An NGO’s mission is its raison d’etre — the reason or purpose why the NGO exists and what it hopes to accomplish. NGOs have an obligation to clearly identify and articulate their mission.
This well-defined mission should serve as the foundation and frame of reference for all activities and organizational planning of the NGO. An NGO has an obligation to utilize its resources in an effective and efficient manner toward accomplishment of its stated purpose.

A. Mission

1 . Formal statement. An NGO should formally and succinctly state its mission in a written statement approved by the governing body of the NGO. This statement should clearly set forth why the NGO exists and what it hopes to accomplish.

2. Board of directors. Each member of the board of directors should fully understand and support the mission of the organization.

3. Public availability. The mission statement of an NGO should be made available to all officers, members, staff, partners, donors, program beneficiaries, and the public in general.

4. Evaluation. The mission of the NGO should be reviewed periodically (every two or three years) to determine if it is still relevant. Among issues to evaluate:

(a) whether the mission has been fulfilled, either by the organization or another entity, and
thus whether there is a need for the organization as currently constituted to continue to exist;

(b) whether the mission should be revised to reflect societal changes; or

(c) whether there is a desire for the organization to address new needs which might require
a new mission statement.

B. Activities

1. Consistent with mission. Activities should be consistent with an NGO’s mission. An NGO’s mission should serve as the foundation for strategic planning and as the blueprint for the organization’s activities. An NGO’s focus should be directed toward making sure that its goals are met.

2. Effective and Efficient. The programs of an NGO should effectively and efficiently work
toward achieving its stated mission.

3. Feedback. An NGO should regularly seek feedback on its activities from project beneficiaries, as well as other stakeholders.

4. Evaluation. The activities of an NGO should be critically examined periodically to determine their relevancy to the mission, their efficiency and effectiveness, the value of continuing the programs or revising them, and the need for new programs.

Among issues to evaluate:

(1) whether the activities are consistent with the current mission of the organization or whether they need to be revised or discontinued in light of changes in the mission;

(2) the efficiency and effectiveness of the programs in achieving the NGO’s objectives;

(3) the outcomes for the program beneficiaries;

(4) the cost of the program relative to its outcomes; and

(5) whether new services should be offered.

Evaluations should be open and honest and include input from stakeholders.

5. Professionalism. An NGO should carry out its activities with professionalism and centered
on the concept of serving others.

6. Percentage of expenditures. An NGO should spend at least 65% of its total expenditures
(including fundraising costs) on program activities, and ideally more than 80%. An organization that does not meet this 65% standard should provide reasons why its higher overhead and fundraising expenditures are reasonable. Possible explanations for not meeting this standard could be the higher administrative and fundraising costs of a new organization and exceptions related to donor restrictions or unusual political and social factors.