for Philanthropy

2.5

The organisation conducts its internal audit

annually. The internal audit report is shared with
the external auditors.
Provided that this standard shall apply only to
organisations with average annual receipts
larger than 10 million.

2.6

2.7

23

Desk review of related documents (e.g. internal audit reports) may

be conducted.

Large NPOs

15

All NPOs

15

All NPOs

15

All NPOs

10

Internal audit conducted in all of the last three years 10

Internal audit conducted in any two of the last three years 5
No internal audit conducted or in any of the last three years zero
Internal audit reports provided to external auditors 5

The balance sheets, income & expenditure

statements (or receipts & payments accounts)
and cash-flow statements are prepared.

These statements may be reviewed during field evaluation.

The organisation regularly maintains

cashbooks, salary and petty cash records.

Field evaluators review of these documents would prove their due

maintenance.

Balance sheet (not applicable on small NPOs) 5

Income & expenditure statement/ receipts & payments accounts 5
Cash-flow statement (not applicable on small NPOs) 5

NPO maintains
Cash Books 5
Salary records 5
Petty-cash records 5
2.8

The organisation circulates its annual audit

report amongst members of its governing body
within six months of closure of its financial year.

Desk review of the report and circulation mechanisms may be

conducted.
The field evaluators may also ask questions from staff and GB of the
NPO in this behalf.
NPO circulates its annual audit report amongst GB 6
The circulation amongst GB is within six months of closure of
financial year 4

NPO Certification Model

Pakistan Centre for Philanthropy

2.9

The organisation duly discloses to the public its

expenditure on various heads.

24

Desk review of relevant documents (annual reports, periodic reports,

web site etc) may be conducted.

All NPOs

20

All NPOs

15

M/L NPOs

10

All NPOs

10

NPO has disclosed its expenditure in the following heads (during all
of the last three years) in its annual reports, website, documents
meant for public circulation, or documents provided to the
government:
Administrative expense 4
Capital expenditure 4
Foreign and local travel 4
Maintenance of transport 4
Remuneration and reimbursement to staff and consultants 4
The NPO has disclosed such information during any two of the last
three years (2+2+2+2+2 =) 10
2.10

The organisation prepares annual budget. The

organisation also prepares variance reports
(comparison of actual results with budget) with
regular frequency.

Review of budget document and actual expenditure may be

conducted during field evaluation. For this standard, only the
organisational budget (covering all programmes/ projects and the
entire expenditure) shall be considered. The existence of variance
reports will be verified and their frequency will be determined.
The organisation has prepared budget during each of the last three
years 10
The organisation has prepared budget during the last two years 5
Variance reports are prepared at least once every year 3
Variance report shared with GB members 2

2.11

2.12

The organisation maintains separate bank

accounts for funds received from different
donors or for different programmes. The
organisation also adopts accrual based system
for maintenance of its accounts.

This will be verified from the finance department of the NPO. List of
accounts will be examined. Review of accounting sheets and
auditors report will also be conducted.

The organisation reconciles its accounts with

banks at regular intervals.

Reconciliation statements may be examined.

The organisation maintains separate bank accounts for funds

received from different donors or for different programmes 5
The organisation adopts accrual based system for maintenance of
its accounts 5
All accounts are reconciled each month 10
All accounts are reconciled on quarterly basis 5

NPO Certification Model

Pakistan Centre for Philanthropy

2.13

Cash funds are kept on an imprest basis.

25

Reimbursement procedures may be examined.

All NPOs

05

Cash is kept in a safe place 2

Reasonable in amount 2
Periodically counted by someone other than the custodian 1
2.14

The incoming receipts are banked regularly and

at the earliest.

Financial records, especially the ones pertaining to cash donations

(e.g. receipts books, donation boxes) may be examined.

All NPOs

10

2.15

The organisation uses computerised accounting

software to perform its accounting function.

The name of the software used by the organisation will be obtained.

Large NPOs

05

2.16

The organisation has an appropriate system of

receiving and recording procured items.

Review of procurement policy and the process adopted for receiving

and recording a few randomly selected procurements will provide
evidence in this regard.

All NPOs

10

All NPOs

15

Received items are inventorised 5

Received items are entered into inventory within one month 5
2.17

The organisation maintains fixed assets

records.

Fixed assets records may be examined. Additionally, the staff be

asked about the processes of custody, periodic counting and
updating.
The fixed assets records contain item code, description, date of
acquisition, cost, book value, accumulated depreciation and location
5
Fixed assets are checked at least once a year 5
Fixed assets record is updated at least once each year 5

NPO Certification Model

Pakistan Centre for Philanthropy

2.18

The organisation has a purchase and

procurement policy.

26

Desk review of policy documents will verify the existence of a

purchase and procurement policy. Field evaluator may examine the
record of purchase sanctions, minutes of related governing body
meetings and other record.

All NPOs

20

M/L NPOs

15

Large NPOs

10

The purchase and procurement policy includes the following:

Invitation of at least three quotations/ bids 4
Comparative evaluation of bids/ quotations 3
Hierarchical distribution of purchase sanctioning authority, duly
approved by GB 3
Verify through field evaluation, actual compliance of the following in
the last three years
Invitation of bids/ quotations 4
Comparative evaluation of bids/ quotations 3
Approval by the designated sanctioning authority 3
2.19

The organisation has a policy on disposal of

assets.

Desk review of the policy documents or by-laws may be conducted.

The documents indicating due compliance to this policy may also be
critically reviewed. If any asset has been disposed off during the last
three years, the process adopted should be examined.
The NPO has a Policy for disposal/sale of asset 4
In the field review, following be verified (if any disposal of assets has
taken place)
Due authorisation obtained for all assets disposed off 3
Assets disposed off through transparent process 8

2.20

The organisation has a policy regarding

investments.
Provided that this standard shall apply only if
the organisation has an accumulated surplus to
carry forward from one year to the next that is
larger than 25% of its average receipts during
the last three years.

Desk review of policy documents may be conducted to verify the

existence of an investment policy. Further, documents relating to
actual implementation of such policy may also be reviewed.
NPO has an investment policy 3
The governing body approves investment decisions 3
Investments made are in line with the NPO investment policy 4

NPO Certification Model

Pakistan Centre for Philanthropy

2.21

The organisation has multiple sources of

funding.
Provided that this standard shall not apply to
organisations that have endowments large
enough to support their operations.

27

Documents related to NPOs financial resources (balances, pledges,

accruals, agreements etc.) and its financial plans should be desk
reviewed. In this regard specific questions from the governing body
members and the finance personnel of the organisation will also be
asked. Sources insignificantly small shall not be considered for the
purposes of this standard.

M/L NPOs

10

All NPOs

10

All NPOs

05

All NPOs

15

More than two sources 10

Only two sources 5
2.22

The organisation has sufficient resources to

continue its operations at current level.

Documents related to NPOs financial resources (balances, pledges,

accruals, agreements etc.) and its financial plans may be desk
reviewed to assess if the NPO has sufficient resources to continue
its operations at current levels for at least another year.
The NPO has sufficient resources to sustain its operations for
another year 10
The resources presently available are not sufficient, but the NPO
has a viable plan to generate sufficient resources 5
The NPO has neither the resources nor a viable plan zero

2.23

The organisation settles the accounts with an

employee leaving the organisation within two
months of end of his/ her services.

Rules and regulations in this behalf should be desk reviewed.

Random cases may also be examined in detail on the basis of
related documentation.
Field evaluators may examine any three cases (selected at random)
of employees who left the NPO during the last three years.
The NPO settles accounts of employees leaving the NPO within two
months 05

2.24

The organisation deducts at source income and

withholding tax in accordance with the Tax laws
in force. The organisation regularly files its tax
return to the competent tax authorities.

Documents concerning payments to staff and suppliers may be

reviewed during field evaluation. Copies of tax returns of the last
three years may be examined.
The NPO deducts income and withholding tax at source in
accordance with law 10
The NPO regularly files its tax return -- 5

NPO Certification Model

Pakistan Centre for Philanthropy

2.25

The organisation has adequate arrangements in

place for custody of accounting records.

28

Arrangements for custody of accounting records may be examined.

M/L NPOs

10

Accounting records for the last eight years are kept in safe custody
10
Accounting records for the last three years are kept in safe custody
5

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29

Category III Programme Delivery

No.

The Standard

Mode of Verification

3.1

The managerial and programme staff, and

members of the governing body clearly
understand the mission and objectives of the
organisation.

Field evaluators may facilitate a discussion with the managerial and

programme staff, and members of GB of the NPO. The scoring shall
be on a scale.

The programmes and activities contribute to

organisational mission and objectives.

Review of programme documents may be conducted. During field

evaluation, discussions with the GB members and staff would help
the evaluators in understanding and appreciating the relevance of
current and future programmes with what the organisation seeks to
achieve.

3.2

Applicable
on

Weightage

All NPOs

10

All NPOs

20

All NPOs

10

Managerial and programme staff understand the mission and

objectives of the NPO 5
GB members understand the mission and objectives of the NPO 5

All programmes and activities contribute to organisational mission

and objectives 20
80% resources are invested on programmes and activities that
contribute to organisational mission and objectives 15
50% resources are invested on programmes and activities that
contribute to organisational mission and objectives 5
3.3

The programmes and services provided by the

organisation are need based.

Formal need assessment, if any, (by the NPO or by any other

agency) may be reviewed. During field evaluation, existence of
similar services by other organisations or government may also be
ascertained. Detailed discussion should be held with programme
staff and beneficiary communities on the felt and expressed needs
of the target communities and how organisational programmes
address these needs.
Community need is assessed before launching programmes 10

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Pakistan Centre for Philanthropy

3.4

3.5

30

The organisation has collected baseline data for

its programmes.

Reports containing baseline data may be reviewed.

The organisation ensures that the staff is

involved in programme/ project planning and
design.

Field evaluators may engage the staff of the NPO, especially the
programme staff, in discussion and ascertain whether
programme/project planning is participatory or not.

Baseline data exists for most interventions 10

Baseline data exists for some interventions 5

Large
NPOs

10

All NPOs

15

All NPOs

10

All NPOs

10

The organisation offers opportunities to staff to give input for new

initiatives, interventions 5
The organisation seeks staff input for improving existing activities
10
3.6

The organisation networks with other

organisations working in the same area
(geographic and sectoral).

Formal communication with other organisations (including

government) in the same area may be reviewed. The field
evaluators may examine documentary evidence of the level and
extent of such engagement. Additionally, the field evaluators may
engage programme staff in a dialogue to assess the efforts and
activities to create synergies with other organisations.
The organisation is part of a network of organisations 5
The organisation has developed (formal and informal) partnerships
with other organisations to create synergies 10

3.7

The programme progress is reviewed by the

governing body regularly.

Desk review of minutes of the governing body meetings, working

papers, agenda and programme reports for the last three years may
be conducted.
GB reviews programme progress twice every year 10
GB reviews programme progress annually 5

NPO Certification Model

Pakistan Centre for Philanthropy

3.8

Members of the governing body and senior

managerial staff regularly visit programme areas
of the organisation.
Provided that this standard shall not apply to
rights or advocacy organisations, which do not
have any programme areas.

31

Documents concerning field visits of GB members and senior

management staff (e.g. visit notes, tour diaries, reports) may be
examined by the field evaluators. The field evaluators may also ask
this question specifically from the senior management. Further,
during their visit of the field outlets, the field evaluators may ask the
NPO staff at such outlet about such visits during the last three years.

All NPOs

30

All NPOs

15

M/L NPOs

10

At least two GB members have visited most major programme areas

during each of the last three years 15
At least any one GB member has visited most major programme
areas during each of the last three years 10
At least any one GB member has visited some major programme
areas during each of the last three years 5
Senior management visits most of the major programme areas at
least twice every year 10
The senior management shares their visit experience with other
members 5
3.9

Staff meetings are held regularly.

Field evaluators may ask staff of the NPO specific questions in this
regard.
Staff meetings are held at least bi-monthly 5
Junior programme staff also participates in the meetings 5
Participants perceive these meetings to be participatory and useful
5

3.10

The managerial and programme staff

possesses relevant professional experience/
qualifications for delivering the programmes.

Job descriptions, academic qualifications and past experience of the

managerial and operational staff of the NPO may be examined
during field evaluation.
Managerial staff possesses the relevant professional experience/
qualifications 5
Programme staff possesses the relevant professional experience/
qualifications 5

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Pakistan Centre for Philanthropy

3.11

The organisation provides professional

development opportunities to its employees.

32

Documents concerning professional growth and training

opportunities offered and availed during the last three years will be
reviewed. The Field evaluators will also ask specific questions from
the staff members.

M/L NPOs

10

All NPOs

10

All NPOs

25

Large
NPOs

10

The organisation has a transparent and participatory process for

selection of employees for professional development 5
At least 30% of the staff (all tiers) attended professional training
during last three years 5
3.12

The organisation has appropriate human

resource to carry out its administrative and
programme activities.

The human resources (employees and volunteers) available with the

NPO may be assessed in the context of targets set by the NPO for
achieving its objectives during the last three years. The workload
may be compared with the number of persons employed in various
sections/ programmes to assess if the number of employees is less,
excessive or appropriate.
The organisation has appropriate number of administrative staff 5
The organisation has appropriate number of programme staff 5

3.13

The organisation has put in place mechanism

and systems to monitor its programmes and
activities.

Monitoring tools, if any (e.g. reporting formats, progress reports,

work plans, indicators, logical frameworks, activity sheets, feedback
surveys) may be examined. Desk review of documents showing
input of monitoring results in subsequent programme/project design
etc. may be examined. The purpose is to find out if decisions are
based on the systematic collection of quantitative and qualitative
information. During field evaluation, the managerial staff may be
requested to explain ways and means adopted by the organisation
to monitor routine activities of the organisation.
There is a system of regular flow of information to the management
5
Formal monitoring tools are used to monitor activities 10
The organisation utilises monitoring results to improve programme
delivery 10

3.14

The organisation has a separate monitoring

section or designated monitoring staff.

Field evaluators will verify this by asking questions from the

programme staff of the organisation. In the case of existence of a
separate section for monitoring, discussion with the concerned staff
will be held and an inquiry into their monitoring mechanisms will be
conducted.

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Pakistan Centre for Philanthropy

3.15

The organisation has devised measurable

indicators to assess and monitor the progress of
its programmes.

33

During desk review, relevant documents (details of indicators,

monitoring formats, project documents containing time-lines etc.)
may be examined to ascertain if the NPO has devised some
indicators to measure and monitor programme progress and
outcomes.

M/L NPOs

20

All NPOs

10

All NPOs

25

The organisation has developed at least three indicators to monitor

and assess the progress of most of its programmes/projects 10
The organisation has developed at least three indicators to monitor
and assess the progress of some of its programmes/projects 5
The indicators are specific, relevant, measurable, achievable and
time bound 5
The indicators provide comprehensive information about the
programmes 5
3.16

The organisation defines measurable targets for

its programmes.

Documents concerning the targets (in respect of major programmes

only) set by the NPO for each year (meeting minutes, project
proposals, monitoring documents etc), data regarding achievement
of these targets and its analysis may be reviewed. Further, during
field evaluation, specific questions may be asked from programme
staff regarding the time and manner of fixation of these targets.
Reasons for under/over achievement may also be discussed.
The organisation has set targets during each of the last three years
5
The organisation has set targets during any two of the last three
years 3
The targets are documented and shared with programme staff 5
(applicable only to medium and large NPOs)

3.17

The organisation has been consistently

achieving its targets during the last three years.

Documents concerning the targets and outputs may be examined.

Specific questions may be asked from programme staff during field
evaluation.
The organisation achieved its targets during each of the last three
years 25
The organisation achieved its targets during any two of the last three
years 15

NPO Certification Model

Pakistan Centre for Philanthropy

3.18

The organisation has expanded its services

during the last three years.

34

The NPO services (outreach in terms of number of beneficiaries of

various organisational interventions or the range or quality of
interventions and services) during each of the last three years may
be reviewed. Provided that circumstances outside the control of the
organisation, if any, should be given due consideration while
assessing this standard.

All NPOs

15

M/L NPOs

20

Large
NPOs

15

All NPOs

25

The NPO has increased its outreach during last three years 15
The NPO outreach has remained static during the last three years
5
3.19

The organisation obtains regular feedback from

the beneficiaries of its services.

Related documents including beneficiary feedback formats, if any,

and reports may be examined. Discussions with the staff will also
provide useful information about the nature and extent of
organisations interaction with its clients for obtaining feedback.
The organisation obtains regular feedback from its beneficiaries 10
Beneficiary feedback is documented and obtained in a systematic
manner 5
Beneficiary feedback is used to improve programme delivery 5

3.20

The organisation has evaluated its programmes.

Evaluation reports, agenda, commissioning documents, ToRs may

be examined. Evaluation shall include both internal and external
evaluations. Only evaluations conducted during the last 5 years and
for which evaluation reports are available shall be considered.
Evaluation was conducted of all major programmes 10
Evaluation was conducted of some of its major programmes 5
An organisational evaluation has been conducted 5

3.21

The beneficiaries of the organisation are

generally satisfied with the services provided.

Field evaluators may talk to some of the programme/project

beneficiaries during their visit of the service outlets and get a general
feedback on the quality of services being provided. In case of
advocacy organisations, indirect beneficiaries or intermediary
stakeholders may be approached for feedback. Provided that this
standard shall not apply if a beneficiary feedback survey conducted
by an external agency during the last three years is available for
reference. The scoring shall be on a scale.

NPO Certification Model

Pakistan Centre for Philanthropy

3.22

The organisation periodically prepares and

disseminates reports to update stakeholders on
its programmes.

35

The periodic (generally annual, but also biannual or biennial) reports

prepared and disseminated during the last three years may be
examined. Progress reports, if prepared for public dissemination, will
also be considered. Introductory brochures or flyers will not be
included.

M/L NPOs

10

M/L NPOs

10

Large
NPOs

10

All NPOs

10

Reports were prepared and disseminated in each of the last three

years 10
Reports were prepared and disseminated in any two of the last three
years 6
Reports were prepared and disseminated in any one of the last three
years 3
3.23

3.24

3.25

The periodic reports contain major

programmatic achievements, major financial
statistics and future plans.

The periodic reports for the last three years may be examined. Only
those reports will be considered that are meant for public circulation.

The organisation has prepared a long-term

operational plan.

Planning process and documents may be examined. Long-term

planning shall mean planning for at least next three years.

Provided that this standard shall only apply to

organisations that were established at least five
years ago.

Formal long-term planning 10

Informal long-term planning 5

The organisation does not pay any commission

to fund-raising staff members.

Desk review of documents related to fund-raising may be conducted.

Discussions with the staff, especially the ones involved in fundraising activities, will also provide useful information in this regard.

Provided that this standard will not apply to

professional organisations or agencies
especially engaged for the purpose.

The report contains:

Major programmatic achievements 4
Major financial statistics 4
Future plans 2

NPO Certification Model

Pakistan Centre for Philanthropy

3.26

The organisation is providing services in

geographically or socially difficult areas.

36

Geographically difficult will mean geographical areas, which the

Government has notified as such, or are far-flung or difficult to
access. Similarly, public benefit activities of an organisation, which it
has to carry out in the face of expressed hostility by vested interest,
would also qualify as socially difficult.

All NPOs

10

M/L NPOs

The list of operational areas may be examined and field evaluators

should engage programme staff in discussion to ascertain if the
organisation is providing services in geographically difficult areas or
implementation of its programmes requires coping with social
disapproval and/ or hostility from people whose interests are
affected.
Around 50% resources are consumed in hard areas 10
Around 25% resources are consumed in hard areas 5
3.27

The organisation has its own website, which is

updated regularly.

The organisation may be asked a direct question. The web site, if

present, may be visited and date of last update may be checked.
The mechanism and organisational capacity to update its web site
regularly may also be ascertained.
The organisation has its own web site 2
The web site was updated during the last six months 3

3.28

The organisation consciously avoids unhygienic conditions and environment unfriendly

practices in its activities.

Dialogue may be held with the staff to ascertain this. Additionally,

general office cleanliness and ordinary activities like disposal of
waste, usage of paper etc may be examined.

M/L NPOs

3.29

Organisations previous donors express

satisfaction with the working of the organisation.

Any two major donors (individual, corporate, diaspora or

international) during the last three years may be contacted (by
telephone or electronically) and asked about their experience of
supporting the organisation.

All NPOs

15

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Pakistan Centre for Philanthropy

37

Appendix I

Certification Process
NPO
Mandatory
Requirements Not Met

PCP

Initial scrutiny
Mandatory Requirements Met

Evaluation

Desk Review

Field
Evaluation

Standards
Not Met

Standards Met

Rejected

Deferred
Capacity
Building

Certification Panel
(Non-GoP & GoP)

Capacity
Building

Approved
PCP Directory

Taxation Authorities

Enhanced
Credibility

Tax
Benefits

Increased
Donor
Assistance

NPO Certification Model

Appendix II
CERTIFICATION PROCESS
Organisation expresses interest in certification

PCP sends the Application Form (or the NPO downloads this from PCP
website) to be filled-in by the applicant NPO. The Form contains the
checklist of documents to be attached.

The applicant NPO submits the duly filled Application Form along with
the required documents and a demand draft (evaluation fee) in favour of
PCP.

If the application is not complete,

applicant NPO is notified of the
missing documents.

PCP starts the evaluation process by screening the application etc. to see
if the NPO fulfils the pre-requisites.

If the NPO meets all prerequisites, formal evaluation is

initiated

If NPO does not fulfil the prerequisites, the application is

returned to the NPO with
suggestions/ comments.

Evaluation team evaluates the organisation against laid down

standards.

PCP schedules the field evaluation and coordinates with the NPO to
prepare schedule of visit by PCP team. PCP sends the applicant NPO a
tentative schedule for the field visit.

NPO agrees with the schedule for its field evaluation.

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40

PCP makes all necessary arrangements for the field visit and draws
final and detailed schedule of activities

The evaluation team visits the NPOs Office (including selected field
outlets), meets a few governing body members, staff and beneficiaries.
Organisational and programme matters are discussed in detail in an
informal setting. Selected records are also examined.

Evaluation team sits together to discuss its assessment of the NPO against
certification standards and prepares outline of the evaluation report

Evaluation report is prepared

Evaluation report is shared with the NPO and its comments

on the same are obtained

For Field
Evaluation
The evaluation report and organisations comments are
submitted to the Certification Panel (CP) for the final
decision.

Certification Panel makes a decision

The CP decides to refer the case

back to PCP for re-evaluation

PCP repeats the process in line

with guidelines provided by the CP

The CP decides to defer/ refuse

NPOs request for certification

The NPO is informed of such decision and

facilitation in developing linkages with
specialised capacity building organisations
is provided

The CP decides to accept NPOs request for certification. The NPO is

notified of the decision and a certificate is issued
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41

Certified NPOs are added in PCPs

Directory/database of NPOs.

Certified NPOs can apply to the

CBR for tax benefits.

Directory of certified NPOs is circulated to national and international

donors and diaspora communities

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42

Field Evaluation Chart

Appendix III

NPO

PCP

Evaluation
Desk Review of application

Field Evaluation

Assessment Report

Financial Management

Verification of
Accounts

Discussion
with Staff

Internal Governance

Evaluation of
Documents

Discussion with
Board Members

Programme Delivery

Discussion
with Staff

Beneficiary
Feedback

Visit of
Outlets

Assessment Report

Decision on Certification Application

NPO

NPO Certification Model

Field