Transforming Philanthropy PPT

TRANSFORMING
PHILANTHROPY
From Charity to Empowerment

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EXECUTIVE SUMMARY:
Through Initiation, Promotion and Support to Organisations
Undertaking Awareness and Advocacy
Multiply the Effect of Personal Donations / Trust Funds /
Corporate Contributions to Empower the Poor
Multiply
Impact
Providing
Support
To Access
Resources
To fully utilisie Massive Government Budget Allocations for
Education, Scholarships, Health, Housing, Livelihoods, Bank
Loans, etc

3
Generations
of
Philanthropy
TRANSFORMING PHILANTHROPY:

Comprises of direct giving where the
donors themselves provide food,
clothing, shelter, money etc. to the poor
Does not involve any
administrative expenses and all
funds go to the receiver
Generation
Philanthropy1st CHARITY
What is this all about?

Most widespread.
Provides direct and immediate
satisfaction to the giver.
Generation
Philanthropy1st CHARITY
Does not develop the abilities of the
receivers, makes them dependent
and in some cases unproductive and
a burden on society.
DisadvantageAdvantage

Involves indirect giving by donating
funds to different institutions and
organisations that provide education,
scholarships and healthcare etc
Generation
Philanthropy2nd DEVELOPMENT
Helps to promote capacity building
and well being of poor and the
deserving to improve their quality
of life and enable them to become
self reliant
What is this all about?

• Gaining currency in the last three to four decades
• Has enabled hundreds of thousands to get free/subsidised access to schooling,
skill development and professional education along with healthcare and capital for
starting / upgrading micro enterprises,
• Socially conscious people with larger volumes of funds are adopting the Second
Generation approach along with allocation of some funds for direct giving also.
Generation
Advantage

• Necessarily involve some administrative expenses and there could be possibility of
misappropriation and /or improper implementation if the recipient organisations
do not maintain very high standards of implementation, transparency and
accountability
• Decreases pressure on the government and its accountability to provide basic
services to the citizens that is its prime responsibility.
• When school education, professional training, healthcare etc are provided by
philanthropists (or the private sector), people stop using government schools and
other facilities.
Generation
Disadvantage

• Education
• Health
CHANGING SCENARIO
Areas of Change
• Civic Amenities
• Livelihoods etc.
• Banking
The Government of India is allocating very large budgets- or stipulating conditions for
access to resource in very high volumes- to the poor as a matter of mandatory and
legal entitlements in the above mentioned areas.

CHANGING SCENARIO IN EDUCATION
Over 70 fold increase in the last 35 years enabling increase in
literacy rates from 18.3 in 1951 to over 74% at present
Expenditure on
education has
steadily risen from
0.64% of GDP in
1951-52 to 2.31% in
1970-71 and
thereafter reached
the peak of 4.26% in
2000-01

Budget for Scholarships for students available from first grade to Ph.D. Budget allocation by the
Government of India for student scholarships for the year 2013-14
Availing Scholarships from Central and State Governments
Rs.
5482crores
CHANGING SCENARIO IN EDUCATION

For loans in all public sector and private banks under the MSME (Micro, Small and
Medium Enterprises) for the poor and middle classes and 1% of all loans by banks to
be given as DRI (Differential Rate of Interest) Scheme for those below poverty line
were stipulated by the Government of India and the Reserve Bank of India in 1972- i.e.
43 years back.
Availing Bank Loans for the Poor Under Priority Sector Lending Rule
40%RESERVATION
If this is implemented properly, every poor in India can
have access to Bank loans
CHANGING SCENARIO IN BANKING

CHANGING SCENARIO IN HEALTH
Rs.
37330crores
The above budget was allocated by Ministry of Health & Family Welfare in
2013-14 as against Rs 5780 crore in 2000-01.
Central and State Governments have launched schemes for free treatment of
poor and marginalised communities
6.5 times
increase in
14 years

Rs.
80,194crores
The above budget was allocated to Ministry of Rural Development
The Union Budget of the Government of India for the year 2013-14 also saw significant
allocations for social sector:
CHANGING SCENARIO IN SOCIAL DEVELOPMENT

But, wait!
There is a fundamental problem here…

FUNDAMENTAL
PROBLEM
IMPLEMENTATION
“During 11th Plan we were able to spend only 20
per cent of the allocations which is not sufficient
and therefore we need to remove the
bottlenecks and implement them fast”
Sushma Berlia
- Reactions to Union Budget 2013-14
THE CORE ISSUE STILL IS NOT ABOUT ALLOCATION BUT
IMPLEMENTATION

CHALLENGES
WITH
IMPLEMENTION
REASONS FOR UNDER UTILISATION
Gross Under Utilisation
Lack of
Awareness
About
Schemes
Limitations of
Common Man to
Apply
Ignorance
about
Citizenship
Rights
Lack of
Accountability
of the System
Absence of
Facilitating
Organisations
See Note for more info…

To Enable Citizens to Secure their Entitlements
STRATEGY REQUIRED
INITIATION OF THIRD GENERATION PHILANTHROPY

• Education: 25 lakhs per year
(every year) can help in running
a school for 300 to 400 students
only
• Banking: Rs. One Lakh can
support about 6 -7 people to start
petty businesses
• Scholarships: Rs. One lakh can
support 5 to 10 students for
higher education
• Education: One time 25 lakhs support
to an organisation propagating
implementation of RTE Act can ensure
free admissions for at least 3 to 4
thousand poor students in quality
schools
• Banking: Rs. One Lakh used to leverage
DRI and Priority Sector Loans from
banks can help at least 130 people get
loans from banks worth over Rs. 20
lakhs
• Scholarships: Rs. One Lakh to an
organisation to access government
schemes can enable at least 500
students to secure scholarships worth
over 25 lakhs
Generation
Philanthropy2nd
Generation
Philanthropy3rd

Generation
Philanthropy3rd EMPOWERMENT
Advantage
• The Multiplier Effect of Third Generation Philanthropy of getting 20 to 100 times more
benefits for the poor for the same volume of funds can give much more satisfaction
• Results take time as procedures and policies have to be in place. Once in place, they give
long term benefit without much investment
• Organisations will become accountable & transparent as they will have to follow
financial, programmatic and governance systems of global standards to receive repeat
donations from Third Generation Philanthropy

Generation
Philanthropy3rd EMPOWERMENT
Disadvantage
• Does not give immediate satisfaction of First or Second Generation Philanthropy of
seeing our donations reaching people directly
• Results are not immediate
• Possibility of misuse of funds by organisations

3rd
Generation
of
Philanthropy
@
FINANCIAL
INCLUSION
+
ACCESS TO
HEALTHCARE
+
RIGHT TO
EDUCATION
Rs. 15 Lakhs per
annum can help
access Rs. 3 crores-
Impact your of
Contribution: 1:20
Rs. 20 Lakhs per
annum can help
1,00,000Poor access
Health Care
Impact: 1: 20
Rs. 25 Lakhs can help
2000 children to get
Free Education in
Private Schools
Impact:1: 80

• Most organisations receive generous contributions for Second Generation
activities like running schools, distribution of scholarships, operating
dispensaries etc.
• Very few organisations in the country are working to undertake
awareness and advocacy to access government schemes and programs
due to lack of understanding and funds
Time for Third Generation
Philanthropy
Requirement: Funding Support to Promote
A&A (Awareness & Advocacy) Organisations

• Promotion of even 2000 Awareness and Advocacy (A&A) Organisations in
India (four for each district) can be a game changer in transforming lives
of the poor and marginalized
• Existing organisations (especially ones with national reach) working on
service delivery can be oriented and transformed to become A&A
(Awareness and Advocacy) organisations
Time for Third Generation
Philanthropy
Requirement: Reorientation and Funding Support

Operation Dynamics:
Rs. Fifty Lakh per annum per A&A (Awareness & Advocacy)
Organisation could enable:
– At least five thousand people to access different government schemes
and programs like:
• Scholarships, pensions, housing, healthcare, bank loans etc
• Through 15 full time staff members and 20 volunteers
• Worth over rupees 12.5 crores per annum- Multiplier effect of 1:25 for
every rupee donated
Third Generation Philanthropy:
Support and Output

• Professional from different fields earning rupees three lakhs and above per annum
• Foundations and Trusts
• Corporate Bodies
• Just 250 individuals donating an average of 20,000 per annum can get one A&A
Organisation going for a year and supporting 5000 people!
• After providing for tax deductions- actual payment would be only Rs. 10,000 (for
every 20,000 donated)
Third Generation Philanthropy- A&A Organisations:
Possible Support Sources

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