Running a non-profit organisation in Bermuda is becoming more and more like running a competitive business. And that is a good thing.

Bermuda has over 400 charities all supported by public, private and individual donors and many of those donors have become increasingly discerning about their investment into the community. They want to understand the mission, structure and success rate of a charity to ensure that they are placing their funds wisely.

In response to this shift the Bermuda National Standards Committee (BNSC) was formed in 2005 as a public-private partnership charged with promoting accountability and accreditation.

"About ten years ago it became apparent that the donor community was getting tired of 400 charities calling them, and they started talking about only giving to 'accredited' organisations," recalls Peter Carey, the director of Development and Community Education at the Family Centre and the manager of the BNSC. "The problem was that no one was accredited."

The Family Centre was however in the process of gaining accreditation and their experience paved the way for the wider non-profit community.

As far back as 1995 the Family Centre recognised the need for independent validation of their process. As providers of human services where they are intervening in people's lives, they felt the need to allay any concerns of their donors and to ensure they were following best practices across the organisation.

This journey led to them gaining accreditation from the Council on Accreditation (COA) in New York, through a precedent setting Memorandum of Understanding — it was the first time an organisation outside the US had earned this COA recognition.

The process, while gruelling and time consuming, also strengthened the structure of the Family Centre and improved their relationships with donors, something they recognised would have value for other charities in Bermuda.

"We needed some validation that where we were going wasn't just our opinion," says Mr. Carey of the accreditation process. "It ends up being about building better partnerships, whether it's with donors, peers or other organisations, so you can get to a more neutral place where you can show you are doing something legitimate and it's effective.

"It's certainly not a 'magic bullet' for funding but it makes it easier to work with other people."

The BNSC was formed with representatives from the Donor Forum (a group of about 30 leading donor organisations), Government policymakers and Social Services departments, the Family Centre and the Centre on Philanthropy.

The accreditation process, which should take about a year to complete, is applicable to both public and private organisations that provide human services with an intervention component. It involves a rigorous Self Study followed by a Peer Evaluation from two COA appointed organisations that provide similar services. So far seven leading human service organisations in Bermuda have gained BNSC accreditation with others also working toward that standard.

"When your job is to intervene in the lives of people when they are most vulnerable then you ought to be able to show that your staff and organisation are sound," says Mr. Carey of the need for such a rigorous evaluation. "This may be the only chance someone has to get help before their family spirals into chaos for generations, and that's what really happens."

Of course not all charities provide human services and therefore are not eligible for accreditation. However many of them would undoubtedly benefit from a similar process of examination and validation.

To address this gap the BNSC, in 2006, published a set of standards for the certification of any Bermuda charity. Those standards were gleaned from various international organisations and input from relevant stakeholders and leaders. And while the certification process is less demanding than accreditation, it still covers the critical areas of Governance, Financial Management, Ethical Practice, and Performance Improvement.

"There are other types of charities that can't be accredited but they are still really important to the community," explains Mr. Carey. "Many of these are providing enrichment programmes that do not have an intervention component and by all means we want to support those programmes to have access to funding, be legitimised and to feel that they can validate to their donors that they are operating at best practice."

While accreditation is an internationally recognised standard, BNSC certification is a Bermuda certification. However gaining either standard remains a voluntary exercise.

"The BNSC cannot say here is a model and everyone must meet it, because frankly there are other accreditation models in the world," notes Mr. Carey. "Instead we are saying here is a model that Government and the private sector have funded so that it is affordable and available to Bermuda."

To mandate such a standard might in fact cause more problems than it prevents says Mr. Carey, because such a stand may stop some important services from functioning legitimately.

"Bermuda is not ready for that today so we at BNSC have not pushed for it."

In addition to providing funding the BNSC have also worked to simplify the process of certification.

One of the organisations to become certified was Raleigh International with Michael Spurling spearheading the move. Through his experiences with the process he felt it could be improved.

"After successfully getting Raleigh certified, he (Mr. Spurling) offered to help us improve the certification standards," recalls Mr. Carey. "So he has drafted and redrafted a workbook that guides you through the process of getting certified. Starting with whether or not you really want, or need, to get certified.

"It's like a journey and he has done an absolutely fantastic job and should be applauded."

Completing the workbook leads, essentially, to certification, through which any charity in Bermuda will have taken a look at its procedures, been advised on meeting best practices and ultimately improved its ability to serve its mission and raise funds. The workbook is presently under final review with feedback from both local and international organisations. BNSC plans to publish it in time for the 2011 certification period.