C-1: Finding the Way Forward in Post-COVID-19 Pakistan with the Doing Good Index
- To reduce red tape and unnecessary friction for Social Delivery Organizations (SDOs),
procedures for registering and operating an SDO need to be transparent and efficient. A
swift and straightforward registration process evens out the playing field and opens up
the social sector to new entrants.
- 86% of an average Asian SDO’s budget is sourced from domestic and foreign donations.
A smooth, unrestricted flow of funds is essential for these critical sources of income to
reach the social sector. When giving and receiving is easy, funds can be allocated to
projects and organizations more efficiently.
- Regulations that enshrine accountability mechanisms—including formal reporting
requirements and rules governing liability—can play a critical role in building trust in the
social sector. Greater trust can, in turn, unleash greater private social investment as
donors gain confidence their funds are being used appropriately. Enforcement is an
important part of this equation: the extent to which laws and regulations are enforced
determines their efficacy in increasing transparency and accountability.
- Not making records public is a missed opportunity. Governments in half the economies
do not release SDOs’ annual reports and audited accounts publicly, thereby losing an
important trust-building opportunity.
- Enforcement and compliance should go hand-in-hand.
- Enacting regulations that facilitate non-profit registration and institute liability
mechanisms is important, but the effectiveness of the regulations depends on how
accessible they are. Ease of understanding laws is a precondition for acting lawfully.
Clear communication of laws and channels for SDOs to liaise with government is
important.
- Fiscal measures such as tax deductions—gifts to charitable organisations that individuals
or corporations can deduct against income tax or estate tax—can encourage greater
systematic giving. They are a basic and critical pillar of supportive fiscal policy.
- Granting SDOs exemption from corporate profit taxes allows their lean resources to go
toward meeting unmet social needs in their entirety. Tax exemption is also a recognition
of SDOs’ role in social service delivery, which sets them apart from a typical for-profit
private sector firm.
- Awarding SDOs and donors with recognition acknowledges their commitment to
addressing social challenges. Public attention has the added benefit of spotlighting best
practices that can be emulated. Institutional engagement with the social sector,
particularly by corporates, strengthens the sector and signals broad support for it.
- The ability of SDOs to recruit and retain staff and volunteers is a good proxy for the
strength of the underlying talent infrastructure. Building the capacity of existing talent
and universities’ role in training future social sector leadership are also important for
nurturing the talent pipeline.
- Crowdfunding is on the rise as an important fundraising tool and needs to used in
Pakistan.
- At a minimum, nonprofits and other SDOs must be able to participate in the procurement
process by bidding for government contracts. Targeted incentives can further encourage
their participation.
- The people who are really in need of help should be identified by the corporate sector,
federal and provincial governments and private institutions as well.
- Government should liaison with the corporate sector for dealing with any national crisis.
- The government should link corporate sector with research organizations having
authentic data, to help revive businesses.
- Policies should be made through consultative dialogue with the corporate and private
sector.
- There should be ease-of-doing business.
