NURTURING PARTNERSHIPS FOR DEVELOPING

SUSTAINABLE CIVIL SOCIETY ORGANIZATIONS

Capacity Building Workshop

Resource Mobilisation19 Feb 2010

Delhi

AIM of this PresentationAIM 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 Giving in USA and UK (2008)(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

Individuals74%

Legacies10%

Trusts/fdns11%

Corporate5%

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 POOR FUNDRAISING--WHY SO??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

1.0

3.5

6.0

8.9

Average annual GDP growth

0

2

4

6

8

10

1900-1950 1950-1980 1980-2002 2002-2007

(%)

Population growth is slowing

Sources: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001)

1.0

2.22.1

1.8

1.5

0

0.5

1.0

1.5

2.0

2.5

1901-1950 1951-1980 1981-1990 1991-2000 2001-2010

(%)

Literacy is rising

Source: Census of India (2001)

17

52

65

80

0

20

40

60

80

100

1950 1990 2000 2010 (proj)

(%)

Middle class-Rising Rapidly

Source: The Consuming Class, National Council of Applied Economic Research, 2002

65

220

368

8%

22% 32%

0

100

200

300

400

1980 2000 2010

mn

50% 50%

India will gradually turn middle-class

8%

22%

32%

1980 2000 2010 2020 2040

West of theKanpur-

Chennai line

East of theKanpur-

Chennai line

Chennai

Kanpur-

Poverty is declining

46

26

16

1% of the people have been crossing poverty line each year for 25

years

Equals ~ 200m

0

10

20

30

40

50

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 gainsUS$ ppp

200520053,0513,051

19801980

1,1781,178

Source: World Bank

Per capita income

2,1003,050

5,800

16,800

37,000

2000 2005 2020 2040 2066

0

10

20

30

40

($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 SceneIndian 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 FundraisingFundraising Territory

almost virgin

ScenarioScenario 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 wallWriting on the wall

Self Sustainability – Everyone identifies that there is an immediate need

Promoting CredibilityPromoting CredibilityAll 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 approachInvestment in staff and supportInvestment 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

CaseCase LeadershipLeadership

ProspectsProspects PlanPlan

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?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 WorldChange 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