Aligning Stakeholder Interests in NGO Transformations: Emerging Good Practices
By Council of Microfinance Equity Funds - Published: 2011
As microfinance NGOs transition into regulated financial institutions, many challenges can arise. Stakeholder interests must be aligned and oriented in a way that supports these organizations during this process. This paper puts forth a collection of emerging good practices that can aid the process of aligning interests during the transformation process.
The report describes some of the conflicts that may occur during the alignment process, including clashes between non-profit and for-profit structures and ways to motivate staff and investors. Examples are given of areas where these challenges have been met. Finally, the paper outlines good practices including equity participation, packages for exiting managers, and aligning interests for NGO Board Directors.
