One area of confusion that sometimes arises, especially in small NGOs, is the difference between a project, a program (or portfolio) and a fulling functioning organization. Failure to fully grasp the differences, and how they impact NGO work, creates significant risks for small NGOs, and will often impact the long-term viability of the work.

Starting with the basics, here is our (simplified) terminology:

Project

  • A short term collection of activities, with a clear time frame, designed to achieve a specific goal or outcome.
    • Eg fund 10 students at one school for 1 academic year

Program

  • A set of projects, put together to achieve a larger set of goals.
    • Eg “By contrast, a program is more broadly focused around a larger theme or location. A program has very big, long-term goals. For example, an Education Program may have the goal to achieve 100% female primary school attendance in East Africa. Some large organizations may have also have overlapping programs, such as a Kenya Country Program and an East Africa Regional Program.” Credit

Organization

  • A fully functioning administrative structure, running one – or often many – programs, with the funding and resources to support staff and the larger infrastructure needed to achieve the mission and vision of the organization.

Looking for more detailed summaries?

Look here or here or many other NGO resource websites that summarize the difference between each type of work.

Risk Areas and Potential Pitfalls

Many small organization are, in reality, running a small project or program, and do not have the resources, or mandate, to run an actual organization. The overhead costs to run a full organization are significant, and must be proportionate to the actual program expenses. For example, an organization may have

  • an idea for a project
  • $5,000 of program costs (to do the bare minimum)
  • $10,000 of annual admin costs (starting up a new organization, paying a CEO, recruiting a new board etc)
  • a programming structure that works in more than one country (eg based in NA and operating somewhere else) and
  • significant fundraising limitations for the first 10 years that are in the initial strategic plan.

In this case, this is clearly not a viable organization. Energy would be far better spent doing some informal fundraising for a well-established organization that is already working in one’s area of interest, whether that be geographical or programmatic. Want to support schools? Find an NGO that works in education. Want to support work in a particular country? Someone is probably already there. 🙂

However, out of desire to “start my own NGO” or believe that one’s mission is too far different from the work of other NGOs, new non-profits get started, without the mandate or funding to do so. In the non-NGO world, this is similar to:

  • moving into a new neighbourhood and starting an entirely new school (including constructing a building and hiring a full staff) for your own children, instead of registering them at the school that is already operating up the street
  • starting a new pizza restaurant (even though you may not have the time, budget or expertise), because none of the countless restaurants that serve pizza happen to put one of your favourite toppings on their pizza.

Needless to say, either of these scenarios is clearly not well thought through, and the pitfalls (putting a huge investment of time and money into something that is unnecessary and redundant), is clear. The same holds for many very small NGOs. The best thing to do, in many cases, is to take the idea for a project (eg your fav new pizza topping idea, above) and ask any of the well-established organizations to take on your idea. If they do, you have achieved your goal. If they don’t, trust their expertise, and save yourself (and your donors) and immense amount of time and money. Think very carefully about the fact that smart people have rejected this plan before considering next steps in terms of moving ahead.

Already have a small NGO? Asking a larger NGO to take over your operations may be the smartest, most strategic decision you make to achieve your organization’s goals.

Questions? Contact me for a free initial consultation. With a standard or custom package, I will work through your plans with you, to help you find a path that is truly sustainable, and will help you achieve your goals. I look forward to working with you! 🙂