In the realm of charitable endeavors, ‘Feeding America,’ one of the largest charities in the US, raised over $4 billion in 2022. A stark comparison brings to light that India’s largest similar organization supplying meals raised about $0.07 billion. Beyond the economic and charity sector differences, the profound question emerges: What’s hindering the potential of Indian non-profits?
India boasts several million non-profits, with estimates ranging up to 3 million, as per NITI Aayog’s Darpan portal. These entities, governed by diverse laws at the central and state levels, lack a unified regulatory body overseeing their operations and health. The absence of credible and updated data exacerbates the challenges, hindering informed decision-making from both philanthropists and policymakers.
To bridge this information gap, we embarked on mapping the top 200 non-profits in India based on their annual budgets, a parameter gleaned from publicly available audited annual reports. These non-profits, characterized as independent entities with an impact-oriented focus, form the bedrock of donations and corporate social responsibility (CSR) engagement.
Here are some pivotal takeaways from our survey:
1. Annual Budget Range:The top 200 non-profits in India operate within the annual budget range of Rs 10 crore to 800 crore.
2. Funding Dynamics:Annually, these organizations secure approximately Rs 8,000-9,000 crore in funding, roughly equivalent to USD 1 Billion.
3. Source of Capital: The funding pool is almost evenly split between domestic and foreign sources.
4. Stability Amidst Change: Over the three years analyzed (2019-2022), the total capital inflow to this cohort showed relative stability, adjusting for inflation and pandemic-related disruptions.
5. Sectoral Focus: Children, community development, education, healthcare, and livelihood emerge as the top sectors these organizations actively engage in.
6. Global Affiliation:Around 18% of these organizations have global origins/affiliations, garnering 30% of the total funding.
7. Financial Surplus:At an aggregate level, non-profits in this category maintain a year-end income surplus ranging from 4% to 7% of the total funds raised each year.
8. Volatility in Finances: Finances exhibit volatility, with almost 20% of organizations experiencing an income change of over 50% in 2021-22.
9. Geographical Presence: Headquarters of these large NGOs are clustered around corporate and commercial hubs, suggesting a potential benefit in establishing locally headquartered non-profits in underdeveloped areas.
10. Growth Trajectory: Most organizations that have achieved prominence in this category commenced operations in the last two decades, indicating the influence of professional talent influx, evolving philanthropic visions, regulatory changes, and the dynamic nature of societal challenges.
Beyond these 200, numerous organizations, although impactful, struggle to achieve significant size. While localized impact is crucial, the potential for meaningful scale remains constrained for these entities.
What Can Facilitate Growth?
A comprehensive regulatory and policy overhaul is imperative to foster non-profits of all sizes. Nuanced measures, focused organizational building supported by philanthropists through non-programmatic grants, capacity strengthening, and a concerted effort to build trust through transparency are urgent priorities.
It is noteworthy that a substantial portion of corporate India’s mandatory CSR spend of Rs 25,000 crore annually goes to independent non-profits. However, there is room for increased collaboration and channeling of resources to ensure that impact-focused non-profits grow in tandem with the Indian economy and the private sector.
Disclaimer: These are the personal opinions of the author.
