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NGO Grading : Overview

Brickwork Ratings (BWR) grades Non-Governmental Organizations (NGOs) which plays a significant role in the economy and Social welfare of a Country without being a part of the Government or a conventional for-profit business. The Governments at local, regional, national and international levels often formulate schemes in this regard but at times implementation at the ground level becomes a challenge and the benefits don’t reach the beneficiary or takes time to trickle down. NGOs make the difference through adequate intervention where possible.

India has over 3 million NGOs at the last count. There are different types of NGOs, supported by governments, foundations, businesses, or private persons, engaged in various activities like upliftment of the under-privilege, women and Child Welfare, implementation of various nutrition and health programs, preservation of art, music and culture, encouraging financial literacy, environmental protection, human rights, social justice, and many more.

NGOs are regulated by multiple laws and authorities but the disclosures of some of these organizations are not adequate and are often questioned by the stake holders. The grading assigned by BWR to NGOs provides an assessment of these organizations in terms of its qualitative performance, disclosures and ability to achieve its cause.

Benefits of NGO grading

  • Improved visibility among counterparties, business associates and other players in the sector.
  • Improved availability of credit at better terms and conditions.
  • Strengthen process orientation in operations which will be beneficial from the point of view of a move towards scalability sustainability.
  • Dissemination of information between different NGOs which helps in continuous improvement by imbibing the learning from each other’s’ mistakes.
  • Reflection of transparency and integrity to supporting partners and business associates.
  • Information sharing will help in developing policy guidelines for different institutions and establishing standards in the sector.