Strategic philanthropy and the need to improve institutional resilience – The Times of India Blog

Disadvantaged communities are facing a disproportionate brunt of the impact of COVID-19, especially economically and many of the nonprofits that work with these communities are struggling. Indian philanthropy can help improve the resilience of these organisations but the task will not be easy and multiple steps will be required. Aside from increasing investment, it is important to prioritise the capacity of non-profit organisations as well as foster peer learning efforts in the social sector space. If there is one lesson from the last few years, it is that collaborative and community-led efforts will be crucial in the coming years.

A survey of 55 nonprofit organisations found some worrying findings. 71% of nonprofits had enough cash to cover barely 9 months of operations while only 40% of nonprofits could cover more than 80% of their personnel costs. More than half of the organisations had a highly restricted funding base with little flexibility to repurpose funds. According to the Centre for Social Impact and Philanthropy in May 2020, 54% of non-profit organisations surveyed could cover fixed costs for a year, while an astounding 30% could cover only six months or less. Several of these organisations reported considering drastic measures including suspension of core programmes and downsizing if funding for indirect costs was not forthcoming.

There are a few recommendations for key stakeholder groups that would strengthen the philanthropy ecosystem and build a more inclusive, equitable India.

Leading the way

With philanthropists largely redirecting funding to COVID relief programmes, the accessible pool of CSR funds is expected to diminish drastically. This will seriously threaten the institutional and financial health of nonprofits and hamper their ability to impact vulnerable communities. This highlights the need for funders to urgently support non-profit organisations with flexible capital to strengthen their institutional resilience. Offering non-financial assets in the form of capacity building opportunities, resilience-building tools and advisory support are also important ways that funders can help aid non-profits in the long run.

COVID has unveiled deep fault lines around the inequities that seep through the Indian development sector. Whether it was the millions of migrant workers who fled back to their hometowns, the thousands of families going hungry or children dropping out of schools, there has never been a more important time for the philanthropic community to help provide care for Indias most vulnerable communities. Philanthropists need to make an intentional shift to foster more equality and inclusivity which includes funding more organisations that work with the most marginalized communities, especially at the intersection of caste, class, gender, and poverty, as well as incorporating a G.E.D.I. (Gender, Equality, Diversity and Inclusion) lens within the culture and principles of their philanthropic initiatives. The pandemic has also re-emphasised the value of rural, localised, community-led efforts. Grassroots organisations with the greatest proximity to vulnerable communities have a critical role to play in engaging and supporting these communities through the pandemic.

There is also a growing need for philanthropists to expand their focus beyond large, well-established city-based nonprofits to also support more grassroots organisations in rural areas. Such organisations can enable last-mile efforts in remote areas where government services are unable to reach those in need.

Improving resilience

COVID-19 has endangered the long-term sustainability of nonprofits. There is an urgent need to significantly invest in strengthening their institutional resilience so they can weather external shocks like pandemics or recessions, where their interventions will be needed the most. This involves undertaking focused efforts to fundraise for flexible capital and participating in capacity building opportunities such as webinars, workshops, mentorship and 1:1 advisory support. Establishing a community that facilitates peer learning would enable organisations to collectively grow.

In a similar vein, engaging in increasing their collaborative efforts by joining forces with multiple stakeholders will enable nonprofits to drive collective impact. The situation is dire for many communities and there is a need for non-profits to move away from siloed efforts and participate in multi-stakeholder collaborative efforts. Collaborative platforms offer non-profits the opportunity to drive deeper and faster impact by leveraging greater resources, a wider network and more diverse skillsets.

Nonprofits must look to extend this sense of collaboration to the communities they work with as well. Models, where nonprofits or external stakeholders assess community needs, design and implement solutions, are common. While these may be effective in delivering immediate aid, they have been shown to be disempowering to communities and less sustainable over time. Approaching communities as partners or owners (rather than mere recipients), and actively involving them in the creation and implementation of programmes is a more effective model to build lasting community resilience.

An ecosystem of philanthropy

While philanthropy in India has grown and matured significantly over the last decade, there remains much to be done when compared to the countrys needs. Intermediaries need to play a crucial role in filling critical gaps in Indias philanthropic infrastructure by enabling the creation of common goods and platforms that the sector at large can leverage. This includes building and facilitating multi-stakeholder collaboratives to drive collective impact at scale, thought leadership and peer learning by increasing data collection and research initiatives.

Data and research around strategic giving are fragmented and efforts are taking place in silos. In the short term, this limits the innovation of concrete investment-ready vehicles and in the long term, enhances the existing lack of a cohesive mainstream narrative around philanthropy in India.

Intermediaries must look to strengthen the overall resilience of nonprofits by investing in capacity building, especially at the grassroots level. Building leadership capabilities among grassroots organisations will be particularly important given the rising significance of local, community-based organisations during the pandemic. While there are several initiatives focused on the economic empowerment of grassroots leaders, there are limited initiatives focused on providing them leadership training and development. Many of them miss out on opportunities due to language and technology barriers and lack of contextualized offerings that cater specifically to their needs.

Building a future together

As Omicron continues to run rampant across the country, it is vital that Indian philanthropy continues to adapt and evolve as per the needs of the situation. Given the difficulties faced by disadvantaged communities as a result of the pandemic, it is incumbent on all stakeholders philanthropists, non-profit organisations and intermediaries to make collaborative efforts to improve grassroots realities. Increasing the resilience of non-profit organisations and improving their capacities will ensure that Indias COVID recovery is equitable and leaves no one behind.

Views expressed above are the author's own.

END OF ARTICLE

Continued here:

Strategic philanthropy and the need to improve institutional resilience - The Times of India Blog