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Thursday, March 23, 2023

Majority of non-profits give priority to impact in spite of economic struggles

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The firm employs real-time compensation benchmarking data to assist businesses in making more effective compensation choices and eradicating pay inequalities.

According to a recent research, 74% of non-profit organisations prioritise “growing their impact” since they are facing a substantial cash shortage. AIP performed a survey of 65 non-profit organisations of diverse sizes and industries to assess their scaling strategy and identify major drivers and impediments.

The report reveals the severe hurdles that non-profits face, with many fighting just to stay afloat, much alone extend their effect. According to the data, there are over three million non-profits in India, with more than two-thirds of them operating at suboptimal levels with an annual budget of less than one crore.

Philanthropic gifts from HNIs and UHNIs account for less than 20% of overall grants for the vast majority of NPOs. The AIP research cites four systemic hurdles that NPOs in India face when increasing their influence, as well as the role that donors may play in assisting them in overcoming these obstacles. According to the survey, 61% of non-profits get less than a quarter of their financing in an unrestricted manner.

According to estimates, if UHNIs start providing in proportion to their worldwide peers, India can release an extra fundraising corpus of INR 60k-100k crores. The issue therefore becomes, how can the Indian state attain optimal balance? NPOs and civil society organisations can play an important role here.

According to the findings, there is a gap between donors’ and non-profits’ expectations. Due to insufficient communication and feedback loops, donors have inaccurate expectations about the true cost of running a non-profit. In order to achieve these excessive expectations and secure future support, companies cut their prices.

These factors contribute to donors’ inaccurate expectations regarding expenses, particularly overhead, capacity building, and other non-programme expenditures. Meeting donors’ reporting and compliance requirements is a hardship for 54% of non-profits. According to the survey, 75% of non-profits want their funders to connect them with additional donors, but only around half of them receive this assistance.

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