Country: United Kingdom of Great Britain and Northern Ireland
Closing date: 27 Feb 2017
Islamic Relief Worldwide
Islamic Relief is an international aid and development charity, which aims to alleviate the suffering of the world's poorest people. It is an independent Non-Governmental Organisation (NGO) founded in the UK in 1984.
As well as responding to disasters and emergencies, Islamic Relief promotes sustainable economic and social development by working with local communities - regardless of race, religion or gender.
Our vision:
Inspired by our Islamic faith and guided by our values, we envisage a caring world where communities are empowered, social obligations are fulfilled and people respond as one to the suffering of others.
Our mission:
Exemplifying our Islamic values, we will mobilise resources, build partnerships, and develop local capacity, as we work to:
Enable communities to mitigate the effect of disasters, prepare for their occurrence and respond by providing relief, protection and recovery.
Promote integrated development and environmental custodianship with a focus on sustainable livelihoods.
Support the marginalised and vulnerable to voice their needs and address root causes of poverty.
We allocate these resources regardless of race, political affiliation, gender or belief, and without expecting anything in return.
At the international level, Islamic Relief Worldwide (IRW) has consultative status with the UN Economic and Social Council, and is a signatory to the International Red Cross and Red Crescent Code of Conduct. IRW is committed to the Millennium Development Goals (MDGs) through raising awareness of the issues that affect poor communities and through its work on the ground. Islamic Relief are one of only 13 charities that have fulfilled the criteria and have become members of the Disasters Emergency Committee (www.dec.org.uk)
IRW endeavours to work closely with local communities, focussing on capacity-building and empowerment to help them achieve development without dependency.
Please see our website for more information http://www.islamic-relief.org/
Project Background
Birmingham based Islamic Relief Worldwide (IRW) is part of a worldwide network of partners engaged in charitable work. For the most part our partners, such as Islamic Relief USA and Islamic Relief Germany, channel their donated funds to projects run by IRW. IRW manages projects from 17 Islamic Relief (IR) partners (also known as Family Members) who are based mostly in the G20 countries.
One of the partners is Islamic Relief UK (IRUK). Although operationally separate from IRW; IRUK is considered by UK statutory bodies (Charity Commission, Companies House) to be part of IRW. Accordingly IRUK is seen as a “business unit” within IRW and its finances and activities are consolidated with those of IRW when reporting for statutory purposes.
In 2015 of the total IRW consolidated income of £106m; £21m was contributed by IRUK. By way of context – the highest donations from other partners were £20m, £8m and two of £7m from IR USA, IR Germany and IR Canada & IR Sweden respectively. Hence, IRUK is considered to be the largest funder to IRW projects.
On the expense side; IRW’s 2015 consolidated core overhead figure of £16.5m includes £5.2m of IRUK costs. This figure is somewhat understated since not all costs are strictly accounted for between the two parties. For example IRW bears all the costs of finance & accounting, legal, ICT, facilities and procurement functions across the two parties but does not cross-charge a portion into the IRUK ledgers. Similarly, IRUK have provided other services which did not cross charge IRW.
For the purposes of payroll taxes; IRW and IRUK are treated as only one entity by HMRC whereas both have separate workforces (around 240 in IRW, 60 in IRUK). IRUK operates out of buildings (offices and shops) which are distinct from IRW’s infrastructure, however the offices are owned by IRW and the shops are leased in IRW’s name. Currently IRUK pays no rent for the use of the offices in London but meets the costs of the leased properties.
The current one entity set up enables a portion of funds raised by IRUK to be utilised to underwrite the costs of IRW’s operations. Such financing extends to “gap filling” where cost over-runs of projects funded by other IR partners are settled by IRUK. In 2015 approximately £1.8m of IRUK funds were used by IRW for its own support costs and a further £3m to cover shortfalls in other IR partners’ programme expenditures.
Additionally, IRW has embarked on a governance reform plan that will see the creation of an International General Assembly (IGA) whose members will be representatives of the various IR partners as well as independent members. The IRW BOT will be elected and appointed by the IGA. In this context , as IRUK is not a separate legal entity it will not be represented in the assembly despite being the largest financial contributor to IRW as well as giving the flexibility of using of its unrestricted funds during difficult times which is not allowed by other partners.
IRW Background
Presently, IRUK does not have its own Board of Trustees as it is overseen by the IRW’s Trustees. No formal agreement exists between IRUK and IRW regulating the relationship between the two save other than informal arrangements as and when needed. The current IRUK Director is line managed by the IRW CEO.
IRUK is currently based at an IRW owned property in London. IRW has other properties in Birmingham and a study looking into an alternative structure for the organisation should take the opportunity to review the best location for IRUK’s headquarters.
Currently IRW is a member of the Disasters Emergency Committee (DEC) group of charities and also receives funds from Department for International Development (DFID), consideration should be given to where these and other relationships best sit in the event of a separation whether with IRW or IRUK.
With IRW being the largest Muslim charity in the UK the Charity Commission (the regulating body) may have views on any proposed separation it would be important to establish these and inform the debate.
Objectives
To review the effect (advantages and disadvantages) that separation would have on both IRW and IRUK to operate efficiently and effectively
Asses if a separate legal entity for IRUK will enable it to become a more competitive entity and strength its relationships with the grassroots and its engagement with other stakeholders and the UK government and what will be the consequences for IRW/IRUK separation and how these should be mitigated?
Review the experience of other INGOs such as Oxafm, Action Aid and Save the Children and others who have gone through this route and review, document lessons learnt and challenges faced.
Based on the study of other INGOs and interviews conducted with senior IRW & IRUK officers, the study should review possible options such as:
a. from a totally “stand alone” organisation
b. to a “lean” unit focused only on fundraising
c. and any set up falling between the two
and provide the advantages and disadvantages of each option.
Methodology
The consultant will design methodologies following the indicators of logframe and result framework. The methodologies will include (but not be limited to):
Meetings with Senior IRW & IRUK officers to understand the current pros and cons of the arrangement and their view how a separation might benefit or harm either party.
A desk review of IRW and IRUK financial information focussing on the past 3 years (2014-2016)
Interviews with other INGOs who have gone through the separation process and document lessons learnt.
Outcome
The outcome of the study should be in a form of a report that would:
(1) Describe the advantages and disadvantages of having a separate IRUK entity
(2) Describe the most efficient and effective structure for a separate IRUK if that was the recommended option
(3) Providesa timetabled road map by which this position could be reached
(4) Provide an outline of the Balance Sheet balances that would need to move out of IRW and into the new entity together with the reasoning.
(5) Include a proposal for the establishment of “shared services” arrangements, in order to exploit the economies of scale, with the payment of commercial fees in order to avoid duplication of services such as ICT, HR and Finance services.
(6) Provide indication of costs and savings that would accrue from the proposed set up.
(7) Provide a detailed consideration of the resulting reserves in each organisation will need to be undertaken to ensure the going concern status of both.
(8) Has a recommendation of the reserves policies for each should be advanced in light of the differing natures of the two entities.
or if separation is not recommended then
(9) Include a proposal with a detailed governance model that would ensure the continuous growth of IRUK and how to strengthen its relationship and engagement with donors and other stakeholders
(10) Include a TOR and frameworks for the recommended arrangements
(11) Provide indication of costs and savings that would accrue from the proposed set up.
Reporting
Having done an initial study a framework of the detail work should be first shared with the CEO , FD and UK Director to cover any gaps and technicalities that may have not been covered. This could be in the way of an interim report.
Although the report is to be given to the Board of Trustees a presentation should initially be made to the Board of Directors (BOD) of IRW. This will confirm the direction of the full and final report and benefit from any input that the directors may contribute. It is however envisaged that the study will be informed by formal discussions with directors and indeed staff of all grades at both IRUK and IRW. The presentation should -
· Outline the alternative set ups considered
· Briefly set out the advantages & disadvantages and costs & savings of each alternative
· From the alternatives investigated describe in detail the most efficient and effective way forward
The Board of Directors should have the opportunity to raise queries in order that they can confirm that the route proposed is indeed the best way forward.
The chosen form and path to separation of IRUK from IRUK will then be presented in detail to the IRW Board of Trustees for approval.
Timescales
Task
Start date – Completion date
Tender live date 6th Feb 2017
Final date for submission of proposal/bid 27th Feb 2017 (4pm)
Proposals considered, short-listing and follow up enquiries completed w/c 27th Feb 2017
Consultant interview and final selection w/c 14th March 2017
Start of project 27th March 2017
Interim report to CEO, FD and UK Director 24th April 2017
Report to BOD 1st May 2017
Final report to BOT 8th May 2017
Contract duration: Duration to be specified by the consultant
Direct report: CEO
Location: UK, Birmingham or London office
Job Title: Consultant: Feasibility study of company separation 1
How to apply:
Consultancy Contract
This will be for an initial period that is to be specified by the consultant commencing from March 2017 (exact date to be mutually agreed). The selected candidate is expected to work from their home/office and be reporting into the Chief Executve Officer (CEO) of IRW.
The terms upon which the consultant will be engaged are as per the consultancy agreement. The invoice is to be submitted at the end of the month and will be paid on net payment terms 28 days though we can be flexible.
All potential applicants must fill in the table beneath in Appendix 1 to help collate key data pertaining to this tender. The applicant must be clear about other expenses being claimed in relation to this consultancy and these must be specified clearly.
For this consultancy all applicants are required to submit a covering letter with a company profile(s) of all stakeholders and the CV’s of all consultants including the lead consultant(s).
A proposal including, planned activities, methodology, deliverables, timeline, and cost proposal (including expenses) are expected.
Other relevant supporting documents should be included as the consultants sees fit.
All applicants must have a valid visa or a permit to work in the UK (if travel is required to the UK). A valid visa/work permit is also required for those areas required to be visited as part of this consultancy.
Tender dates and contact details
All proposals are required to be submitted by Monday 27th February 2017 1.00pm UK time pursuant to the attached guidelines for submitting a quotation and these be returned to tendering@irworldwide.org
For any issues relating to the tender or its contents please email directly to tendering@irworldwide.org
Following submission, IRW may engage in further discussion with applicants concerning tenders in order to ensure mutual understanding and an optimal agreement.
Quotations must include the following information for assessment purposes.
Payment terms (payment normally made within 28 days of invoice)
Full break down of costs including taxes, expenses and any VAT
References (two are preferred)
Technical competency for this role
Demonstrable experience of developing similar training courses
Note: The criterias are subject to change.
Appendix 1
Please fill in the table below. It is essential all sections be completed and where relevant additional expenses be specified in detail. In case of questions about how to complete the table below, please contact tendering@irworldwide.org
Cost evaluation of a feasibility study of company separation consultancy (Birmingham) January 2017
Applicants name
Company name
No of proposed hours per week
No. of proposed days
Preferred days
Earliest available start date
Non preferred days
Hourly rate
Total per week
Inclusive of Taxes if relevant (Total)
Other expenses (please specify)
Other expenses (please specify)
Other expenses (please specify)
Preferred payment terms (IRW UK terms are normally 28 days).
Total cost for consultancy (for one month)
Total cost for consultancy (for proposed period)
Note
The applicant is expected to take responsibility for paying full taxes and social charges in his/her country of residence.