Transforming Philanthropy PPT

TRANSFORMING PHILANTHROPY

From Charity to Empowerment

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EXECUTIVE SUMMARY:

Through Initiation, Promotion and Support to Organisations Undertaking Awareness and Advocacy

Multiply the Effect of Personal Donations / Trust Funds / Corporate Contributions to Empower the Poor

Multiply Impact

Providing Support

To Access Resources

To fully utilisie Massive Government Budget Allocations for Education, Scholarships, Health, Housing, Livelihoods, Bank Loans, etc

3 Generations of Philanthropy

TRANSFORMING PHILANTHROPY: From Charity to Empowerment



Comprises of direct giving where the donors themselves provide food, clothing, shelter, money etc. to the poor

Does not involve any administrative expenses and all funds go to the receiver

Generation Philanthropy1st CHARITY

What is this all about?



Most widespread. Provides direct and immediate satisfaction to the giver.

Generation Philanthropy1st CHARITY

Does not develop the abilities of the receivers, makes them dependent and in some cases unproductive and a burden on society.

DisadvantageAdvantage



Involves indirect giving by donating funds to different institutions and organisations that provide education, scholarships and healthcare etc

Generation Philanthropy2nd DEVELOPMENT

Helps to promote capacity building and well being of poor and the deserving to improve their quality of life and enable them to become self reliant

What is this all about?



• Gaining currency in the last three to four decades• Has enabled hundreds of thousands to get free/subsidised access to schooling, skill development and professional education along with healthcare and capital

for starting / upgrading micro enterprises, • Socially conscious people with larger volumes of funds are adopting the Second Generation approach along with allocation of some funds for direct giving also.


Advantage



• Necessarily involve some administrative expenses and there could be possibility of misappropriation and /or improper implementation if the recipient organisations do not maintain very high standards of implementation, transparency and accountability

• Decreases pressure on the government and its accountability to provide basic services to the citizens that is its prime responsibility.• When school education, professional training, healthcare etc are provided by philanthropists (or the private sector), people stop using government schools and

other facilities.


Disadvantage




• Education

• Health

CHANGING SCENARIO

Areas of Change

• Civic Amenities

• Livelihoods etc.

• Banking

The Government of India is allocating very large budgets- or stipulating conditions for access to resource in very high volumes- to the poor as a matter of mandatory and legal entitlements in the above mentioned areas.



CHANGING SCENARIO IN EDUCATION

Over 70 fold increase in the last 35 years enabling increase in literacy rates from 18.3 in 1951 to over 74% at present

Expenditure on education has

steadily risen from 0.64% of GDP in

1951-52 to 2.31% in 1970-71 and

thereafter reached the peak of 4.26% in

2000-01



Budget for Scholarships for students available from first grade to Ph.D. Budget allocation by the Government of India for student scholarships for the year 2013-14

Availing Scholarships from Central and State Governments

Rs. 5482crores

CHANGING SCENARIO IN EDUCATION



For loans in all public sector and private banks under the MSME (Micro, Small and Medium Enterprises) for the poor and middle classes and 1% of all loans by banks to be given as DRI (Differential Rate of Interest) Scheme for those below poverty line were stipulated by the Government of India and the Reserve Bank of India in 1972- i.e. 43 years back.

Availing Bank Loans for the Poor Under Priority Sector Lending Rule

40% RESERVATION

If this is implemented properly, every poor in India can have access to Bank loans

CHANGING SCENARIO IN BANKING



CHANGING SCENARIO IN HEALTH

Rs. 37330crores

The above budget was allocated by Ministry of Health & Family Welfare in 2013-14 as against Rs 5780 crore in 2000-01.

Central and State Governments have launched schemes for free treatment of

poor and marginalised communities

6.5 times increase in 14 years



Rs. 80,194crores

The above budget was allocated to Ministry of Rural Development

The Union Budget of the Government of India for the year 2013-14 also saw significant allocations for social sector:

CHANGING SCENARIO IN SOCIAL DEVELOPMENT

But, wait!

There is a fundamental problem here…

FUNDAMENTAL PROBLEM IMPLEMENTATION

“During 11th Plan we were able to spend only 20 per cent of the allocations which is not sufficient and therefore we need to remove the bottlenecks and implement them fast”

Sushma Berlia- Reactions to Union Budget 2013-14

THE CORE ISSUE STILL IS NOT ABOUT ALLOCATION BUT IMPLEMENTATION


CHALLENGESWITH IMPLEMENTION

REASONS FOR UNDER UTILISATION

Gross Under Utilisation

Lack of Awareness

About Schemes

Limitations of Common Man to

Apply

Ignorance about

Citizenship Rights

Lack of Accountability of the System

Absence of Facilitating

Organisations

See Note for more info…




To Enable Citizens to Secure their Entitlements

STRATEGY REQUIRED

INITIATION OF THIRD GENERATION PHILANTHROPY


• Education: 25 lakhs per year (every year) can help in running a school for 300 to 400 students only

• Banking: Rs. One Lakh can support about 6 -7 people to start petty businesses

• Scholarships: Rs. One lakh can support 5 to 10 students for higher education

• Education: One time 25 lakhs support to an organisation propagating implementation of RTE Act can ensure free admissions for at least 3 to 4 thousand poor students in quality schools

• Banking: Rs. One Lakh used to leverage DRI and Priority Sector Loans from banks can help at least 130 people get loans from banks worth over Rs. 20 lakhs

• Scholarships: Rs. One Lakh to an organisation to access government schemes can enable at least 500 students to secure scholarships worth over 25 lakhs

Generation Philanthropy2nd

Generation Philanthropy3rd



Generation Philanthropy3rd EMPOWERMENT

Advantage

• The Multiplier Effect of Third Generation Philanthropy of getting 20 to 100 times more benefits for the poor for the same volume of funds can give much more satisfaction

• Results take time as procedures and policies have to be in place. Once in place, they give long term benefit without much investment

• Organisations will become accountable & transparent as they will have to follow financial, programmatic and governance systems of global standards to receive repeat donations from Third Generation Philanthropy



Generation Philanthropy3rd EMPOWERMENT

Disadvantage

• Does not give immediate satisfaction of First or Second Generation Philanthropy of seeing our donations reaching people directly

• Results are not immediate • Possibility of misuse of funds by organisations

3rdGeneration of Philanthropy


@FINANCIAL INCLUSION

+ ACCESS TO HEALTHCARE

+ RIGHT TO EDUCATION

Rs. 15 Lakhs per annum can help

access Rs. 3 crores-Impact your of

Contribution: 1:20

Rs. 20 Lakhs per annum can help

1,00,000Poor access Health Care

Impact: 1: 20

Rs. 25 Lakhs can help 2000 children to get

Free Education in Private Schools

Impact:1: 80




• Most organisations receive generous contributions for Second Generation activities like running schools, distribution of scholarships, operating dispensaries etc.

• Very few organisations in the country are working to undertake awareness and advocacy to access government schemes and programs due to lack of understanding and funds

Time for Third Generation Philanthropy

Requirement: Funding Support to Promote A&A (Awareness & Advocacy) Organisations


• Promotion of even 2000 Awareness and Advocacy (A&A) Organisations in India (four for each district) can be a game changer in transforming lives of the poor and marginalized

• Existing organisations (especially ones with national reach) working on service delivery can be oriented and transformed to become A&A (Awareness and Advocacy) organisations


Time for Third Generation Philanthropy

Requirement: Reorientation and Funding Support



Operation Dynamics:Rs. Fifty Lakh per annum per A&A (Awareness & Advocacy)

Organisation could enable:– At least five thousand people to access different government schemes

and programs like: • Scholarships, pensions, housing, healthcare, bank loans etc• Through 15 full time staff members and 20 volunteers• Worth over rupees 12.5 crores per annum- Multiplier effect of 1:25 for

every rupee donated

Third Generation Philanthropy: Support and Output



• Professional from different fields earning rupees three lakhs and above per annum• Foundations and Trusts• Corporate Bodies• Just 250 individuals donating an average of 20,000 per annum can get one A&A

Organisation going for a year and supporting 5000 people! • After providing for tax deductions- actual payment would be only Rs. 10,000 (for

every 20,000 donated)

Third Generation Philanthropy- A&A Organisations: Possible Support Sources

Thank You

Economy & Finance

Transforming Philanthropy PPT