RESOURCE MOBILISATION and SUSTAINABILITY The best way to predict the future is to create it
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RESOURCE MOBILISATION and
SUSTAINABILITY
The best way to predict the future is to create it
-Peter Drucker
K. Shivakumar, Chartered Accountant
Gandhigram 624 3029443737837
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•ORGANISATIONAL
CHART
ProgrammeHuman and Institutional
Development
Support activities
Resource Mobilisation
and sustainability
Livelihood, Governance, Development
Admin, Legal,
Finance
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Uncertainty over Future fundingUncertainty over Future funding
•Will donors keep paying program costs Will donors keep paying program costs adinfinitum?( forever)adinfinitum?( forever)
•Will donors shift to Will donors shift to more needymore needy
more popular causesmore popular causes
other poor countriesother poor countries
Will social or political problem – cut offWill social or political problem – cut off
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RESOURCE MOBILISATION
NATIONAL OWN RESOURCES
WORLD BANK
GOVERNMENT INSTITUTIONS
CAPART / NABARD
INSTITUTIONS FORM
CORPUS/ ENDOWMENTS
MULILATERAL AGREEMENTS
INTERNATIONALDONORS - MNC &
COMPANIES
CSR-TATA / BAJAJ / TVS
RELIGIOUS INSTITUTIONS
INTERNATIONAL
INDIVIDUAL DONORS
INCOME GENERATING PROGRAMS
COST SAVINGS
Income from CAPACITY BUILDING TRAINING
UN Organizations
Unicef
ASIAN DEVELOPMENT
BANK
GOVERNMENT DEPARTMENTS
TRIBAL WELFARE/ RURAL DEVELOPMENT
EMBASSIES
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Resource MobilizationResource Mobilization• Preparing for fund raising• Leadership responsibilities cultivate
potential supporters Strengthening the staff
• Conduct a market Analysis Potential market Identification Trends
• Develop a financial and Mechanism
operating plan Resource Provider
Action Plan
Analysis of Current Available Resources and identifying Resources Corpus
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AgreementsNegotiation
NeedNeed
Prepare plan
Proposed budget
EvaluationAchievements
Starting and follow-up
Marketrequirement
Plan of action
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ResourcesResources
Yesterday To day Tomorrow
Deficit Expenses Corpus /
Asset Endowment
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Action plan for Resource mobilization
Concept Note
Kit: Vision/ Mission / Reports/ Details about FC/ IT /Societies
Activity Who When Resources needed
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Priority Based Resource Mobilisation Action Priority Based Resource Mobilisation Action
PlanPlan
Resource Gap
Specific needs
Resource Provider
Mechanism Deadline –
Who / When/ where
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Types of Fund RaisingTypes of Fund Raising
• Individual Contacts
• Group Contacts
• Traditional Fund Raising:– Dinner– Marathan– Events– Stalls
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Cont..dCont..d
CorporatesIn Kind
• Bricks/ Sand• Rice / Dhal• Dresses
Tele Fund RaisingOnline Fund Raising
Using Blogs/ websiteFund raising online
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Process of Fund RaisingProcess of Fund Raising• Identify Potential Donors
• Impress them with good work and proposal
• Develop a Relationship
• Build Communication- pamphlets- Fact Sheets – News letters- Annual reports- website
• Thank them professionally by utilizing the fund for the purpose for which it was received.
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Good Fund RaisingGood Fund Raising
Assess your strength.Learn Skills – Imagination and creativity (CRY,
Help age India, UNICEF, Mother Theresa) Contacts and ability to make contacts Organizational skills – files -
information’s- communicationsFind ways- compensation weaknessResponds to, and accountable to a
constituency
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Appeal to FaceAppeal to GroupAppeal Communication
Letter, Telephone, SMS, E mail
Video / Photographs / PamphletsNewsletter/Annual report/ Special
appealMedia / Advertisements/ Website
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• Catch the Eye• Warm the Heart• Strive the mind
“Charity is not a matter of wealth but of heart”.
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Online Fund RaisingOnline Fund Raising
• Through Internet / Groups – Karmayog
• Social Media
• Legal Sanction to be obtained/ kit details
• Choose the alternatives / policies
• Website – Procedure for online donation
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• www.civicus.org
• www.ngosupport.org
• www.foundationcentre.org
• www.resourcealliance.org
• www.propoor.org.
• www.giveindia.org
• www.globalliving.org
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Resource ProvidersResource Providers• Educate NPOs need for Resource
Mobilization.• Build their capacities in Resource
Mobilization.• Information they need and their
expectations.Vision, Mission of the Organization.Culture, HRD, OD, Policies, Credibility,
Visibility.
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Resource Providers Resource Providers requirementrequirement
Proposal Vs Mission of the Organisation.Need – gap in Macro and Micro level,
Necessity Clear Goal – Feasibility and Sustainability.
Programme Cost / participation – Community
- NGO- Government and others.
Desired Result/ Evaluation – internal- externalSustainability /Scaling up the impact.
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Information about Resource Provider
The main area of specialization/ purpose for which they provide resources
Their area of OperationFunding Cycles and PoliciesKey person to contact
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Choose a Resource ProviderChoose a Resource Provider• Website
• Government Department
• FICCI
• ASSCHAM
• Embassies, Libraries
• News papers and Magazines
• Networks
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Resource Provider - InternationalResource Provider - International
UN . Unicef
World Bank – Permission from Government
Bi/Multilateral agencies – Permission from Government – Govt approves only certain countries
Other Country Govt. Grants
International donors – Foundations
International donors – MNCs, CSR
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National Support ConditionalitiesNational Support Conditionalities
SEPARATE BANK ACCOUNT TO BE OPENED
INTEREST EARNED TO BE ADDED TO THE
ACCOUNT
PARTICIPATION – COMMUNITY/ NGO
IN KIND
BY CASH
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CORPORATES SOCIAL RESPONSIBILITYCORPORATES SOCIAL RESPONSIBILITY
• Gaining Momentum Now
• Corporate Wants to collaborate with NGOs for developmental activities.
• They create their own charities:Eg: INFOYSYS, TATA
AZIM PREMJI FOUNDATION – Rs. 8,846 Cr.
HCL – SHIV NADAR
HCL – VINEET NAYAR Rs. 43. Cr.
SAMPARK
BILLGATE
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SUSTAINABILITYSUSTAINABILITY
• Financial Sustainability: Requirement of Core Funds Define Core Expenses Even in the absence of external
funding it should run. Create a core fund so that interest at the
rate of 8 % will be equivalent to meet the core expenses.
Invest wisely and safely where we will get good interest return.
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SUSTAINABILITYSUSTAINABILITY
Project Sustainability:• Purpose of the project
– Education – Medical
• Should continue even if funding is stopped
• Resource Mobilization• Fees Collection• CSR and others
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SUSTAINABILITYSUSTAINABILITY
• Resources of the Organization
• Strong second line of Management
• Friends/ Consultant/supporters may be
involved in the activities
• Governance Pattern
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RESOURCE MOBILISATION
• Group/ Department / Desk
• It should be continuous process
• Sustainability is the final vision
• Modify the MODELS to comply with the changes in the law of the country
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Keep Resource ProvidersKeep Resource Providers
• Happy with acknowledgement
• With THANK YOU
• GOOD Work - Maximum utilization of funds for the projects
• Constant Reports with photos
• Request them to visit you – Take them tot the field
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ProposalProposal RejectedRejected
• Not followed expected guidelines• Poor communication• Case not presented properly /
inadequate linkage• Not as per the priority of the Funder• Does not strike the reader as significant• Ambitious without ground level work
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International Contribution FCRA International Contribution FCRA BILL 2010BILL 2010
• The intention is that the new law on the subject should facilitate rather than obstruct receipt and utilisation of foreign funds” – Home Minister
• Annual Foreign Contribution received by voluntary sector is Rs.11,336.97 Crores for the year 2006-07
• Out of 40,173 Organizations as on July 2010 one half does not report and file the returns.
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Salient Features of FCRA Bill 2010Salient Features of FCRA Bill 2010 Deemed to be registered under the new Act for
already registered associations
Should apply for renewal within 6 months prior
to the expiry of 5 years period ( Sec 16)
Restriction on Administrative expenses not to
exceed 50% - Sec.8(1)(b)
Assets disposal – manner, procedure to be
indicated by the Govt – Sec.22
Banks to submit returns of FC – Sec.17(2)
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Provisions beneficial to the Provisions beneficial to the NPO sectorNPO sector
Second Bank account maybe opened for utilising the F.C. – First proviso to Sec.17(1)
Appeals and revision
Reason for non registration to be
communicated to applicant – Sec.12
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Provisions affecting NPO sector Provisions affecting NPO sector registrationregistration
Valid for five years only – will affect
donors long term agreement
Many conditions given for the registering
authority to enquire into before granting
registration such as:
The person making application has not
been prosecuted or convicted and many
others (Sec. 21)
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Provisions affecting NPO sector Provisions affecting NPO sector Cancellation of certificate of registration –Cancellation of certificate of registration –Sec.14, Suspension of Certificate - Sec. 13Sec.14, Suspension of Certificate - Sec. 13
It can be suspended for a period upto 180 days – Sec.13
Cancellation of certificate can be done if:The holder has made incorrect or false
statements in application – Sec.14(1)(a)The holder has violated any terms and
conditions of certificate of renewal, provisions of act 14(i)(b)
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In public interest – Sec.14(1)(c)
The certificate holder has violated any of the
provisions of this Act or rules or order –
Sec.14(i)(d)
No order of cancellation to be passed unless
the person is given an opportunity of being
heard – Sec.14(2)
Registration for 3 years not possible in
cancelled under this section
Continuation..
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Restriction on Admin ExpensesRestriction on Admin Expenses
Administrative Expenses shall not exceed 50%
and any expenditure in excess of 50% shall be
defrayed with prior approval .
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Direct Tax Code Bill 2010Direct Tax Code Bill 2010
• It is a welcome measure that the phrase “Charitable Purpose” will be continued.
• 100% utilisation expected and Receipt in the month of march may be excluded.
• 15% accumulation – provision is withdrawn
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Taxing non profit organisationsTaxing non profit organisations• A basic exemption limit will be provided
as surplus in excess of limit shall be taxed.
• The proposal indicates that “10% of the gross receipts or 15% of income will not be taxed provided it is spent in next three years”. This essentially means 90% of the gross receipts or 85% of the income has to be spent within the year and if not spent will be taxed.
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Taxing non profit organisations Taxing non profit organisations contd contd
• NPOs have to follow the cash basis of accounting except section 25 companies
• Government has power to notify certain NPO as exempt entity
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• But, both the current law as indicated above and the proposed code prohibit even incidental business activities, in the case of NPOs included in the category of “Advancement of any other general public utility “. The institutions involved in such activities are exempted upto Rs. 10 lakhs in the present act.
Taxing non profit organisations Taxing non profit organisations contdcontd
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INCOME
Relief of Poor
EducationMedical
ReliefAny other object of
general public utility
Preservation of environment including watersheds, forests
and wild life
Preservation of monument places or object of artistic
or historical Interest
New amendment – other object of general public utility
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Amended section 2(15)
• ‘advancement of any other object of general public utility’ shall not be a charitable purpose if it involves the carrying on of
• Any activity in the nature of trade, commerce or business or,
• Any activity of rendering of any services in relation to trade commerce or business.
Definition - I
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Definition - II
• For a fee or cess or any other consideration, irrespective of the nature of use or application of the income from such entity
• The retention of such income, by the concerned entity.
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New LawsNew Laws
• Andhra Pradesh Microfinance ordinance, 2010
• Microfinance bill
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Thank you…
And now…And now…