BRAC in Pakistan awarded PCP certification

BRAC in Pakistan awarded PCP certification

BRAC in Pakistan has been awarded the Pakistan Centre for Philanthropy (PCP) certification for complying with the desired applicable requirements, and meeting certification standards in areas of internal governance, financial management and programme delivery. The award ceremony was held at the PCP office in Islamabad on 28 February 2018,  where various other non-profit organisations (NPOs) were also present.

BRAC in Pakistan’s country communications manager, Zilay Huma received the award on behalf of BRAC in Pakistan from Shazia Maqsood Amjad, the executive director of PCP.

BRAC in Pakistan scored a total of 943 out of 1000 in PCP certification standards, with 89% in internal governance, 96% in financial management, and 96% in programme delivery. The overall score was 94%.

PCP is a designated certification agency by the Federal Board of Revenue (FBR), Government of Pakistan. In accordance with section 2(36) of Income Tax Ordinance, 2001, NPOs working in Pakistan are required to seek approval of Commissioner Inland Revenue (CIR) to be recognised as not for profit. After approval, NPOs can avail other tax benefits including tax credit and exemption. PCP conducts performance evaluations of NPOs on behalf of FBR as part of the procedural requirement as envisaged and provided in Income Tax Rules 2002. After a careful evaluation on performances, PCP certifies that NPOs meet with the desired requirements of certification standards (notified by FBR) in the areas of internal governance, financial management and programme delivery.

BRAC in Pakistan’s performance was assessed against these three broad sets of parameters. Assessment process entailed literature review of submitted documents, field evaluation, consultation meetings and formal and informal interviews with management, programme staff and clients. BRAC applied for PCP certification in March 2017. The case of BRAC in Pakistan was presented before the certification panel in its 72nd panel meeting held on 20 February 2018.

Certification of BRAC in Pakistan is valid for three years from the time of issue and PCP will be approached for renewal of certification at the culmination of this period. Charities and “Not for Profits” seek this certification to boost trust and credibility of their organisations and show that they have sound structures and systems to deliver services effectively and efficiently. Recommendations made by PCP will help BRAC in Pakistan to identify and reduce organisational risks and improve internal governance practices.