Pakistan Centre for Philanthropy 31-12-2009 Pakistan Centre for Philanthropy 1A, St.14, F-8/3, Islamabad Tel. (9251) 2855903-4, 2287077-37 Fax. (9251) 2855073 Annual Report [email protected], www.pcp.org.pk 2009 Our Board Dr. Shamsh Kassim-Lakha, H.I., S.I. Chairman, PCP Board of Directors, Former President, Aga Khan University, Karachi Civil Society Organisations Mr. Badaruddin F. Vellani Chairman, AKF National Committee Mr. Firoz Rasul President, Aga Khan University Mr. Shoaib Sultan Khan Chairman, National Rural Support Programme Syed Asaad Ayub Ahmed CEO, The Citizens Foundation Dr. Suleman Sheikh Chairman, Sindh Graduates Association Eminent Citizens Mr. Arshad Zuberi Chief Executive and Editor, Daily Business Recorder Dr. Attiya Inayatullah Member, National Assembly of Pakistan Mrs. Munawar Humayun Khan Chairperson, Sarhad Rural Support Programme Mr. Mueen Afzal, H.I. Former Secretary General, Finance & Economic Affairs. Mr. Mahomed J. Jaffer Senior Partner, M/S ORR, DIGNAM & Co., Mrs. Roshan Khursheed Bharucha Ex-Minister/Social Worker PCP reserves all rights of ownership of this document. Mr. Saeed Ahmed Qureshi Former Deputy Chairman, Planning Commission Mr. Zaffar A. Khan, S.I. Former CEO Engro Chemicals and Former Chairman PIA, PTCL, KSE Syed Hyder Ali Managing Director and CEO, Packages Limited Mr. Mohsin Nathani Country Head and Manging Director Barclays Bank PLC Printed by: Colorline-Islamabad Corporations Mr. Arif Habib President, Arif Habib Securities Limited, Karachi Cover desktop composition and production management: Aleeza Akbar Mr. Hussain Dawood Chairman Board Engro Pakistan Centre for Philanthropy, Islamabad Mian Ahsan M. Saleem Chief Executive, Crescent Steel & Allied Products Published in March 2010. Mr. Towfiq H. Chinoy Chairman, New Jubilee Insurance Company, Karachi Mr. Zaiviji Ismail Chairman & MD, Shell Companies in Pakistan The Centre is led by Ms. Anjum R. Haque Ex-Officio Board Member PCP Board Committees Directors Report 2009 Pakistan Centre for Philanthropy The Board of Directors Pakistan Centre for Philanthropy (PCP) is pleased to present its report together with the audited financial statements for 2009. Within nine years of its establishment, the PCP has created a niche for itself as the lead organisation for promotion of philanthropy in the country. In addition to being a dialogue partner of social development networks in the country and the Mr. Zaffar A. Khan Government of Pakistan, PCP now engages in regional and global activities with like-minded organisations and individuals to share, learn, explore and strengthen the promotion of philanthropy. While it has been a long journey since 2001, the past year has been one in which the Centre has not only been able to achieve a significant increase in the number of Certified Not for Profit Organisations (CNPOs) but has also been able to effectively link donors with these CNPOs. It has moved forward in mobilising national and international philanthropy and strengthening its linkages. The Centre has worked with international organisations like the Foundation Open Society, FOSI (Soros Foundation), the Mr. Zaffar A. Khan World Bank, the Italian Debt Swap and others to mobilise funds especially in support of the CNPOs. At the national level it has partnered the government and the corporate sector to generate both cash and kind contributions. We are pleased to note that this year the number of NPOs seeking certification has increased from 47 to 64 which resulted from greater efforts to familiarise potential NGOs about the benefits and procedures for certification. For example, a National NGO Seminar was organised in December 2009 to provide an interactive platform to stakeholders in Government, Donors, NGOs/INGOs, Corporations and certified NPOs. Over 350 participants representing all stakeholders interacted with some 40 certified NPOs which set up organisational stalls to highlight their achievements. The event provided an opportunity to launch the second edition of the Gateway to Giving (G2G), a directory cataloguing the profiles of 131 certified NPOs. It is a matter of pride for the organisation to report that corporate entities are increasingly putting their weight behind PCPs certification regime. This is demonstrated by the fact that ICI Pakistan has made it mandatory for NPOs receiving funds from their CSR component to be certified by PCP. Such a step has also been taken by Lever Brothers. Amongst the donors, the Italian Debt Swap and the German Embassy have done the same. In a similar vein, the Federal Board of Revenue (FBR) of the Government of Pakistan and the Economic Affairs Division continue to encourage organisations in the not for profit sector to seek PCP certification which has become synonymous with credibility and effectiveness. The FBR has now recommended that NPOs granted tax exemptions by the FBR have to be certified by PCP at the time of renewal after three years. It is heartening to recall that PCP is now gaining increasing recognition internationally. Its participation in the Second World Congress of Muslim Philanthropists in Abu Dhabi in March 2009, through its Chairman, helped project the Centre at a global level and place it within the perspective of Muslim philanthropy. The Executive Director of PCP, Dr. Anjum R. Haque participated in a Peer Learning event of the Asia Pacific Philanthropy Consortium held in collaboration with WINGS, World Wide Initiatives for Grant Maker Support. PCP was able to contribute to the development of projects in the region on the basis of its experience. Recognizing the rich experience of the Centre and its staff, the Executive Director was selected as a director of the Asia Pacific Philanthropy Consortium (APPC) in June of 2009. Subsequently, the Centre was able to secure a competitive grant from the APPC to conduct a study on 'Sustaining Diaspora Philanthropy Efforts for the Development of Mr. Zaffar A. Khan Communities of Origin in Asia'. In October 2009, a four member delegation from the Civil Society Programme of the Aga Khan Foundation – Tajikistan visited PCP, with the objective to replicate the model for Tajik NPOs. Similarly in November last, a staff member and an FBR Khan Development Network – Civil Society Programme) only 87% (Rs. 44.16m) of the approved budget was utilized during (Federal Board of Revenue) representative attended a six-day study tour in Manila arranged by the Aga Khan Foundation, 2009. In addition to the valuable support of its Pakistani individual and corporate donors, the Board also deeply Geneva to develop an understanding of the NPO sector in the Philippine's and to learn about the legal and policy appreciates the continued financial support extended to PCP by the Federal Ministry for Social Welfare and Special environment for NPOs there. Education, the AKDN, the World Bank and the Punjab Government. Encouraged by the external evaluation of PCP last year, the Board held its first retreat in February providing an opportunity In 2009 the endowment fund of the Centre increased to PKR. 48.58 Million which is many times over the figure for the for it and the management to deliberated on all aspects of the organisation's objectives. The retreat analysed the previous year. In addition to the Rs. 20.0 million grant received from the Government of Pakistan towards the endowment organisation's performance and discussed the way ahead for PCPs programmes in the light of past and current trends in the fund, Mr. Shaukat Tarin the former Advisor to the Prime Minister on Finance, Revenue, Economic Affairs and Statistics, also context of social sector development in Pakistan. The Board has since constituted a committee of its members to translate the pledged an additional Rs. 20 Million for the same. The Centre acknowledges the generosity and continuous support of its recommendations emanating from the retreat into broad policy actions. One of the major results has been the initiation of contributors. It is the belief and commitment of PCP's contributors in the value of the organisation's work that has sustained the process to review the governance structure of the PCP. The Board has decided to widen the reach of the Centre to the PCP for the last so many years. This has provided confidence and courage to the PCP staff to carry the vision and mission of larger philanthropic community through the creation of a Philanthropic Network and an Advisory Council. The final the Centre forward. outcome of these deliberations will manifest itself in 2010. The Centre is proud to announce the induction of two new distinguished members on our Board – Syed Hyder Ali, Managing Communication and advocacy is an integral part of the Centre's work which aims to raise the profile of philanthropy and Director and CEO Packages Pvt. Ltd and Mr. Mohsin Nathani, Country Head and Managing Director Barclays Bank Plc. increase understanding about its trends in Pakistan. Advocacy efforts in 2009 resulted in the Securities and Exchange PCP is fortunate to have them on its Board. Commission of Pakistan promulgating the Companies (Corporate Social Responsibility) General Order, 2009, which prescribed descriptive and monetary disclosures of Corporate Social Responsibility activities undertaken by listed and Finally, the Board deeply appreciates the continued encouragement and support of the government, civil society unlisted companies through their Directors' Report to the shareholders, annexed to the annual audited accounts. To facilitate organisations and the business community and looks forward to their valued advice and input as PCP looks to the future. data collection and understand trends in corporate philanthropy, PCP had been lobbying with the government since 2005 to seek more information on the voluntary giving of companies and to make it mandatory on companies to disclose their philanthropic contributions in their annual reports. In keeping with its annual calendar, PCP launched its 3rd Corporate Philanthropy Report (Survey of Public listed companies 2007) last April in Karachi. Emanating from this survey, the Pakistan Corporate Philanthropy Awards were distributed Dr.