NURTURING PARTNERSHIPS FOR DEVELOPING SUSTAINABLE CIVIL SOCIETY ORGANIZATIONS Capacity Building Workshop Resource Mobilisation 19 Feb 2010 Delhi

AIM of this Presentation 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 billionUS $51 billion Amount Per Head of Population US $1020US $850

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 (%)

Population growth is slowing Sources: : Angus Maddison (1995), Monitoring the World Economy, :Census of India (2001) (%)

Literacy is rising Source: Census of India (2001) (proj) (%)

Middle class-Rising Rapidly Source: The Consuming Class, National Council of Applied Economic Research, % 22% 32% mn

50% India will gradually turn middle-class 8% 22% 32% West of the Kanpur- Chennai line East of the Kanpur- Chennai line Chennai Kanpur-

Poverty is declining % of the people have been crossing poverty line each year for 25 years Equals ~ 200m (%)

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 , ,178 Source: World Bank

Per capita income 2,100 3,050 5,800 16,800 37, ($000)

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

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

Questions