Transcript SUSTAINABILITY

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
Evolution of Fundraising in India
??
• 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
Giving in USA and UK
(2008)
Population
U.S.A.
300 million
U.K.
60 million
Amount Given
US $306 billion
US $51 billion
Amount Per Head of Population
US $1020
US $850
Corporate
5%
Legacies
10%
Trusts/fdns
11%
Individuals
74%
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
8.9
8
6.0
6
3.5
4
2
1.0
0
1900-1950
1950-1980
1980-2002
2002-2007
Population growth is slowing
(%)
2.5
2.2
2.1
2.0
1.8
1.5
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
65
52
60
40
17
20
0
1950
Source: Census of India (2001)
1990
2000
2010 (proj)
Middle class-Rising
Rapidly
22%
mn
32%
8%
400
368
300
200
220
100
65
0
1980
2000
Source: The Consuming Class, National Council of Applied Economic Research, 2002
2010
India will gradually turn
middle-class
West of the
KanpurChennai line
East of the
KanpurChennai line
50%
50%
Kanpur-
32%
22%
Chennai
8%
1980
2000
2010
2020
2040
Poverty is declining
(%)
50
1% of the people have
been crossing poverty
line each year for 25
years
46
40
30
Equals ~ 200m
26
20
16
10
0
1980
2000
2010
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)
Rise of globally competitive
Indian companies
Per capita income gains
US$ ppp
1,178
1980
3,051
Source: World Bank
2005
Per capita income
($000)
37,000
40
30
20
16,800
5,800
10
2,100
3,050
0
2000
2005
2020
2040
2066
Resent or Recognise
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
Good fundraising rests on
four foundations
Case
Leadership
Prospects
Plan
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 headlinesAchievements 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
Questions