Opinion Page: An International Charity Code of Conduct
From the Chicago Tribune, August 18, 2023:
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The vast majority of NGOs focused on Ukraine relief were founded and are headquartered outside the country, but Ukrainian organizations also exist. Unfortunately, in the past, a few Ukrainian NGOs have fallen victim to corruption, a situation that was often imputed to the entire nonprofit sector. President Volodymyr Zelenskyy, however, has initiated a number of measures to address this situation and has fired and prosecuted officials involved in illegal activities. Nevertheless, international perceptions of NGO corruption remain and threaten to diminish the generosity of donors whose dollars are urgently needed as we approach the reconstruction phase.
To root out corrupt organizations and to reassure the public that their gifts are being used effectively and efficiently, NGOs working in Ukraine should agree to a common code of conduct enforced by third-party monitoring and independent of any Ukrainian governmental authorities.
Some effective models exist — foremost is that of Rise Ukraine, a coalition of 40 international and Ukrainian organizations promoting integrity and accountability in the reconstruction process. The organization endorses ensuring transparency and accountability; promoting competition and efficiency; publishing and using open data; furthering reforms required for European Union membership; and encouraging zero tolerance for corruption. While membership in Rise Ukraine is optional, it provides a paradigm for third-party monitoring, as do organizations such as Charity Navigator and Candid.
Funding to create such an organization should be supported first by the governmental donor community, followed by a dues fee structure for members that creates sustainability and buy-in. All parties need to be involved substantially and financially to have skin in the game and a feeling of ownership. This, of course, is easier said than done, but given the many conferences on the topic of Ukraine, making this a deliverable seems to be an easy first step.
Another third-party monitoring success story comes from Haiti, where the 2010 earthquake led to an immediate infusion of aid funneled to NGOs. Many of these organizations were corrupt and unaccountable, but Hope for Haiti offers a notable exception. Focused on improving health, education and economic opportunity, the NGO is audited every year, files a Form 990 with the U.S. Internal Revenue Service, releases an annual report and is evaluated by Charity Navigator and Candid, from which it receives the highest ratings. More important, all of these measures ensure that donor funds reach those who in need.
In addition, while third-party monitoring will expose fraudulent and inefficient charities, it will not necessarily address such problems as duplication of effort or the shipment of expired medical or humanitarian supplies — problems that reduce NGO effectiveness. To deal with these issues, the Ukrainian government should establish an online clearinghouse that would provide real-time updates on which materials are needed, the locations, and what quantity and quality are required.
darryll k. jones