The rapid growth in number, influence and effectiveness of Non-Governmental Organizations (NGOs) in recent years has produced greater demands for NGO accountability; accountability to its stakeholders and to the society as a whole. Thus, Social Accountability is very crucial to organizations in general and NGOs in particular.

The very fact that NGOs aspire to improve the lives of the poor means that they have committed themselves in some manner to perform activities on behalf of others; their ability to accomplish what is expected and promised is fundamental and necessary to their relationship with others as well as to the community or poor. Such organizations are therefore not free of critique, expectations or input from those whom they serve, and receive legitimacy, funding and interact.

NGOs have been struggling with the idea of evolving such tools and mechanisms which would help them further to enhance and also demonstrate their accountability towards various actors/stakeholders. Even though there is a wide consensus regarding the need and importance of greater accountability mechanisms, there is little agreement upon the kind of mechanism which will be appropriately applicable for the voluntary sector; a mechanism that would ensure transparency and at the same time take care of the heterogeneity of the voluntary sector.