Funding propositions of NPO’s

-Srilakshmi P Guru & Jana, Chartered Accountants

Should you make Money?!?!!

• Mahatria: Money in the hands of a good human being will create a new world

• “Every good human being has the moral responsibility to be rich”

NPO = CSR

Corporate Social Responsibility

Charity with Strategy Rocks

Should you make Money?!?!!

• NPO is a good human being, so what is the strategy to make money: Make Profits – Advertise

– Build brand

– Do marketing strategy

– Create selling platform

Yes, NPO CAN BE BILLION DOLLAR CORPORATIONS TODAY, AND IT FUNCTIONS LIKE BUSINESS. THE OBJECTIVE ALONE IS DIFFERENT, EVERYTHING IS SAME

Fund raising options

DONATIONS COVERED IN THIS PPT

CASH ONLY YES

TIME DONATIONS NO

SERVICE DONATIONS NO

KIND DONATIONS NO

Channels of Funding

Fun

d r

aisi

ng

1 What is working from ages

2 Business Strategies

3 E-commerce

4 Crowd Funding

5 International funding agencies

6 Corporate law amendment

7 Bank funding & Government PPP

Channel 1 Receipt or Hundi Collection

• Receipt books • Personal drive for donations • Sister Agnes • Birthday celebrations at Orphanages • Plant a tree • Buy solar lantern project • Arranging a fund raising concert • Arranging a run for Bangalore event • Naming the block in Mother’s name

Donations for EMOTIONS

Channel 2 Business Strategies

• Proposal at Guru & Jana given to clients

• BBB

Mahatria Guru & Jana Foundation

Channel 2 Business Strategies

Social VC

• Jobs to your servants New avenue

• Yusuf Hameid Aids Strategy

6 Million People receive treatment – 1$ per day

Channel 2 Business Strategies

Social VC

• Puttaparthi Baba - Drinking Water Project Ananthpur District

• Desert Artisans – A Fab India based school

• Mitti Cool

These strategies were eye

Openers for me & for

Some of you too…

Case of Aravind Eye hospital

This is biggest Eye hospital in the world today

Que A - Paying customers

Que B - Non paying customers

Servicing doctor has no bias

All patients get world class treatment

THE HOSPITAL IS CONSTRUCTED ACTUALLY WITHOUT ASKING FOR DONATION

Channel 3 - E commerce • Captcha!!!

Luis Von – computer scientist

Completely Automated Public Turing test to tell

Computers & Humans Apart.

• Book my show

• Credit card points –

Loyalty programs

• Other e-commerce

websites

(trip advisor, expedia etc)

• Coimbatore Sanitary pads manufacture

• Milaap.org

• BBB on

Amazon.com

Channel 4 Crowd Funding [Raising small amounts from large nos via internet]

www.kickstarter.com

• Rotary matching grant • Milinda & Bill Gates foundation • US Aid • Microsoft aid What is prerequisite to raise international Funding?

• Concept aligned with strategy • High level of governance • Scalability + Sustainability = Social change

Channel 5 International Funding

Channel 6 Company Law Amendment

• New Act – 2% CSR

• Identify companies with high profits = 50

• CSR Objective to match with Company

• Idea sales – CSR helps company business too

Channel 7 Bank funding and Government PPP

Provide grants and scholarship

• Especially educational institutions

Government will grant

Subsidies - Health, Education

CSR Rating • Karmyog is the only Indian CSR rating agency has provided

below ratings for 500 companies 2010

Karmyog CSR rating 2010

No of Cos Percentage

Level 4 12* 2%

Level 3 66 13%

Level 2 161 32%

Level 1 148 30%

Total 500 100% * Companies with a Level 4 rating are: Ballarpur Industries, HDFC, Infosys Technologies, Jubilant Organosys, Kansai Nerolac, Larsen and Toubro, Mahindra and Mahindra, Moser Baer, Tata Consultancy, Tata Steel, Titan Industries and Wipro

Branding strategies

The Cycle of CSR

• CSR in school

• Students go to college on scholarship

• Campus interview

• Recruitment

• Corporate Ladder

• CSR in school