NGOs, Funding and Philanthropy

I came across an article titled In Charts: The Sorry State of Fundraising at India’s NGOs in The Mint a few days ago. Three graphs highlighting different aspects of NGO funding in recent times, struck me. The first was how NGOs of global origin were receiving more funds than indigenous ones. The second was that the NGOs formed in the recent past were able to raise more funds, compared to those that had been established earlier. The third was that children focussed and community development NGOs received nearly half the amount of grants available, while NGOs working on women’s issues and social justice received about 1.5% of the pie each.

I don’t for even once think that addressing chidren’s needs or community development are less deserving issues, but I was certainly surprised if not a little taken aback, that a country which is celebrating its 75th year, still requires non-Governmental resources for such core development issues. Why haven’t these publicly financed efforts delivered? Why are NGO initiatives still necessary in these areas?

I started my career in in rural development and the non-profit sector over 35 years ago. The first NGO that I was involved in as a co-founder celebrated its 30 anniversary last year. Since then many things have changed. The health system is able to ensure immunisation services reach all children and the ambulance service for women in labour is a common sight in villages. Government primary schools dot the villages, and single teacher schools are a thing of the past. The village I live in has a model primary schoo, an intercollege, a degree college and a Health and Family Welface Centre (an upgraded Sub-Centre), none of which existed 35 years ago. All of these were established and continue to be fully financed by The Government.

India of course has an established tradition of philanthropy from historical times and from all religions – eg. the daan and dakshina of the Hindus, bheeksha for the Buddhists or the zakat and sadaqa of Islam. Indian philanthropy has played a big part in social reform, as well as in supporting the struggle for Independence. Many of the illustrious schools, colleges and hospitals in cities across the country were established through Trusts and Societies. Philanthropists were involved in supporting eminent social reformers like Jyotiba Phule, Gandhiji, Baba Ambedkar, Periyar and so on. Modern India as we know it today was built not only through the sacrifices of the freedom fighters but also through the efforts and contributions by a large number of social philanthropists.

Since Independence the task of building a modern and progressive India has been the main responsibility of Government, guided by the Constitution. Today India is among the foremost economies of the world, and the Government remains the steward of the well-being of all its citizens. However, the well-being of all, especially of groups and issues that are not easily well understood may not be equally well conceived and managed by the government. This is where philanthropy and locally grounded social organisations like NGOs play an important role. In my understanding children’s needs and community development are well understood well supported and may not need such specialised interest today.

The data in the article appeared to be pointing in a completely different direction. Grounded local NGOs, especially those with long years of experience of working with communities seemed to be losing out to more recently established and global origin NGOs. Women’s issues and social justice, issues which closely linked with widespread and deeply entrenched social and economic deprivation, did not find favour. This could either be because the NGOs that were part of the study were not interested or because donors were not interested in providing funds for such issues.

The fundraising landscape has undergone widespread changes in recent years. Domestic funding has grown in comparison to foreign funds available to NGOs. Many smaller, NGOs that worked as sub-grantees of larger organisations, are now unable to access foreign funds even though they may have the permission to do so, because of recent statutory restrictions. Corporate giving to NGOs has become mandatory under the new CSR laws, but these have to done according to government prescribed guidelines. Individual giving by High Networth Indiviuals and others is also a rapidly growing segment of funding available to NGOs.

The data in the article seems to indicate that despite the growth in Indian funding, much of it is being given to NGOs working on children’s issues or community development, two areas, where the Government itself has mature and well funded programmes. To me this seems like a redundancy, or a form of staying within comfort zones. If we care about a society where all individuals are able to flourish and receive equal opportunities we need to support initiatives which strengthen social and gender justice. Donors need to support smaller locally grounded NGOs. Unfortunately these organisations are far away from the larger cities where the economy is booming and comprise the donor habitat. A booming economy also means that many more people are now part of the ‘giving’ fold. Such givers need to be encouraged by fundraisers to move beyond the comfort zone and support social justice issues, like ‘inequality’, which may seem intangible sometimes.

The role of the NGO sector should be to fill the gap between Constitutional promise and lived reality for the poor and marginalized in the country. And this they have been doing at no or very low costs. However this work requires more financial support and it is necessary build a new tradition of Enlightened Philanthropy towards a more modern and progressive nation. For those who wish to secure a legacy or wish to contribute to a cause because life has been kind to them and they can, and would like to lend a helping hand, the opportunity beckons.