DEVELOPING NGO PARTNERSHIP:

GUIDELINES

For CARE Nepal Staff

May 2000

Developed by:

CARE NEPAL
Kathmandu
 TABLE OF CONTENT

1.0 BACKGROUND ............................................................................................................................................. 1

1.1 WHY THIS DOCUMENT .........................................................................................................................1
1.2 PARTNERSHIP DEFINITION ..................................................................................................................2
1.3 THE OBJECTIVES OF PARTNERING....................................................................................................2
1.4 TYPES OF PARTNERS.............................................................................................................................3
1.5 DIFFERENT FORMS OF PARTNERSHIP RELATIONS........................................................................4
1.6 PRIORITY FOR SELECTION OF PARTNERS AT THE PROJECT LEVEL.........................................5
2.1 HOW TO BE GOOD PARTNER.................................................................................................................. 6
2.1 CHALLENGES OF TRUE PARTNERSHIP .............................................................................................6
2.2 QUALITY OF GOOD PARTNERSHIP ....................................................................................................8
3.0 IDENTIFICATION AND SELECTION OF NGOS FLOW CHART ....................................................... 9

3.1 IDENTIFICATION AND SELECTION OF NGOS.................................................................................. 10

DETAIL PROCESS FOR DISTRICT BASED NGOS..................................................................................... 10

3.1.1 PREPARATORY STEP......................................................................................................................10
3.1.1.1 Develop an overview of NGOs in district (s) ...............................................................................10
3.1.1.2 Identify areas for partnership ......................................................................................................10
3.1.1.3 Form a NGO Management Committee ........................................................................................11
3.1.1.4 Review and approve NGOs selection criteria..............................................................................11
3.1.2 SELECTION STEP.............................................................................................................................11
3.1.2.1 Call for letter of interest from NGOs...........................................................................................11
3.1.2.2 Preliminary screening of NGOs ..................................................................................................11
3.1.2.3 Organize introductory workshop on partnership process & procedure ......................................13
3.1.2.4 Call for proposal from NGOs ......................................................................................................13
3.1.2.5 Review and recommend proposals ..............................................................................................14
3.1.4 IMPLEMENTATION STEP ................................................................................................................14
3.1.4.1 Conduct organizational assessment of recommend NGOs ..........................................................14
3.1.4.2 Select the organizations...............................................................................................................15
3.1.4.3 Develop action plan for institutional strengthening ....................................................................15
3.1.4.4 Prepare and sign agreement/Memorandum Of Understanding...................................................15
3.1.4.5 NGOs implement & monitor program .........................................................................................15
3.1.5 EVALUATION STEP.........................................................................................................................16
3.1.5.1 Review meeting ............................................................................................................................16
3.1.5.2 Joint evaluation of partnership activities ....................................................................................16
3.1.5.3 Identify and select long-term partners.........................................................................................16
3.1.5.4 Develop and implement action plan for institutional strengthening for long-term partners .......17
4.1 SELECTION PROCESS FOR EXTERNAL ORGANIZATIONS .......................................................... 18
4.1.1 NGO MANAGEMENT COMMITTEE ...............................................................................................18
4.1.2 DEVELOP SELECTION CRITERIA..................................................................................................18
4.2 SUGGESTED MODALITIES FOR SELECTION OF EXTERNAL ORGANIZATION ..................... 19

4.3 DETAILED PROCESS FOR SELECTING EXTERNAL/ PROFESSIONAL ORGANIZATIONS ... 20

4.3.1 OPTION I: OPEN TENDER................................................................................................................20
4.3.2 OPTION II: CLOSED TENDER .........................................................................................................21
4.3.3 OPTION III: SOLE-SOURCING.........................................................................................................22

i
5. INSTITUTIONAL STRENGTHENING .................................................................................................... 23
5.1 WHAT IS INSTITUTIONAL STRENGTHENING? ..............................................................................................23
5.2 WHY INSTITUTIONAL STRENGTHENING?....................................................................................................23
5.3 HOW TO DO INSTITUTIONAL STRENGTHENING?..........................................................................................23
5.4 SOME EXAMPLES OF POSSIBLE INSTITUTIONAL SUPPORT ......................................................24
6.1.1 ORGANIZATION................................................................................................................................25
6.1.2 FUNDING............................................................................................................................................26
6.1.3 OVERHEAD ........................................................................................................................................26
6.1.4 FINANCIAL REPORTING & MONITORING ..................................................................................26
6.1.5 DURATION .........................................................................................................................................26
6.1.6 TRANSPARENCY ..............................................................................................................................27
6.1.7 MONITORING ....................................................................................................................................27
6.1.8 PROCUREMENTS ..............................................................................................................................27

ii
ABBREVIATIONS

AIP Annual Implementation Plan

CAT Capacity Assessment Tools
CBO Community Based Organizations
CDO Chief District Officer
CGUG Community Forestry Users Group
CRT Center for Rural Technology
DDC District Development Committee
IFCD Innovative Forum for Community Development
INGO International Non-governmental Organization
IS Institutional Strengthening
KIDEKI Kishan Dekhi Kishan Samma
LDO Local Development Officer
LDTC Local Development Training Center
LGP Local Governance Project
LRSP Long Range Strategic Plan
M&E Monitoring and Evaluation
MoU Memorandum of Understanding
NFE Non Formal Education
NGO Non-governmental Organization
NMC NGO Management Committee
NTFP Non-Timber Forest Product
PMT Project Management Committee
PRA Participatory Rural Appraisal
SACOS Savings & Credit Cooperative Ltd.
ToR Terms of Reference
TOT Training of Trainers
UNDP United Nations Development Program
VDC Village Development Committee
YSC Young Star Club

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 DEVELOPING NGO PARTNERSHIP: GUIDELINES

The task for international governance is not

to micromanage actions that depend on the genius,
commitment, and ingenuity of individuals worldwide, but to
ensure that climate is favorable for them.
L. Brown, State of the World, 1995

1.0 Background
Partnering with local institutions has proven to be an important means of increasing
the reach and sustainability of development initiatives. Implementing activities
through local institutions, particularly local NGOs has the double benefit of providing
services to beneficiaries while increasing the institutional capacity of the
implementing organization. As Nepal's NGO sector evolves, many development
organizations are placing increasing emphasis on partnering as a valuable strategy.

CARE Nepal has identified partnering as an important way to increase the reach and
sustainability of its programs. CARE Nepal already works with a wide variety of
partners, ranging from government, to local Non-Governmental Organization (NGOs),
Savings and Credit Cooperative Ltd. (SACOS), Community Forest Users Groups
(CFUGs) and most significantly, Community Based Organizations (CBO). This
emphasis on partnership is in-line with CARE Nepal's current Long-Range Strategic
Plan (LRSP), which aims to "develop more effective partnerships at all levels to
increase impact and coverage".

1.1 WHY THIS DOCUMENT

The objective of this document is to provide guidelines for CARE project staff to
identify, select, and implement various activities through partners within all projects of
CARE Nepal. The document only deals with partnership with district-based
organizations (NGOs, CBOs, SACOS, FUGs, Registered Users Committee) and
external/professional/support organizations. It does not deal with partnership with
government line agencies, private sectors, and VDC/DDC, which will be dealt
separately on through another guidelines.

The contents of this document include guidelines on all facts of partnership process.
The partnership process includes the identification, selection of partners at the
project level, conducting capacity assessments of the selected organizations,
institutional development, and monitoring/evaluation of the activities, process of the
long-term partners selection.

1
1.2 PARTNERSHIP DEFINITION

CARE Nepal’s short-term partnership strategypaper-1996 provides the following

definition for partnership:
Partnering involves the establishment of relationship between CARE Nepal
and other institutions and groups, which ultimately aim to optimize the delivery
of services to project participants. The basis of partnering is that each of the
partners brings something – usually skills and/or resources – to the
collaboration. There is mutual trust and commitment to shared objectives.

Similarly, the CARE's Asia regional partnership conference in Dambula, Sri Lanka in
November 1997 provided the following definition:

Partnership for CARE in Asia is mutually beneficial alliance of diverse types

with complementary organizations to empower targeted communities to
achieve improved quality of life. It is a dynamic and evolving relationship
based on trust, accountability, shared vision and clear roles and
responsibilities.

1.3 THE OBJECTIVES OF PARTNERING

The objectives of CARE Nepal’s partnering activities are:

• Principally, and in accordance with the LRSP principles, to enhance program

impact through collaboration with other organizations, that have proven
expertise in particular areas;
• Secondly, to support the institutional development process of emerging
organizations that have the potential to address development needs in a
sustainable and cost-effective way.1

1
Partnership and CARE Nepal a short-term strategy paper, 1996

2
1.4 TYPES OF PARTNERS

CARE Nepal works in partnership with different organizations as the following table
shows:

TYPES OF PARTNERS

SN PARTNERS EXAMPLES

1 Non-Government • Kishan Dekhi Kishan Samma (KIDEKI)

Organization (NGOs), • Local Development Training Center (LDTC)
Savings and Credit • PEACEWIN
Cooperative Ltd. • Young Star Club (YSC)
(SACOSs), Community • Center for Rural Technology (CRT)
Forest Groups

2 Professional/Support • Innovative Forum for Community Development (IFCD)

Organizations • Center for Rural Technology-Nepal (CRT)
• LI-BIRD
• SAMUHIK ABHIYAN
• Center for Self-help Development etc.
3 Government Line • Ministry of Forests
Ministers • Depart of Soil Conservation
• Remote Area Development Committees
• Social Welfare Council
4. District Line Agencies • District Livestock Support Office
• District Agricultural Office
• District Health office
• District Forest Office
5. Private Sector • Seed Vendors
• Women Craft Centers
• NTFP Collectors and buyers/traders
• Pharmacists
• Animal Health Workers
6 Local Government • District Development Committees
• Village Development Committees
• Municipalities

3
 1.5 DIFFERENT FORMS OF PARTNERSHIP RELATIONS

DIFFERENT TYPES OF PARTNERING2

TYPES OF RELATIONSHIP WHEN POSSIBLE EXAMPLE

PARTNERSHIP
Partners provide services to
CARE by designing &
DIRECT FUNDING implementation of
programs/projects & CARE
channels funds.
CARE provides support for the
enhance/development of
INSTITUTIONAL management, equipment, and
STRENGTHENING/ infrastructure capacity to each
TECHNICAL
ASSISTANCE
other’s.
CARE and partner design,
implement and share the
JOINT VENTURE/ resources, risks and use the
CONSORTIUM comparative advantages.
CARE and partners are
relatively with similar capacity,
contribute equal amount of
resources in terms of cash and
kind.
The project can develop partnership with organizations in different forms as per the project needs. It may be the single form of
partnership type or combination of different forms of partnership.
2
Adapted from CARE Nepal Short-term partnership strategy 1996
Useful with organization, having some experience
and project takes the strategy of "Learning by
doing" in partnering with the organizations.
If project is planning to build the capacity of the
community or partner in particular area in the area
project does not have, expertise or wishes to take
external support organizations to provide the
services.
This type of services is useful for the local
organization relatively new organizations having
no experience but potential for the future growth.
Project is planning to provide support to
strengthen the capacity of selected organizations.
This type of partnership can be useful with the
experienced organizations that can bring rich
experience in project design, implement, and
share some of the resources and ready to take
risk.
Kishan Jagaram Sangh, Andha Andhi
Community Development Center, Sayapatri
Youth Club,
LIBIRD, Center for Rural Technology, and
SAMUHIK ABHIYAN
Capacity building on multi year planning of
DDC and VDC of Bajura district.
Agreement for institutional strengthening
component of own organization only,
partners will not implement any activities at
community level
CARE, JSI, and District Health Office jointly
designed, share resources and risk to
implement ARI activities in Bajura district.
1.6 PRIORITY FOR SELECTION OF PARTNERS AT THE PROJECT LEVEL

Generally, while selecting partners, CARE/project should give priority as follows:

a. An organization registered at project districts and working in project's

working area.

b. Organizations registered at project district.

c. Organizations registered at other district and having legal branch at project

district.

d. Organizations registered at other districts and working at project district.

e. Organizations registered at other districts and professional organization.

However, depending upon the situation and needs the Project Management Team
can make decision as required with valid justifications.
2.1 HOW TO BE GOOD PARTNER

2.1 CHALLENGES OF TRUE PARTNERSHIP

The role of NGOs has become increasingly important in making various

activities of local development people-oriented and also in extending services
and facilities to the grassroots level. Ina liberal administrative environment
created after the restoration of democracy, NGOs have become involved in
large numbers in various sectors. While many NGOs are involved in local
development activities as well, it has not been possible to mobilize most these
NGOs to the village level development areas. Therefor, it has become
necessary to orient NGOs to local development work thereby motivating them
to implement programs aimed especially uplift the living standard of the
backward class in backward regions. Although the number of international
non-governmental organizations (INGOs) as well as local NGOs working
around the country either with various particular objectives or aiming at
specifically targeted groups in much larger, there are few NGOs in operation
that are well-organized, have abundant resources and are effective. Even the
services and scope of activities of those NGOs which are actively in operation
are limited and small in terms of coverage. For mobilizing such organizations
effectively, the lack of coordination among different activities of these NGOs,
the lack of integration of such activities with local self-governance system, the
failure to implement programs by the NGOs. In conformity with social,
economic, and cultural characteristics and lifestyles of the particular
communities, and the lack of proper record-keeping system to monitor and
record the activities and achievements of these NGOs are some of the main
problems.3

We have very short history of the NGOs' involvement in the development

process. In the past, the NGO sector was active mostly in the philanthropic
activities only. This sector became very active when INGOs, donors, bi-lateral,
and multi-lateral organizations adopted the strategy of working with NGO
sector. Especially in the remote areas due to short involvement of the NGOs
in the development-process some how they lack the technical as well as
managerial capacity to implement activities. There are very few NGOs, who
employee full time professionals staff to manage the NGOs' activities, most of
the NGOs are managed by part-time volunteers. Basically, they are working
full time in other organizations such as school teacher, VDC personal,
government staff and also businessperson.

The relationship between NGOs and INGOs and donors are giver and receiver
not the partners. INGOs and donors provide money, NGOs implements
activities, and in most cases, INGOs and donors decide every thing. Because
3
Ninth Plan document (3.2.18)

6
of long involvement as implementers, INGOs and donors have developed a
kind of biases of "implementers". At the same time, the NGOs feel that they
are the implementing agents of the INGOs and donors.

Despite this situation, there are many potentials in working with the NGOs
such as low cost of the program operation, can mobilize local expertise, skills,
and other natural resources for the sustainability of the activities at the
community level.

In this context, NGOs should be mobilized in a way to make works

complementary to the development activities carried out by the government.

But, the capacity of local NGOs is not in quite favorable to implement activities
in partnership. That is why CARE should include the institutional strengthening
component in the program for the local NGOs and community as well. By
including this component in some cases the program cost might go little high
but it should no be considered as operational cost, rather it should be
considered as program strengthening cost. Partnering with NGOs presents
special learning opportunities from which both CARE mission and the NGOs
can benefited by sharing the experiences and resources. Considering the
situation the organization like CARE should follow the following partnership
principals:

PARTNERSHIP PRINCIPLES

! Weave a fabric of sustainability

! Built trust
! Find shared goals and interest
! Honor the range of resources
! Generate a culture of mutual support & respect for
differences
! Address relationship difficulties as they occur
! See partnering as a continuos mutual learning process

7
2.2 QUALITY OF GOOD PARTNERSHIP

The thrust of developing partnership is not only to implement the activities but also to
improve the capacity of partner organizations in relation to program delivery and
institutional strengthening. To ensure the improvement of the capacity of the partner
project can use the following indicators:

• Trust and respect

• Shared power
• Shared risks
• Shared learning

To facilitate this process project may jointly develop a detail tool with partners. While
developing the tool project and partners should decide in which area they want to
focus, accordingly they can give the weighted on each indicator. Please refer Annex
- 5 for sample out line of the tool.

8
3.0 IDENTIFICATION AND SELECTION OF NGOs FLOW
CHART

9
3.1 IDENTIFICATION AND SELECTION OF NGOs
DETAIL PROCESS FOR DISTRICT BASED NGOs
An important part of an effective partnership is identification of appropriate and
compatible NGOs. The following process is recommended for the
identification and selection purpose.

3.1.1 PREPARATORY STEP

3.1.1.1 Develop an overview of NGOs in district (s)

To find out the general overview of the organizations in the project district (s).
The project should prepare a database of the NGOs of the project district/s.
For which the format: GENERAL INFORMATION OF DISTRICT BASED
ORGANIZATIONS can be used. A sample format is shown in Tool - 1.

The information can be collected from the secondary sources such as District
Administration Office, Social Welfare Council, District NGO Coordination
Committee4 and NGO Federation District Branch.

Information required are: Name, address, goal/objectives, date of registration,

date of last renewal, working area(s), contact person, and area of expertise, of
the organizations. At the end of this exercise, the project should be able to
determine the number of organizations experienced in different sectors. This
process will give an indication whether partnering with organizations is
possible, and if possible in what areas partnership may be possible.

3.1.1.2 Identify areas for partnership

By analyzing the information collected from the step one and the project's
planned programming areas the project can decide which sector and sub-
sector of activities will be implemented with NGOs as well as whether district
based organizations can work or the project need to bring external
organizations. Project management team should make decision on which
activities will be implemented with which partners. Even if there are no
experienced NGOs, the project can still partner with NGOs in implementing less
complex activities in the beginning with less experienced NGOs. In such a
situation, the project needs to invest more resources in the NGOs training for
the capacity building.
If there is a need to bring external organizations please refer Section – 4 for
Selection of External/Professional/Support Section. (Page No. 18)

4
This is a group of NGOs federating for specific purpose

10
3.1.1.3 Form a NGO Management Committee

In order to establish a transparent selection process, participation of other

institutions is essential. Therefore, the project should facilitate to form a
district level NGO Management Committee (NMC). The Project Management
Team (PMT) will have to decide the NMC members and the number of
members. It should be decided on case by case basis, depending upon the
umbrella agreements with CARE Nepal's counterparts. For example, if a
project wants to implement NFE in partnership with organizations, then the
District Education Officer should be involved as one of the member of the
team. The roles and responsibilities of NMC are shown in Annex –1.

In RABNP - Bajura the NGO selection committee comprises CDO,

LDO, Representative of NGO Federation – Bajura, District
Program Advisor of LGP/UNDP, and Project Manager/CARE.

3.1.1.4 Review and approve NGOs selection criteria

Based upon identified activities to be implemented in partnership the NMC

should develop and approve specific NGO selection criteria. Basic criteria for
screening of NGOs are shown in annex - 2.

3.1.2 SELECTION STEP

3.1.2.1 Call for letter of interest from NGOs

The project should call for submission of a letter of interest from district based
NGOs to implement selected activities and programs in partnership with the
project. At least 10 days (based on the geographical condition the time
allocation may vary) should be given to potential NGOs to submit the letter of
interest. The interested NGOs should submit the letter of interest along with
organizational background, which includes experience and expertise of the
applying organization. A sample format of organizational background is
shown in Tool – 2.

3.1.2.2 Preliminary screening of NGOs

The NMC will perform preliminary screening process by using selection criteria
developed by NMC. The NMC should publish a list of selected NGOs within 7
days of the last date of submitting the letter of interests.

The project staff can start initial exploratory discussions with short-listed
organizations, visiting their offices, projects, meeting with members and staff
of the organization. In this step project, staff can determine the status of the

11
 NGO in relation of how strong is that NGO in following areas: managerial
capacity, technical capacity, and political affiliation.

PMC can categories the selected NGOs as follows:

CATEGORY ORGANIZATIONAL STATUS POSSIBLE PARTNERSHIP

# Local NGOs with past experience in # Funding from project

implementing activities # Joint development of
A
# Established organizational operation program
systems, # There may be no need for
# Have regular full time staff/volunteer basic institutional support

B # Local NGOs with sound background # Fund program activities

# Experience in project implementation with institutional
# Do not have operational systems strengthening component
regular staff. supported by project.

# No experience in project # Funding may be limited to

implementation institutional strengthening
C
# Does not have regular staff supported by project.
# Can mobilize local resources
# Potential in organizational growth
# Relatively very new organizations

D Organizations specialized in one sector # Technical assistance to

develop the capacity of the
local organizations and the
project supported by
project or with other
resources.

12
3.1.2.3 Organize introductory workshop on partnership process &
procedure

Invite the short-listed organizations to participate in introductory workshop. It

is not necessary to involve those organizations that have already implemented
activities in partnership with the project.

The objective of this workshop is to orient potential organizations on the

expected roles and nature of partnership, and to discuss on the selection
process. The workshop should cover the following areas:

• introduce the potential partners and project

• orient on partnership process and procedure
• share and discuss the program development process
• discuss the proposal formats
• determine possible activities to be implemented in partnership

Two representatives (active board member who can read and write) from each
NGO should be invited. Project should not provide any financial as well as
other support for the participants of the workshop. The reason for not
providing financial support is to determine the NGOs commitment and
resources.

The project should give at least 7 days (based on the geographical condition time
allocation may vary) advance notice to potential NGOs to show their interest to
participate in the introductory workshop. The introductory workshop outlines
are shown in Annex – 3.

3.1.2.4 Call for proposal from NGOs

The NMC should call for proposal from the organizations, which participated in
introductory workshop and the project's current partners. The selected
organization should submit proposal in pre-developed format. The suggested
checklists for the content of the proposal are as follows:
• Situational analysis of proposed • Local resource mobilization strategy
working areas • Project management
• Process of prioritizing community • Project duration and action plan
needs • Monitoring and evaluation plans
• Objectives of the program • Job description of project personnel
• Expected outcomes • Details of budget
• Direct & indirect beneficiaries • Progress and financial reporting
• Implementation strategy frequencies
• Financial requirements

13
 A sample format of proposal outline is Tool - 6. The NGOs should submit the
detail proposal along with detail organizational profile. A sample of
organizational profile format is shown in Tool –4.

At least 3 weeks time (based on the geographical condition time allocation

may vary) should be given to potential organizations to submit the detailed
proposal.

3.1.2.5 Review and recommend proposals

All proposals should be reviewed by using proposal review criteria and

guidelines finalized by the NGO Management Committee. The NMC will be
responsible for the recommendation of best proposals received from the
organizations. A sample review guidelines is shown in Tool – 5.

Organizations will be notified of the result of selection process, including

organizations whose proposals were not selected within 20 days from the last
date of the submission of the proposal.

3.1.4 IMPLEMENTATION STEP

3.1.4.1 Conduct organizational assessment of recommend NGOs

After the review process is completed, the project should conduct

organizational assessment of the selected partners. This step is applicable
only for organizations selected for first time only. It is not necessary to
conduct organizational assessment for the support organizations and
professional organizations. To facilitate this process project will use the
Spider Web and NGO Assessment Tool, being developed and institutionalized
by CARE Nepal. These are self-assessment tools, the project will only
facilitate the process of assessment. There are five component in Spider Web
namely: a).Organization (b) Management (c) Resource mobilization (d)
Linkages, and (e) Participation/representation, similarly the NGO Assessment
tools has four component they are: (a) Program planning, implementation,
monitoring, and evaluation (b) Organizational structure and management (c)
Resource mobilization and (d) Coordination and networking. (Refer: NGO
Assessment Tool, Spider Web Manual)

The project will facilitate the assessment process of the partners and prepare
the assessment report. This report should contain the strengths, weaknesses,
and recommendation for the organizations.

14
3.1.4.2 Select the organizations

Project will make the final selection of the partner organizations on the basis of
the NMC's recommendations and the findings of the capacity assessment of
the selected organizations. If required the project and partners will make
necessary adjustment in the proposal submitted by the NGOs.

3.1.4.3 Develop action plan for institutional strengthening

The NGOs should develop an action plan for institutional strengthening. If

required project can support to develop action plan to the selected partner.

NGOs should note that project will not provide all supports needed to address
recommendations indicated in the assessment report. NGOs are encouraged
to explore other sources of support. Such support and the responsibilities of
each NGO should be clearly described in the agreement.

3.1.4.4 Prepare and sign agreement/Memorandum Of Understanding

Invite selected NGOs to develop agreements between the selected NGOs and
the project.

Project Manager and/or counterpart on behalf of the project and

Chairperson/Secretary on behalf of selected NGOs (or officially authorized
person) can sign partnership agreement/Memorandum of Understanding
(MoU). Representative(s) from the NMC can sign at witness on the
agreement. The official copy of authorization for the signature of the NGO
should be attached to the agreement. A sample format of agreement is shown
in Tool – 6.

Depending upon the approval authority of the project manager the selected
proposal and along with draft copy of the agreement documents (printed copy
as well as a floppy diskette) should be forwarded to CARE Nepal country office
for signing the agreements. The approval limit for the project manager is
shown in Annex – 4.

3.1.4.5 NGOs implement & monitor program

The NGO should develop and submit a detail of Annual Implementation Plan
(AIP) in consultation with the project. Once the AIP is finalized the NGOs
should submit the fund request to the project and the project should have to
release as per the agreed schedule.

Based upon the AIP the NGOs should prepare the Monitoring and Evaluation
Plan (M&E). As per the AIP and M&E plan NGOs implement the activities.
AIP/M&E plan should clearly define the roles and responsibilities of project as
well as the NGO.

15
 The partners will have to closely monitor the activities as in AIP and M&E plan.
The project staff should also monitor the activities being implemented by the
partners. While monitoring the activities being implemented by partners the
project staff should analyze the achievements against the project logical frame
work. During the monitoring, project staff and NGO personal should provide
mutual feedback to each others. Project staff try to make monitoring activities
itself as a part of capacity strengthening of the partners. During the monitoring
project staff can provide technical as well as managerial inputs to the partners.
The monitoring activities should not only be restricted on counting the
numbers. Please refer Project Information Management System (PIMS) used
by CARE Nepal for monitoring formats for different activities.

3.1.5 EVALUATION STEP

3.1.5.1 Review meeting

The NGOs should organize half yearly Participatory Review Meeting (PRM)
with different stakeholders to discuss management and technical issues and
to provide mutual feedback to each other's.

During the review, meeting representatives from VDC, local level line
agencies, project, and District NGO Management Committee should be invited.

3.1.5.2 Joint evaluation of partnership activities

The project and the partner should conduct joint evaluation of partnership
activities as well as partnership relationship. The evaluation of the partnership
activities should be done according to the pre-set indicators on proposal. The
partnership relationship should be reviewed according to the criteria
developed to measure the quality of good partnership, the indicators for a
good partnership, which is shown in Annex – 5. Representative from the NGO
Management Committee should be invited during the joint evaluation process.

3.1.5.3 Identify and select long-term partners

The project should select few key partners for long term relationship. The
selected partners can be developed to lead different sectors such as NFE,
bee-keeping, family health program etc.

Example: Local Development Training Center,

Mohottari is lead organization for NFE program.
PEACEWIN is an example of lead organization in
integrated community development programs.

16
Selection process for the long-term partners should start only after the NGOs
complete one year of partnership with the project. The following points should be
considered while selecting key partners:

$ At least one year of experiences of implementing activities in

partnership with project
$ Good performance record while working with project and other
organizations.
$ High possibilities of multi-year partnership (technical as well as
managerial).

3.1.5.4 Develop and implement action plan for institutional strengthening

for long-term partners

The project should re-assess the capacity of selected NGOs for long-term
partnership by using the same NGO Assessment tools, and Spider Web Tool.

Based on the recommendations of the organizational assessment the NGOs

should develop an action plan for institutional strengthening. The action plan
should include the commitments from project, the partner organization, and
other external agencies. Project should not take the sole responsibility for the
implementation of institutional strengthening plan. The NGOs should look for
resources from other agencies/institutions.

The project and the partner should jointly monitor and evaluate the institutional
strengthening plan for at least once in a year.

17
4.1 SELECTION PROCESS for EXTERNAL ORGANIZATIONS
(Related to Option II in the flow chart)

SELECTION PROCESS FOR EXTERNAL/PROFESSIONAL/

SUPPORT ORGANIZATIONS

If a project decides to bring an external/professional/support organizations to

implement activities in partnership, the project should take the following steps.

4.1.1 NGO MANAGEMENT COMMITTEE

The same NMC can function for local organizations or external support
organization. (See section 3.1.1.3 for detail)

4.1.2 DEVELOP SELECTION CRITERIA

Based upon identified activities to be implemented through external NGOs the

NMC should develop specific partner selection criteria for which the following
points should be considered:

• Registered as legal entities with appropriate agency of the government,

and duly renewed.
• Compatibility of vision, mission, goals, and objectives with the project
• The organization must have three years of relevant experience and
capacity to undertake similar activities.
• The organization should have good management practice and sufficient
human resources.

Please refer "Identification and selection of partners for district based NGO"
section for implementation and evaluation steps.

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4.2 SUGGESTED MODALITIES FOR SELECTION OF
EXTERNAL ORGANIZATION
Three options are recommended for the selection of external/professional /support
organizations namely: Open Tender, Close Tender, and Sole sourcing. Projects are
free to choose any options. Project should give clear justification for any one of the
options.

There are advantages and disadvantages in each option. Following is an analysis of

the three options:5

TYPES CHARACTERISTICS ADVANTAGES DISADVANTAGES

• Open competition, • Good process for
OPEN anyone can make a obtaining basic,
TENDER full proposal which, standard services
in turn, will be where price is the main
assessed factor.
Two-step process: • Choose this option
1. Short-list capable where services required
CLOSED and quality are not precisely
TENDER agencies specified at the time of
2. Invite short-listed to the tender
develop full • Good approach when a
proposals which large pool of potential
are assessed service providers is
required.
• Has the advantage of
openness, without the
disadvantage of having
to review many
inadequate proposals.
• Comparatively less time
required with open
tender.
• One service • Choose this option
provider is when specific or
SOLE selected, and then unusual expertise or
SOURCING asked to develop a methods are required
proposal whose • Agency can get down
cost are negotiated to job quickly
• Fast and efficient
• Appropriate method for
existing partners where
their standards and
background are known
• Can be more time
consuming if many
applications are
submitted.
• Time consuming, as a
pre-qualification stage
is added
• Elaborated process
required
• Selection may be
perceived as not being
transparent
• As there is no price
competition, it can be
more costly
• Can breed
complacency on the
part of service suppliers
• Limits alternative
approaches, methods
and ideas.

5
Adopted from Partnership Guidelines/Mechi Hills Development Program Phase III/SNV- Nepal

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4.3 DETAILED PROCESS FOR SELECTING EXTERNAL/
PROFESSIONAL ORGANIZATIONS

4.3.1 OPTION I: OPEN TENDER

a) Develop detailed Terms of Reference (ToR)

The ToR should include:
• Project outline
• Role of the service provider
• Role of project
• Required expertise of the service provider
• Criteria for selection of service provider
• Basic requirements of the proposal:
• An organizational profile
• Details of completed or on-going project being implemented by the
organization
• Separate technical and financial proposal
• Basic requirements criteria for the submission of the proposal
b) Develop proposal evaluation matrix. A sample proposal review guidelines is
shown in Tool – 4.
c) Call for letter of interest. Publish request for letter of interest in national
newspaper such as Gorakhapatra, Samacharpatra, Kantipur, The Rising
Nepal, Kathmandu Post, Nepal etc. with terms of reference (ToR) from
qualified organization.
d) Conduct preliminary screening of organizations by using the basic requirement
criteria. A short list of the selected organizations can be prepared.
e) The project should call for technical proposal and financial proposal in
separate documents, from the selected organizations. At least 3 weeks time
should be given to the selected organizations to submit detailed proposal.
e) The selected organization should submit proposal in standard format. A
sample of format is shown in Tool – 3.
f) Since this is open tender there may be huge number of the proposals
submitted by different types of organizations. To reduce unnecessary work
two- stage review process can be used:

i) Review the technical part of the proposal using the proposal rating
guidelines. Select few proposals
ii) Select organizations for further review on the financial proposal.
iii) Open financial proposal of these organizations.

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 iv) Compare with projects' budget allocations for this component. If
necessary negotiate with top ranking organization decide and sign
contract.
v) If the top ranking organization unwilling to compromise, the organization
which has been ranked second will be invited for negotiation and so on.

4.3.2 OPTION II: CLOSED TENDER

In this option, project will facilitate the process of developing a Resources Directory of
Professional/External organizations. The closed tender option could be useful mainly
for the short term assignment and providing technical support for CARE, such as
providing training to the project staff and project partners, conducting evaluation of
the projects, research, preparing case studies etc.
Following process will be taken:

a) Prepare a brief summary of the nature of support services required by the

project. Information should include:
• kinds of services required
• role of the potential partners
• qualification of external/professional organizations
b) Call for letter of interest. A notice should be published in national newspapers
such as Gorakhapatra, Samacharpatra, Kantipur, Kathmandu Post, and The
Rising Nepal etc. Each interest should include:
• Profiles of completed or on-going activities implemented by the applicant
• A proposal concept and approach for delivering specific support services
• An organizational profile.
c) Review and shortlist the organizations.
d) Prepare and develop a pre-selected external/professional organization
directory. The directory will include qualification, experience, and the types of
services they can provide. The directory will also include the term and
conditions of each organization.
e) The PMC can select any organizations to work with them from this directory.
f) The project can call proposals from selected organizations. Once the project
receives, proposals follow the steps in open tender.
g) Every two years CARE country office should updates the resource directory of
external/professional/support organization.

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4.3.3 OPTION III: SOLE-SOURCING

This option will apply to agencies with which CARE has on-going partnership relation.
This option is used to select organizational/individual consultants for short-term
assignments, or when current partnership is renewed. Normally, it is advisable to
use this option only when CARE has adequate understanding of the organization and
is satisfied with their performance level.

Process:

a) Develop Terms of Reference (ToR) for the proposed assignment.

The ToR should include the following:
• Background to the assignment
• Objective of the assignment
• Key consideration and specific service required
• Methodology
• Expected outputs of the assignment
• Composition of the Team
• Schedule
• Reference documents
b) Circulate ToR to submit the proposal with selected organizations/individual.
c) Review the proposal and select one organization/individual.
d) Sign contract with selected organization.

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5. INSTITUTIONAL STRENGTHENING

5.1 What is institutional strengthening?

Institutional Strengthening (IS) refers to the overall development of an institution or

organization to improve the quality of its functioning and its output. It may involve
improvement of resources within an organization in relation to the tasks that they
undertake in their technical areas of expertise enhancement of their management
skills and organizational management systems (human resource management,
financial, procurement, inventory etc.) for better program effectiveness and
organizational development.

CARE's Focus

One of the objectives of partnership for the CARE is to build the capacity of its
partners. There are many ways we can define and work on the institutional
strengthening of the organization. CARE will focus its IS of partner on the building
the capacity of human resource and establishment of systems.

5.2 Why institutional strengthening?

Institutional strengthening of partners promotes sustainable development and poverty

alleviation. Strong local institutions in CARE's project areas are more likely to
continue development activities after the projects' phase-out.

5.3 How to do institutional strengthening?

The institutional support may be related to specific program implementation capacity

such as the implementation of NFE classes or more important is to strengthen the
overall management capacity of the organization. The project should assess the
capacity of the local NGOs using CARE's NGO Assessment Tool and Spider Web
Tool which analyses the organization's capacity in program planning, implementation,
monitoring and evaluation; organizational structure and management; resource
mobilization; and coordination and networking.

Project could support one or all types of institutional support to the selected key
partners. The project can provide institutional support to the partners by the staff
or/and bring external organizations to provide such types of support. The support
may be in the following areas:

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5.4 SOME EXAMPLES OF POSSIBLE INSTITUTIONAL SUPPORT6

SN FIELD OF SUPPORT EXAMPLES

1 Technical Training
2 Management Training
3 Skill Development
Training
• Safe motherhood
• Small enterprise development and management
• Water system management
• Organizational management
• Leadership development
• Participatory project planning
• Project management
• Facilitation skill training
• Participatory rural appraisal (PRA)
• Training of trainers (TOT)
• Community need assessments
• Financial management training
• Performance management skills
• Gender
• Communication skills

• Developing organization's long range strategic

4 System Development plan (LRSP)
• Developing organizational systems on:
• Personnel manual
• Financial management
• Procurement system
• Human resources development strategy
• Providing office equipment such as computers,
5 Equipment Support typewriter, duplicating machine, photocopier,
overhead projector, slide projector, and video set,
etc.
• Office building construction, training hall
6 Infrastructure Support construction etc.

7 Vehicles • Four wheel vehicle: Jeep, Pick-up

• Motorbikes

After providing the institutional support, the project and partners should re-assess the
organization's capacity by using same assessment tool after one year.

6
This type of support can not be provided on a regular basis. It should be decided on case by case
basis only if it is justified by the program activities.

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6.1 FREQUENTLY ASKED QUESTIONS

6.1.1 ORGANIZATION

Q. What is the difference between CBO and NGO?

We do not have any laws in Nepal to differentiate CBO and NGO. We have
only one act, named Society Registration Act 2034 to register the CBO and
NGO.

However, for the operational level we can differentiate between CBO and NGO
as follows:
CBO:
# Organizations established and managed by the members/users for the
benefit for the members/users.
# All the services produced by the CBOs will be targeted to the
members/users.
# The members work for themselves.
# It can be registered or not registered.
# If it is not registered, it is not necessary to renew every year.
# Not registered organization can not act as a legal body.

NGO:
# Organizations established and managed by the communities/outside
people with the objectives of providing services to communities.
# The members may not be directly benefited by the services produced
by the organization.
# The members may work for others.
# Registered NGOs can function as legal body.
# It should be registered under Society Registration Act – 2034 (Sangh
Sasthan Darta Aain 2034). It should be renewed every year.

Q. What will be role of project to the CBOs?

Once the project partners with NGOs the partners should do the grooming and
strengthening of the CBOs in the NGOs working area. The project's role is to
strengthen the NGOs' capacity. In areas where NGOs are not working or with
community groups, who the NGOs are not related the project may continue to
be involve in strengthening their capacity.

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6.1.2 FUNDING

Q. What level of funding support is appropriate for partner organizations?

The level of funding support is very much going to depend on the nature of
activities undertaken and the managing capacity of the partner organization.
However, it is recommended that for the small organizations, funding support
should be smaller at the initial stage of partnership and it could be gradually
increased over the time.

6.1.3 OVERHEAD
Q. What percentage of overhead can be provided?
Where justified, the organization's overhead expenses such as office rent
including site office operation cost, vehicle operation, staff salary, and benefits,
stationery, electricity, water, fuel, communication cost, etc should be included
as part of operation cost, such cost should not normally exceed 25% : 75% of
the overall program cost except for cases where justified separately. The staff
cost is deemed to include staff on the organization's payroll such as project
manager, coordinators, office assistant, accountants, secretary and runner.
However, the salary or allowance of facilitators, motivators, and supervisors
should be treated as part of program cost. The partner organization should
provide at least 5% of total budget as a matching fund. Matching amount
could be in terms of kind, cash, or human resources.

6.1.4 FINANCIAL REPORTING & MONITORING

Q. What level of details of financial expenditure should be ?

Partners will have to submit quarterly and yearly financial reports, showing
actual expenses made and duly approved by the authorized officials of the
organization. The partners may be required to submit original or copies of
invoices and bills provided in mentioned in the agreement.
If the actual amount of expenses is lower than agreement amount, partner
should return remaining amount to project.
However, project should monitor and if required check the books of accounts
of the partners.

6.1.5 DURATION

Q. What should be the duration of partnership?

Partnership with project cannot exceed the duration of the project. There
should be distinction between long term partnership and short-term partner.
Each project will select few key/leader partners for longer-term duration, which

26
 focus on capacity building and institutional strengthening component. It is
assumed that this key/leader partners will be coordinating specific activities in
the project area. (Example: Young Star Club, Solu and Local Development
Training Center, Bardibas are key/leader partner in NFE program.)

6.1.6 TRANSPARENCY

Q. What level of transparency should be maintained?

Project and partner organization should maintain transparency in their relation.
To maintain the transparency, both organizations must build the level of trust
among them. At the same time, there is a question about how much
information can or should be shared with a partner, and how much
transparency is good thing.

For example, where project should or should not inform a partner's field staff about
how much is budgeted for the activities?
Project staff should not inform partner's field staff about their budget. They
should get information from their supervisor or partners officials. Only senior staff
and/or officials of both partner organizations should deal on policy issues.

6.1.7 MONITORING
Q. How are partnership activities monitored?
Regular visits to the partner, and program areas, involving open discussions
with the staff and members, and project participants, would be adequate to
enable project to get a sense of how activities are proceeding.
Joint management meeting at regular interval of time with the key person from
project and partner will be good practice.
Annually a joint review meeting could be organized with key person from
partners, project, and CARE Nepal country office.
Organizing participatory review meeting at program area by involving the
project participants could be done. (Please refer section 3.1.5.1 and 3.1.5.2 for
further details)
6.1.8 PROCUREMENTS

Q. Who should procure the materials?

Project will not be involved in the procurement of any materials to execute the
program under partnership. The partners will have to carry out procurement
required to execute the programs. The partners can follow their procurement
procedures. Only in case, if partner requests in written form to carry out the
procurement procedure project can provide logistic support for a limited
period.

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