How can Non-Profit Organisations/Voluntary Welfare Organisations Attract Sufficient Resources for Sustainability?

It is said that there is no such thing as an unselfish deed. It is always a matter of quid pro quo. The payback can be monetary, in the form of recognition or self gratification. In todays world, the lure of the lucre has grown stronger than ever and benefits are always evaluated in terms of how profitable they are. The ideals of charity and philanthropy have remained just ideals and have been left behind. In times like these, what will keep NPOs from closing shop? At the heart of the problem, lies the harsh fact that the conventional business model for an NGO is not built-in with self sufficiency and continuity. While almost all other enterprises have reinvented themselves with strategic growth, dynamic leadership, focused development and business process resilience initiatives, NPOs still rely largely on non-professional volunteer work, charitable funding and adhoc organization for the operations. Self sustainability becomes even more elusive if decision makers arent fully aware of the business dynamics and lack the ability to fine tune the business model to blend in with the business eco system. Attaining this requirement is further complicated in poor and emerging countries by unstructured business practices and frameworks which leave a lot of grey area. This complication is evident in the challenges faced by agencies advancing financial and technological help to farmers in South India. As zonal coordinator for the NGO SPIC MACAY (Society for Promotion of Indian Classical Music And Culture Amongst Youth), my predicament was similar. The funding was sparse, the volunteers were noncommittal and any restoration work was mind-bogglingly expensive. After much deliberation, I found my inspiration in one of Mother Natures ingenious maneuvers. Like John Burroughs said, Nature teaches more than she preaches. There are no sermons in stones. It is easier to get a spark out of a stone than a moral. The answer lay in a simple coexistence principle perfected over the eons of evolution mutualism. Mutualism is defined by Essentials of Ecology as An interaction between two or more individuals in which the growth, growth rate and/or population of both are increased in a reciprocal association. This concept can be extrapolated from beyond the relationship between coral organisms and the algae all the way to modern NGOs. The policy is straight-forward, it is not a case of the helper and the helped any more. One sided giving is an obsolete idea. Both the parties involved in the transaction stand to benefit from the association. To add to this is a methodology made famous by the Japanese manufacturing resurgence following World War II World Class Business (WCB). It emphasizes a process driven approach combining structured efforts and operation rationalization in a attempt to achieve continuous improvement and excellence. Extending this concept from the factory floor to the issue at hand highlights the importance of efficient organizational restructuring, standardization of tasks, automation, computerization and professional management. A confluence of these two philosophies can result is an inspiring action plan. It is a matter of structuring the needs and setting the scene for the barter. NPOs can provide valuable knowledge and experience in their domain of work. This treasure trove must be understood and exploited. The organization must be perceived and treated as a business enterprise with the mission to serve and flourish. The structure and functioning of the conventional NPO needs a makeover. Along with open volunteer positions, professional work profiles are necessary. Just as it is true for every business model, quality leadership can help revive a flailing entity. As they say, its hard to lead a cavalry charge, if you think you look funny on a horse. So, it is important to have an inspired and inspiring leader at the helm. The additional requirements can be constructed into well defined projects. Students or professionals can then be selected to undertake the projects based on their areas of expertise. The use of more skilled persons can reduce the number of people to run the tasks. Labor intensive tasks like accounting and voucher and receipt reimbursements can be outsourced to individuals in the information technology domain. The computerization of activities of this nature can help standardize the process and reduce the time, effort and errors in the process. The publicity efforts can be handled by mass media and design students. Accounting and commerce majors can look into the book keeping and auditing practices. Lawyers can take charge of policy formulations and legal procedures. Management and advertising professionals and students can aid in branding and positioning. These projects provide can hands-on experience and valuable insight into the practical issues for the students. I would like to cite the example of a small experiment carried out at SPIC MACAY. In an attempt to protect and nurture the endangered art forms of the world SPIC MACAY arranges for performance tours for the artistes to several cities. It was decided that to minimize the costs we would have the artistes go on circuits, rather than individual performances. I am a logistician by specialization. So I worked out integer optimization programs to determine the optimal route that should be followed to minimize costs keeping in mind the constraints of time, preferences and obligations. It was a great learning experience for me. I understood the real world application of something that was to me initially a mere academic exercise. And it helped the organization form an excellent plan to schedule the stops. Business models like that of Amul, the Indian co-operative dairy movement illustrate the concept of financial success of a symbiotic association for rural upliftment. Amul revived the cottage dairy industry in rural India by pooling together the production of small scale farmers and providing facilities for state-of-the-art pasteurization, branding and market positioning. This co-operative is now a behemoth producing 6 million liters of milk per day and is jointly owned by 2.6 million milk producers. Another successful model is that of Jim Thompson, the Thai co-operative cottage movement for indigenous textile production. Microfinance is yet another industry based on a similar philosophy to provide credit to small scale industries and rural populace. Universities can play a huge part in a campaign employing such principles. They can encourage students to take up such initiatives for subjects like independent study and final year projects. Instead of hypothetical case studies and assignments, real life needs of the NPOs can be translated into problem statements. These can be solved by the students with suitable interaction with the NPO under the guidance of the faculty members. The process can be iterative or one-time. Either way having a handful of smart minds work at it will be a great fillip to the NPO. Universities can also share technological resources and support services like computer usage, library access and meeting places with the NPOs. For example, the NPO can have restricted access to some computers during the evenings or holidays when the classes are not in session. Perusing the library resources can be beneficial for many development projects like night schooling for adults and the less fortunate. The NPO can then cut costs on obtaining basic infrastructure like meeting space. Measuring and analyzing the performance of the organization is of prime importance. It helps us perceive the potential pitfalls in the modus operandi. In systems parlance it is said that what is measured is half done. The U.S. Agency for International Development (USAID) provides an NGO Sustainability Index, which is an analytical tool measuring the progress of NGOs on several fronts. The seven dimensions of evaluation are financial viability, legal environment, organizational capacity, legal environment, advocacy, service provision, infrastructure and public image. Indices like this should be used to evaluate the performance periodically. In conclusion, a way to resolve the crisis is to establish an NPO as a wholesome business model, drawing from the philosophies of symbiotic associations and World Class Business (WCB). A blended application of these seemingly unconnected concepts can be a significant ideological step in the march towards the resilient, self sustaining NPO of tomorrow.

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