London: Donors giving in India are not
making the most of their money and philanthropy market in
India is not working effectively, a new research has claimed.
The research from New Philanthropy Capital and Copal
Partners in its report said "Donors giving in India are not
making the most of their money."
Those giving should consider how their money can make
the most impact and encourage non-governmental organisations
in India to measure their results and be more transparent.
The findings, launched today in two reports, Giving in
India and Starting strong, provide advice for philanthropists
on how to choose effective NGOs.
The reports recognise the growing philanthropy market
in India, but show that few charities measure the impact of
their work and donors do not consistently ask for the right
information. As a result, funding decisions are not based on
impact, and the philanthropy market in India is not working
London-based NPC and Delhi-based Copal spent over a
year researching the funding market and performance of local
NGOs all over India. By speaking to over 150 NGOs, they found
that only 3 per cent were measuring their results in a robust
According to one of the reports` authors, Adrian
Fradd, "many donors just cannot be sure what impact their
funding is having, or whether their money is going to the most
"Donors need to think more strategically, and there
needs to be greater analysis of social issues and of
individual NGOs to improve the impact of philanthropy."
The report comes as a series of events encouraging
philanthropy in India are launched this week by GiveIndia, a
leading Indian-based organisation that promotes transparency
and credibility among NGOs.
NPC and Copal estimate that private giving to causes
in India could amount to several billions of pounds a year,
coming from Indian nationals, Indians living abroad and other
donors around the world.
Abha Thorat-Shah, Director of the British Asian Trust,
which works with British Asian philanthropists, said: "This
report is a very good reflection of philanthropy in India. We
encourage philanthropists from the South Asian community here
in the UK to be more strategic in their giving. We are keen
to inspire givers by showcasing the professionalism and drive
of Indian NGOs. It`s really a question of getting our
supporters to apply their business acumen to causes they are
NPC and Copal`s research has found that one way donors
can make a big difference is by paying for central costs and
lending their skills to build the capacity of NGOs, as well as
investing in impact measurement.
Neelima Khetan, from Seva Mandir, a major Indian
charity supporting rural development in Rajasthan, believes
that things need to change. "We have large allocations for
poverty alleviation and a vibrant democracy, yet the needs of
the poor are ill-served.