Encouraging greater transparency, visibility, and credibility of Guatemala’s non-profit sector

Cover photo by Robin Canfield

By Harriette Rothwell, Founder and Executive Director, Pionero Philanthropy.

5 years ago, and after almost 20 years working for various non-profits in developing countries, I was still driven by a strong passion for the sector as well as an equally strong sense of disillusionment with it. I met a lot of well-meaning donors who made poor giving decisions and supported well-known organisations rather than taking the time to investigate and find community-based organisations that had a greater impact. I had worked for various good, bad, and ugly non-profits of all shapes and sizes. 

My goal after these experiences was to ensure that enough reliable information was accessible so that more support went to the “good” non-profits over the rest.

When I founded Pionero Philanthropy in 2018, my (somewhat naïve) idea was to evaluate and identify the lesser-known, grassroots, and highly effective non-profits in Guatemala. Then, I would extol their virtues to any interested information seekers. Simple right? 

Not quite.

Soon after starting the organisation, I found that the issue wasn’t simply that donors are careless in their giving choices or that more financially secure non-profits are destroying smaller non-profits through bigger marketing budgets. I realised that even with all the will in the world, it was extremely difficult to conduct due diligence on Guatemalan non-profits. 

This was because there is a sheer lack of basic, unbiased, and centralised information about the non-profit landscape in Guatemala to start with.

As a result, Pionero Philanthropy developed into more than just an “on the ground” intermediary. It is now the foremost authority on the non-profit sector in Guatemala boasting the biggest database on the Guatemala non-profit sector. 

Through our data, consultancy and non-profit assessment services, we aim to provide greater credibility, visibility and transparency to the non-profit sector in Guatemala. More importantly, we champion organisations that are doing outstanding work in their communities and spotlight those who are making continuous progress.

The need for reliable data on the Guatemalan non-profit sector

There are 3 key reasons why Guatemala’s non-profit sector needs more reliable data:

1. A high number of non-profits 

There are over 15,000 registered civil associations, NGOs and foundations in a country of 17 million people. Getting information from the Guatemalan government is a struggle, to say the least, involving a lot of correspondence and patience. With such overwhelming numbers and no comprehensive website/s to find key information, it is frustrating and disheartening for those seeking to support more grassroots organisations. 

2. Information on non-profits is nonexistent, scattered, or disorganised

Despite the high number of non-profit organisations, public information on them is very sparse. For example, the government only provides the name, date registered and geographic area where the organisation is located. Unlike in other countries such as the UK and the US, information on finances, impact and other useful data is severely lacking. This low transparency doesn’t inspire confidence.

Moreover, 70% of registered organisations don’t have any web presence. This makes it almost impossible to know whether the organisation is active even for people in Guatemala.

3. Great internal distrust of the sector 

Non-profits in Guatemala have a very poor reputation. There are a few reasons for this; Firstly, some non-governmental organisations form specifically for unethical purposes. They exist solely to steal government funds, launder money from drug trafficking, and/or engage in other criminal activities. This has significantly weakened the name and stature of non-profits in the eyes of Guatemalans, leading to a lack of trust and public philanthropic giving to these entities. Guatemalans prefer to donate through Catholic or evangelical churches in the form of tithes and offerings. However, Guatemala has recently seen an increase in corruption within the religious sector.

In contrast to these organisations, families with high social prestige and economic power established large foundations in Guatemala City. These foundations collaborate with large national corporations to create projects that benefit groups close to their hearts, such as workers and municipalities in which they have connections. These efforts generally exclude a large proportion of Guatemalans in need of financial assistance, particularly the indigenous population.

Because of this fear of corruption, the non-profit sector receives the majority of its funding from donations made in the United States. Organisations rely heavily on U.S. fiscal sponsors and/or philanthropy consultancy services to benefit from the philanthropic culture that exists in the United States and further afield.

How Pionero Philanthropy is Addressing the Issues

Pionero Philanthropy is tackling the lack of transparency and reliable non-profit data through its 4 broad areas of work:

1. Data:

Using local data assistants, we collect, update and organise information about Guatemala’s non-profit ecosystem on the ground. Data is accessible online for free and with various data purchasing options.

2. Non-profit evaluations 

We have a culturally adapted methodology based on 50 non-profit management best practices. These standards inform a bilingual, online evaluation system. Non-profits deemed “eligible” can undergo our non-profit evaluation/membership process. We currently have 43 member non-profits that have been evaluated. Once the evaluation process is complete, reports are automatically generated and awards and Seals of Excellence are granted.

3. Consultancy

We have a culturally adapted methodology based on 50 non-profit management best practices. These standards inform a bilingual, online evaluation system. Non-profits deemed “eligible” can undergo our non-profit evaluation/membership process. We currently have 43 member non-profits that have been evaluated. Once the evaluation process is complete, reports are automatically generated and awards and Seals of Excellence are granted.

4. Research and collaborations

We provide bespoke consulting services using our data and on-the-ground expertise to guide clients to make the most informed funding and programming decisions.

To bring our data and expertise to life, Pionero Philanthropy always seeks collaboration opportunities with universities and other networks. We believe that working with complementary entities helps to provide further insights and continues increasing the transparency, credibility and visibility of the Guatemalan non-profit sector. One example of this work includes the exciting collaboration with WINGS in The Mapping of the Philanthropy Ecosystem in Central America commencing in April 2023. 

We believe that by providing reliable data and on-the-ground expertise regarding the Guatemalan non-profit sector, the philanthropy infrastructure will be strengthened internally and internationally. By providing more visibility, transparency, and credibility to the Guatemalan non-profit sector (with a spotlight on localised, grassroots organisations), we aim to open doors for Guatemalan non-profits so they can have a greater impact in their communities  As a result, we hope to reinsert trust and confidence in the sector so philanthropists, information seekers and others can make the most informed decisions regarding how they want to support the development and prosperity of Guatemala.


 

Harriette Rothwell, Founder and Executive Director, Pionero Philanthropy.

 

 

Harriette is the Founder and Executive Director of Pionero Philanthropy based in Guatemala. Pionero Philanthropy boasts the world’s largest database of Guatemalan nonprofits and offers a range of services from “matchmaking” to organizations, to hands-on assistance with project implementation and nonprofit evaluations.

Harriette has almost 20 years of experience in project and donor management for the non-profit sector in Latin America. She holds an MSc in NGOs and Development from the London School of Economics where she won the Loch Exhibition Prize for Achievement.


To get first access to our blogs every month, subscribe to our newsletter here.

Press ESC to close