1. The best way to predict the future is to create it
RESOURCE MOBILISATION and SUSTAINABILITY
The best way to predict the future is to create it
-Peter Drucker
K. Shivakumar, Chartered Accountant
Gandhigram

2. ORGANISATIONAL CHART Support Programme activities Human and
Institutional
Development
Support
activities
Resource
Mobilisation
and sustainability
Livelihood,
Governance,
Admin,
Legal,
Finance

3. Uncertainty over Future funding
Will donors keep paying program costs adinfinitum?( forever)
Will donors shift to more needy
more popular causes
other poor countries
Will social or political problem – cut off

4. RESOURCE MOBILISATION
INTERNATIONAL
NATIONAL
OWN RESOURCES
UN Organizations
Unicef
INSTITUTIONS FORM
CORPUS/ ENDOWMENTS
GOVERNMENT DEPARTMENTS
TRIBAL WELFARE/ RURAL DEVELOPMENT
WORLD BANK
ASIAN DEVELOPMENT BANK
Income from CAPACITY BUILDING TRAINING
GOVERNMENT INSTITUTIONS
CAPART / NABARD
MULILATERAL AGREEMENTS
EMBASSIES
CSR-TATA / BAJAJ / TVS
RELIGIOUS INSTITUTIONS
INCOME GENERATING PROGRAMS
COST SAVINGS
INTERNATIONAL
DONORS - MNC &
COMPANIES
INDIVIDUAL DONORS

5. Resource 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

6.  Need Evaluation Achievements Prepare plan Proposed Agreements budget
Negotiation
Starting and
follow-up
Market
requirement
Plan of action

7. Resources Yesterday To day Tomorrow Deficit Expenses Corpus /
Asset Endowment

8. Action plan for Resource mobilization
Concept Note
Kit: Vision/ Mission / Reports/ Details about FC/ IT /
Societies
Activity Who When Resources needed

9. Priority Based Resource Mobilisation Action Plan
Resource Gap
Specific needs
Resource Provider
Mechanism
Deadline –
Who / When/ where

10. Types of Fund Raising Individual Contacts Group Contacts
Traditional Fund Raising:
Dinner
Marathan
Events
Stalls

11. Corporates In Kind Tele Fund Raising Online Fund Raising Cont..d
Bricks/ Sand
Rice / Dhal
Dresses
Tele Fund Raising
Online Fund Raising
Using Blogs/ website
Fund raising online

12. Process 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.

13. Good 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- communications
Find ways- compensation weakness
Responds to, and accountable to a constituency

14. Appeal to Face
Appeal to Group
Appeal Communication
Letter, Telephone, SMS, E mail
Video / Photographs / Pamphlets
Newsletter/Annual report/ Special appeal
Media / Advertisements/ Website

15. “Charity is not a matter of wealth but of heart”.
Catch the Eye
Warm the Heart
Strive the mind
“Charity is not a matter of wealth but of heart”.

16. Online Fund Raising Through Internet / Groups – Karmayog Social Media
Legal Sanction to be obtained/ kit details
Choose the alternatives / policies
Website – Procedure for online donation

18. Resource 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.

19. Resource Providers requirement
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- external
Sustainability /Scaling up the impact.

20. Information about Resource Provider
The main area of specialization/ purpose for which they provide resources
Their area of Operation
Funding Cycles and Policies
Key person to contact

21. Choose a Resource Provider
Website
Government Department
FICCI
ASSCHAM
Embassies, Libraries
News papers and Magazines
Networks

22. Resource 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

23. National Support Conditionalities
SEPARATE BANK ACCOUNT TO BE OPENED
INTEREST EARNED TO BE ADDED TO THE ACCOUNT
PARTICIPATION – COMMUNITY/ NGO
IN KIND
BY CASH

24. CORPORATES 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

25. SUSTAINABILITY 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.

26. SUSTAINABILITY Project Sustainability: Purpose of the project
– Education
– Medical
Should continue even if funding is stopped
Resource Mobilization
Fees Collection
CSR and others

27. SUSTAINABILITY Resources of the Organization
Strong second line of Management
Friends/ Consultant/supporters may be involved in the activities
Governance Pattern

28. 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

29. Keep 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

30. Proposal Rejected 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

31. International Contribution FCRA BILL 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, Crores for the year
Out of 40,173 Organizations as on July 2010 one half does not report and file the returns.

32. Salient 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)

33. Provisions beneficial to the NPO 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

34. Provisions affecting NPO sector registration
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)

35. It can be suspended for a period upto 180 days – Sec.13
Provisions affecting NPO sector Cancellation of certificate of registration –Sec.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)

36. Registration for 3 years not possible in cancelled under this section
Continuation..
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

37. Restriction on Admin Expenses
Administrative Expenses shall not exceed 50% and any expenditure in excess of 50% shall be defrayed with prior approval .

38. Direct 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

39. Taxing 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.

40. Taxing non profit organisations contd
NPOs have to follow the cash basis of accounting except section 25 companies
Government has power to notify certain NPO as exempt entity

41. Taxing non profit organisations contd
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.

42. INCOME New amendment – other object of general public utility
Relief of Poor
Education
Medical
Relief
Any 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

43. Definition - I 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.

44. 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.

45. New Laws
Andhra Pradesh Microfinance ordinance, 2010
Microfinance bill

46. And now…
Thank you…