Presentation on theme: "The best way to predict the future is to create it"— Presentation transcript:
1 The best way to predict the future is to create it RESOURCE MOBILISATION and SUSTAINABILITYThe best way to predict the future is to create it-Peter DruckerK. Shivakumar, Chartered AccountantGandhigram
2 ORGANISATIONAL CHART Support Programme activities Human and InstitutionalDevelopmentSupportactivitiesResourceMobilisationand sustainabilityLivelihood,Governance,Admin,Legal,Finance
3 Uncertainty over Future funding Will donors keep paying program costs adinfinitum?( forever)Will donors shift to more needymore popular causesother poor countriesWill social or political problem – cut off
5 Resource Mobilization Preparing for fund raisingLeadership responsibilities cultivatepotential supportersStrengthening the staffConduct a market Analysis Potential marketIdentificationTrendsDevelop a financial and Mechanismoperating plan Resource ProviderAction PlanAnalysis of Current Available Resources and identifying Resources Corpus
6 Need Evaluation Achievements Prepare plan Proposed Agreements budget NegotiationStarting andfollow-upMarketrequirementPlan of action
7 Resources Yesterday To day Tomorrow Deficit Expenses Corpus / Asset Endowment
8 Action plan for Resource mobilization Concept NoteKit: Vision/ Mission / Reports/ Details about FC/ IT /SocietiesActivity Who When Resources needed
9 Priority Based Resource Mobilisation Action Plan Resource GapSpecific needsResource ProviderMechanismDeadline –Who / When/ where
10 Types of Fund Raising Individual Contacts Group Contacts Traditional Fund Raising:DinnerMarathanEventsStalls
11 Corporates In Kind Tele Fund Raising Online Fund Raising Cont..d Bricks/ SandRice / DhalDressesTele Fund RaisingOnline Fund RaisingUsing Blogs/ websiteFund raising online
12 Process of Fund Raising Identify Potential DonorsImpress them with good work and proposalDevelop a RelationshipBuild Communication- pamphlets- Fact Sheets – News letters- Annual reports- websiteThank 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 contactsOrganizational skills – files - information’s- communicationsFind ways- compensation weaknessResponds to, and accountable to a constituency
14 Appeal to FaceAppeal to GroupAppeal CommunicationLetter, Telephone, SMS, E mailVideo / Photographs / PamphletsNewsletter/Annual report/ Special appealMedia / Advertisements/ Website
15 “Charity is not a matter of wealth but of heart”. Catch the EyeWarm the HeartStrive 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 detailsChoose the alternatives / policiesWebsite – 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- externalSustainability /Scaling up the impact.
20 Information about Resource Provider The main area of specialization/ purpose for which they provide resourcesTheir area of OperationFunding Cycles and PoliciesKey person to contact
21 Choose a Resource Provider WebsiteGovernment DepartmentFICCIASSCHAMEmbassies, LibrariesNews papers and MagazinesNetworks
22 Resource Provider - International UN . UnicefWorld Bank – Permission from GovernmentBi/Multilateral agencies – Permission from Government – Govt approves only certain countriesOther Country Govt. GrantsInternational donors – FoundationsInternational donors – MNCs, CSR
23 National Support Conditionalities SEPARATE BANK ACCOUNT TO BE OPENEDINTEREST EARNED TO BE ADDED TO THE ACCOUNTPARTICIPATION – COMMUNITY/ NGOIN KINDBY CASH
24 CORPORATES SOCIAL RESPONSIBILITY Gaining Momentum NowCorporate Wants to collaborate with NGOs for developmental activities.They create their own charities:Eg: INFOYSYS, TATAAZIM PREMJI FOUNDATION – Rs. 8,846 Cr.HCL – SHIV NADARHCL – VINEET NAYAR Rs. 43. Cr.SAMPARKBILLGATE
25 SUSTAINABILITY Financial Sustainability: Requirement of Core Funds Define Core ExpensesEven in the absence of externalfunding 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– MedicalShould continue even if funding is stoppedResource MobilizationFees CollectionCSR and others
27 SUSTAINABILITY Resources of the Organization Strong second line of ManagementFriends/ Consultant/supporters may be involved in the activitiesGovernance Pattern
28 RESOURCE MOBILISATION Group/ Department / DeskIt should be continuous processSustainability is the final visionModify the MODELS to comply with the changes in the law of the country
29 Keep Resource Providers Happy with acknowledgementWith THANK YOUGOOD Work - Maximum utilization of funds for the projectsConstant Reports with photosRequest them to visit you – Take them tot the field
30 Proposal Rejected Not followed expected guidelines Poor communication Case not presented properly / inadequate linkageNot as per the priority of the FunderDoes not strike the reader as significantAmbitious 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 MinisterAnnual Foreign Contribution received by voluntary sector is Rs.11, Crores for the yearOut 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 associationsShould 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.22Banks 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 revisionReason 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 agreementMany 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. 13It can be suspended for a period upto 180 days – Sec.13Cancellation 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 2010It 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 companiesGovernment 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 PoorEducationMedicalReliefAny other object of general public utilityPreservation of environment including watersheds, forests and wild lifePreservation of monument places or object of artisticor historical InterestNew 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 ofAny 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 - IIFor a fee or cess or any other consideration, irrespective of the nature of use or application of the income from such entityThe retention of such income, by the concerned entity.
45 New LawsAndhra Pradesh Microfinance ordinance, 2010Microfinance bill