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AN NGO SUSTAINS ON FUNDS. THE PROBLEM IS HOW TO RAISE FUNDS. This is the biggest hurdle any NGO faces.
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Introduction:
Indian NGOs fall into two broad categories - the "Government-funded" NGOs and the "Multinational NGOs" which receive their funds from foreign sources.
Anil Singh of VANI (Voluntary Action Network India) has been quoted in a hard-hitting article titled, "Most of the Funds they get never reach the Poor" [ Prasannan R., in THE WEEK: Sept. 15, 1996, page 31] as saying that the Government Agency responsible for NGO funding, CAPART is corrupt and charges commissions ranging from 10-40% in return for sanctioning projects.
If CAPART has sanctioned about Rs.330 crore to about 7,500 NGOs in the last nine years (in addition to grants from other ministries), we can imagine the number of bogus organisations and front organisations which have mushroomed to siphon off this easy money in the name of rural development.
FUND GENERATION
Money from the rent of factors of production is classified in this category.
It would include income from land (agricultural and dairy farms seem to be a particular favourite with NGOs, especially those with a rural orientation) and assets like buildings and facilities.
Income from consultancy or training and workshop fees would also fall into this category.
Interest on funds deposited in banks or return on investment from business enterprises is yet another example of fund generation.
FUND RAISING
This is a distinct category, where the NGO appeals to the public and persuades individuals and groups to support it's cause. By far the most difficult of the three methods, it also raises many ideological problems, which could actually be surrogate counter-arguments to involvement with an unfamiliar and intimidating approach which calls for new skills and attitudes.
However, there are a handful of NGOs some of them very small, which have been able to see the writing on the wall. They have started raising modest amounts of money and involving the public in their work.
NGOs have the problem of attracting suitably trained and motivated staff for fundraising. Once selected, these staff have to be able to fit in with the ethos of the organisation and it's key staff. Part-time fundraising staff appears to be one of the solutions to this problem.those NGOs with fundraising skills will not only survive the crisis, but emerge as strong organisations which can implement their agendas with no fear of government reprisal.
Many NGOs have begun their own fundraising programmes in India and there is general awareness that fundraising must become an integral part of an NGO's business activities.
It is recognised that fundraising is no easy task, and requires not only expertise, but some venture capital to establish as a going concern.
An Organisational Solution:
We have been suggesting to some of our concerned NGO friends and donor friends that the way forward might be to encourage intermediary agencies to start work on Indian fundraising rather than ask NGOs to do their own fundraising. This approach recognises the specialisation of the fundraising activity and the likely internal conflicts and contradictions that can arise within an NGO.
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MY INPUT : WHAT WE CAN DO: THE SOLUTION TO OUR PROBLEM.
Since we are all technical people in the field of environmental engineering for the last TWENTY YEARS , we should concentrate in the field of environmental engineering and generate income from I) consultancy in our own fields ,ii) training programmes and iii) workshop .
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"It is shameful to go and ask people for money for NGO projects. We might ask once or twice. How can we ask on a regular basis?"
