Cause for those who work for the cause: Empowering NGOs

India is home to more than 3.2 million registered non-governmental organization (NGOs), out of which we do not have evidence of more than 400,000 NGOs who are in operation. In spite of this, the social sector plays a substantial role in India's GDP, accounting for nearly 2%. 

However, despite its significant contributions, the sector often faces challenges to sustain their operations or grow in a resource crunched environment. They struggle, for example, in recruiting skilled personnel and securing funding to fulfil its fundamental organisational requirements. There is an absence of a centralised registry for NGOs in India. 

These organisations also take various forms, such as societies, trusts, Section 8 companies, and more, each subject to different regulations at both the central and state levels. 

Collaborative philanthropy 

Collaborative philanthropy in India stands as a testament to the power of collective action to drive positive change and address pressing social issues. In recent years, there has been a noticeable shift towards strategic partnerships and collective efforts among philanthropic organisations, corporations and individual donors. This shared approach has enabled a more coordinated and impactful response to the complex challenges facing Indian society.

One notable example is the emergence of philanthropic networks and platforms that bring together diverse stakeholders to pool resources, share knowledge, and amplify impact. These platforms serve as hubs for collaboration, facilitating joint initiatives, and fostering a culture of transparency and accountability.

Moreover, joint initiatives often leverage the expertise and resources of multiple partners to tackle systemic issues such as poverty alleviation, healthcare access, education reform, and environmental sustainability. By combining forces, organisations can implement more comprehensive and sustainable solutions that address root causes and create lasting change.

Furthermore, there is a potential opportunity to catalyse innovation and scale impact by fostering cross-sector partnerships and knowledge exchange when organisations are operative with collective leverage. 

By embracing partnerships, philanthropic actors can maximise their collective impact, address systemic challenges more effectively, and contribute to building a more equitable and resilient society for all.

In the realm of funding social causes, philanthropy stands out for its versatility and willingness to take risks. Think of philanthropy as akin to a venture capital fund, ready to support innovative endeavours and take bold leaps of faith. 

By adopting trust-based philanthropy, funders can build stronger, more equitable relationships with NGOs and communities. This approach recognises the expertise and insights of NGOs and communities, fostering mutual accountability and collaboration. Funders can not only fund impactful programs, but also provide flexible support, such as unrestricted grants, capacity-building assistance, and long-term partnerships, to empower NGOs to strengthen their organisational capacity and achieve sustainable impact.

Another way could be through a long-term perspective of patient capital, in which philanthropists can give grants akin to investing in patient capital in NGOs, allowing them the time and resources needed to build and strengthen their organisations. This may include investing in staff training and development, upgrading infrastructure and technology, and enhancing organisational governance and management systems. By prioritising sustainable growth and impact over short-term returns, patient capital enables NGOs to build resilient and effective organisations capable of addressing complex social challenges.

Empowering philanthropy: Incentivising capacity-building initiatives 

Particularly in the Indian context, philanthropy is gaining prominence in wealth management. By investing in the capacity-building of the NGO, we have an opportunity to help broaden their impact and target their aims. Providing collaboration in terms of training and support will help both parties. 

Several stakeholders, including governments, philanthropic organisations, and civil society actors, have recognised the importance of capacity building for the social sector and have launched various initiatives to support them. These initiatives include funding support, technical assistance, mentorship, training programmes, networking platforms, and knowledge-sharing mechanisms tailored to the specific needs of NGOs. 

Another way could be non-programmatic funding, which serves as a powerful yet often underestimated catalyst for significant enhancements within NGOs. It offers essential resources for capacity building, allowing investments in training, infrastructure, and technology, thus bolstering an organisation's foundational capabilities. This empowerment equips NGOs to innovate, adapt, and scale their initiatives effectively. By prioritising internal capacity, NGOs not only enhance the quality and reach of their programmes but also embark on new endeavours with built-in confidence and support.

For instance, The GROW Fund by EdelGive Foundation brought more than 36 funder organisations and individuals together to support 100 NGOs from all over India, working in different domains such as climate, animal welfare, education, gender rights, health, and poverty. Through a collaborative approach, The GROW Fund delivered training sessions around capacity building, thereby helping the NGOs identify their areas of improvement and take the necessary steps to act on them. Designed on the principles of a fund with a large portfolio, The GROW Fund also emphasises impact measurement. Through suitable monitoring and evaluation processes, it helps organisations track their outcomes, identify best practices, and learn from their experiences to improve their effectiveness over time.

The social sector is an arena wherein stakeholders should work through a bottom-up approach. Hence, it is important to begin at the grassroots. By addressing the capacity deficit gaps and challenges faced by the social sector, stakeholders can enhance their effectiveness, sustainability, and impact, thereby contributing to positive societal outcomes.

Naghma Mulla is the CEO and Board member of EdelGive Foundation. Over the past decade of her association with EdelGive, Naghma has driven the vision of the foundation, strengthening its core principles of collaborative philanthropy; and transforming it from a grant-making foundation to a philanthropic asset management platform.