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1、Photo by Kevin Peschke Kearney,ChicagoIndia Nonprofit ReportRole,Evolution,and ImpactIndia Nonprofit ReportRole,Evolution,and ImpactDisclaimer:Throughout this report,the terms non-governmental organizations(NGOs)and nonprofit organizations(NPOs)have been used interchangeably.Quantitatively,the data

2、on the NGO sector remains limited and fragmented.Various actors,including government agencies,research institutions,intermediaries,and NGOs themselves have attempted to document and quantify the sectors size and offer insights.This report primarily relies on the NGO Darpan database as the most curre

3、nt and reliable source of information available.As a government-managed platform,NGO Darpan has been considered an accurate resource for the purpose of this study.However,we recognize that this database may not capture the full size and scope of the sector.Even on the primary qualitative data collec

4、ted,we have relied on a purposive sample of 30 NGOs and a few key informant interviews.We acknowledge the limitations of our research process.Therefore,all the insights and analyses presented in the report must be viewed as indicative rather than exhaustive.Over the years,we intend to continuously u

5、pdate this report with new findings as more data becomes accessible.Foreword 1Key report highlights 3Indias nonprofit landscape 5Evolution of the sector 6State of the sector today 9Social development and the role of NGOs,government,and donors 13Voice of the NGOs:insights from a pan-India survey of 4

6、00 NGOs 13Role of the government as an ecosystem enabler 19Perspectives of donors 21Nonprofit work and impact 23Social impact taxonomy 24NGO trajectories and evolution pathways 28Scaling dimensions 36The way forward 39Conclusion 41It is impossible to capture the work of an entire sector for the past

7、 two centuries in just under 50 pages.But like our India Philanthropy Report series,we want this to be the first of many reports that will serve as a primer for the sector.It provides a nuanced taxonomy of NGO growth,evolution,and impact,shaped by years of learning from the ground and complemented b

8、y firsthand insights from a diverse range of practitioners and sector experts.We hope it strengthens collaborations between ecosystem stakeholders by deepening trust and our shared understanding of outcomes and scale.For funders,the report sheds light on the diverse needs and journeys of nonprofits,

9、fostering a better understanding of their operational realities.For practitioners,it offers ways to articulate their impact with greater clarity and effectiveness.Just like India Inc.,which has positioned India as a leader in business,our NGOs are equally recognized globally for their frugal innovat

10、ion,visionary leadership,and unrelenting commitment.Today,Indian NGOs are at the cusp of developing exceptional solutions that hold the potential to be replicated across the Majority World.This report is a tribute to the brave and visionary NGO leaders and practitioners who have always put communiti

11、es and the country in front of their own needs.Deval SanghaviCo-Founder and Partner,Dasra With profound humility,we present the first edition of the India Nonprofit Reporta collaborative effort between Kearney and Dasra.We wrote this report because the work that nonprofits do deserves greater unders

12、tanding,recognition,and support.Over our 25-year journey,we have witnessed nonprofits lead transformative change across the length and breadth of the country.This report amplifies the voices of those working on the groundthe practitioners who partner with communities to co-create meaningful solution

13、s.Theyve adopted ingenious ways to solve challenging problems,adapting and evolving with a changing India.NGOs are always among the first responders during disasters,from the Gujarat earthquake to the Indian Ocean tsunami and more recently the COVID-19 crisis.Take Khamir from Kachchh,born out of the

14、 rubble of the 2002 Gujarat earthquake to provide relief for artisan communities.Today,it has become a globally recognized platform reviving perishing craft practices and knowledge while connecting thousands of artisans to markets.Or consider Arpan,an NGO working out of the Pittorgarh junction betwe

15、en India and Nepal.It began with a mission to deliver education to local tribal girls and has expanded to 13 districts in Uttarakhand,building leadership capacities for women farmers.Or Language and Learning Foundation,which supports state governments in improving childrens foundational learning out

16、comes.And Ummeed,integrating the needs of children with developmental disabilities into mainstream education across multiple states.Time and again,these NGOs have proved that impact can be scaled,without profits.Mile after mile,we have seen the astounding ways NGOs are bringing change.But how do you

17、 begin to articulate and measure something this powerful?Foreword1India Nonprofit Report:Role,Evolution,and ImpactAlthough progress has been made,the path ahead demands resilience,innovation,and collaboration.Addressing resource constraints,enabling long-term systemic change,and strengthening partne

18、rships between governments,NGOs,and donors are essential steps.Through collective effort,the sector can achieve greater efficiency and ensure meaningful contributions to SDG betterment.By unlocking new funding models,fostering transparency,and strengthening the sectors capacity for lasting impact,th

19、is report aims to call all stakeholders to break silos,foster trust,and embrace a future where strategic action meets grassroots innovation to create a lasting transformation.It is time we recognize,celebrate,and invest in the visionary leadership,ingenuity,and resilience of these organizations.Toge

20、ther,we can build a future where the social sector thrives as a cornerstone of Indias development journey.Neelesh HundekariSenior Partner,Kearney With deep commitment and a shared sense of purpose,we are proud to present the first edition of the India Nonprofit Reporta collaborative endeavor between

21、 Kearney and Dasra.At Kearney,our involvement in the social sector is driven by a simple but powerful belief:strategic insights,when combined with grassroots action,can drive systemic transformation.By leveraging our expertise in problem-solving,data-driven insights,and cross-sector collaboration,we

22、 are committed to supporting nonprofits in scaling impact and driving systemic change.Our partnership with Dasra is more than just a collaboration;it is an invitation to rethink the way we engage with and support the social sector.For decades,NGOs have worked tirelessly,addressing everything from ed

23、ucation and healthcare to gender equity and climate action.However,this dynamic sector faces persistent challengesfunding deficits,difficulties in impact measurement,internal capacity constraints,and a lack of robust partnerships have long hindered its growth and efficiency.As Indias Sustainable Dev

24、elopment Goals(SDG)story continues to unfold,breaking these barriers isnt just necessaryits the catalyst for a sector that doesnt just create change but sustains and scales it.This report seeks to spark dialogue and provide a structured lens for understanding the arenas of scale.Built to challenge t

25、he status quo,it moves beyond traditional narratives,defining pathways for growth,innovation,and collaboration.It addresses critical questions such as:What do NGOs do?Why do NGOs evolve?What does scale mean for NGOs?It also delves into the challenges NGOs face,donor perspectives on the sector,and th

26、e role of government as a key enabler.Designed to bridge theory and action,the social impact taxonomy it presents is not just a framework but a tool for NGOs to articulate,measure,and communicate their contributions more effectively.For donors,it encourages a collaborative mindset rooted in empathy

27、and a commitment to fostering systemic change.For the larger community,it highlights the essential role NGOs play in advancing Indias development goals,cultivating trust and collective responsibility.2India Nonprofit Report:Role,Evolution,and Impact3.Social impact taxonomy All NGO work can be classi

28、fied into one or more of three key activities:Knowledge building refers to the generation and dissemination of information through research and communications.Service delivery refers to the direct provision of services and products,fulfilling needs within communities linked to human development outc

29、omes,including crisis response.Ecosystem development refers to the consolidation and reinforcement of efforts,processes,and systems at a macro level through multistakeholder engagements.NGOs articulate,measure,and attribute success in diverse ways.All NGOs track tangible and traceable inputs,activit

30、ies,and outputs along a results chain.In describing the impact,there is a need to distinguish between output and outcomes and consider the connections between the two.NGOs count time and attribution while measuring change.Key report highlights1.The state of the NGO sector today The NGO Darpan databa

31、se reports approximately 2.65 lakh active NGOs in India;states such as Maharashtra and Uttar Pradesh have a high number of NGOs due to their large populations.The top five focus areas covered by NGOs are education and early childhood care;arts,culture,and heritage;rural development;health and nutrit

32、ion;and livelihoods and skilling.2.Voice of the NGOs:insights from a survey of 400 NGOs Notably,91 percent of NGOs surveyed operate with micro,small,and medium annual expenditures of less than INR 10 crores;1 percent NGOs had an annual expenditure of more than INR 50 crores.Moreover,26 percent of NG

33、Os focus their reach nationally or internationally,44 percent of NGOs maintain a regional geographic focus,while 30 percent operate at the hyperlocal level.Only a striking 22 percent of NGOs reported having a corpus fund during the last fiscal year;72 percent reported they had a funding deficit,larg

34、ely due to erratic short-term funding they receive.3India Nonprofit Report:Role,Evolution,and Impact4.NGO evolution and scale NGOs evolve and change course due to internal factors such as changes in resources and leadership.External factors include crises,regulations,community response,and technolog

35、y.Evolution pathways of NGOs include intensifying existing activities,pivoting and changing the scope of activities circumstantially,or ceasing operations or programs due to the above factors.Scale is a context-dependent,directional representation of NGO strategies to maximize impact.Community and s

36、ystems determine the three scaling dimensions observed:Scaling deep covers direct support or new programs to communities in focus,intensifying direct support or building new programs for a specific underserved community or geography.Scaling across covers direct or indirect support through existing o

37、r new programs,expanding direct or indirect support via programs to more communities or geographies.Scaling up covers indirect support to communities by targeting systems and concentrating on decision-making institutions,systems,or the overarching development environment.4India Nonprofit Report:Role

38、,Evolution,and ImpactIndias SDG progress in a global context:the pivotal role of NGOs in bridging gapsSince the adoption of the 17 Sustainable Development Goals(SDGs)as part of the 2030 Agenda for Sustainable Development eight years ago,Indias SDG score has climbed from 58.4 in 2015 to 63.9 in 2023,

39、marking an impressive 10.5 percent growth rate.This growth outpaces the progress of the Organization for Economic Co-operation and Development(OECD)countries(2 percent),BRICS(Brazil,Russia,India,China,and South Africa)economies(6.9 percent),East and South Asia (7.2 percent),and even the global avera

40、ge (4.8 percent).While Indias growth is impressive,the absolute numbers reveal a contrasting perspective.Indias current SDG score lags OECD nations(77.2)and,albeit narrowly,BRICS economies(67.9),East and South-East Asia(66.5),and the global average(66.3),indicating Indias SDG growth narrative is a s

41、tory of rapid strides in social development juxtaposed with opportunities for improvement.Indias nonprofit landscapeAt the forefront of achieving the SDG mission is the government,with policies and investments that shape the foundation of progress.Landmark initiatives such as the National Education

42、Policy(NEP)2020,which focuses on universal access to quality education,the Jal Jeevan Mission,aimed at ensuring safe and adequate drinking water for every rural household,and the Ayushman Bharat scheme aimed at enhancing access to health insurance for underserved populations have driven significant

43、improvements.Additionally,the Press Information Bureau(PIB)reports that government expenditure on social services has grown at an impressive CAGR of 12.8 percent from FY 2018 to FY 2024,reaching 7.8 percent of GDP in FY 2023(21.03 lakh crore).Although this reflects significant commitment,it still fa

44、lls short of the 14 percent of GDP benchmark recommended by Niti Aayog to meet the SDGs by 2030.In comparison,social spending in the USA (an OECD country)stands at 22.7 percent of its GDP1,Brazil(a BRICS member)at 15 percent2,and the Philippines(a developing Southeast Asian counterpart)spends 8.2 pe

45、rcent.3 Bridging this financial gap is crucial for India,but equally critical is addressing ground-level issues such as uneven access to healthcare and education.Here,NGOs play a vital role in complementing government efforts to advance sustainable development outcomes by facilitating the last-mile

46、delivery of development initiatives,offering on-ground feedback to shape social policy,and providing innovative solutions such as the Childline 1098.1 OECD(2024,Jun).Social Expenditure Database(SOCX)2 OECD(2021,Mar).How effective are different social policies in Brazil?A simulation experiment.3 Depa

47、rtment of Budget and Management,Philippines(2018).Social services spending highest in 2017 and 2018.5India Nonprofit Report:Role,Evolution,and ImpactIndias NGO sector tells a story of resilience and agility.To put this into perspective,the largest attempt to map NGOs was undertaken by the Central St

48、atistical Office(CSO)under the Ministry of Statistics and Program Implementation(MOSPI)in 2012.The study estimated that the country had 31.7 lakh non-profit institutions(NPIs)based on registration records up to 2008.In 2017,as part of efforts to formalize the sector,the Indian government mandated NG

49、Os to register with the NGO Darpan database maintained by NITI Aayog.This platform provides a more dynamic view of the sector by tracking active organizations.According to the NGO Darpan database,India now has a network of 2.654 lakh active NGOs.The complementary role of NGOs has helped create a tra

50、nsformative positive impact.From addressing developmental challenges by delivering last-mile services to engaging communities through awareness building and offering innovative solutions to the ecosystem,NGOs are helping India inch closer to the SDGs.“Indias journey and growth is huge,with so many c

51、omponents and actors that the work of NGOs often goes unnoticed.But if we focus on NGOs,we see their unmatched connection to deserving yet deprived communities.Most of them are from the community itself or live among them.Their greatest asset,therefore,is reading the pulse of the community,assessing

52、 what can be done to bring change,and informing the larger world about it.We see that as a change at the ground level.But for the world to see and understand this,the sector needs to find language to tell its story.”KN Gopinath,Dhwani FoundationEvolution of the sectorThe practice of volunteerism,phi

53、lanthropy,and reform has been intrinsic to Indias growth story for centuries.Government bodies,such as the legislature,judiciary,and executive,at the union and local levels,represent the institutional structures of democracy,and NGO efforts are woven into each of their functions.While the shape,scop

54、e,and pace of civil society activity have changed over time,the inherent nature of NGOs has remained the same:centered on those in need.Figure 1 on page 7 traces the journey of civil society in India as the outcome of these needs,shaped by the social,political,and economic currents of each era.54 As

55、 accessed on December 9,2024 5 Sheth,D.L.,&Sethi,H.(1991).The NGO sector in India:historical context and current discourse.Voluntas:International Journal of Voluntary and Nonprofit Organizations,2(2),4968.6India Nonprofit Report:Role,Evolution,and ImpactFigure 1Civil society action:a journey from vo

56、lunteerism to formalized NGO workPeriodDrivers for changeNote:NGO is nongovernmental organization.Source:Dasra and Kearney analysis1800s Colonized IndiaSocial and religious reform Emphasis:rejection of harmful norms such asSati,child marriage,and caste discrimination Key actors:Raja Ram Mohan Roy,Jy

57、otirao,and Savitri Phule Milestones:abolition of sati,widow remarriage,girls education,and the Societies Registration Act(1860)Late 1800s to mid-1900sIndependence movementsCounter-movements for freedom amid rising nationalism Emphasis:resistance against colonial exploitation,guided by the philosophy

58、 of self-reliance and lifestyle shifts Key actors:B.R.Ambedkar and M.K.Gandhi Milestones:inclusion in governance processes,independence,and freedom in 19471950s to 1990sThe development decadesPivots for nation-building and multilateral cooperation Emphasis:acting as nodal agencies for delivering on

59、government and multilateral development agendas Key actors:multilateral agencies and self-help groups Milestones:more collaborations characterized by cost-efficiency,community embeddedness,and frugal innovationLate 1990s Liberalized IndiaRising professionalism and the NGO boom Emphasis:integrating s

60、ocial welfare principles into market-driven growth programs through participation in decentralized governance Key actors:NGOs,Panchayati Raj Institutions,private-sector players,and government bodies Milestones:decentralized governance boosts grassroots collaboration;NGOs begin adopting professionali

61、zed and collaborative approachesThe early 2000sIndia in the new millennium Impact through collective action Emphasis:driving social change through knowledge building,ecosystem strengthening,and collaboration with the state and private sector Key actors:foreign philanthropy,intermediaries,corporation

62、s,and government bodies Milestones:adoption of the UN Sustainable Development Goals+key legislation such as Corporate Social Responsibility,Right to Education,and the Mahatma Gandhi National Rural Employment Guarantee Act2020s to presentPost-pandemic India Rising with India-led solutions Emphasis:fo

63、cus on digital infrastructure,systems change across various institutions,and building community resilience Key actors:domestic givers,the government(NITI Aayog),and NGOs across the spectrum of budget sizes and sectors Milestones:infrastructure(NGO Darpan,Social Stock Exchange)by government,pivoting

64、with collaborative action and internationalization7India Nonprofit Report:Role,Evolution,and ImpactIn addition to registration,NGOs need to adhere to regulations that govern taxation and foreign contributions,which are critical for their operations.Tax exemptions and donor deductions.NGOs are requir

65、ed to register under Section 12AB of the Income Tax Act of 1961 to claim tax exemptions and under Section 80G for donor tax deductions.These benefits are valid for five years and require renewal at least six months before expiry.Foreign contributions.NGOs receiving foreign funds are required to comp

66、ly with the Foreign Contribution Regulation Act(FCRA),which governs foreign funding to ensure transparency and accountability.The law requires organizations to route foreign contributions through designated banks and accounts.FCRA registration is renewed every five years.Details on the regulations f

67、or non-profit organization In India,NGOsor non-profits or civil society organizationsoperate within defined regulatory frameworks to ensure alignment with their charitable objectives and compliance with the law.While they undertake diverse initiatives,specific activities are strictly regulated:Polit

68、ical activities.NGOs cannot engage in political campaigns but may promote non-political causes aligned with their mission.Economic activities.NGOs can pursue commercial activities if they support their charitable purpose,with business income capped at 20 percent of total income from donations and gr

69、ants.Governance restrictions.Public trusts,societies,and Section 8 companies must ensure transparency,prioritize public benefit,and prevent personal financial gains for founders or trustees.Additionally,Section 8 companies are mandated to reinvest all profits into achieving their objectives,with no

70、provision for dividend payments to members.For this report,NGO refers to non-government entities dedicated to inclusive and sustainable public welfare,as recognized by NITI Aayog,government agencies,and philanthropic organizations.Entities misaligned with the public welfare,such as profit-driven ins

71、titutions,member-exclusive groups,sect-specific religious or cultural bodies,and private advocacy organizations,have been excluded.Legal and regulatory framework for NGOs NGOs in India operate under a legal and regulatory framework that governs three key aspects of their functioning:registration,tax

72、ation,and regulatory compliance.The laws allow for registration under three categories:societies,trusts,and Section 8 companies,each designed to cater to different operational needs and purposes with distinct governance and compliance requirements.The registration laws are as follows:The Societies R

73、egistration Act,1860.This federal law facilitates the registration of non-profit associations for literary,scientific,or charitable purposes.Seven or more individuals with a shared goal can register as a society under the national act or state-specific adaptations.While these adaptations provide fle

74、xibility,they also result in varying governance and compliance requirements across states.The Indian Trusts Act,1882.This law governs private trusts at the federal level.States have since introduced their public trust laws,such as the Bombay Public Trusts Act of 1950,for registering trusts with publ

75、ic,religious,or charitable purposes.Two or more individuals with a shared purpose and property can register a trust under these laws.Section 8 of the Indian Companies Act,2013.This section allows for the registration of non-profit companies aimed at promoting arts,science,education,social welfare,an

76、d environmental protection,among others.The 2013 act expanded the scope of activities covered compared with its 1956 predecessor.Section 8 companies are required to reinvest all profits into their objectives and are prohibited from distributing profits for personal gain.8India Nonprofit Report:Role,

77、Evolution,and ImpactState of the sector todayInclusive and sustainable public welfare is embedded deeply in the mission of non-governmental organizations(NGOs).Understanding the composition and scope of their activities is essential to assess their societal impact and identify areas for further emph

78、asis.As of December 2024,the Darpan database reports that India has approximately 2.65 lakh active NGOs,including about 1.3 lakh(49 percent)registered societies,1.12 lakh(42 percent)trusts,22,000 (8 percent)Section 8 companies,and 400(1 percent)other entities.The relatively lower number of Section 8

79、 companies compared with trusts and societies may stem from higher compliance costs and the inherent preference for traditional incorporation methods.Key observations and inferences are noted below.The sectoral distribution of NGOs aligns with Indias diverse development needs.The top five focus area

80、s are education and early childhood care(17 percent);arts,culture,and heritage(12 percent);rural development(11 percent);health and nutrition (9 percent);and livelihoods and skilling(8 percent).The cause areas are also linked to government policies such as the National Education Policy(NEP)2020,Sama

81、gra Shiksha Abhiyan,MNREGA,and Swachh Bharat Mission.This can be compared with the donor funding landscape6,where similar focus areas such as education,health,rural development,livelihood,as well as art,culture,and heritage are prominent among CSR and family givers.Themes such as gender,equity,diver

82、sity,and inclusion as well as climate action are gradually picking up among funders.However,gaps persist with NGO and funding activity falling short in addressing gender equity,where SDG 5 performance metrics score low.7 Figure 2 on page 10 provides an overview of the total number of NGOs in each st

83、ate and Union Territory(UT)of India,alongside the net state domestic product(NSDP).The figure also highlights the NGO density(number of NGOs per lakh population)across states,categorized into levels ranging from low to very high.“India is one of the few countries that has a fairly evolved social sec

84、tor with a philanthropy marketplace waiting to scale.In the last two decades,the country has witnessed the growth of ecosystem enablers and orchestrators,which has resulted in credible,sector-owned,and representative non-profit information repositories,credibility norms,certification of NPOs,fundrai

85、sing platforms,and portfolio management services.These entities have patiently developed frame-works,systems,and institutions and have worked with a few thousand NPOs to educate and equip them to leverage the marketplace.Given that there are around 360,000 tax-exempt NPOs and about two-thirds of the

86、m have an annual expenditure of less than Rs1 Cr,it requires collaborative effort,technology,and capital to unlock the potential of the sector.With the emergence of institutions,mechanisms and philanthropic capital to support ecosystem development,there is an urgent need to develop definitions and s

87、tandards and to use taxonomies for building interoperability across ecosystem enablers to impact the sector at scale.”Pushpa Aman Singh,GuideStar India6 Catalyst 2030.Indias Million Missions:UHNI,HNI,and Corporate Giving7 NITI Aayog.(2023).SDG India Index 2023-24:Annual Report9India Nonprofit Report

88、:Role,Evolution,and ImpactThe geographical distribution of NGOs reflects socioeconomic demographics.States such as Maharashtra and Uttar Pradesh have a high number of NGOs due to their large populations.However,NGO densitya measure of NGOs per one lakh populationoffers more in-depth insights.Economi

89、cally strong states such as Maharashtra,Karnataka,and Tamil Nadu show a high NGO density of 20 to 30 NGOs per one lakh population,underscoring the correlation with NSDP.*This highlights the need for increased investment in NGOs,particularly in states with lower NSDP as well as aspirational districts

90、.States such as New Delhi and Manipur have the highest NGO density.New Delhi,with its high NGO density(about 110 NGOs per one lakh population),benefits from its status as an administrative hub.Manipur,despite low NSDP,has a similar density(about 113 NGOs per one lakh population),rooted in historical

91、 movements such as Nupi Lan and the prevalence of civic awareness initiatives.Notes:NSDP is net state domestic product;NGOs are nongovernmental organizations.NGO density=number of NGOs for every lakh population.NGO Darpan data leverages NGOs registered in the portal.Sources:NGO Darpan;Dasra and Kear

92、ney analysisFigure 2State-wise net state domestic product with the total number of NGOs and NGO densityLow NGO density:less than 15Medium NGO density:1525NSDP in INR lakh croreNumber of NGOs in thousandsHigh NGO density:2550Very high NGO density:more than 501.62.41.51.3Jammu and KashmirHimachal Prad

93、esh5.44.7Punjab7.88.3Haryana7.819.4Delhi17.237.6UttarPradesh0.20.4Mizoram3.34.4Jharkhand10.712.4Rajasthan17.014.3Gujarat9.911.8Madhya Pradesh26.936.6Maharashtra10.29.0Telangana10.39.9AndhraPradesh17.916.6Karnataka8.38.0Kerala18.519.3Tamil Nadu0.70.5Goa3.73.3Chhattisgarh5.86.7Odisha0.30.2Sikkim0.30.7

94、Arunachal Pradesh3.74.1Assam0.30.5Meghalaya12.018.7West Bengal0.30.6Nagaland0.33.2Manipur5.99.0Bihar2.43.6Uttarakhand*Poverty Rate in Indian States(RBI,2000),Literacy Rate,Census 2011(RBI,2011),Human Development Index Rankings(CEDA),NSDP(MoF,2023),Population Statistics,2011 Census(RBI,2011)10India N

95、onprofit Report:Role,Evolution,and ImpactUnderserved regions have lower NGO density per population.Populous states*such as Uttar Pradesh,with relatively lower development metrics8,highlight the need for enhanced governmental and NGO efforts.Uttar Pradesh has a low literacy rate and an HDI of 0.596,a

96、mong the lowest in the country.These are compounded by challenges such as high poverty rates.The states low NGO density(about 19 NGOs per one lakh population)and low educational budgetary allocations reflect an urgent need for greater strategic interventions to address critical gaps in education,hea

97、lthcare,and livelihoods.These distributions highlight the importance of bolstering the growth and presence of NGOs.Strategic partnerships between NGOs,government agencies,and funders can enhance resource utilization and enable targeted programs addressing the unique needs of Indias diverse billions.

98、Promoting collaboration among stakeholders is essential to advancing the vision of a Viksit Bharat by 2047.“Interestingly,while traditional causes like education,health,community development,and food and nutrition continue to dominate NGO efforts and funding,rural development,women empowerment,and l

99、ivelihoods have gained traction in the last three to four years due to evolving CSR interests,funder priorities,global discourse,and aspirational district programs.”Richa Singh,GiveThe funding landscape for NGOs Gaining a deeper understanding of this landscape is essential for NGOs to craft targeted

100、 relationship management strategies and optimize their fundraising efforts.Figure 3 on page 12 provides an overview of funder archetypes,highlighting their key characteristics,existing donor engagement practices,avenues for donor engagement,and a document checklist.While regulatory provisions promot

101、e transparency and accountability for non-profits,they also underscore the critical need for sustainable funding to support their missions.Indias funding landscape remains complex,with significant barriers for both funders and NGOs.Unlike more mature philanthropic ecosystems in the United States and

102、 Europe,India is still developing a comprehensive understanding of donor behaviors and NGO needs,contributing to persistent information asymmetry.Bridging this asymmetry requires mutual efforts,as closing these gaps can build trust,enhance alignment,and enable more impactful collaborations between f

103、unders and NGOs.*Poverty Rate in Indian States(RBI,2000),Literacy Rate,Census 2011(RBI,2011),Human Development Index Rankings(CEDA),NSDP(MoF,2023),Population Statistics,2011 Census(RBI,2011)8 UP:Poverty rate:31 percent;Literacy rate:68 percent,HDI:0.592,UP education budgetary allocation:INR 4,000 pe

104、r capita,Kerala,GoaINR 10,00012,000 per capita11India Nonprofit Report:Role,Evolution,and ImpactFigure 3Understanding funder archetypes:characteristics,engagement practices,and pathways to access donorsFunder archetypes and rolesEngagement practices by NGOsAvenues of access Note:NGOs are nongovernme

105、ntal organizations;HNIs are high-net-worth individuals;UNHI are ultra-high-net-worth individuals;CSR is corporate social responsibility;FCRA is the Foreign Contributions Regulation Act;RFPs are requests for proposals.Source:Dasra and Kearney analysisForeign funders Global foundations,aid agencies,or

106、 foreign NGOsRole:building the infrastructure for NGOs Multi-stakeholder partnerships Collaborating on grants Campaigns through international portals Personal and intermediary networks RFPs through international foundations websites Networking at conferences and forumsCorporate social responsibility

107、 Funds from companies required to allocate 2%of their net profit as per lawRole:scaling programs with a strong proof of concept Employee volunteering Networking through industry events Raising corporate sponsorships Offering brand visibility Corporate CSR portals,industry associations+platforms CSR

108、intermediaries and aggregators Networking at conferences and forumsRetail fundersContributions from individual donors,primarily through online crowdfunding platformsRole:addressing immediate community needs Donation drives on crowdfunding platforms Storytelling campaigns on social media Community-ce

109、ntric events Crowdfunding platforms Social media platforms Peer-to-peer fundraising events and drivesHNIs and affluent giversFamilies or individuals with net worth=INR 2001,000 crores(HNIs)and high-earning professionals and entrepreneurs with net worth=INR 7200 crore(affluent givers)Role:supporting

110、institution building with patient capital Narrative-driven storytelling campaigns Learning sessions Exposure visits to field and communities Networks Collaborative funding opportunities Peer referralsUHNIsFamilies or individuals with a net worth=INR 1,000 crore,typically giving through their own tru

111、sts or foundationsRole:building fields+systems through portfolio support Collaborating on grants Multi-stakeholder partnerships Being involved in field building Liaising through philanthropic advisors,intermediaries,or networks Networking at philanthropy forums Foundation websites Peer referrals Col

112、laborative funding opportunitiesSuggested document checklist across funder groups FCRA certificate 80-G certificate 12A certificate PAN card Latest annual report Latest audited financial statement Comply with Section 135 of the Companies Act,201312India Nonprofit Report:Role,Evolution,and ImpactSoci

113、al development and the role of NGOs,government,and donorsVoice of the NGOs:insights from a pan-India survey of 400 NGOsNGOs across diverse expenditure sizes,ages,geographic locations,and focus sectors encounter unique experiences and challenges.To capture these varied perspectives,we conducted a com

114、prehensive survey of over 400 NGOs.This effort aimed to gain deeper insights into their funding dynamics and programmatic operations.Under funding,we explored key aspects such as financial stability,sources of capital,and fundraising challenges faced by these organizations.Under programs,we delved i

115、nto impact assessment and operational hurdles encountered in their programs.Below are key descriptors of the NGOs surveyed.Annual expenditure.This term refers to the total money an organization spends in one year on its operations and activities.Unlike for-profit companies that focus on maximizing r

116、evenue to generate profit,NGOs prioritize aligning their annual expenditure with their mission,ensuring that funds are effectively utilized to achieve their impact goals.Interestingly,91 percent of NGOs operate with micro,small,and medium annual expenditures,a trend mirroring the broader landscape o

117、f MSME enterprises in India,of which 97 percent are categorized as micro and small enterprises,with similar outlays below INR 10 crores.9 While these industries in the for-profit sector are celebrated as the backbone of Indias innovation spirit,NGOs operating at a similar scale often fail to receive

118、 the same level of recognition and support.Based on annual expenditures,the survey snapshot is as follows:14 percent of micro NGOs with less than INR 10L 42 percent of small NGOs with INR 10L1 crores 35 percent of medium NGOs with INR 110 crores 7 percent of large NGOs with INR 1050 crores 1 percent

119、 of very large NGOs with more than INR 50 crores Registration entity type.The majority(85 percent)reported being registered as trusts or societies,in accordance with older laws.However,the few (15 percent)that are registered as Section 8 are largely new and emerging in terms of their establishment.T

120、o an extent,this observation suggests early shifts toward a more formalized and potentially professionalized sector,as Section 8 registration often aligns with newer government regulations and potentially encourages stronger governance structures.9 India Brand Equity Foundation*Percentages may not s

121、um to 100 percent because respondents could select multiple options.13India Nonprofit Report:Role,Evolution,and ImpactGeographic focus.As per the survey,26 percent of NGOs focus their reach nationally or internationally,44 percent of NGOs maintain a regional geographic focus,and 30 percent operate a

122、t the hyperlocal level(districts and panchayats).Size distributions also vary by geographic scope.Over 80 percent of regionally focused NGOs are small to medium-sized(annual expenditure between INR 10 lakhs and 10 crores).Similarly,more than 65 percent of hyperlocal NGOs fall within the micro and sm

123、all categories(annual expenditure less than INR 10 lakhs to 1 crore).Age.A notable 76 percent of NGOs are older than 10 years,with a significant 24 percent established within the past decade.This growth reflects the impact of initiatives such as the launch of NGO Darpan in 2015 to streamline NGO reg

124、istration,the diversification of the donor base in India due to economic policies such as the 2013 CSR mandate,the increase in the number of high net-worth individuals(HNI)and ultra-high net-worth individuals(UHNIs),and the overall growth in institutional funding paving the way for new NGO establish

125、ments.SDG focus.*NGOs across all annual expenditure ranges work toward five or six SDGs at a time.The most prominent SDGs that most NGOs work toward are gender equality(74 percent of NGOs),quality education(74 percent of NGOs),and good health and well-being(70 percent of NGOs),largely in alignment w

126、ith national development agendas and underscoring a strong commitment across sectors to achieving the SDGs.For instance,in the good health and well-being SDG,India is doing poorly compared with BRICS nations.Government health expenditure is just 1.13 percent of GDP10 compared with an average of 4.15

127、 percent in BRICS nations.Further,challenges such as inadequate rural healthcare,a shortage of medical professionals(0.7 doctors per 1,000 people compared to 1.9 in BRICS),and unequal access persist.To bridge these gaps,NGOs have focused on this SDG through community-driven healthcare models,mobile

128、clinics,and other innovative initiatives that supplement government efforts in enhancing health outcomes and access across the country.1.The voice of NGOs on the funding landscape The financial stability of NGOs is a major challenge across NGOs of all sizes.Notably,92 percent*of NGOs identified core

129、 funding and financial stability as a challenge.The sentiment is shared across NGOs irrespective of the size and sector they operate in.However,it is more pronounced in NGOs with micro to medium annual expenditure ranges(90 to 95 percent*)compared with 67 percent*of very large NGOs that report it to

130、 be a challenge.A striking 72 percent of NGOs reported they had a funding deficit,largely due to erratic short-term funding they receive.Smaller organizations were most vulnerable to funding deficits:70 to 90 percent of micro,small,and medium NGOs have funding deficits,while less than 33 percent of

131、large and very large NGOs facing similar issues.Only 22 percent of NGOs reported having a corpus fund during the previous fiscal year.Among those with corpus funds,the reserves are disproportionately held by larger NGOs(43 to 67 percent),leaving smaller ones particularly vulnerable to financial inst

132、abilityunderscoring the urgent need for unrestricted support from funders to help build sustainable corpus funds.Figure 4 on page 15 illustrates the sufficiency of funding and the status of corpus fund availability in the NGO respondents.The CSR funding contribution is higher for larger NGOs and tho

133、se operating in West and North India.Reliance on CSR by large and very large NGOs is high(38 to 47 percent of their funds).Medium and small NGOs balance their funding between CSR (22 to 26 percent of funds)and international donors(22 to 28 percent of funds),with small NGOs also significantly dependi

134、ng on government grants.Meanwhile,micro NGOs primarily rely on self-generated revenues along with individual and family philanthropy and are the only type of NGO that significantly leverages crowdfunding,accounting for 9 percent of their funds.Figure 5 on page 15 illustrates the distribution of fund

135、ing sources for NGOs,categorized by their annual expenditure levels.10 World Health Organization(2021)*Percentages may not sum to 100 percent because respondents could select multiple options.14India Nonprofit Report:Role,Evolution,and ImpactFigure 4Funding sufficiency and corpus funds availability

136、for NGOs%of respondents(N=400)Funding sufficiencyAvailability of corpus fundsNote:NGOs are nongovernmental organizations.Sources:survey responses;Dasra and Kearney analysis72%Funding deficit27%Funding balanced1%Funding surplus22%Available78%Not availableFigure 5Split of the source of funding for NGO

137、s across annual expenditure sizes%of funding contribution by different donor types(N=400)Note:NGOs are nongovernmental organizations.Sources:survey responses;Dasra and Kearney analysis10%13%17%9%11%31%21%22%8%13%5%22%10%20%26%8%Corporate social responsibilityFamily philanthropyIndividual philanthrop

138、yCrowdfundingInternational donorsSelf-generated revenueGovernment grants8%10%28%5%12%38%10%9%5%27%5%11%20%7%Micro(annual expenseINR 50 Cr)Large(annual expenseINR 10 Cr 50 Cr)5%47%2%2%3%15India Nonprofit Report:Role,Evolution,and ImpactNorth and West India NGOs receive higher CSR funding,linked to co

139、rporate concentration.Within regional level NGOs,NGOs in western India receive 36 percent of their funding from CSR,while those in the north receive about 30 percent.In contrast,regions such as northeast,central,and eastern India rely much less on CSR contributions,receiving only between 13 percent

140、and 25 percent.Several obstacles such as donor access,insufficient information,very few multiyear funding contracts,lack of dedicated staff,and complicated eligibility criteria remain while raising funds.A notable 70 percent*of NGOs do not know how or where to expand their donor base,making it diffi

141、cult to approach potential donors for funding.Over 65 percent*of NGOs find securing long-term funding challenging,hindering their ability to develop sustainable,multiyear strategies.Further,60 percent*report the lack of sufficient information on donor trends and effective fundraising strategies.Addi

142、tionally,72 percent*of medium-sized NGOs highlight the absence of dedicated fundraising staff.Further,40 to 47 percent*of micro and small NGOs also find the fundraising process and eligibility criteria to be complicated.2.Voice of NGOs on operational and programmatic aspectsBeyond funding,several op

143、erational and programmatic aspects require focused attention by NGOs.We delved deeper to understand this landscape directly from the organizations:More than 45 percent*of smaller NGOs reported limited collaboration with other NGOs and key development actors,including donors and the government,to be

144、a major operational challenge,while over 55 percent*of larger NGOs find challenges related to talent,governance,data,and technological integration to be critical.Limited collaboration opportunities with other NGOs and key development actors,including donors and the government,for smaller NGOs weaken

145、 their ability to operate effectively within larger networks.Meanwhile,58 percent*of medium-sized NGOs and 83 percent*of larger NGOs face challenges related to talent,governance,data,and technological integration in their organizations.Additionally,over 40 percent*of NGOs face significant challenges

146、 related to policy changes and stringent regulatory compliance.In the corporate realm,the World Banks Ease of Doing Business(EoDB)index underscores how a business-friendly environment,characterized by simpler regulations and stronger protections of property rights,fosters growth and efficiency.Simil

147、arly,NGOs too require a conducive ecosystem with simplified regulations,robust protections,and supportive policies.Such an enabling environment would not only streamline their operations but also empower them to scale their efforts,achieve development goals more effectively,and serve communities wit

148、h greater impact.*Percentages may not add up to 100 percent because respondents could select multiple options.16India Nonprofit Report:Role,Evolution,and ImpactInterestingly,99 percent*of NGOs reported using a blend of methods to measure impact,primarily relying on self-assessment and metrics focuse

149、d primarily on improved quality of life or development outcomes tailored to their programs and initiatives.Over 45 percent*of medium to large organizations and 100 percent*of very large NGOs increasingly turn to third-party specialists for impact assessments,while only 23 to 27 percent of smaller NG

150、Os rely on third parties for impact measurement.Self-measurement is the most prominent method used by 74 percent*of NGOs,followed by measuring impact in partnership with funders,used by 69 percent*of NGOs with smaller NGOs primarily relying on these methods.The third most common approach is using th

151、ird-party specialists,utilized by 36 percent*of NGOs.Smaller NGOs primarily rely on self-measurement and funder partnerships,while 46 to 50 percent*of medium to large organizations and 100 percent*of very large NGOs increasingly turn to third-party specialists for impact assessments.Measuring the im

152、proved quality of life or development outcomes of the served community is the most common metric,tracked by 89 percent*of NGOs.This is followed by tracing the number of communities and lives reached by their programs(85 percent*).Additionally,69 percent*of NGOs track broader changes,including system

153、ic and behavioral transformations as well as long-term generational shifts.Although all organizations assess their impact in some manner,many NGOs face considerable obstacles in doing so effectively.More than 80 percent*of NGOs struggle to allocate sufficient resources for monitoring and evaluation,

154、making it difficult to conduct impact assessment effectively.Another major challenge is the delay in observing tangible results,with 58 percent*of NGOs reporting that the metrics they track require long periods to show meaningful changes,making continuous measurement a challenge.Additionally,53 perc

155、ent*of NGOs find it hard to define and track appropriate metrics,as the use of qualitative measures and the lack of standardized indicators add complexity to the process.The NGO ecosystem in the United States is more developed than in India,offering valuable insights for comparison.Examining the dif

156、ferences between the two countries can provide opportunities for mutual learning and highlight areas for growth in Indias nonprofit sector.Figure 6 on page 18 compares the key enablers of the NGO ecosystem,such as funding,technology,regulations,and public support,in both countries.Given the multitud

157、e of operational and funding that NGOs face,it is important to examine their relationship with critical enabling stakeholders,including the government and donors.The next two sections explain how both of these stakeholders collaborate with NGOs,provide resources,and establish frameworks to amplify t

158、heir impact and support sustainable development and societal progress.*Percentages may not add up to 100 percent because respondents could select multiple options.17India Nonprofit Report:Role,Evolution,and ImpactFigure 6The United States,a global leader in the nonprofit sector,has about six times m

159、ore NGOs than India(19 lakh vs.2.6 lakh)and 572 NGOs per lakh population compared with Indias 18Comparison of key enabling factors for NGOs in India and the United StatesSources:GuideStar USA,NGO Darpan,Centre for Effective Philanthropy,primary research,annual report,average annual fellowship salary

160、,Doing Good Index 2024,independent sector,Times of India 2014,AP News 2023;Dasra and Kearney analysis1.Indian NGOs face a larger funding deficit and restricted funding constraints compared with US counterparts.According to our survey,72%of Indian NGOs face budget deficits compared with only 32%of US

161、 NGOs.Most funding in India is restricted.For instance,Teach For India operates with only 15 to 20%unrestricted funding,compared to its counterpart,Teach For America,which enjoys 98%unrestricted funding.Additionally,the cost of operating a classroom in the United States is four times higher than in

162、India(in PPP terms),highlighting the frugal innovation Indian NGOs leverage.2.Indian NGOs have limited technology adoption compared with US counterparts.Restricted funding in India limits capacity building and training,preventing NGOs from adopting or effectively using modern technology.US NGOs bene

163、fit from specialized technology solutions for functions such as donor management,fundraising,data analytics,and widely adopt AI solutions.3.The United States has more liberal regulations toward foreign funding of NGOs.Indian NGOs face limitations in accessing foreign funds,requiring mandatory FCRA r

164、egistration,compliance with fund utilization+administrative expenses.US NGOs have wide access to foreign funding with no separate registration requirements and minimal restrictions on fund utilization across budget heads.4.The United States sees greater public trust and a greater proportion of the p

165、opulation volunteering in NGOs.Public trust in NGOs:44%of Indian NGOs feel trusted by society,compared with 57%in the United States.Volunteer base:Indias volunteer base is estimated as 18 crore volunteers(14k per lakh population),compared with the United States 8 crore volunteers10(22k per lakh popu

166、lation).72%32%44%24%IndiaUnited StatesFunding balancedFunding surplusFunding deficit27%1%18India Nonprofit Report:Role,Evolution,and ImpactRole of the government as an ecosystem enabler The government is the most critical stakeholder in public welfare driving a significant positive impact through bo

167、th direct and indirect interventions.Directly,it implements policies,programs,and initiatives,while indirectly,it supports the sector by collaborating with NGOs and donors who work in complementary ways through multiple programs and interventions.Key observations in the interplay between the governm

168、ent and NGOs are highlighted below.1.Government and NGO partnerships in program delivery create a positive impact on the groundSuch collaborations leverage the strengths of both entities,combining the governments reach and resources with the NGOs grassroots expertise and innovative approaches,ensuri

169、ng more effective and inclusive outcomes.We have identified three key NGO-government partnership models:1.NGOs facilitating last-mile delivery of government initiatives.NGOs are often a vital link in ensuring that government schemes reach the most remote and underserved populations.Examples:Hasiru D

170、ala,a Bangalore-based NGO with work centered on dignity in labor for the underprivileged community of waste pickers,provides access to identity rights by provision of caste certificates,KYC,and livelihood opportunities.Arpan,a grassroots organization,works to provide access to and raise awareness ab

171、out rights for women and children in the remote areas of the Himalayan ranges.Arpan works at building capacity through collectives with targeted education and rights-based interventions.2.NGOs providing on-the-ground feedback to shape public policy.NGOs also serve as strategic partners in policy for

172、mulation,providing research,data,and recommendations to ensure that government policies are inclusive and impactful.Examples:The Language and Learning Foundation(LLF)assisted in the NIPUN Bharat initiative to enhance foundational literacy.Pratham,through its Annual Status of Education Report(ASER),a

173、ssesses rural childrens learning outcomes,supporting the government with education policies to improve literacy and numeracy.The Centre for Science and Environment(CSE)provided data and inputs to shape environmental policies on air pollution and water management.3.NGOs building models for scale.Solu

174、tions that NGOs provide often serve as pilot solutions that,when successful,are adopted and scaled by the government to reach broader populations.Examples:CHILDLINE 1098 was initially launched by an NGO as Indias first 24-hour helpline for children in distress.It was later adopted and scaled nationa

175、lly by the government.The Mitanin Program was launched in 2002 in Chhattisgarh.The Mitanin Program trained community health workers to deliver basic healthcare and promote health awareness,inspiring the national ASHA worker initiative under the National Rural Health Mission.The ASHA worker initiativ

176、e was designed and deliberated with public healthcare specialists and community-based organizations.Muktangan designed an innovative teacher-training and inclusive education model in Mumbai that emphasized activity-based learning for underprivileged children.The Maharashtra government integrated ele

177、ments of Muktangans pedagogy into its state education curriculum,training government schoolteachers on similar methods.19India Nonprofit Report:Role,Evolution,and Impact2.The government plays a crucial role in enhancing NGO operations by providing essential policy infrastructureFostering innovation

178、for social good.The government plays a crucial role in fostering innovation within the NGO sector by providing financial support,incubation facilities,and platforms for collaboration through key initiatives such as the National Initiative for Developing and Harnessing Innovations(NIDHI),which suppor

179、ts innovations by providing financial assistance and incubation opportunities;as well as Rural Innovation Fund(RIF)by NABARD,which supports innovative,risk-friendly experiments in rural areas by offering financial assistance to NGOs and other entities.Aiding formalization.Apart from formulating laws

180、 for the incorporation of NGOs,the government supports the sector in multiple ways.Launched by NITI Aayog in 2015,the NGO Darpan platform provides NGOs with a unique ID,which helps raise awareness about its enabling access to funding through initiatives such as the Social Stock Exchange(SSE)and gove

181、rnment grants while creating a central database.The government also tracks SDG progress through national and state indicators,helping NGOs target gaps in critical areas.Diversifying funding sources.The government also ensures that NGOs can access diverse funding streams to sustain and expand their o

182、perations through the following:The Social Stock Exchange(SSE),launched in 2019 under SEBI,operates within Indias major stock exchanges,NSE and BSE.The SSE allows non-profit organizations(NPOs)and social enterprises to list projects,enabling retail and institutional investors to contribute to social

183、 causes.With transparency measures such as the Annual Impact Report(AIR),the SSE democratizes funding access and fosters accountability that aligns with its social impact objectives.Government grants,such as the Grant-in-Aid Scheme,Deendayal Disabled Rehabilitation Scheme(DDRS),and Assistance for OB

184、C Welfare,provide funding to NGOs for implementing social development programs aligned with national priorities.Retail donors receive tax breaks under Section 80G of the Income Tax Act,with deductions of 50 percent to 100 percent for contributions to eligible NGOs.The governments CSR framework manda

185、tes companies to allocate 2 percent of their average net profits to social causes,and the Foreign Contribution Regulation Act(FCRA)enables NGOs to access corporate and international donors,crucial for specialized programs,creating a diversified funding pipeline.Having explored the dynamic interplay

186、between the government and the NGO sector,the next section introduces another critical enabling stakeholder:donors.With funding challenges being a persistent concern for NGOs,we sought to understand donor perspectives on the roles,operations,and needs of these organizations.The insights shared by do

187、nors,outlined in the next section,provide valuable guidance on how NGOs can align with donor expectations.20India Nonprofit Report:Role,Evolution,and ImpactPerspectives of donorsIndias NGO sector represents a dynamic mix of growth,challenges,and untapped potential.Over the past two decades,shifts in

188、 funding,accountability,and operations have driven progress while adding new complexities for both NGOs and funders.While progress has been significant,funders and sector experts highlight evolving challenges that NGOs and donors must navigate collaboratively.Observations on evolving realities Accou

189、ntability with a trade-off.Funders observed a shift from charity-driven approaches to professionalized,data-driven focus on measuring impact.While this shift has strengthened accountability,it has introduced challenges.Heightened focus on measurable outcomes risks diluting grassroots connections and

190、 community-driven approaches that are essential for long-term solutions.“Philanthropy today often drives NGO priorities based on donor agendas rather than ground realities.This behavior risks misaligning resources from the real needs of the sector.”Luis Miranda,philanthropistGrowth of domestic phila

191、nthropy.Domestic philanthropy is on the rise,fueled by CSR contributions and increased wealth,spurring family giving.However,funders highlighted that restrictive funding models and place-centric allocations hinder NGOs ability to innovate or scale solutions in underserved regions,particularly rural

192、and/or aspirational districts.Operational strain on small NGOs.Enhanced compliance frameworks and reporting mechanisms have improved accountability but disproportionately burden smaller NGOs.Funders acknowledged that these organizations often lack the resources to navigate complex donor requirements

193、,diverting focus away from programmatic work.Persistent gaps in funding.While domestic philanthropy has grown,significant areas remain underfunded.Critical fields such as gender equity,animal welfare,or art and culture often lack financial support due to perceived risks and difficulties in measuring

194、 impact.Additionally,leadership development,talent management,and technology investments are underprioritized,limiting long-term sustainability.Measuring and demonstrating the impact.Funders agreed that defining and measuring impact remains a nuanced challenge in the NGO sector.Quantitative metrics

195、such as reach and cost-efficiency provide clarity and comparability but oversimplify the complexities of systemic change.For instance,shifting cultural norms or driving long-term behavioral changes cannot be fully captured through numerical data alone.21India Nonprofit Report:Role,Evolution,and Impa

196、ctAt the same time,qualitative approaches such as storytelling and field-level progress offer funders a deeper understanding of NGOs contributions,particularly in addressing entrenched social challenges.“Our approach to impact measurement focuses on the macro picture rather than individual partner-l

197、evel outputs.We prioritize field-level progress,using insights from learning reports and convenings to track systemic shifts and the maturity of a field over time.For us,success could be partners reporting their failures and making pivots based on learnings from said failure.”Abhishek Das,Rohini Nil

198、ekani PhilanthropiesChallenges in impact measurementFunders identified several challenges in measuring impact effectively:Resource burden.Monitoring,evaluation,and learning(MEL)activities are resource-intensive,requiring significant time,expertise,and funding,which many NGOs struggle to allocatehind

199、ering their ability to showcase impact and attract funding.Evolving donor expectations.Shifting donor priorities can make it challenging for NGOs to align with changing frameworks.Funders recognized the need to provide additional capacity-building support to help NGOs adapt effectively.Inconsistent

200、metrics.Funders noted that unclear or inconsistent data from NGOs complicates evaluation processes.They emphasized the importance of NGOs articulating outcomes with clear,measurable indicators,complemented by narratives that capture the narratives and stories behind their work.Funders emphasized the

201、 need for a more adaptive approach to capturing NGO impactone that balances accountability with the realities of social change efforts.Building frameworks that support both clarity and flexibility will not only foster trust and collaboration but also empower NGOs to effectively communicate their imp

202、act.“The NGO sector employs thousands of people,and data has demonstrated its positive impact on improving social indicators across the country,particularly in the most deprived areas.Its contributions should be celebrated for their critical role,and the data highlighting their true impact must be s

203、howcased.”Rati Forbes,philanthropist22India Nonprofit Report:Role,Evolution,and ImpactNonprofit work and impact The NGO sector is diverse and multifaceted,with organizations engaging in vastly different types of work and pursuing unique growth trajectories.This variety makes the sector dynamic and i

204、mpactful,but it can also lead to misconceptions or a lack of understanding among the public.This section aims to explain various aspects of the NGO sector:its activity archetypes,measuring results,evolution pathways,and scale.To achieve this,we conducted in-depth interviews with 30 NGOs,spanning a r

205、ange of annual expenditure sizes,sectors,geographies,and reach.“If you use a capacity lens to archetype NGOs,you have your very large,scaled up NGOs like Teach For India,Akshay Patra.And then you have much smaller grassroots organizations with small budgets doing last mile work;you have probably nev

206、er heard of them and might say they are too small to make a difference.But they are doing some very essential work in the hinterland.And then theres this big middlewhere organizations are in their early years but with high potential,high growth trajectories,or are more established and have been ther

207、e for a long time with stabilized operations.So,one way to look at the sector is as small,medium,and large.”Sneha Arora,AtmaHere is a profile of the NGOs included in our study:Annual expenditure sizes.We interviewed 10 NGOs each from three budget categories:Small(10 lakh1 crore)Medium(1 crore10 cror

208、e)Large(greater than 10 crore)Geographic focus.A notable 50 percent of the NGOs are region-focused(present in multiple states),followed by national and international-focused NGOs at 30 percent,while 20 percent are hyperlocal-focused(present in one or more districts in the same state).Sectoral focus.

209、All NGOs focus on more than one sector.Most of the NGOs covered work toward gender equity,social justice,disability,mental health,education,early childhood care and development,and healthcare,comparable to the national-level distribution.23India Nonprofit Report:Role,Evolution,and ImpactSocial impac

210、t taxonomyUsing insights from our in-depth conversations and survey,we have attempted to create a social impact taxonomy that describes details around activity archetypes,measuring results,and other factors describing their efforts.Activity archetypesInsights from our survey,in-depth interviews,lite

211、rature review,and groundwork reveal a diversity of NGO work happening across India.Despite this diversity in scope,scale,and target communities,we observed that all NGO work can be classified into one or more of three key activities:knowledge building,service delivery,and ecosystem development.Each

212、archetype consists of a plethora of activities that NGOs undertake.The number,nature,and duration of activities vary depending on the expenditure size and mission of the NGO.Knowledge building refers to the generation and dissemination of information through research and communications.Foundational

213、to this archetype are quantitative and qualitative data,oral testimonies,and lived experiences,informing NGO program design and supporting campaigns for greater public awareness and policymaking.For example,since 1993,an NGO in Tamil Nadu has been working with under-resourced Dalit and Tribal commun

214、ities by building their awareness about various government schemes available to them.Service delivery refers to the direct provision of services and products to communities.Each is directed toward fulfilling needs within communities,including crisis response,with the reach being connected to the geo

215、graphies.It is linked to human development outcomes.For example,an NGO in New Delhi provides a shelter home,counseling and healthcare services,legal aid,and skill development to women in distress.Ecosystem development refers to the consolidation and reinforcement of efforts,processes,and systems at

216、a macro level through multistakeholder engagements.This archetype involves seeing NGOs,their activities,and actors as components of a bigger picture,connecting the dots,and bolstering targeted areas to optimize their work within the ecosystem.For example,an NGO situated in Northern India supports st

217、ate governments in strengthening foundational literacy and numeracy by building their capacity to train public school teachers.Importantly,our interviews reveal that these three activity archetypes are often interconnected,with ecosystem building and knowledge generation supporting service delivery

218、and vice versa,instead of strictly adhering to one or the other.NGOs tend to dabble across activity archetypes as part of their portfolios.“We have been working for the past 46 years towards the cause and care of disadvantaged older persons to improve their quality of life.We run community-based hea

219、lthcare,age care,livelihood,disaster response,and digital empowerment programs reaching approximately 2 million elders and needy communities,and we advocate strongly for the elder cause,working in partnership with various stakeholders.We are the only Indian organization to be honored with the UN Pop

220、ulation Award 2020 for our work in the field of aging and development issues.Earlier in 2014,we were the recipient of Vayoshreshtha Samman by the government of India as an institution working for senior citizens.Our work spans 26 states across India,covering community-based interventions,system-base

221、d solutions,research,and advocacy.”Prateek Chakraborty and Kanchan Sen,HelpAge India24India Nonprofit Report:Role,Evolution,and ImpactMeasuring resultsGiven that NGO work cuts across the three activity archetypes and involves extremely dynamic ground conditions,target communities,and sectors,NGOs ar

222、ticulate,measure,and attribute success in diverse ways.For instance,an NGO running a special school in Puducherry tracks successes at the child and organizational levels,with the former including the number of children integrated into mainstream schools or an increase in a mothers demonstrated knowl

223、edge of her childs needs and the latter tracked through third party impact assessments.However,this NGO also emphasizes the importance of a child attending the center and spending time happily as an equally important measure of impact.Our interviews reveal that nearly all NGOs track tangible and tra

224、ceable inputs,activities,and outputs along a results chain.Input metrics measure the resources invested in delivering a program,including employee and volunteer hours,financial expenditures,and the use of physical or digital infrastructure.By tracking input metrics and outputs,organizations can asse

225、ss how resources are utilized,identify potential inefficiencies,and make data-driven decisions to optimize operations.Figure 7 on page 26 illustrates input activities and output indicators of specific activities that NGOs undertake;we have also identified linked outcomes across the activity archetyp

226、es.Beyond traceable indicators,all NGOs unequivocally state that impact is multifaceted,encompassing both qualitative and quantitative changes.When describing the impact,they emphasize the need to first distinguish between output and outcomes and then be mindful of the connections between the two.Fo

227、llowing are the key considerations NGOs make to do so:Time.For NGOs,the output is any tangible community/stakeholder engagement that they can record immediately or over a short-term period.Outcomes,on the other hand,usually connote macro-level changes,such as improved health outcomes,etc.,which are

228、more complex to measure in silos.The leap from output to outcomes happens over the long termmonths or years.“Our articulation of impact is centered on our ability to enable the continuation of craft traditions through the next generation.So,a key input activity of ours is building archives of tradit

229、ional craft knowledge that young people can peruse and learn from.A corresponding outcome is a second-generation involvement in a particular craftand this is something we track in districts of Kutch across different crafts over the long term.”Ghatit Laheru,Khamir25India Nonprofit Report:Role,Evoluti

230、on,and ImpactFigure 7Typical activities undertaken by different scales of NGOs based on their expenditure sizes and illustrative output metrics tracked across eachNotes:NGOs are nongovernmental organizations;SOPs are standard operating procedures;SDGs are Sustainable Development Goals;SHGs are self-

231、help group;FPOs are farmer producer organizations.Sources:NGO Darpan;Dasra and Kearney analysisInput ActivitiesOutputs1.Knowledge building(for same NGO/other NGOs/institutions to leverage)Changing narratives with representation and visibility1.1 Conducting fundamental research on specific issues 1.2

232、 Applying targeted operational research for program design1.3 Engaging in participatory research;monitoring,evaluation and learning studies1.4 Disseminating knowledge in mass media,social media,journals,events,etc.1.5 Codifying the knowledge,successful models,and learnings1.6 Facilitating dialogue w

233、ith multiple stakeholders:the government and community leaders Reports and knowledge products published/disseminated New data and learnings captured Issues identified for interventions Media mentions;publications launched;reach or traction Count of NGOs that used the model/learnings in operations Co

234、mmunity needs represented Evidence-based programmatic action Public awareness,social or behavioral change Decision-making structures supported2.Service delivery(for the same NGO to deliver the program)Freedoms and opportunities for individuals and communities2.1 Designing programs that address issue

235、s in the community2.2 Mobilizing communities for participation in programs through sensitization on context-specific social and environmental concerns2.3 Identifying and collating resources and establishing support centers needed to deliver services 2.4 Offering products and services directly to com

236、munity including crisis response,e.g.,education,health and nutrition,livelihoods,food security,housing,clothing,and clean water+environment Count and documentation of programs designed Individuals reached Staff deployed,funds deployed,infrastructure partnerships made Products and services delivered

237、to households and individuals;relief packages delivered;shelters set up Community resilience built for the long-term Welfare enabled through development outcomes Sustenance provided for vulnerable populations3.Ecosystem development(for other NGOs/institutions to leverage)Transformative systemic chan

238、ge for the long term 3.1 Building shared community infrastructure,e.g.,resource centers,SHGs,FPOs,etc.3.2 Creating digital infrastructure or technology platforms for data capturing or awareness building3.3 Mobilizing community by forming coalitions,collectives,or networks3.4 Building talent through

239、fellowships,learning sessions,and trainings 3.5 Developing capacity for ecosystem stakeholders3.6 Supporting smaller organizations with operational and financial resources Infrastructure created;users enrolled;convenings held;agendas set Tech stacks available;use cases Partnerships established with

240、state,private sector+others;structures such as self-help groups/cooperatives established On-ground leaders identified and trained Workshops conducted;participants reached;SOPs built NGOs supported;communities reached Multistakeholder collaborations forged for SDGs Infrastructure developed for commun

241、ities Systems and processes strengthened in institutionsOutcomes26India Nonprofit Report:Role,Evolution,and ImpactMeasurement.NGOs recognize what they can and cannot measure within their means while working on various issues.For instance,while they can count how many individuals attended their vocat

242、ional training workshop,they cannot fully quantify how those individuals took learnings back to their families,influencing others over time.NGO outputs often continue as ripple effects into both quantitative and qualitative outcomes.“As a sports NGO,we measure sports-related metrics,which are largel

243、y quantitative,but are equally tuned into the qualitative outcomes connected to life skills,gender,and health.Our main aim is to see how young people connect sport to their lives.We therefore use storytelling and feedback loops to measure that kind of impactthrough conversations with young people,sc

244、hools,and parents.Its taken us some time to crack this approach because its taken so long for sports awareness and uptake to happen,especially in geographies where gender norms are highly rigid.”Suheil Tandon,Pro Sport DevelopmentAttribution.Given that NGO work does not happen in a vacuum and is oft

245、en carried out as support toward government programs and driven community participation,NGOs find it hard to decisively attribute transformation to their interventions.Narrative building,which spotlights connections between NGO activities and outcomes within the broader ecosystem,is one of how NGOs

246、articulate attribution over the long term.“One of the key challenges in a systems change framework is establishing a clear link between our interventions and the transformation within the child protection sector.At the grassroots,we work directly with families to prevent child separation.At the dist

247、rict and state levels,we strengthen government agencies by developing family-based care champions who sustain the work in the long run.At the national level,we contribute ground research and support the creation of robust family-based care practices and guidelines.While we can track outcomes at each

248、 level,meaningful systemic change unfolds over time,requiring continuous documentation and measurement of progress.”Kusum Mohapatra,Miracle Foundation27India Nonprofit Report:Role,Evolution,and ImpactNGO trajectories and evolution pathways Fundamentally,NGOs are formed to respond to a need on the gr

249、ound.Many NGOs sustain their work toward those needs over time.Interviews with NGOs that have worked over a long period,however,reveal that they have often changed courses entirely.These changes have led to NGOs charting distinct evolution pathways which can be understood as functions of internal an

250、d external factors.Internal factorsResources.NGO trajectories are often shaped by the resources available to them,mainly funding and networks.NGOs report that funder priorities,fund design,and reporting mechanisms have a bearing on them being able to carry out their work.By extension,networks built

251、with funders and other ecosystem players add another supportive layer to their work.On the flip side,a lack of such resources drives NGOs to change courses to match funder priorities.Leadership.NGOs are often founder or leader-driven,being influenced by their way of understanding issues,ambitions,an

252、d equity within the ecosystem.Leaders assess both internal and external factors while deciding their course of action and at times are driven to change courses to sustain the NGO.Capabilities.NGOs work in complex settings and require specialized staff with strong capability sets.Given the generally

253、low salary structures and benefits associated with NGO work,however,it is hard to find and retain talent.Often NGOs find that they simply do not have people with the capabilities to meet goals;under such circumstances,NGOs may decide to change gears.External factorsCrises.Given NGO embeddedness with

254、in communities and geographies,they are often the first respondents in crisesecological or human-induced.Sometimes,crises can be long-drawn and riddled with uncertainties,putting limits to how long NGOs can continue to be crisis responders or sustain themselves as entities affected by the crises.Reg

255、ulations.Due to various circumstances,NGOs may not have the wherewithal to keep up with changing rules,regulations,and compliance requirements.Furthermore,obtaining alignment with government and global development priorities may be challenging for NGOs working on complex,grassroots issues.Community

256、response.NGO success is chiefly dependent on the communitys uptake of programs.Without community uptake and agreement,it can become impossible to deliver programs and continue working.NGOs report having to navigate extreme community pushback and are often coerced into backing off.Technology.Technolo

257、gical advancements may render certain NGO roles obsolete.NGOs with a chief purpose that can be fulfilled with accessible technology will often change courses due to the advent of new technology and tools.Key pathways shaping NGO trajectoriesNGO trajectories follow three pathways based on internal an

258、d external factors:Continue to grow by intensification of existing activities or replication and dissemination of existing activities to widen reach.This pathway is characteristic of NGOs that sustain their principal objectives and goals over timebe it addressing a specific community,geography,or ca

259、use.Pivot and change the scope of activities to adapt to circumstances.This pathway is characteristic of NGOs that change courses to adapt to changes in internal or external factors.Cease operations/program.This pathway is common when NGOs need to cease a program due to internal and external factors

260、.Case studies on NGO pathwaysTo gain deeper insights into the evolution of NGOs,we mapped the evolution pathways of two large organizations operating in Indias education sector:Pratham and Teach For India.Both NGOs began their operations around similar timeframes and have significantly expanded over

261、 the past two to three decades.Figure 8 on page 29 illustrates their evolution across the dimensions of roles and reach,highlighting their journeys similarities and differences.28India Nonprofit Report:Role,Evolution,and ImpactFigure 8Evolution trajectory of two leading Indian NGOs in the education

262、sectorNotes:NGOs are nongovernmental organizations;TaRL is Teaching at the Right Level;ASER is Annual Status of Education Report;TFI is Teach For India.Sources:primary and secondary research;Dasra and Kearney analysisPhase 1Driven by mission and societal needsPhase 2Driven by mission,societal needs,

263、and augmented capabilitiesPhase 3Driven by mission,societal needs,demand to reach a greater number of lives impacted,augmented capabilities,and crisis responseIllustrativeStarted education programs(Fellowship,Mumbai slum with focus on increasing enrollment and eventually enrolling child laborers)Sta

264、rted expansion of education programs from urban to rural regionsExpanded education programs to new target groups(vocational training for 18-to 25-year-olds)Launched ASER survey Started directly supporting in shaping national education policies through ASERASER and TaRL models started replicating glo

265、bally(e.g.,ASER in Bangladesh,Nepal;TaRL in Africa)Launched idea sharing infrastructures(InspireED)TFI alumni network leading to a valuable leadership pipeline Launched ecosystem infrastructure(TFIx,Firki,InnovateEd,Kids Ed Revolution,etc.)Dissemination of learnings from TFI alumni leadersEcosystem

266、developmentKnowledge buildingService deliveryDeveloped the TaRL approach enabling children to acquire foundational skills,like reading and arithmetic,and improve learning outcomesCrisis relief during COVID with community(and family)mobilization to improve learning outcomesScope of rolesReachTodayNee

267、d-gap-based targeted interventionsIdentification of gaps led to increase in adjacent capabilitiesWidespread proof of concept led to disseminationMultiplying impact across the countryActivity stopped after the pandemicLearnings from ASER fed into TaRL designPrathamTeach For India29India Nonprofit Rep

268、ort:Role,Evolution,and ImpactThree phases of the NGO evolution pathwayPhase 1:foundations in service deliveryAddressing immediate societal needs.Pratham and Teach For India were both founded with a mission to tackle the stark inequalities in education.Pratham sought to improve foundational literacy

269、and numeracy for underserved children,while Teach For India aimed to address the acute shortage of quality educators in under-resourced schools.Expanding scope and reach.In their early years,both organizations focused on direct service delivery,gradually expanding their programs across from urban to

270、 rural geographies and target groups.Deepening capabilities.Both organizations built strong operational frameworks,enabling them to engage effectively with communities.Recognizing barriers such as child labor,Pratham broadened its initiatives to encompass both educational and care programs,ensuring

271、a more comprehensive approach to childrens well-being.Building on its need-gap-filling strategy,it also identified the necessity of skilling adults and subsequently launched vocational training programs for individuals aged 18 and above,empowering them with essential job-ready skills.Teach For India

272、 used a novel learning pathway such as student voice and partnership(for instance,the Maya Musical)to have a comprehensive impact on childrens education.Transforming thousands of lives.By the end of this phase,both NGOs had directly impacted thousands of children.Pratham reached numerous underserved

273、 communities with its foundational learning programs(Teaching at the Right Level,or TaRL),while Teach For Indias fellowship program and its Maya musical initiative have redefined educational experiences,they go beyond traditional notions of learning,creating transformative impact across multiple cit

274、ies.Phase 2:building knowledge and influencing systemsFrom direct action to systemic insights.Pratham started with the mission of enrolling children in schools.However,it pivoted its mission to improving the quality of education in the country with the realization that a right to education is not th

275、e same as a right to learning.Pratham recognized the lack of reliable data on learning outcomes as a critical gap and sought to address this through large-scale assessments.Teach For Indias Fellow Alumni movement,meanwhile,intensified its focus on service delivery proved to be a valuable leadership

276、pipeline for the sector,multiplying the impact on students across the country.Evolution within the roles.Prathams ASER survey began as a large-scale data collection mechanism for feedback and assessment and evolved into the creation of actionable insights that directly supported education policies.T

277、he insights supported comprehensive national education reforms,furthering the NGOs impact on a systemic level.Data-driven change and insights.Pratham became a pioneer in collecting and disseminating data,supporting the government in formulating national education policies.It also used its learning t

278、o design initiatives such as TaRL to improve learning outcomes.In the words of Prathams founder,Farida Lambay,“Pratham began with a mission to improve student attendance in schools.However,the realities on the ground made us realize that we first needed to enroll children deprived of education,such

279、as child laborers,and provide them with care.Over time,our mission evolved to focus on enhancing learning outcomes for students across India and beyond.”Similarly,Teach For India enhanced its capacity to learn from on-the-ground experiences and build iterative processes for improving its fellowship

280、model.Created a policy change.Pratham experienced a significant leap in its reach through policy-level changes.By informing government policies,the NGO expanded its impact far beyond direct service delivery,affecting entire education systems and reaching a much larger audience.30India Nonprofit Repo

281、rt:Role,Evolution,and ImpactPhase 3:growing through ecosystem developmentCollaboration as the next frontier.Both NGOs shifted their focus to ecosystem development,leveraging their expertise and resources to drive systemic,large-scale change.Pratham concentrated on growing by replicating its proven m

282、odels through partnerships with governments and other organizations.Teach For India,building on years of service delivery,launched initiatives for knowledge sharing and ecosystem building,significantly expanding its reach through strategic collaborations.From service providers to system enablers.Pra

283、tham expanded its global impact by replicating its models in collaboration with governments and NGOs,fostering systemic change across diverse contexts.Teach For India similarly disseminated learnings from their community of leaders,launching platforms such as InspireED to bring stakeholders together

284、 and share innovative educational practices.The NGO also built a suite of ecosystem development infrastructure and tools,such as Firki,a learning platform designed to support teachers and educational leaders across diverse contexts;InnovateEd and TFIx to support educational entrepreneurs;and Kids Ed

285、ucation Revolution to reimagine student partnerships and collaborations.Additionally,both NGOs took on a crucial role in crisis relief,highlighting the importance of NGOs in maintaining educational continuity during emergencies.Leadership,networks,and scalability.Both NGOs focused on creating system

286、s that could sustain their impact over time.They added expertise in leadership development,strategic partnerships,and ecosystem-building while becoming more adaptable to crises and emerging needs.Achieving international impact.Through strategic collaboration and the replication of successful models,

287、both NGOs achieved a much broader,more sustainable scale.Pratham Education Foundation is taking solutions such as the Annual Status of Education Report(ASER)and Teaching at the Right Level(TaRL)beyond India through partners such as PAL Network and TaRL Africa.Pratham International is poised to drive

288、 transformative change across diverse geographies.By offering tailored end-to-end support that adapts to partner needs and operating contexts,Pratham International has demonstrated effective multi-stakeholder collaboration with local NGOs,government,and other key stakeholders.Teach For Indias ideas

289、of leadership in teaching along with student voice and partnership have influenced educators and students globally,particularly through the Teach For All network,with a presence across 64 countries.This case study illustrates the diverse pathways NGOs can take as they evolve.Pratham and Teach For In

290、dia exemplify how some organizations can start with a focus on service delivery and,as their capabilities and strategic missions mature intensify their focus,and also pivot to expand into areas such as knowledge building and ecosystem development.Both NGOs managed to balance newer roles while contin

291、uing to deliver core services.At times,some NGOs may choose to maintain their original focus,achieving significant impact by continuing existing activities,intensifying work,and replication and dissemination across geographies.In other instances,they may shift gears or pivot out of specific activiti

292、es,as seen with Teach For Indias COVID-19 relief efforts,which were scaled back as the immediate need diminished.This ability to adaptwhether by deepening existing efforts or responding to emerging challengesunderlines the vital role of NGOs in addressing both enduring and evolving societal needs.31

293、India Nonprofit Report:Role,Evolution,and ImpactCase studies on NGO evolution across small,medium,and large categoriesEach NGO tracks a unique evolution pathway.Several factors prompt NGOs to either sustain or pivot course.Through our in-depth conversations with more than 30 NGOs,we observed distinc

294、t ways in which small,medium,and large NGOs evolve.This section illustrates these ways through a variety of examples.Note:Small,medium,and large refer to the three categories of NGOs according to their budget size.Common beginnings in small,medium,and large NGOs What is the origin story of NGOs?The

295、inception of most NGOs is typically around a point of crisis or critical need within the ecosystem.Most NGOs start as small organizations with programs to provide immediate services or products to communities.Arpan began when the founders witnessed the rape and murder of two women in their community

296、.In its early years,the organization focused on womens rights issues in a remote and inaccessible mountainous region near Nepal and India.Similarly,The Halo Medical Foundation was formed by a group of medical students from Aurangabad Medical College in the 1980s.The NGOs origin was a response to a m

297、ajor earthquake in 1993 that led to the foundation adopting villages and carrying out relief work,shaping the focus on being a catalyst for government health programs.While some organizations remain small through the course of their evolution,others grow to medium or large by achieving greater reach

298、 over time or expanding their operations and services by entering new thematic areas.Waste Warriors began as a volunteer-led clean-up drive in the Himalayas in the year 2012.It was conceived as a movement,responding to the swathes of waste left behind by tourists.It now partners with governments acr

299、oss states to model best practices around waste management and integrate these measures into policy and practice.Dharma Life originally began in 2009 as a support anchor that helped rural women entrepreneurs build financial stability.Today,it has expanded its reach across rural geographies,offering

300、the same service,while also integrating research and behavior change activities in its interventions to address the systemic roots of gender inequality.Contrasting evolution pathways across small,medium,and large NGOs1.How do NGOs respond to externalities?Although NGOs have similar fundamental goals

301、,they may differ on which course they choose over time in order to improve development outcomes within communities.This is linked to internal and external factors that affect how they respond to changes in socioeconomic ground needs or navigate crisesResponding to changing needsSmall and medium NGOs

302、.These NGOs tend to work on addressing urgent community needs and are well-placed to adapt when these needs changeapplying the same principle of community-centricity but through different value chains and methods.After building community buy-in and operational stability,they tend to expand their mod

303、els“across”to the systemic levelthat is,building ecosystems that can better address multifold community needs.Pro Sport Development found that providing a sports program alone was insufficient.They needed to address life skills,health,and gender issues.Learning from experience led them to broaden th

304、eir scope and incorporate new approaches.Halo Medical Foundation began by providing relief after an earthquake,but once stable,they realized the need to address systemic gaps and expanded services toward catalyzing awareness and action for government health programs.Shakti Shalini began as a service

305、-delivery organization focused on supporting survivors of violence but later incorporated movement building in its programmatic portfolio.32India Nonprofit Report:Role,Evolution,and ImpactLarge NGOs.Given their geographic spread and scope of activities,large NGOs concentrate their efforts on strengt

306、hening the ecosystem.While they continue to provide service delivery,they focus on growing by the dissemination of successful models for wider impact.MAD focuses on empowering organizations across geographies to adopt technology through capacity building.HelpAge India implements the Elder Line progr

307、am,a national program by the Ministry of Social Justice and Empowerment,in six states.Miracle Foundation collaborates with existing government and non-government social workforce across multiple states in India by enhancing their capacity through training and the introduction of user-friendly case m

308、anagement tools.Navigating crisesSmall and medium NGOs.With bootstrapped budgets and resource limitations,these NGOs are especially vulnerable to externalities.During points of crisis such as natural disasters,small and medium organizations entirely shift focus toward emergency community relief unti

309、l conditions stabilize.Their post-crises activities integrate the post-crisis needs of the community.While some NGOs can adapt,others are forced to downsize.After the 2001 earthquake,Unnati shifted its services from a facilitators role to direct relief for the community,ceasing its regular operation

310、s for a period.During the pandemic,Ummeed shifted its training and capacity-building modules to online platforms.Protsahan started an employability program to help young girls enter the workforce and secure an income to support their families.However,Vidhi,a Medium-sized NGO focusing on knowledge bu

311、ilding,streamlined operations to mitigate unfavorable economic conditions.Since its primary function is knowledge building,they decided to downsize to a more manageable team size,working on high-impact research.Large NGOs.As they have greater organizational stability and institutional strength,many

312、large NGOs were able to build new capabilities in response to crisis.HelpAge India started its mental health operations after the pandemic.The organization began addressing mental health in response to needs that emerged post-COVID,specifically focusing on the caregiver aspect of mental health.Goonj

313、 operates on the belief that material,especially cloth,is a valuable resource for addressing social challenges.The organization collects,upcycles,and redistributes materials to those in need.In response to recurring natural disasters in the regions,the NGO launched the Rahat program to enhance commu

314、nity resilience to climate change.Incorporating technological capabilitiesSmall NGOs.These NGOs tend to use tools that are best suited to their staff and are likely to face limitations in adopting new-age technology,especially while operating in remote locations where technology infrastructure is un

315、developed.As these NGOs tend to work in hyperlocal and regional contexts,they have limited exposure to fast-changing technology and inadequate resources to invest in skill building.A small NGO shares its interest in digitalizing data collection.Financial limitations,lack of mentorship,and resistance

316、 to technological adoption by the staff make it hard for them to grow in this respect.“Our team is comfortable with a pen-and-paper system,which makes it harder to transition to a digital platform,”says a staff member.Large and medium NGOs.These NGOs tend to harness the power of data and technology,

317、with both being key drivers of their programs.They often adopt technology to optimize processes and expand reach.Make a Difference(MAD)can manage a large volunteer network with a lean full-time team by using technology for its operations.The Industree Foundation utilizes technology in its Regenearth

318、 program,which is an accelerator for other NGOs.Pratham leverages technology to improve their skilling programs,introducing an entrepreneurship component,and creating digital content,which extends its reach.33India Nonprofit Report:Role,Evolution,and Impact2.How do NGOs shift gears over time?NGOs te

319、nd to go through two or three major phases in their evolution.Small NGOs might display more agilitychanging direction quickly,with more experimentation.Medium and large NGOs that have fixed models tend to build new capacities and expand their focus on ecosystem development.Early stages(010 years).In

320、 their early years,small NGOs lean heavily toward community feedback as opposed to evidence-building and monitored learning.They rely on a small set of anchor funders who are aligned with their organizational mission.More than 80 percent of their funds are directly absorbed into programmatic funding

321、.Mature stages(10+years).At this stage,NGOs have gone through a few shifts and either grown in capabilities expanded their reach,pivoted to address new needs or continued down the same path they began.NGOs that have stayed small or medium over decades tend to grow deeper,focusing on strengthening se

322、rvice delivery rather than on expanding acrossto strengthen the ecosystem.At later stages of their journey,NGOs that started with a specific focus might also expand their scope of activities to address associated issues.Saishav initially focused on child labor but evolved to include education,empowe

323、rment,and protection of children using a rights-based approach.Unnati began as a capacity-building organization,initially focused on training the youth to strategize and plan development goals for the community.Through ground learning,the NGO realized the limitations of its approach.The organization

324、 moved to a more interventionist approach and now plays a more direct role in building and implementing community-based programs that integrate end-to-end solutions.Satya Special School began as a small daycare center for children with special needs but expanded its work to include community-based r

325、ehabilitation and training programs.Mature-stage NGOs have gained more clarity of their work and refined how they measure their impact.Many focus on developing unique frameworks to qualify and measure their work and to assess the longer-term effects of their interventions.Dharma Life tracks outcomes

326、 such as changes in spending habits and improvements in family homes.Rubaroo assesses shifts in a young persons journey through interviews and assessments.Shakti Shalini uses feedback and public speaking by survivors as indicators of qualitative growth.Protsahan uses in-depth interviews to study the

327、 creativity and resilience of children.3.What are the success factors that enable growth?Small NGOs.This category operates within finite geographies and intensifies its efforts to solve deep-rooted issues within the community.Even though small NGOs might not expand services or scale to newer geograp

328、hies,their impact is created by sustaining programs in locations where there is a need.“We have always had a restricted budget size.But we go wherever there is a need.We dont do something because of external stakeholder expectations.We are stuck to deepening our work in the geography since this was

329、the need and there is still work to be done.”Dr.Kranti Rayamane,Halo Medical Foundation34India Nonprofit Report:Role,Evolution,and ImpactThe determinants of success for small NGOs can be understood as:Focusing on a community-based approach.With the deep-rooted context of community challenges and nee

330、ds,they can influence impact in remote and challenging geographies,bridging gaps where the need is highest.Remaining agile and experimental in their approach.Working at the hyperlocal level requires constant adaptation to community needs and designing culturally appropriate interventions.Medium NGOs

331、.Building evidence-backed outcomes is a key priority for medium NGOs.Codifying and disseminating knowledge help organizations innovate with existing interventions and scale institutional knowledge to the larger ecosystem.“Fifty percent of our time,energy,and resources go into codifying our work and

332、embedding this knowledge into public systems.We call this action organizing.Once we build evidence,we have a playbook on how this works.Then we take it to scale:how do you democratize the solution created?We train other organizations to use the technology so they can adapt it to their sets of issues

333、.All of this is how we move our practice work towards ecosystem building.”Tarun Cherukuri,Indus ActionThe determinants of success for medium NGOs can be understood as:Building evidence and measuring to articulate impact.Using a variety of metrics to build knowledge and evidence-backed outcomes of programs and interventions Leveraging technology to optimize impact.Integrating digital tools to creat