Enhancing the Flow of Capital into the Non-Profit Sector: Why We Invested in GiveIndia

Enhancing the Flow of Capital into the Non-Profit Sector: Why We Invested in GiveIndia

The non-profit sector in India plays an integral role in delivering last-mile benefits to the Next Half Billion and is indispensable to providing a meaningful to every Indian. Unfortunately, though, this sector is characterised by a constant struggle for quality funds, with CSR funding constrained by complex legislation, and philanthropic funding being largely inflexible and project-specific in nature. As a result, most non-profits fight for survival on a day-to-day basis, and are unable to invest in building a core team and competencies, or in testing and developing a long-term strategy.

This lack of funds traps organisations in a vicious loop, limiting their ability to develop fundraising skills and technological tools to raise capital, thereby further limiting their access to quality capital. In such a scenario, retail fundraising provides non-profits a huge opportunity to reach out to a broad base of charitable donors, and raise funding at low cost, thereby gaining a steady alternate flow of funds and reducing reliance on a small pool of big grantors.

GiveIndia has been providing exactly this opportunity to NGOs, through its tech-driven marketplace platform that connects non-profits with individual donors. It was one of the earliest non-profit retail fundraising platforms for NGOs, and has remained a leader in this space through its innovative three-fold approach:

(i) Online crowd-funding: GiveIndia creates fund-raising campaigns for non-profits on its platforms, and leverages the power of social media, and catalysts such as events, and challenges, to tap into the power of peer-to-peer lending

(ii) Subscriptions: To increase repeat donations and enhance donor engagement, GiveIndia runs a subscription program where donors sign-up to donate a fixed amount every month which enables long-term giving by retail donors to the causes they most care about

(iii) Workplace giving and alliances: GiveIndia ties up with the HR/CSR departments of corporates to enable employees to donate directly through monthly payroll deductions or to conduct one-time drives for subject-specific fund-raising.

In addition to providing multiple channels for donations, GiveIndia also adds value to partner NGOs by solving for other critical challenges that act as a barrier to funding - particularly, trustworthiness. Donor trust is among the biggest inhibitors to the growth of the non-profit sector in India. To solve for this, GiveIndia has developed a framework for evaluating the credibility of NGOs, which includes financial audits, inspection of operations, surprise beneficiary checks etc. Based on this, a "˜GiveAssured' badge is assigned to non-profits, which enables them to not only raise more funds through the retail giving platform, but also to leverage it for additional CSR funds.

Thus, GiveIndia has been at the forefront of experimentation and innovation in finding more effective ways of catalysing funds into the non-profit sector, be it through partnerships for credit-card reward points, or check-out donations on e-commerce websites. Retail giving is still at a nascent stage in India, totalling $ 5.1 billion or 0.24% of GDP. This compares with $ 292 billion and 2% of GDP in the United States. We believe that Indians have a greater propensity and interest to give to causes that matter and that the right online platform can enable enhanced giving. With a committed team, led by a bold entrepreneur, Atul Satija, we believe GiveIndia can scale and support the non-profit sector across causes such as education, disability, women empowerment, senior citizen care, etc.

By enabling fundraising for some of the most under-funded organisations in the country, providing critical service delivery for the underserved and the marginalised, GiveIndia can truly create a meaningful life for every Indian. We are excited to partner with them on this critical journey.