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Training Series

Fundraising Avenues for NGOs

12 June 2014

Agenda • Introduction • Context Building • The New CSR Rules • CSR Partnership Approaches and Models • Crowdfunding: What and How • CSR Concept Note • Group Exercise: Understanding CSR Priorities • Banking on Media and Social Media • Fundraising Case Study

About NGOBOX NGOBOX.org is a resource portal for: •The biggest development sector platform in India •Social Sector Enterprises • NGOs •B-Schools with focus on Bottom of the Pyramid •CSR Foundations •Funding Agencies •Research Organizations •Government Agencies • Young Graduates

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Our Services Advertisement & Outreach • Announcements & Promotions Consultancy • Social Enterprise • CSR Partnerships • Communication and Media planning Training • CSR & Fundraising • Social Impact mapping • FCRA, Service Tax and TDS Event Solution • CSR Conferences & Workshops • Development Sector events

“Its Easy To Learn But Very Difficult To Unlearn.”

We are here to unlearn

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The Prologue NGOs live in uncertain funding environment. Isn’t it?

How many NGOs in India…?

4,200,000

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The Fundraising Landscape

Gift Economy

Grant Fund

Structured Mkt.

Open Market

Philanthropic giving, voluntary donations, pure charity.

Usually restricted funds provided to deliver specified outputs and / or mutually agreed outcomes.

Payment for goods or services according to the terms set out in a contract.

Trading of services and goods. To generate profit to achieve organisation’s mission.

Asking…………………………………………………………..Earning

The Fundraising Landscape: A Change or an Evolution

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The Fundraising Landscape: A Change or Evolution

Gift Economy

The Fundraising Landscape: A Change or Evolution Grant Funding: Unsolicited Applications

The Fundraising Landscape: A Change or Evolution Over-burdened Trusts/Agencies

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The Fundraising Landscape: A Change or Evolution Large Grants: Small Impacts and Misuse

The Fundraising Landscape: A Change or Evolution Difficult Causes: Technical Requirements

The Fundraising Landscape: A Change or Evolution Mushrooming of new NGOs

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The Fundraising Landscape: A Change or Evolution Demand and Supply Gap

The Fundraising Landscape: A Change or Evolution Change in Focus Area

The Fundraising Landscape: A Change or an Evolution You have competition, you need to be innovative and find new sources and Earn Your Fund

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Corporate Social Responsibility (CSR) Partnerships

Let’s explore West Bengal’s Corporate Landscape

Non-PSUs 1. Emami 2. ITC 3. Bata 4. RPG 5. Bengal Chemicals 6. Dey’s Medicals 7. Bergers Paints 8. Shalimar paints 9. Shree Cements 10.Exide Ind. 11.Birla Tyres 12.Britannia 13.Peerless

14.ABP 15. Shaw Wallace 16.Duncans Agro 17.Duncans Industries 18.Reckit & Colman 19.PC Chandra 20.Haldiram 21.Spencer’s Retail 22. Tata Global Beverages 23. Usha Martin 24. Adhunik Metalliks 25.Jesson & Co.

26.Graphite India 27. Philips 28.MPS Group 29.Frontech 30.Goodrick 31.Eveready Ind. 32.Webell 33.Khaitan 34.Orient Paper

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CPSEs 1. Allahabad Bank 2. UCO bank 3. United Bank of India 4. Coal India Ltd 5. Balmer & Lawrie Ltd 6. Hindustan Copper Ltd 7. The Shipping Corporation of India Ltd 8. Damodar Valley Corporation 9. National Insurance Comp. Ltd 10. Bridge & Roof Co.

The Companies Act 2013 and CSR Rules

CSR Landscape in India The new Companies Act 2013

18 Dec 2012

Companies Bill 2013 Approved by Lok Sabha

08 Aug 2013

Companies Bill 2013 approved by Rajya Sabha

30 Aug 2013

Gazette notification of the new Companies Act 2013

27 Feb 2014: CSR Rules notified

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The new Companies Act 2013: The Section 135 Turnover of INR 1000 Cr>

At least 2% of the average net profit (profit before tax) of the previous three years.

Net worth 500 INR Cr> Net Profit INR 5 Cr>

CSR Obligation (INR)

The new Companies Act 2013: The Section 135 Role of the Board

CSR Committee

Form a CSR Committee

Three or more directors with at least one independent

Approve the CSR Policy

Formulate and recommend a CSR policy to the board

Ensure Implementati on of CSR activities

Recommend activities and the amount of expenditure to be incurred

Ensure 2% spend

Monitor the CSR policy

Disclose reasons for not spending

The Section 135: CSR Process 1

Developing a CSR Strategy and Policy

Operationalizing the institutional mechanism

2

Due diligence of the implementation partner

Project Development

Project approval

Finalizing agreement with the implementing agency

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Project Implementation

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5

Project Monitoring & Reporting

Project impact assessment

Reporting (CSRRF) and communication

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A CSR project needs to have Baseline survey Duration of the Project Amount allocated to the Project Amount allocated to the Project in current FY Start Date / End Date Monitoring and Documentation Objective Evaluation

CSR Project: Implementation

Own Foundation (Three years)

Directly by the company

NGOs (Three years)

Other Companies

Social Enterprises

•5% can be used for training of staff/partner

The Schedule VII (CSR Thematic areas) 1. Eradication of extreme hunger and poverty, sanitation, Health

5. Benefit of armed force veterans, war widows

2. Promotion of education, special education and vocational training 6. Ensuring environmental sustainability, ecological balance, wildlife conservation

9. PM/CM relief funds, Disaster relief work etc

3. Gender EqualityWomen empowerment + senior citizens

4.Protection of National Heritage, art and culture

7. Technology incubators within academic institutions

8. Rural sports, Paraolympic and Olympic sports,

10. Rural Developme nt projects

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Work in Progress (IICA) • Agreement with 10 partner agencies for rolling out CSR Training • Agreement with 4-5 agencies for establishing CSR Gateway • Accreditation of NGOs and Consultanciess • CSR Index (with BSE) • NGO Hub (by Mid Aug/September)

The Scope for NGOs in CSR Partnerships Models, Innovations and Value Additions

What’s your opinion about businesses and their responsibilities..

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Plan B Creating Sustainable Solution through Sustainable Business

“The overwhelming conclusion that we have reached is that businesses have been a major contributor to the problems. We, as business leaders, have the responsibility of creating sustainable solutions.”

….and what do businesses think about NGOs

Why Business-NGO partnerships • Creating business value and socio-environmental gains • Raising the bar on socio-environmental performance • Leveraging skills and perspectives not available in the organization

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Business case of CSR • Reputation management/ Branding • Risk management (Social / Political / Economical / Environmental) • Employee satisfaction and retention • Innovation and learning (Case of HUL’s Pure It ) • Access to social capital • Future business environment and compliances CISCO CSR

Business Trends: Prioritization Case of ITC Ltd NRM, Watershed, Education etc.

E-Choupal, Social Forestry

Textile, FMCG, IT, Paper Tobacco Products

Stakeholders in a company • Board of Directors + Management • Business Partners • Shareholders • Stock Exchange • Banks/Lenders of Money • Auditors • Trade Associations • Suppliers

• • • • • • • • •

Customers Local Communities Employees Trade Unions Corporate Governance Guidelines Government Media Pressure Groups Environmentalists

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Understanding Partnership Types

Corporate Engagement: Approaches Implemen tation partner Ethical business alliance

Employee engageme nt

Engaging Business Business advocacy

Employee giving

Grants

Cause related Marketing

Identify a Partnership Type

Samsung Lenskart

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Ford India’s Rural Health care Project in TN • • • •

Multi-party partnership NGO-Hand in Hand Government US Department of State

Ford case

Intel’s Employee Volunteer Program • Every volunteer hour an Intel employee spends in a selected educational institution or NGO, the organization receives US$4 from the Intel Foundation. • Since its inception two years ago, the Matching Grant program has helped 29 schools and disbursed Rs 5.15 million (US$120,525).

Identify a Partnership Type

A partner in supply chain

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The Body Shop Sourcing from SMEs/NGOs Providing livelihoods to communities • First store in 1976- Anita Roddick • Ethical business, fair trade, no animal testing , natural ingredients • Became UK’s second most loved brand in 1990s • Acquired by L’oreal in 2006

The Body Shop Sourcing from SMEs/NGOs Providing livelihoods to communities Product manufactured by • HIV Positive people • People with disabilities • Women and SHGs • Community people • 2400 stores 61 countries, 80% supply from community trade

Teddy ExportsTamilnadu

Some other brands thriving on Community products

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Cause Related Marketing/Campaign

Some projects on Health • GSK and Healthcare project, Institute for Indian Mother and Child, Kolkata • Ford - The SUMURR (Sustainable Urban Mobility with Uncompromised Rural Reach) program involved a retrofitted Ford Explorer SUV • Adhunik Group – emergency ambulance services • Shipping corp. of India with Sanhita on reproductive health issues

Some projects on Education • Employability education for Youth – Citi India • Employability programme for diabled – Costa coffee • Shree ki Pathshala – Shree cements • Essar unique Supplementary Education Support Program in West Bengal • Digital literacy by Aircel

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Some projects on Livelihood • Citi India - Ruro Agro Services Association in East India • ABITA Gramin Krishi Unnayan Prakalpa – Tea Board of India • Balmer Lawrie Initiative for Self Sustenance [BLISS] and Samaj Mein Balmer Lawrie [SAMBAL] – Balmer Lawrie • “Emami Mobile Traders” and “Small Village Shops” schemes for the rural unemployment youth

About SRF Ltd. •1970-Sri Ram Fibres (DCM group) •SRF is the world's 2nd largest manufacturer of Nylon 6 tyre cord and belting fabrics •An Indian Company with presence in UAE, Thailand and South Africa

• SRF realized that its factory in Rajasthan (since 1989) contribute to depleting water table and reduced well-being of people residing around the factory • lack of agricultural based livelihood opportunities due to absence of water harvesting

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• SRF realized that it doesn’t have expertise to provide solution to the community and environmental problems • SRF Foundation (since 1982) • 2006:SRF started looking for a competent and likeminded NGO as a partner to help mitigate the negative effects of its factories

CSR Partnership • PRADAN and Sir Syed Trust were identified as potential partners • Past experience in the region, knowledge, resources and expertise of implementing such livelihood projects across seven states in India • Goal “Enhancing income of 6,500 disadvantaged families by Rs. 10,000 annually through crop cultivation and plantation by judicious use of rain water harvested through appropriate measures‟

PRADAN

SRF

SST

SPACE CSR Partnership

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Activities Community sensitization Watershed based micro-plans Formation of SHGs, User groups Terracing/land-leveling/field bunding of waste/under-utilised private lands of poor families • Earthen water harvesting dams, land development in blocks of waste lands • Plantation of fruit and fodder trees • • • •

• A total of 124 paals have been constructed • Rise in ground water level by 2 meters in 5 years • A total of 2113 families (equivalent to 12,000 people) have so far been covered • A total of 139,349 fruits and fodder trees have been planted (60% survival ) • Market linkages: Vegetables worth Rs.550,000 • were sold during last year through Mother Dairy, New Delhi

• 100 women SHGs with piggy banks • Well received by the community and has positively impacted the livelihood conditions • SRF Ltd. became more sensitive and concerned about the environment in and around their chemical plant in Bhiwadi • Has become zero-discharge unit • Initiative was awrded with CII-ITC Sustainability Award in 2008

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ITC’s Wealth out of Waste (WoW) Initiative

Strategic CSR Approach • The largest manufacturer of Packaging and Graphic Boards in South Asia • ITC’s Paper and Specialty Paper Ltd has four paper units • Three are dependent on natural fibers, one on waste paper • Natural fibers through social forestry • Waste paper ….? Unorganized domestic supply

CSR and supply chain Began WoW in 2007 as CSR initiative to: • Create awareness for waste recycling • Engage school children, NGOs, Offices and households in waste recycling • A green initiative that provides solution to waste management • Cost effective way of collection of waste paper for its unit

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©2013, Partners in Change

CSR and supply chain

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Scaling up with NGOs Partnerships • Expanding WoW to other geographies • NGO partnerships to scale up the initiative • Caters to all aspects of CSR: Business, Environment and Society

• GSK India’s CSR Partnerships

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NVGs and Analysis of BRRs

National Voluntary Guidelines • The Guidelines have been articulated in the form of nine (9) Principles • To assist implementation, a section has also been included on developing Management Systems and Processes for responsible business • A special section has also been included on how micro, small and medium enterprises (MSMEs) can be encouraged to adopt the Guidelines.

Principles 1/2 • Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency and Accountability • Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle • Principle 3: Businesses should promote the wellbeing of all employees • Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised . • Principle 5: Businesses should respect and promote human rights

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Principles 2/2 • Principle 6: Business should respect, protect, and make efforts to restore the environment • Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner • Principle 8: Businesses should support inclusive growth and equitable development • Principle 9: Businesses should engage with and provide value to their customers and consumers in a responsible manner

SEBI Directive • On 13 Aug 2012 SEBI issued a circular for Business Responsibility reports • Applicable to top 100 companies (market cap) on BSE and NSE and subsequently be phased for rest of the companies

Understanding Companies’ CSR Preferences BSE Top 100 (CSR Projects Thematic Areas in 2012-13) Humanitarian need

Preference Level

9

Social Business

Very High

2

Vocational skills

High

43

Environment

Medium

65

Low

Women empowerment

44

Healthcare

76

Education

74

Eradicating hunger and poverty

9 0

20

40

60

80

100

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Understanding Companies’ CSR Preferences

Sample BRR Report BRR Top 100

Agri-

Chemical Retailers business Banking

Value Chain

CSR Group Exercise

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Identification of the companies • Prepare a list of all the companies which have plants and manufacturing units in the vicinity of your operational area • Also, prepare a list of other companies (not location specific CSR) which operate in the area through their head office, branch offices or support offices. (e.g. Banks, IT companies etc) • Prepare a consolidated list of companies

Identification of the companies Companies with 1. Headquarter 2. Plants 3. Operation site 4. Major supply chain linkages, 5. Joint venture 6. Major commercial establishment etc. Lets prepare the list…

Non-PSUs 1. Emami 2. ITC 3. Bata 4. RPG 5. Bengal Chemicals 6. Dey’s Medicals 7. Bergers Paints 8. Shalimar paints 9. Shree Cements 10.Exide Ind. 11.Birla Tyres 12.Britannia 13.Peerless

14.ABP 15. Shaw Wallace 16.Duncans Agro 17.Duncans Industries 18.Reckit & Colman 19.PC Chandra 20.Haldiram 21.Spencer’s Retail 22. Tata Global Beverages 23. Usha Martin 24. Adhunik Metalliks 25.Jesson & Co.

26.Graphite India 27. Philips 28.MPS Group 29.Frontech 30.Goodrick 31.Eveready Ind. 32.Webell 33.Khaitan 34.Orient Paper

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Central Public Sector Enterprises in your geography 1. Allahabad Bank 2. UCO bank 3. United Bank of India 4. Coal India Ltd 5. Balmer & Lawrie Ltd 6. Hindustan Copper Ltd 7. The Shipping Corporation of India Ltd 8. Damodar Valley Corporation 9. National Insurance Comp. Ltd 10. Bridge & Roof Co.

The Schedule VII (CSR Thematic areas) 2. Promotion 1. Eradication of extreme hunger and poverty, sanitation, Health

5. Benefit of armed force veterans, w ar widows

of education, sp ecial education and vocational training 6. Ensuring environmental sustainability, ecological balance, wildlif e conservation

9. PM/CM relief funds, Disast er relief work etc

3. Gender EqualityWomen empowerment + senior citizens

4.Protection of National Heritage, art and culture

7. Technology incubators within academic institutions

8. Rural sports, Parao lympic and Olympic sports,

10. Rural Developme nt projects

Concept Note Writing and Capability Statement

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Establishing Contacts • Based on the secondary research on each company, once we have identified a potential partner • The next important step is to establish first contact with the company • Find the right person in the company

Establishing Contacts • Initiate the discussion with an email • Basic introduction of your organization and the interest areas. • Do not forget to mention about the (interesting) work that the company is already doing to show that you have already done some secondary research before initiating the contact • Mention the areas of common interest • Request for sharing ideas concerning common interest through a phone or personal meeting

Establishing Contacts • If there is positive response, do the homework • If there is no response, follow-up through a call • Once you have an appointment, begin your work on some ideas of partnership • By the end of the meeting, it should be clear that you intend to have a mutually beneficial partnership and are not asking for money • Communicate that you will send a concept note (13 pages (should be within a week)

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Writing a concept note 1/2 • The shortest expression your project idea given on paper to a prospective partner • Develop a strong opening paragraph that provide an explanation of your organization • Clearly outline the areas of common interest between the company and your organization • Explain the need for the project you are proposing and use relevant statistics. Include a clear and understandable needs statement

Writing a concept note 2/2 • Highlight the benefits to the company • Describe the goals and the expected project outcomes. You will need to communicate to partners your predictions for success. Use bullet points to list your expected outcomes. • Wrap the concept paper up with a conclusion that highlights your organization's experience • DO NOT include budget

Developing Capabilities Statement1/2 • A Capabilities Statement is a snapshot of your company that serves as a resume for your business (projects/services) • A capability statement is a promotional or marketing statement about your business and its capabilities and skills that advertises who your organization is, what it does, and why you are the best organization to partner with.

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Developing Capabilities Statement 2/2 A capability statement should for the most part contain: • Organization overview: status, foundation, vision, mission • A description thematic expertise • Past performance statements: Projects/Partnerships/Achievements • Short Bios of Management and key staff • A list of former clients/partners/donors • How to contact you

Media and Social Media

Social Media: Engagement Brand

Businesses Criticism

Views Buy in

Inputs

CSOs and Peers

Comm unities

Guidance

Research Organization

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Social Media: Tools

Website

• Update website with latest running and upcoming campaign information • Highlight the key competencies • Provide calls to action like -social media links, Newsletter signup box, online donation gateway, Volunteer forms • Link all campaign micro-sites and social media channels

Microsite -Reference Campaign with Idea of calling tweets from people to share their thoughts with campaign #hashtag The end result is creating buzz for the campaign and build brand awareness

Source: http://beatcancereverywhere.com/

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Social Media - Facebook Cover Photo – Featured Campaign

Profile Image – Branding Focused

Tabs and Applications Facebook Fan Page  Facelift for the existing Facebook fan page based on featured campaign. Fan page to build brand visibility on social media, inform and engage user groups about activities and campaigns being organized Build Engagement through engagement Tabs/Applications, copy and visual content

Facebook Tabs/Applications Applications/ Tabs

Media Coverage

Campaign Tab Albums

YouTube Volunteer About Us

Twitter

Newsletter

Our Work

Donate

Blog/ PR Newsletter •

Blog with case studies and campaign updates for user interest and engagement Newsletter to promote campaigns and other updates

• Bi-Monthly and monthly email campaigns

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Social Media - Twitter

Twitter Profile Organization profile to build followers base. Content and links to be shared to promote PR News, latest news , campaigns, blog feeds, live updates, and other online and offline communications. Promoted #hashtags can be a way to create buzz for Oxfam India’s online presence. Example: Teach India profile on twitter

Social Media -YouTube

YouTube Channel •YouTube Channel to be used as a visual medium to spread awareness about the various initiatives taken up by Oxfam India. •Branding of the channel based on featured campaign. Example here refers to Child Rights Campaign by CRY. •Video content shall include featured videos of current campaigns, past work , information films, ad-films, news feeds, user generated content, media coverage etc.

Mainstream Media Engagement Build a case for media • How your interventions bring change, development, livelihood, empowerment etc • Develop a case on preintervention and postintervention change • Make sure that your target group acknowledge your work. Use photographs, videos

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Mainstream Media Engagement • Connect with companies corporate communication officer/CSR team • Develop a presentable case • Invite journalists, freelancers, media and b-school students to understand the project interventions • Attend conferences and seminars on CSR

Crowdfunding

What is Crowdfunding !

Crowdfunding is an online method of financing a specific project with small donations/contribution from many different places. Crowdfunding platforms are online intermediaries that facilitate this process.

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Types of funding !

Platforms

How does it work

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How does it work

How does it work

How does it work

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Global Platforms

Plan Your Campaign/Project Pick/Plan your project Decide on your budget Prepare your pitch Pick your platform Plan your social media campaign Keep in touch

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www.ngobox.org Email: info@ngobox.org +91-8860179180

Partner for Development

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Ngobox kolkata 12 june 2014