Frequently Asked Questions (FAQs)

Q. Is the rating model able to distinguish between underdeveloped NGOs and highly developed NGOs? The first group of NGOs has no procedures, policies, clear plans, while the second group is very business-like and very effective.

 The Fundamental Analysis questions including the organizational history and the organizational management questions and the documentation requirements, should allow Foreignaid Ratings’ evaluators to easily distinguish between NGO start-ups and well-established organizations.

Q. Is it possible to measure impact without doing an expensive (money, time, experts, etc.) survey of the target community?

It is possible, but it is not easy. Foreignaid Ratings does not want to re-create the wheel. We rely on recent program evaluations, references, and random sampling of community members to achieve a holistic evaluation of an organization’s impact. Our multi-pronged approach allows us to identify social impact without administering a detailed survey of the target community.

Q. In terms of impact assessment, some less developed NGOs with less impressive achievements are much more important players in their (usually small and underdeveloped) communities than some very good NGOs, which operate in big towns, within a quite well developed social environment. Do Foreignaid Ratings do justice to the smaller community-based organizations?

 Foreignaid Ratings evaluates Community Based Organizations (CBOs) using a different set of criteria. This criteria highlights a CBO’s ability to address its target community’s needs. In short, this criteria attempts to apply target community’s values to rate the organization in question.

Q. We “experts” may think that an NGO should do something (improve internal policy, attract more funds, become more effective) but its constituency (members and beneficiaries) may like the NGO just the way it is--a friendly local institution, which is quite different from a "business-like model NGO."
                Even if we think that certain program (when we assess impact) may be improved, the constituency may think that "we want it just like that." This begs the question: What the NGO should be like? Leading its constituency (and be less dependent on it) or following the constituency (and not being "progressive”)?
                The bottom line: certain factors in evaluation/assessment deal with values and beliefs that differ. There are different ways of being a good NGO (like there are at least 7 types of capitalism and there are at least 9 types of strategic planning). How does Foreignaid Ratings grapple with the differing values of stakeholders?

Foreignaid Ratings are administered from the point of view of the target community. Whenever possible, the value system and needs of the target community are used to ask questions and to process information provided by the NGO in question. Also, of course, the values of the larger community-nation are taken into account. Through our local Country Review Panels, we do our best avoid blindly applying Western values to non-Western problems.

Q. How does the rating model compare NGOs in completely different social sectors (e.g. education, health, advocacy)?

Foreignaid Ratings use different sets of criteria/questions for different social sectors. An organization educating high school dropouts is not be asked the same questions as an organization with mobile health clinics. The final rating grade, however, is comparable in a general sense. A rating of AAA, for example, indicates that the organization in question is very well equipped to fulfill its social mandate. A rating of BBB on the other hand indicates that an organization has an adequate ability to fulfill is social objectives, whether it is an education NGO or health NGO.

Q. How does the rating model avoid discriminating against organizations that do not have the funding to have a big impact; if these organizations receive low ratings, they will receive less funding, resulting in a downward spiral (e.g. the chicken-and-the-egg problem)?

The rating grade reflects the organization’s SROI (Social Return on Investment). This ratio measures not only social impact, but social impact per unit of funding. So, smaller organizations are not be discriminated against. The rating model, to the extent that it depends on references and partnerships with international organizations, does run the risk of rewarding more popular NGOs more highly. This risk is mitigated by collecting more detailed program-level information from less well-known NGOs.
 

Q. Are there fees associated with getting a ForeignAid Rating and Certification?

There are fees associated with getting a ForeignAid Rating and Certification. These fees, which vary from organization to organization, include the costs of the on-site and off-site assessment and interview process. Please contact your Rating Advisor for more details, or complete the Rating Request Form to get a quote.
 

Q. Do you rate Micro Finance Institutions (MFI’s)?

Yes, we do rate MFIs according to: (1) the social and economic value that they create for their beneficiaries, and (2) their credit worthiness which directly impacts their financial sustainability.