Do the recommendations take into account the size or stage of development of the organization?
The challenges and needs of development organizations depend largely on their size and stage of maturity. According to the sources consulted, IRED’s publications explore several dimensions of the financing and management of development organizations (DOs) and NGOs, including:
- Funding needs of DOs/NGOs: They explore the different types of financial needs depending on the size, target groups and stage of development of the organizations.
- The blockages and limits of the current financing system: The difficulties encountered by ODs/NGOs in their access to traditional financing are analyzed.
- Financial and economic strengthening strategies: The importance of mobilizing local savings and diversifying sources of financing is emphasized.
- Innovative financing tools and instruments: Concrete examples such as RAFAD and Women’s World Banking are presented, illustrating alternative financial mechanisms.
- Practical Management of Associations: The manuals provide advice on internal organization, project management, accounting, fundraising and evaluation.
- Stages of Association Development: The books describe the different phases of an association’s life, from childhood to adulthood, with the specific challenges at each stage.
- Strategic planning and self-assessment: Methods to help ODs/NGOs define their objectives, strategies and evaluate their own operations are proposed.
- Relationship with Funding Agencies: Advice on how to prepare funding applications and negotiate with funders is provided.
Regarding the question of whether the IRED recommendations take into account the size and stage of development of organizations, the answer is yes, the recommendations take these aspects into account. Here is a detailed explanation, supported by the sources:
IRED’s works explicitly distinguish between different sizes of development organizations:
- Small partners: Local initiatives of a few groups.
- Medium-sized organizations: Sub-regional size, reaching a few hundred members.
- Large organizations: Federations, movements with more than 1,000, 10,000 or even 100,000 members.
Funding needs are recognized as varying depending on the size of the organization. For example, a small local initiative will have different financial needs than a national federation. The suggested financial tools can also be adapted to the size. It is mentioned that, in principle, small DOs/NGOs will be financed through separate tools and funds, while large DOs/NGOs may resort to more complex mechanisms combining venture capital, banking cooperation, etc. However, it is also noted that a small or medium-sized DO/NGO will have to join forces with others to create very complicated financial mechanisms. A large movement, thanks to its number of members and its skills, can create these tools internally.
In addition, IRED’s publications address the concept of association development stages. The “New Management Manual” describes the stages of childhood and adolescence, while the “Funding Research Manual” addresses adulthood. Each stage is characterized by specific challenges in terms of organization, management, and financing.
IRED recommendations are often contextualized according to these stages:
- Early (childhood): The focus is on internal consolidation, learning to work together, and managing initial funds. The issue of staff status and career plans has not yet arisen. Communication is often oral.
- As they grow (adolescence and adulthood): Institutional needs become more complex. It becomes necessary to formalize internal communication with memos and consider decentralizing management. Implementing a personnel policy, a financial management system, and medium- and long-term planning becomes a priority. The distinction between the association and the company becomes crucial for the survival of economic activities.
- Regarding fundraising: It is advisable to place your NGO and project in the appropriate application categories (local projects of $5,000 to $20,000, medium-sized projects, major programs) in order to approach the right agencies. The duration of negotiations for obtaining funding also varies depending on the size and complexity of the project. The choice of an accounting system must be adapted to the extent of the association’s development.
IRED also encourages organizations to conduct an institutional self-assessment to gain a better understanding of their current situation and specific needs. The self-assessment questions address aspects such as the organization’s effectiveness, culture, structures, administrative systems, and the clarity of staff roles, all of which are related to its size and stage of development.
In summary, IRED’s publications do not offer uniform solutions, but recognize the diversity of development organizations in terms of size and maturity. Recommendations are often formulated in such a way as to encourage DOs/NGOs to adapt tools and strategies to their specific context and stage of development.
