Ensuring a transparent, effective
and efficient governance system is
at the core of Diya’s philosophy. It
serves to protect and strengthen the
confidence that our donors have in
Diya’s services since its inception
in 1988. We believe that there is a
tremendous spirit of donating for
educational purposes amongst our
people, specially once they are
convinced that their money is being
used for the right purpose and is in
fact reaching the deserving
beneficiaries.
In order to ensure that we deliver
to the expectations of our patrons,
donors and supporters – who come
from Pakistan, Middle East, Europe,
Canada and the USA – Diya’s
governance framework is structured
as follows:
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1) Formal legal
structure.
Diya Pakistan (formerly
Kaneez Fatima Welfare Foundation)
was officially registered in
Pakistan under the Voluntary Social
Welfare Agencies (Registration and
Control) Ordinance, 1961, on 19
April 1992 (registration number DDSW
(BD) 92-206). With effect from 2
October 2007, the activities are
being carried out in the name of
Diya Pakistan.
2) Board of trustees and the
management team.
A formal
organization structure and charter
define the roles and
responsibilities of the trustees and
the management team. All key
decisions are made through a
consultative approach. The
organization is supported by
volunteer teams from several
different countries.
3) Recognized as a tax exempt
organization.
In 2009, Diya applied
for and received tax-exempt status
from the government authorities,
which means that our donors are
entitled to tax credit in Pakistan
on all donations made through
crossed cheques.
4) Annual audit by internationally
renowned accounting firm.
KPMG
Pakistan are the external auditors
since 2008. Prior to that, annual
audit was performed by Ernst and
Young Pakistan. The annual audit
provides an independent opinion on
the state of financial affairs of Diya, which is a source of great
comfort for our local and
international supporters.
5) Documented operational policies.
Diya has documented policies for all
key aspects of its operations,
including scholarship award
criteria, fund administration, fund
disbursement and financial reporting
and disclosures. The objective is to
institutionalize the working of the
organization so that it continues to
function in a transparent and
methodical way.
6) Beneficiary feedback and
evaluation system.
Starting in 2010, Diya has initiated an annual survey
program to assess the impact being
made by our donors’ funds. The
feedback received from students is
then applied towards improving the
scholarship program with the
objective of maximizing the impact.
The survey results are also shared
with the donor community to keep
them fully informed of the
performance of the organization.
7) Co sponsorship policy reduces
moral hazard.
As a policy, Diya
endeavors to reach out to a larger
student base and has consciously
kept the scholarship size per
beneficiary to a relatively modest
amount. This policy encourages the
beneficiaries to meet part of their
expenses through their own financial
means while supplementing any
shortfall through Diya scholarship.
8) Receipts issued to all donors.
All donors are issued an
acknowledgement receipt directly by
our finance function that works
independently of the fund raising
team. This segregation of roles
further helps in strengthening the
internal control system.
9) Open and transparent working.
Diya is very keen for its donors and
supporters to visit its offices in
Rawalpindi and see first-hand the
professional and transparent working
of the organization. The board and
the management also actively
encourage field visits by our donors
to visit beneficiary students and
are available to facilitate this
interaction.
10) Commitment backed by
professional execution.
Diya’s
trustees fully acknowledge that
sincere intentions must be supported
by, a) committed leadership, and b)
professional implementation, in
order to achieve the desired
results. The same is reflected in
certain key administrative initiatives
specially the expense management
policy and Diya Stability Facility.
The general and overhead expenses of
Diya are maintained at a minimum,
and since 2010, are fully funded
from contributions by founder
trustees. This means that 100% of
your donations directly reach the
end beneficiary, without any
deductions.
In 2012, the board of trustees approved
establishing a Diya Stability Facility
to be used in emergencies and in the event
if donations in a year are not sufficient
to meet the current requirements of the year.
This facility ensures that Diya is able to
honor its commitment to its beneficiary
students in all circumstances.
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