PCP reserves all rights of ownership of this document. Printed By: Colorline-Islamabad

PCP reserves all rights of ownership of this document. Printed By: Colorline-Islamabad Cover desktop composition and product management: M. Mansoor Sarwar, Senior Programme Officer Pakistan Centre for Philanthropy, Islamabad Published in April 2014

Table of Contents Company Profile A Message from the Chairman 01 04 Director's Report 06 Our Vision Mission and Goals 10 PCP s Research Portfolio 12 Philanthropy Support Services 15 CSOs Certification Programme 20 Board Meetings 26 Picture Gallery 28 Our People 30 Financial statements 32

Board of Directors Dr. Shamsh Kassim-Lakha, H.I., S.I. Chairperson, PCP Board of Directors; Ex-President and CEO, Aga Khan University. Mr. Mueen Afzal, H.I. Former Secretary General, Finance & Economic Affairs, Government of Pakistan. Syed Hyder Ali Managing Director and CEO, Packages Limited. Mr. Arif Habib President, Arif Habib Securities Limited. Dr. Attiya Inayatullah Former Federal Minister for Women Development, Special Education, Social Welfare and Population Welfare. Company Profile Mr. Zaffar A. Khan S.I. Vice-Chairperson, PCP Board of Directors; Ex-Chairman, Engro Chemical; Ex-Chairman, KSE; Ex-Chairman, PIA. Dr. Sohail H. Naqvi Vice Chancellor, Lahore University of Management Sciences. Dr. Sania Nishtar S.I., FRCS, PhD, President Heartfile. Mr. Mohsin Nathani Chief Executive, Standard Chartered Bank. Mr. Saeed Ahmed Qureshi Former Deputy Chairman, Planning Commission. Mr. Firoz Rasul President, Aga Khan University. Mr. Ahsan M. Saleem Chief Executive, Crescent Steel & Allied Products. Mr. Omar Yaqoob Sheikh Chairman of the Board & Managing Director, Shell Pakistan Limited. Mr. Badaruddin F. Vellani Chairman of the Board, Aga Khan Foundation (Pakistan). Mr. Arshad Zuberi Chief Executive and Editor, Daily Business Recorder. The Centre is led by Mr. Tanwir Ali Agha, Executive Director. 01 02

PCP Board Committees Research Committee Mr. Zaffar A. Khan, Chairperson Mr. Mueen Afzal Dr. Sohail H. Naqvi Mr. Firoz Rasul Dr. Attiya Inayatullah Mr. Ahsan M. Saleem Dr. Sania Nishtar Budget, Finance and Investment Committee Dr. Shamsh Kassim-Lakha H.I., S.I., Chairman Mr. Saeed A. Qureshi Mr. Arif Habib Mr. Badaruddin Vellani Mr. Mohsin Nathani Audit Committee Mr. Saeed A. Qureshi, Chairman Mr. Firoz Rasul Syed Hyder Ali Mr. Omar Yaqoob Sheikh Certification Committee Mr. Mueen Afzal, Chairman Dr. Attiya Inayatullah Dr. Saniya Nishtar Dr. Sohail H. Naqvi Mr. Ahsan M. Saleem Ms. Roshan K. Bharucha (By Invitation) Governance and Nomination Committee Dr. Shamsh Kassim-Lakha H.I., S.I., Chairman Mr. Zaffar A. Khan Mr. Badaruddin Vellani Mr. Mueen Afzal Mr. Ahsan M. Saleem Resource Development & Communication Strategy Committee Mr. Ahsan M. Saleem, Chairperson Dr. Shamsh Kassim-Lakha Mr. Arif Habib Syed Hyder Ali Mr. Arshad Zuberi Mr. Zaffar A. Khan Mr. Arshad Zuberi Mr. Mohsin Nathani Mr. Omar Yaqoob Sheikh Mr. Anwar Rammal (By Invitation) *ED, is ex-officio member of Board Committees A Message from the Chairman 03 04

Coupled with regional and local political turmoil, Pakistan continued its economic down turn in 2012, pushing a growing number of the population below the poverty line and highlighting the importance of philanthropic giving. When the Pakistan Centre for Philanthropy (PCP) was established in 2001, two factors were seen as important imperatives by its founders. They were an enabling policy and administrative environment and a legal framework that facilitated citizen-led efforts to tap philanthropic resources. Eleven years later, it is gratifying for us at the PCP to note that despite the extremely challenging economic environment, there has over these years been an enormous increase in philanthropic giving by the generous Pakistani society. On the other hand, philanthropy still needs to be recognized by policy makers as a vast untapped resource for socio-economic development. The Centre therefore acknowledges the need for greater engagement with relevant decision makers on this subject. The key driving force for the impressive level of giving is the generosity that characterizes the Pakistani ethos. In the fight for alleviation of poverty, there are countless heroes. If the battle against deprivation and inequity is won, then victory in the war against terror will not be far off. It is important to understand the nexus between these two wars and how they reinforce each other. The importance of philanthropy and civil society becomes increasingly important given the Government's fiscal and institutional constraints, which are not likely to be reduced anytime soon. And this is what PCP is all about: strengthening partnerships between Government, grant makers and CSOs within an enabling environment, embedded in knowledge and trust. On behalf of the Board of Directors I acknowledge with gratitude, the generous financial support PCP has received from the Government, the corporate sector and individual contributors, as well as from all those donors who supported PCP's Research, Certification and Philanthropy Support Services programmes. I am particularly happy to acknowledge the Board's close involvement with the Centre's programmes and the insight and guidance provided through its specialized committees for enhanced performance. Considering the maturity of the Centre and the growing effectiveness of its programmes, the Board was restructured in conjunction with its current needs. Consequently, this year the size of the Board was reduced from 21 to 15 members. Concurrently, an Advisory Council of 20-30 distinguished civil society members, including the retiring Directors, will be operationalized in 2013 to advise and support the PCP in fulfilling its mission. I extend my appreciation to the Directors and especially the retiring members of the Board who have made such powerful contributions to the conceptualization of PCP and securing its institutional foundations. Finally, while the PCP continues to promote strategies to enhance the volume and effectiveness of giving it seeks sustained support of our well wishers for delivering on our mandate and contributing substantively to the philanthropy movement, providing relief and faith to the marginalized of our society. Dr. Shamsh Kassim-Lakha, H.I., S.I. Pakistan Centre for Philanthropy Directors Report 2013 05 06

The Board of Directors Pakistan Centre for Philanthropy (PCP) is pleased to present its report together with the audited financial statements for the year ending 2013. The PCP has now entered its thirteenth year of operations; PCP governance structure has served it well since its inception in 2001. Considering the maturity of the institution, the Board concluded that time was right for restructuring it in keeping with its current needs. The size of the Board was reduced from 21 to a more compact body of 15 members who could devote adequate time to the institution's policy making and oversight through its Committees. The 15 member compact Board has served the needs of the Centre well. The Board met regularly every quarter and provided guidance to the institution's policy making and oversight, directly and through its Committees. The Board wishes to place its deepest appreciation for the commitment and contribution of Dr. Adil Najam, who has stepped down from the PCP Board due to change in leadership at Lahore University of Management Science (LUMS). The Centre is pleased to announce the induction of Dr. Sohail H. Naqvi, Vice Chancellor LUMS, who has replaced Dr. Adil Najam on the Board. PCP is fortunate to have Dr. Naqvi on its Board. PCP, since its inception, has established a niche for itself, and earned the recognition of its many stakeholders. We continue to strive for deepening and broadening our work related to the enhancement and effectiveness of philanthropy in the social sectors. However, in pursuance of its unique mandate it faces many challenges; primarily, to upscale its impact through linkages with the principal stakeholders, philanthropists/grant makers, Government and civil society. Looking ahead, the Directors seek to enhance PCP's impact through the Philanthropy Networks consisting of philanthropists and civil society organizations. Our strategic objective in 2014 and for the next three years, is to facilitate a national partnership between all stakeholders, dedicated to social sector development and poverty alleviation through philanthropy. To facilitate and sustain this partnership, it is crucial that it be embedded in knowledge, trust and a conducive enabling environment. This is where our efforts and energies will be focused. Another key challenge is to ensure financial sustainability in a manner that is consistent with PCP's role as an independent support organization for its many stakeholders. In meeting these challenges and goals, the PCP adheres to its Second 5-Year Strategic Plan for 2012-2016, which serves as a road map for scaling up the Centre's activities to a higher level and advancing the founders vision of strategically channelizing philanthropy to supplement the Government's efforts for social development of the country. I am pleased to say that PCP has continued to play an important role as the lead support organization for the promotion and effectiveness of philanthropy and civil society for social development in Pakistan. This issue has become increasingly important given the magnitude of the social sector deficit and Government's fiscal and institutional constraints. Pakistan's continued low ranking on the HDI over the years, underlines the gravity of the situation and the urgency with which we must all act. Failure is not an option, for the stability of society itself is at stake. The silver lining is the generosity of the people of Pakistan, and that this generosity continues unabated, despite the challenging environment. The ingredients for such a partnership exist: a philanthropic society, a vast network of CSOs, the Government's and grant makers' acceptance of the role of civil society. In 2013 PCP was actively engaged with the government in the policy dialogue on regulations related to CSOs under the proposed Foreign Contribution Bill 2014 and other regulations. At their invitation, PCP worked closely with the Economic Affairs Division and the SECP in this regard. These engagements have enabled PCP to meet its important objective of helping to create an enabling, administrative and fiscal environment for philanthropists and civil society. This has been our constant theme in dialogues with government. It is also heartening that with every passing year PCP's role and its programmes of research, certification and philanthropy support services are being increasingly valued, at both the national and international levels. Certification continues to be the Centre's flagship programme, fostering an environment of trust and credibility. As of 31st December 2013, the number of certified organizations had increased to 306 from 236 in 2012. The number of applications and evaluations continue to grow. We expect around 150 organizations will be evaluated during 2014. Over the years, the Certification program has helped reduce the trust deficit between grant makers and grant seekers and in building institutional capacities of various CSOs. Evaluation is a growing need, and not just restricted to CSOs. Community Based Organizations (CBOs) / Local Support Organizations (LSOs), are playing an increasingly important role in community lead social sector development. PCP's existing certification model is not suited to CBOs and LSOs, given the nature of their activities and their governance and management structures. Since CBOs/LSOs have indicated their desire to be brought within an evaluation framework, in partnership with the AKRSP, PCP is developing an evaluation framework and tool that respond to their special needs. As with the regular certification program for CSOs, evaluation of LSOs will also be voluntary. With the change brought about in the Finance Act of 2013, universities and degree granting institutions, run by NPOs are also required to be evaluated and certified either by the PCP or the Income Tax authorities. The On the request of International Organization for Migration (IOM), PCP evaluated CSOs working in South Punjab, to assist IOM in selecting partners and also conducted capacity building sessions for the partner CSOs of IOM in specific themes. PCP will continue to support the strengthening of civil society through better governance, financial management and program delivery. We will work through CSO networks to reinforce the impact of PCP's work. In addition an Association of Certified CSOs will be setup. Research continues to be a priority for PCP. Our strategic objective is to use knowledge for creating awareness and providing basis for sound policies. The 2013 survey on Corporate Philanthropy in Pakistan re-enforces the existence of tremendous potential for philanthropic giving in the corporate sector of Pakistan. Giving by Public Listed Companies (PLCs) increased from PKR 3.8 billion in 2011 to PKR 4.1 billion in 2012, an 8% increase. Donations as percentage of Profit Before Tax (PBT) for 2012 have remained unchanged at 0.7%. Over the years, corporate philanthropy, reported by PLCs, has PCP is currently in the process of assessing the increased from PKR 228 million in 2000 to PKR 4.1 impact of this latest requirement. billion in 2012, an approximately eighteen-fold increase. PCP continues to actively explore all possible avenues to provide opportunities to certified CSOs to In 2013 for the first time, the survey included the exhibit their achievements and network with donors, philanthropic giving by a sample of Public Unlisted corporations, CSOs and government departments. Companies (PLCs). Reported giving was Rs. 549 To this end, PCP arranged an NGO Festival on 4th July million, 0.6% of Rs. 97 billion PBT. Considering that 2013. The event was sponsored by and held at the unlisted companies are not required to report their Attock Refinery Ltd. complex. It was well attended by giving, it is clear that the magnitude of philanthropic participants representing CSOs, corporations, activities is also under reported. In future we will donors and regulatory authorities. Dr. Werner E. refine our assessment of PULCs. PCP will continue to Liepach, Country Director Asian Development Bank provide knowledge as the basis for better policies was the Chief Guest on the occasion. PCP also plans and decision making, both by government and to regularly hold such event in future, initially at the corporate sector to enhance the volume and Provincial capitals across the country. effectiveness of corporate philanthropy. The launch of the 2013 survey and the corporate awards event is The National Council of Social Welfare (NCSW), being funded by the UNDP Pakistan. The Directors Islamabad observed an International Volunteer Day deeply appreciate this invaluable partnership. on 13th December 2013, where NCSW gave away award to the best social workers for rendering The Directors are pleased to note that the exceptional humanitarian services in Pakistan. On Government of Sindh commissioned PCP in 2012 to the recommendation of PCP, three of our certified undertake a study on Individual Indigenous organizations namely; Mountain & Glacier Philanthropy in Sindh under its Community Protection Organization, SAHIL and Human Development Programme. The Provincial Development Foundation also received awards. Government plans to utilize the findings of the study to optimize the individual philanthropic resource 07 08

pool for social development through appropriate For 2013, a budget of Rs. 86.52 million was approved evidence based policies. We will be launching the by the Board of which Rs. 21.97 million (25%) was for report during the first half of 2014. PCP has initiated core expenditure and Rs. 64.57 million (75%) for work on the study on Individual Indigenous programme activities. However, 82% (Rs. 70.97 Philanthropy in the other three provinces as a part of million) of the total approved budget was utilized the much awaited study on National Individual during 2013, mainly due to delayed initiation of the Indigenous Philanthropy in Pakistan. The Directors planned nationwide Individual Indigenous have raised more than 50% of the funds required for Philanthropy Study. The expenditure for 2013 was the study and will seek support for raising the financed through a mix of donor funding and remaining amount. The study is expected to be resources generated by the Centre itself. About 39% completed in 2014. The Directors deeply appreciate (Rs. 27.96 million) of the total expenditure was the generosity of the Pakistan's Corporate Sector in funded through donor financing under specific grant funding this study. PCP will continue to seek support agreements and the remaining 61% was funded from the private sector and elsewhere for other through self generated resources. research studies, as part of its endeavor to be a trusted knowledge bank. The budget for 2014 is Rs. 82.29 million, of which Rs. 25.24 million (31%) is for core expenditure and 57.05 In Philanthropy Support Services (PSS), the unit million (69%) is for programme activities. During the successfully attained all the targets under a grant year 2014, we will require to raise additional from the 'Ilm Ideas' Programme (DAI-Europe) under resources of Rs. 4.46million to support our existing UKaid funding to run a campaign to mobilize and programme activities and Rs. 7.41million for the facilitate corporate philanthropists for Government national study on Individual Indigenous schools in Sindh. PCP is in discussion with various Philanthropy. donors on up-scaling this Public Private Partnership model, not only for education, but in other areas such Finally, the Board expresses its gratitude for the as health, water and sanitation. Under a partnership continued support of the Federal and Provincial with the International Center for Non-Profit Law governments, civil society organizations, donors and (ICNL) a regular review of the legal environment the contributors as well as the Certification Panel, relating to the CSOs in Pakistan was conducted. PCP without which PCP could not have achieved its facilitated its certified organizations to secure progress in 2013. We look forward to this continued funding through the Global Giving and Give2Asia support. Appreciation is also extended to the platform. PCP will continue to support and promote management and staff of the PCP who continue to credible CSOs as reliable development partners. diligently carry forth the agenda of the Centre. Our Vision Mission and Goals As an essential component of its drive to achieve financial sustainability, the Directors continue to seek contributions to PCP's endowment fund. In 2013, PCP received a grant of Rs. 10 million from the Habib Bank Limited Foundation. The Endowment Fund is now Rs. 89.83 million, up from Rs. 79.83 million on the 31st December 2012 ( 2011: Rs. 59.83 m). Rs. 40 million was contributed by the Government and Rs. 49.83 million by the private sector. Under PCP's 5 year strategic plan, our target is to raise the endowment fund to Rs. 500 million. This is an ambitious target but essential for financial sustainability of the Centre's core activities. In addition the Directors raised Rs. 14.5 million for the National Study on Individual Indigenous Philanthropy in Pakistan towards a total goal of Rs 25 million. We deeply appreciate this support and thank our donors for the trust reposed in PCP and its work. Dr. Shamsh Kassim Lakha, H.I., S.I Chairman, Board of Directors 09 10

Our Vision The three sectors of society-business, civil society and the government work in a strengthened partnership for social development in Pakistan. Our Mission To increase the volume and effectiveness of indigenous philanthropy for social development in Pakistan Our Goals Creating a policy, legal and fiscal environment that enables giving for development and promotes the growth and development of citizen organizations. Facilitating linkages between corporate philanthropists, citizen organizations and government for increased social investment. Enhancing citizen organizations'' capabilities as reliable and effective implementing partners of grantmakers through a certification system. Assisting philanthropists (corporatations, foundations, Diaspora communities) in increasing the volume and impact of their giving. Raising broad societal understanding of philanthropy through research. PCP's Research Portfolio Expanding The Knowledge Map "Without knowledge action is useless and knowledge without action is futile. Abu Bakr al-siddiq (R.A) 11 12

The Centre was established as a result of research on philanthropy and remains the sole niche institute for philanthropic studies in Pakistan. Its primary goal is to produce evidence-based research to determine and promote the volume, motivation and effectiveness of individual indigenous philanthropy. The Centre works on the firm belief that policies and actions based on sound research lead to effective and positive outcomes for country's development. This philosophy has guided the PCP Research Unit to complete a number of studies on various aspects of philanthropy that provide useful information on various forms of philanthropic activities that can be used to take strategic direction for social development of the country. The culture of philanthropy and charitable giving is influenced by social, moral and religious underpinnings and Pakistan has been recognized as a generous and giving nation, especially during disasters and catastrophes. According to World Giving Index 2013, Charities Aid Foundation, Pakistan ranked 53rd out of 135 countries in the world and ranked 3rd among SAARC countries. In 13 order to utilize this indigenous wealth, in-depth knowledge of this multi-dimensional phenomenon is important in enhancing understanding of the patterns and behavior of philanthropic activities, especially in terms of who do people give to, how much do they give, how is it used, and what are the challenges and barriers the givers face? Answers to these questions would provide the basis for informed policies and strategies useful for building social and human capital for development. Key Findings of Corporate Philanthropy Survey 79% of total giving, an increase of 5% from the 2012: preceding year. The donations of the top 25 ULCs amounted for 80% of total giving by ULCs. 1. Total donations by PLCs increased eighteen 5. Majority of the top-giving companies fold from PKR 228 million in 2000 to PKR 4.1 billion in interviewed reported an increase in the spending on 2012. Total donations by ULCs for the year were PKR philanthropic activities compared to the previous 549 million. year. 2. Average percentage of PBT donated by the 6. Majority of the top-giving companies PLCs was 0.7%. interviewed suggested increased presence of the 3. 57% of PLCs were involved in Corporate government in remote areas and its importance in Philanthropy. the sustenance of social development projects. 4. The top 25 giving companies accounted for Qualitative Findings: The major qualitative findings of the Corporate Philanthropy Survey, 2012 are as under: THEMATIC AREAS PREFERRED CHANNELS CHALLENGES MOTIVATING FACTORS Education, Health and Disaster Relief Own foundations/trusts, CSOs, Government Organizations. Lack of awareness in communities, delays in approval by the government, problems of law and order in remote areas, and identifying credible organizations. Inner satisfaction, helping others, increasing good will in the community, establishing trust, and giving back to society. Individual Indigenous Philanthropy in Sindh The final study is expected to be launched in August, 2014. As part of its mission to enhance the volume and effectiveness of philanthropy in Pakistan, PCP Nation-wide Study on Individual Indigenous planned to initiate a National Study on Individual Philanthropy Indigenous Philanthropy (NIIP). This idea generated as a result of a study conducted earlier by John Building on the Individual Indigenous Philanthropy Hopkins University and the Aga Khan Development study in Sindh, the Centre has started a nation-wide Network (AKDN) in 1998/99 which determined NIIP study of the same nature with the support of philanthropy as a source of immense resource pool various Corporate Donors. It is expected that the for social investment. It was realized that the findings of the study would help to initiate an findings of the 15 years old study needed to be informed policy dialogue for enhancing the volume updated to facilitate policy makers for informed and effectiveness of philanthropy in Pakistan decision making. The purpose of the study is to through the formation of better policies, governance document the trends and patterns, the extent, size systems and practices. It is planned to complete the and scope of individual philanthropic contribution, national study by the end of 2014. and to understand implications for community and social development. This will help advance the Future Research Studies efforts of intermediary organizations to achieve and optimize the utilization of the generated resources The NIIP study and the Corporate Philanthropy for social development. It may also be used as a base Survey 2013 will fill the current knowledge gaps for future dialogue, analysis and action for citizen- about philanthropy in the country. However, some led growth for community advancement. other potential areas need to be explored through other independent studies. PCP plans to carry out research on some other facets of philanthropic activities to facilitate informed decision making for all stakeholders. Some of the studies planned for future research are: Research Team conducting a Focus Group Discussion Concurrently, the research will also help to develop partnerships among all stakeholders and identify ways to facilitate productive equations. Additionally, the study will provide reliable and updated data on various forms of giving to examine trends and patterns that would provide policy guidelines for effective utilization and channelization of individual indigenous philanthropy for social development in Pakistan. In the first phase, a study was carried out in Sindh province sponsored by the Community Development Program (CDP), Government of Sindh. The initial draft of the report is complete and has been circulated among relevant stakeholders for review. CSO Nation-wide Mapping Study on Qurbani Hides Study on Giving at Shrines Corporate Philanthropy Survey 2013 Research Team conducting a training of field staff 14

Philanthropy Support Services (PSS) programme is Government, Grant makers and Civil Society and its specifically designed to facilitate linkages between mission of enhancing the volume and effectiveness grant makers and grant seekers for social of philanthropy. In line with its mandate, the PSS unit development in Pakistan. During 2013 PCP has also been providing technical facilitation to both continued to play an effective intermediary, local and international donors including mobilizing facilitative and supportive role towards its vision of funding for the natural disasters and crisis creating synergistic partnerships between situations. Public Private Partnerships (3Ps) for Education Linking the government education outlets, corporate philanthropists and civil society organizations Philanthropy Support Services Facilitating Philanthropists and Implementers 15 The results of philanthropy are always beyond calculation Miriam Beard PCP has been facilitating Public Private Partnerships (3Ps) for school improvement in rural communities of Sindh since June 2003. Recently, PCP has partnered with UKaid, from the Department for International Development (DFID) to implement an innovative public private partnership education programme in the province of Sindh under 'Ilm Ideas' Education Innovation Fund. The programme has been set to support achieving the Millennium Development Goal for Education (MDG-2) while focusing the marginalized communities and under-served areas of the Sindh province and work for the development of public primary and middle schools in partnership with individual and corporate philanthropists and CSOs. Under this programme, just in 2013, the corporate donors have adopted 25 schools and provided financial aid/assistance for these schools to help completing their missing facilities, making additional enrolments (both girls and boys), training the teachers and school supervisors, re-activating the school management committees (SMCs), training the members of these SMCs for active involvement in the progress of adopted schools and arranging for the supply of new education materials for students in adopted schools. Strong contributions have been made by the civil society in the under-privileged parts of Sindh and it proved very supportive for the service delivery and execution of this partnership programme. Sensitization of the community has greatly contributed in mobilizing girl child enrolment amongst most difficult cultural and economic realities in Deherki and the Katcha area of flood zones in Ghotki which itself is unmatched example of extremely successful efforts by the programme sponsors and implementers. 16

17 Our Partners Engro Foundaion National Bank of Pakistan SPUD Energy Pty Limited Arif Habib Corp. Limited The Asia Foundation Government of Sindh Programme Achievements As the project comes to its close, 25 government schools have been adopted with an enrolment of 3,402 children. 2,005 Children have been provided with new education materials, 25 SMCs have been reactivated with 215 SMC members trained, 61 Teachers of the adopted schools have been trained and Infrastructural repair and maintenance interventions have been completed in the adopted schools, along with provision of missing facilities. PCP is pleased to report that under Ilm Ideas project, PCP has been successful in catalyzing corporate philanthropy for education worth at PKR 15 Million. Schools Adopted Children Benefitted Teachers Trained Community Members Trained Story of our visit to Kachha By PCP TeamThe Katcha Area of district Ghotki is a riverine belt flanking river Indus and suffers heavy devastation each time the Sindh province is hit with floods. The Katcha Area is also known as the FATA of Sindh, since almost no government intervention/or involvement exists in the area, which is a huge hurdle against any kind of socio-economic development for the people of this area. And the misery just doesn't end here The Katcha Area has, since many decades, served as a safe haven for terrorist, dacoits, kidnappers and other outlaws due to its inaccessibility to the outer world. The marginalized community thus portrays a dismal image of poverty, neglect, crime and simply unawareness towards most things which could bring a positive change in their lives. Million PKR Corporate Philanthropy Today, the 12th of June, 2013, our team visited a school named GPS Ali Akbar Chacharh located in a small village in the Katcha Area. This school is one of the eleven flood affected schools, supported by The Engro Foundation. The purpose of my visit was to conduct a number of field activities under the Public Private Partnership signed between the Engro Foundation and PCP (under its 3Ps for education Programme Ilm Ideas) for the adoption of these schools. Engagement with the local community forms a major task among other activities conducted by PCP for each school, purpose being mobilization of the community for school support and enrollment of their children in the adopted schools. What makes today's visit unique is the fact that while conducting sessions with the community, we found ourself in the presence of at least 40-50 outlaws: individuals who were directly/indirectly involved in major crimes across Sindh and were currently inhiding from the army, police and other law enforcement agencies. Almost 10-15 were those dacoits, kidnappers and criminals who have a 6 to 8 million bounties on their head, announced by the government. Although we had little (to no) reason to be scared for our own lives(because of the pre-gathered local support we were carrying with us), yet it was truly a new experience to be addressing an audience which had shown no respect towards law, society or even religion at times due to their criminal behavior. As discussions progressed, we realized to our utter amazement, that those same outlaws were showing interest in educating their young. Their newfound feelings towards imparting education to their new generation showed an overwhelming zeal to get out of this miserable existence and give their children a chance to live an honorable life, as proud citizens of the country. Give2Asia Give2Asia (G2A) was founded in 2001 by The Asia Foundation to serve as a funding channel for Diaspora philanthropy from the United States of America to many Asian countries. Give2Asia (G2A) and PCP have a history of collaboration since 2005. PCP helped G2A identify grantees and managed grants in the aftermath of earthquake in 2005. PCP has recently signed a partnership agreement with G2A to help manage their regular grant making activities and take the lead role of G2A's grant facilitator in Pakistan. Under this partnership, PCP has been conducting the due-diligence and evaluation processes for its grantees in Pakistan. As the session moved forward, we saw people volunteering themselves as supporters of the school in their village and they were showing willingness to do all in their power to work for betterment of education in their area. Although currently the school has no building of its own and is run under a chhaprha (shelter less) structure, they not only pledged to enroll all their children into the school, but also informed me of their plan to construct a proper building for their school. It was such an elevating experience for us to witness that the community had already gathered some money, arranged bricks, sand and some other construction materials, and was now looking to write an application to the District Education Office and to the Engro Foundation (school adopter) to provide them with cement and roof-support materials. Expressing his views, one of the elders of the area said, We did not acquire ourselves with education and have lived a life of ignorance, we do not wish our children to suffer the same and want them to become doctors, engineers and officers who would live an honorable life and support their community as well. PCP has also been successful in securing a grant of US$ 12,500 from G2A for rehabilitation of earthquake victims in the Awaran district of Baluchistan. This funding is being implemented through a project run by Family Planning Association of Pakistan - FPAP (a PCP certified CSO). PCP also conducted the due-diligence and proposal evaluation of FPAP's project for this purpose. 18

Global Giving Global Giving is a US- certified CSOs on the Global Giving online portal b a s e d, o n l i n e www.globalgiving.org. m a r k e t p l a c e f o r donors to support PCP encourages its certified CSOs to explore c r e d i b l e funding for their small projects through Global d e v e l o p m e n t Giving's online portal. Currently 21 projects of PCP projects around the certified CSOs are actively generating funds from world. PCP has a long the GG portal. A consolidated sum of US$ 203,013 h i s t o r y o f has been generated by PCP CCSOs for their projects, collaboration with Global Giving, starting right after out of which US$ 159,741 has been generated in the the 2005 earthquake. The role of PCP is to facilitate year 2013. and provide services as a project sponsor for its International Centre for Non-profit Law (ICNL) The partnership agreement between the PCP and ICNL was renewed till June 2014. Through this agreement PCP will continue to monitor NGO legal developments and will file Quarterly reports to ICNL, detailing those developments and recommending revisions to the country report and also ensuring the list of materials ICNL has compiled on Pakistan in its online library database is fully up to date. Under the partnership, two quarterly reports/updates have been sent to ICNL within the specified deadline. Next report is due in March, 2014. CSOs' Certification Programme Expanding Knowledge on Philanthropy as Social Investment. 19 20

Certification update and Milestones achieved: PCP plans to organize similar NGO Festivals in other cities as well. The next NGO Festival has been planned for Lahore. PCP runs the first and the only NGO certification programme in Pakistan which was developed after a review of models in Asia, America and extensive consultations with stakeholders. The programme is the only independent NGO certification and standard benchmarking effort which is also recognized by the government. The PCP has been authorized as the only CSO Certification Agency in Pakistan. The programme was launched in 2003 and successfully completed its 10 years in December 2013. Being a new concept of certification in the sector, the programme attained a gradual recognition. Today PCP has a databank of 306 credible certified CSOs all over Pakistan. The certification programme aims at strengthening the non-profit sector in Pakistan by setting sector wide standards in Internal Governance, Financial Management and the Programme Delivery. The system seeks to promote financial disclosure, documentation, effective programme delivery and good governance in the CSOs. The programme has been instrumental in identifying credible partners for social development for the government, donors, the corporate sector, the diaspora, national and International philanthropists. The benefits of certification for CSOs also include but are not limited to increased access to donors, indirect capacity building, institutional development, facilitation in availing tax exemption, enhanced credibility and promotion through the CSOs directory-gateway to Giving and the PCP website. In 2013, eighty seven (87) CSOs have applied to PCP for Certification. The trend shows the programme is getting popular among the CSOs. During the year, the certification unit has managed to evaluate and present 140 cases to the Certification Panel which is the highest number of cases presented in a year ever. Province wise presence of certified CSOs PCP certified CSOs are spread throughout the country. This includes both the urban and rural areas of interior Sindh, Punjab, KPK, Balochistan, AJK and Gilgit-Baltistan. The pool of certified CSOs comprises all sizes of organizations from small community organizations to medium and large national level CSOs. These CSOs provide services in all thematic areas including health, education, poverty, microfinance and environment. 21 Completion of CDP- Project Note: The map above shows the total Number (306 CSOs) of PCP Certified Organisations' province wise presence in Pakistan as of December 31, 2013. Community Development Programme (CDP) was an initiative of Government of Sindh to bring about improvements in the lives of ordinary people and mitigate poverty. The programme is implemented in partnership with Civil Society Organizations (CSOs) based in Sindh. In 2012, the Government of Sindh entered into an agreement with PCP to assess its poverty reduction initiative and to support the development activities undertaken by CSOs. PCP evaluated performance of 39 Sindh based CSOs against a set of standardized parameters contained in the PCP Certification Model. The main focus of the project was to provide small and medium sized CSOs system evaluation and strengthening opportunity. Detailed evaluation reports along with the recommendations for improvement were also provided to CSOs that could not meet certification standards. The project was successfully completed in March, 2013. IOM- Capacity Building workshops Note: The pie chart is the representation of Sectorwise breakup of Certified CSOs as of 30th September, 2013. Analysis illustrate greater ratio of involvement of CSOs in health and education sectors. Activities in 2013 NGO Festival 2013 To provide an opportunity to certified CSOs to exhibit their achievements and network with donors, corporate, CSOs and government departments, PCP th organized an NGO Festival on 4 July, 2013. The event was held at Attock Refinery Ltd. Complex Rawalpindi where over 300 representatives from approximately 100 different Islamabad/Rawalpindi based CSO's, corporations and donors participated. The Chief Guest for the event was Dr. Werner E. Liepach Country Director of Asian Development Bank (ADB) who in his speech appreciated the role of PCP and its partner organizations for the noble cause. PCP proposed to assist IOM in building the capacities of thirty NGOs identified by IOM working in four districts of South Punjab by holding two capacity building workshops in District of Multan. PCP coordinated with identified NGOs for participating in the capacity building workshops. PCP developed training modules and related material to enable the NGOs to pitch for development-based project grants to the respective donor. The evaluation of selected NGOs was conducted as per the donor requirements as PCP designed a special evaluation tool to meet the donor needs for the project. At the end of the evaluation, assessment reports were produced for the evaluated CSOs containing recommendations against major findings. The assessed organizations were ranked in accordance with the score they obtained and given specific recommendations to improve their systems. The project was successfully completed in July 2013. Reaching out to Stakeholders To orient the civil society organizations about the certification system and its benefits, PCP jointly organized with Regional Tax Office (RTO) Karachi, two sessions in October and December 2013. The sessions were attended by Karachi based CSOs. Dr. Shams Qazi, Additional Commissioner, Federal Board of Revenue (FBR), Karachi also addressed the audience and briefed them about the tax exemption and benefits offered to the development sector. Mr. Malik Babur Javed, Programme Manager Certification conducted both the sessions and gave an introduction of certification and the importance of the third party evaluation to the participant CSOs. During the December session, Joint Registrar SECP in Karachi, Mr. Zia-ul -Rasheed Abbasi, also participated in the session and apprised the participants about registration of CSOs under the Companies Ordinance, 1984. Roundtable on NPOs Regulations by SECP The Securities and Exchange Commission of Pakistan (SECP) introduced comprehensive draft regulations for NPOs registered under section 42 of the Companies Ordinance 1984 in April, 2013. To get the feedback of the stakeholders from major stakeholders, SECP arranged roundtables in Lahore, Karachi and Islamabad. On 3rd July, 2013, PCP participated in the roundtable held in SECP head office, Islamabad. Mr. Tanwir Ali Agha, the Executive Director of PCP was invited to co-chair this event. PCP prepared a comprehensive feedback on the proposed regulations and shared with SECP during the session. Input on the proposed regulations was also received from the PCP Board Members, Mr. Badaruddin F. Velani and Mr. Mahomed J. Jaffer while Dr. Shamsh-Kassim Lakha, the Chairman PCP Board of Directors also attended the roundtable in Islamabad and shared his viewpoint. Proposed legislation to regulate foreign contributions To review the regulations of NGOs that receive funds from foreign sources and INGOs in Pakistan the Economic Coordination Committee (ECC) formed a subcommittee headed by Mr. Zahid Hamid, Federal Minister for Science and Technology. The Committee deliberated on the proposed new legislation to regulate the foreign contributions. The Committee invited PCP as a local intermediary support organization to participate in the deliberations. PCP has been involved in the process right from the beginning and presented detailed analysis of both the Policy Framework for INGOs and legislation to regulate foreign contributions. After the review of the Foreign Contribution Act (FCA) 2014, PCP shared 22

its comments with the ECC and SECP. A team of SECP visited PCP in February, 2014 for reviewing the provisions of the FCA and they appreciated the comments shared by PCP on the proposed FCA. Best Social Worker Award to PCP Certified CSOs Recognizing the outstanding volunteer services in Pakistan, the National Council of Social Welfare (NCSW), Islamabad observed the International Volunteer Day on 13th December 2013. The NCSW gave away award to the best social workers for rendering exceptional humanitarian services in Pakistan. There Islamabad based PCP certified CSOs for their outstanding volunteer work also received the awards. Ms. Aisha Khan, CEO, Mountain & Glacier Protection Organization (MGPO), Ms. Manizeh Bano, CEO, SAHIL and Mr. Azhar Saleem, CEO, Human Development Foundation (HDF) received the awards for the Best Social Workers for their outstanding volunteer services observed especially in the time of natural disasters. These three organizations were nominated for awards by the PCP. AKRSP Tool for the Local Support Organizations PCP has been in discussion with the Aga Khan Rural Support Programme (AKRSP) for evaluation of their partner community organizations. PCP has had several meetings with the AKRSP and RSPN representatives. After deliberations, a draft agreement proposing development of an evaluation tool for LSOs was shared with AKRSP. The AKRSP took other Rural Support Programmes such as PRSP, SRSP and BRSP on board who are also expected to participate in the tool development process. AKRSP and PCP entered into an agreement on 5th of August, 2103. The tool development work is underway and is expected to be completed by the mid of 2014. Overall feedback is highly satisfying and encouraging for PCP. Interesting suggestions were, to initiate annual best CSO awards for the high scoring CSOs in each category. The study also showed that larger portion of CSO applied for certification for the improvement in their organizational systems. PCP participation in HAP Conference PCP Humanitarian Accountability Partnership (HAP) PCP participation in the Asia Community Philanthropy Peer Learning and Exchange, Shillong, 9-11, September 2013 PCP participated in the Asia Community Philanthropy Peer Learning and Exchange, Shillong from 9 to 11 September, 2013. Mr. Naveed Yousaf Butt, Senior Programme Officer represented PCP in the meeting. The first day session deliberated in detail the community philanthropy in Asia and latest developments of fund mobilization and building of support bases. Grant making strategies were reviewed as well. The second day of the meeting explored the methods of communications with the world in terms of principles of effective communication. The participants identified communication gaps and recommended best possible means to remove those gaps. PCP's activities regarding community philanthropy were discussed with the participants of the event. Field Evaluation of a CSO, Karachi Field Evaluation of CSO, Karachi Participants of the Asian Community Philanthropy Meeting. Shillong, India. September, 2013 NGO Festival: Speakers FBR-PCP experience sharing exercise: During a CSO session on 7th October, 2013, Karachi SECP-PCP consultative session with CSOs, December, 2013. Karachi. Feedback Survey, highlights Mr. Werner E. Leipach, Country Director, Asian Development Bank; Chief Guest of NGO festival Mr. Khan Faisal, Deputy Commissioner, Regional Tax Office, Rawalpindi. The feedback from PCP certified CSOs on existing certification system is a regular feature to identify feeble areas in the process. The unit has conducted these surveys in the past as well on annual basis. The findings of the feedback survey 2013 are based on the responses from 98 certified CSOs out of the total 144 certified CSOs during the past five years. Mr. Tanvir Ali Agha, Executive Director, PCP addressing the participants of NGO Festival Certification Team: Group photo after holding NGO festival 23 24

Board Meetings Attendance 2013 25 26

27 S. No. Board Meeting Attendance 2013 Names Dr. Shamsh Kassim -Lakha, H.I., S.I. 1 Chairman, PCP Board of Directors Former President AKU Mr. Mueen Afzal, H.I. 2 Former Secretary General, Finance & Economic Affairs Government of Pakistan Syed Hyder Ali 3 MD & CEO, Packages Limited Dr. Attiya Inayatullah MNA, Former Federal Minister for Women 4 Development, Special Education, Social Welfare & Population Welfare Mr. Zafar A. Khan S.I. 5 Former CEO Engro Chemical & Former Chairman PIA, PTCL, KSE Mr. Mohsin Nathani 6 Chief Executive, Standard Chartered Bank Pakistan Mr. Saeed Ahmad Qureshi 7 Former Deputy Chairman, Planning Commission, Government of Pakistan Mr. Arshad Zuberi 8 Chief Executive Daily Business Recorder Dr. Adil Najam / Dr. Sohail H. Naqvi 9 Vice Chancellor Lahore University of Management Sciences (LUMS) Dr. Sania Nishtar 10 President, HeartFile Mr. Firoz Rasul 11 President Aga Khan University Mr. Badaruddin F. Vellani 12 Chairman Aga Khan Foundation (Pakistan) Mr. Arif Habib 13 President Arif Habib Corporation Limited Mr. Ahsan M. Saleem 14 Chief Executive Officer Crescent Steel & Allied Products Limited 15 Mr. Omar Yaqoob Sheikh Chairman/Managing Director, Board Meeting Attendance 2013 Meetings Attendance Record Total Attended Leave Granted 4 4-4 4-4 0 4 4 1 3 4 3 1 4 3 1 4 2 2 4 3 1 4 1 3 4 2 2 4 1 3 4 1 3 4 3 1 4 3 1 4 2 2 Picture Gallery Dr. Shamsh Kassim -Lakha H.I., S.I., Chairman Mr. Tanwir Ali Agha, Executive Director, PCP 28

Picture Gallery Contributing to change our People PCP s Management A Group Photo of PCP Board Members and Corporate Philanthropy Award Winners Mr. Tanwir Ali Agha Executive Director Syed Mohammad Ahmad Senior Manager Finance & Administration Mr. Rashid Rafiq Senior Officer Finance & Admin Mr. Abdul Malik Nazir Alvi Finance & Administration Officer Mr. Javed Iqbal Secretary to Executive Director Ms. Shagufta Mariam Front Desk & Office Assistant Certification Programme Mr. Malik Babur Javed Programme Manager Mr. Naveed Yousaf Senior Programme Officer Syed Ali Jafri Senior Programme Officer Syed Mansoor Saeed Programme Officer Mr. Raja M. Nauman Programme Officer Ms. Basma Amin Junior Programme Officer Ms. Ummarah Javed Junior Programme Officer Mr. Sajjad Haider Programme Assistant Research Programme Ms. Kanwal Qayyum Senior Programme Manager Mr. Muhammad Ashraf Senior Programme Officer Dr. Maryam Ashraf Programme Officer Ms. Sarah J. Nasir Junior Programme Officer Philanthropy Support Services Mr. Imran Q. Khan Programme Manager Mr. M. Mansoor Sarwar Senior Programme Officer Syed Sajjad Haider Gilani Programme Officer Ms. Lubna Rani Programme Assistant 29 30

Contributing to change Our Partners Financial Contributors: Abdullah Foundation; Arif Habib Corporation Limited; Asiatic Group of Companies; AJANEE Tours; Babar Ali Foundation; Crescent Steel & Allied Products; Dawood Hercules Chemicals Ltd.; DESCON; EFU General Insurance Ltd.; Engro Corporation Limited; Shell Pakistan Limited; The Fancy Foundation; Gam Corporation; Gul Ahmed Textiles; Highnoon Laboratories; ICI Pakistan; International Industries; Javed Omer Vohra & Company; Karam Ceramics; Lucky Cement; Younus Brothers; Malik Auto & Agriculture Industries; Merck Marker; Mumtaz Bakhtawar Memorial Trust Hospital; Muslim Commercial Bank; World Call Telecom; GlaxoSmithKline; Soneri Bank; Packages Limited; Pakistan Cables; Rupali Polyester; Telebiz Television Business Production; Mahvash & Jahangir Siddiqui Foundation; Mr. Shaukat Tarin; Panjwani Trust and Foundation; New Jubilee Insurance; Pak Arab Fertilizers; Pakistan Petroleum Limited; JAAG Broadcasting Systems Private Limited; Silk Bank; Sapphire Group; Standard Chartered Bank; Govt. of Pakistan. Statements Government: Federal Board of Revenue; Economics Affairs Division; Ministry of Finance; Provincial Social Welfare Departments; Provincial Department of Education, Sindh; Planning Commission; Provincial P&D Networking: ActionAid; Allavida; Asia Pecific Philanthropy Consortium; AUSAID; Centre for Philanthropy; Charities Aid Foundation; CIVICUS; Credibility Alliance, India; CSRC; FAO; Happy Hearts Foundation (Petra Nemcov's); Give2Asia; GlobalGiving; Global Philanthropy Forum; One World Trust's Council for NGO Certification; PILDAT; UNAIDS;WINGS Network; World Bank; World Population Fund; WWF; National Devolution Trust for Citizen's Empowerment; FPAP; Insaan Foundation; NCHD; PTC; World Congress of Muslim Philanthropists, International Centre for Non-profit Law (ICNL) Media: Aaj TV APR Business Recorder; CNBC; Farhan Bokhari; FM 100; Geo News; The Nation; Nawa-e-waqt; PTV Global; PBC; Donors: International Organization for Migration (IOM); UKaid Ilm Ideas through DAI; Foundation Open Society Institute (FOSI); Community Development Program, Govt. of Sindh; AKF(P) / AKDN; Asian Development Bank; ONEUN-Program on Environment; The World Bank; Social Welfare Department, Govt. of the Punjab; UNDP; AKRSP; ESRA / USAID; European Commission; Government of Pakistan. 31 32

33 34

35 36

37 38

39 40