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NURTURING PARTNERSHIPS FOR DEVELOPING SUSTAINABLE CIVIL SOCIETY ORGANIZATIONS. Capacity Building Workshop Resource Mobilisation 19 Feb 2010 Delhi. AIM of this Presentation. To share the fundraising scenario in India Opportunities-Challenges What we all need to and can do about it
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NURTURING PARTNERSHIPS FOR DEVELOPING SUSTAINABLE CIVIL SOCIETY ORGANIZATIONS Capacity Building Workshop Resource Mobilisation 19 Feb 2010 Delhi
AIM of this Presentation To share the fundraising scenario in India Opportunities-Challenges What we all need to and can do about it To unleash our full potential-Our Prime Minister
Every organization wants to raise more and spend less to do it • Every organization can raise more by being more strategic • But most organisations are dependent on Foreign donors and Government
What is Fundraising? “The art of getting people to give you what you want, where and when you want it, for the work of you do” Fundraising is not only about money-It is about RELATIONSHIPS
India • Individuals/Corporates- Rs 9000 cr • Funds from Abroad(FCRA)-Rs 12,000 cr (Home Ministry) • Government- Rs 18,000 cr (258 Departments) • Potential > $ 15 Billion or Rs 70,000 cr
POOR FUNDRAISING--WHY SO?? Governance/Board/Leadership? No Investment Strategic Direction Lack of Training facility Not perceived as CAREER option Dependence - on government and foreign funding Inadequate Communication?
Limitations with current situation • Breeds dependency • Does not build local support for causes • Creates the perception that NGOs receive a lot-- don't need local support • Public is unaware of social issues/needs/role • Boards and leadership are seldom actively supportive • Every one wants big bucks without working towards it
28 years of high growth Average annual GDP growth (%) 10 8 8.9 6 4 6.0 2 3.5 0 1900-1950 1950-1980 1980-2002 2002-2007 1.0
Population growth is slowing (%) 2.5 2.0 2.2 2.1 1.5 1.8 1.5 1.0 1.0 0.5 0 1901-1950 1951-1980 1981-1990 1991-2000 2001-2010 Sources: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001)
Literacy is rising (%) 100 80 80 60 65 40 52 20 0 1950 1990 2000 2010 (proj) 17 Source: Census of India (2001)
Middle class-Rising Rapidly mn 0 32% 400 22% 8% 300 368 200 100 220 1980 2000 2010 65 Source: The Consuming Class, National Council of Applied Economic Research, 2002
India will gradually turn middle-class West of theKanpur-Chennai line East of theKanpur-Chennai line 50% 50% Kanpur- 32% 22% 1980 2000 2010 2020 2040 Chennai 8%
Poverty is declining (%) 50 40 1% of the people have been crossing poverty line each year for 25 years Equals ~ 200m 30 46 20 10 26 0 1980 2000 2010 16
India has a vibrant private space 100 Indian Companies have market cap of US$ 1bn 1,000 Indian Companies have received foreign institutional investment 125 Fortune 500 companies have R&D bases in India 390 Fortune 500 companies have outsourced software development to India 2% bad loans in Indian banks (v~20% in China) 80% credit goes to private sector (v~10% in China)
Per capita income gains 1,178 1980 2005 3,051 US$ ppp Source: World Bank
Per capita income ($000) 40 30 20 10 0 2000 2005 2020 2040 2066 37,000 16,800 5,800 3,050 2,100
People who benefit from economic growth cannot be oblivious of their obligations to the state. -Sonia Gandhi
We need not just a literate youth but a skilled youth, with skills which can fetch them gainful employment. As our economy booms….. Our PM Aug 06
A country of dazzling prosperity is also a country of dehumanizing poverty. A land of perpetual struggle is also a land of bursting opportunities. -Sonia Gandhi
Indian Scene Upwardly - mobile society OVER A MILLION HIGH NET WORTH INDIVIDUALS BUT NO ONE ADDRESSING THEM Many hundred thousand MILLIONAIRES IN DOLLAR TERMS Non Resident Indians support extensive-Rs 9000 crore each in 2005, 2006, 2007 & 2008
Indian Scene contd.. • Media - state of the art mass communication available • NGO – sector is big but not very well organised • Lack of support for Fundraising • Fundraising Territory almost virgin
Scenario Fundraisers - Only a fraction of 1% of NGO’s have one. This need to change India needs a “Leap Frog Strategy” for creating fundraisers urgently Quantity-Quickly-Quality
Writing on the wall Self Sustainability – Everyone identifies that there is an immediate need Promoting Credibility All over the world NGOs have their own fundraising agenda and their credibility is evaluated by the number of ‘Individual Supporters‘ ?? Low percentage of the donors money reaches the community
People give because they are asked!
Collecting viz-a-viz Fundraising
Success in Fundraising-1 A systematic and planned approach Investment in staff and support Investment in building relationships? Patience combined with action? Readiness to listen
Success in Fundraising-2 A strong and exciting case for support? A Urgent and compelling needs Realistic and potential donors Strong internal and external leadership? Readiness for fundraising
Successes • UNICEF, WV,GP,CRY,Oxfam,HI,SC • Akshaya Patra • Pratham • Jago Re
Are you ready? Are you well Governed and Managed? Do you have a strategic plan? (Vision, Mission, Values and Strategy) Are you clear exactly what you want and for what? Can you demonstrate results? Do people know you? Can you provide donors with what they require in return?
What Next? Make Fundraising a PRIORITY. “The route to crores of Rupees and lakhon naukrian is through Fundraising” “No one can stop an idea whose time has come”-Our PM Can we do without this? Only at our own peril.
The best way for any NGO to get more money is to show that the money it raised is well used. which means clever fund-raising, cautious spending and the precise measurement of outcomes
People often describe Activities, instead of Achievements. • Activities do not make headlines-Achievements do
Change the World You can change the fundraising scenario in India in such a way, that it is beyond what we can foresee today.
So who is doing what?? • Government?? • Corporates • Funding Agencies • Media • NGOs • Philanthropists