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RESOURCE MOBILISATION and SUSTAINABILITY 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 624 3029443737837 vkshiva@sancharnet.in. ORGANISATIONAL CHART. Human and Institutional Development. Programme. Support

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RESOURCE MOBILISATION and SUSTAINABILITY The best way to predict the future is to create it

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  1. RESOURCE MOBILISATION and SUSTAINABILITY The best way to predict the future is to create it -Peter Drucker K. Shivakumar, Chartered Accountant Gandhigram 624 3029443737837 vkshiva@sancharnet.in

  2. ORGANISATIONAL CHART Human and Institutional Development Programme Support activities Resource Mobilisation and sustainability Livelihood, Governance, Development 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 OWNRESOURCES 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 RELIGIOUSINSTITUTIONS INCOME GENERATING PROGRAMS COST SAVINGS INTERNATIONAL DONORS - MNC & COMPANIES INDIVIDUAL DONORS

  5. Resource Mobilization • Preparing for fund raising • Leadership responsibilitiescultivate 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 budget Agreements 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

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

  11. Cont..d Corporates In Kind • 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. 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

  17. www.civicus.org • www.ngosupport.org • www.foundationcentre.org • www.resourcealliance.org • www.propoor.org. • www.giveindia.org • www.globalliving.org

  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. ProposalRejected • 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.11,336.97 Crores for the year 2006-07 • 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. 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. 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 Any other object of general public utility Relief of Poor Medical Relief Education 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…

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