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The two challenges facing the Centre for Advancement of Philanthropy (CAP) on its 30th year are that of remaining relevant in the face of changing circumstances and finding sustained funding sources to enable nonprofit organizations (NPOs) to continue functioning. This observation was made by Rati Forbes, CAP Board Chair at the 30th  anniversary celebrations of the organization on November 9, 2016 at The Sassy Spoon at Nariman Point. CAP was launched to "facilitate the starting of trusts and provide information on running them,” she further quoted founder director Russi Lala, in her opening remarks. That CAP has done this in keeping with the intentions of the founders and much more as expected in the changing times by offering a complete advisory portfolio, compliance management and several capacity building programs, appreciated Forbes.

 

 

 

 

 

"Not all best practices emanate from the West; but we should adapt those that are relevant to the needs of Asia are met,” commented keynote speaker Dr Ruth Shapiro who heads the Centre for Asian Philanthropy and Society based in Hong Kong. A researcher on best practices, models and strategies, Shapiro said most donors do not have much expertise about funding NPOs in Asia. They said that they would give more to Asia if they trusted the local organizations. There is need to balance the needs of the philanthropists and those of the NPOs as the tremendous potential of philanthropy is at present not fully realized in Asia.
Shapiro examined the problems with NPOs, or Social Delivery Organizations (SDOs) as she called them, which is a wider term and includes all bodies functioning in the sector. Intermediary organizations like universities are generally weak in Asia —  with the exception of the Tata Institute of Social Sciences and Dasra in India — and do not follow best practices, and hence cannot be a suitable mechanism for change. Shapiro believed that several problems assail the NPO sector. They are not good at telling their stories and sharing impact assessments. "They may have hearts of gold, but sorely lack business skills which are particularly a problem in a sector where you are judged guilty till proven innocent.” When they deal with advocacy issues and are critical of governments, they fail to garner support from business organizations which are worried about the repercussions this may have on their businesses. Finally, the best and the brightest have not gravitated naturally towards this sector.
Shapiro stated that partnering with government is a must to scale operations but the NPO must maintain its soul and mission and not merely become a government contractor. Also partnering with companies is very essential as SDOs require constant guidance on human resource management, accounting, strategy and financial forecasting.
"Asian philanthropy is more reactive than proactive,” commented Shapiro pointing out that there are no clear methods for donors to perform due diligence. She referred to a conversation with Ratan Tata, chairman of the Tata Trusts, who said that they only fund organizations which they could trust. However, greater clarity is required in this area. Many philanthropists have taken the DIY (do it yourself) route and decided to do away with NPOs and to execute projects themselves, but she wondered if such a strategy was sustainable. There is also a tendency for philanthropists to fund superstar organizations which become the "darling of the elite class” and, as a result, very often receive more funding than they need.
Her organization was working on a "Doing Good Index” for NPOs which looks at the enabling environment for receiving and giving philanthropy. This index would look at tax incentives, Corporate Social Responsibility (CSR) legislation, introducing robust courses in universities and other relevant factors which would guide philanthropists and ensure that their money goes to the right SDOs.
Shapiro’s address was followed by a panel discussion along with K. Anil Kumar, executive trustee and chief executive officer (CEO) of Axis Bank Foundation and Akhil Shahani of the Shahani Group. "Is there truth in what (billionaire U.S. investor) Warren Buffet said that the Indian is not philanthropic enough?” enquired CAP CEO Noshir Dadrawala, starting the session by referring to the lack of philanthropy in India in spite of so many High Networth Individuals (HNIs) and even Ultra HNIs. Shapiro felt that there was always room for improvement. "What is important is that people should feel that their money is being spent well.” Shahani said that crores of rupees were going to religious trusts like the Tirupathi temple trust, so the question should be that why is money not coming to the NPOs. Anil Kumar agreed with American philanthropist Bill Gates and felt that giving for religious purposes is not really "giving” as these donations are made with an ulterior motive of expecting benefits. "Trust giving still has to catch up in India.”
With reference to the mandated contribution of two percent of a company’s pretax profits to CSR, Shahani felt that besides legislation, other ways should be devised for making philanthropy to NPOs more attractive. Dadrawala mentioned several corporates like the Tatas, the Godrejs and the Forbes who have been contributing much before this was made compulsory by law. Rs 22,000 crores was expected to come to the sector but in fact only Rs 6,000 crores came the first year, and around Rs 8,000 the second year. Anil Kumar drew attention to the fact that much of this was paid to the Prime Minister’s Relief Fund to curry favor with the government. Many corporates tend to contribute when it will help their business. "The culture of giving money is more important than merely giving money.”
Who are the people who are contributing? Puja Marwah from Child Rights and You thought it was a misnomer to say that it was the HNIs who were contributing as 80-90% of their donations come from individuals. Around 4,00,000 to 5,00,000 individuals donate, most of whom are middle class individuals. "The rich are very stingy; it is the average Joe who is donating the money.” The pros and cons of receiving small donations from several individuals as against large donations from HNIs were discussed. Shahani felt that the cost of raising funds from individual donors was very high and it was easier to attack the large donor. Shapiro, on the other hand, said it was very time consuming to get money from big donors. One has to create a relationship over a long period of time. She also drew attention to social media networks and crowd funding which can drive philanthropic giving.
Several raised the issue about the lack of trust for NGOs (nongovernmental organizations) which were working honestly and sincerely. There is a preconceived and judgmental attitude from the corporate sector. Dadrawala was very unhappy about the deficit of trust between the NGOs and the government. "Thirty years ago there was a love-hate relationship now there is only a hate-hate relationship.” When he was part of a delegation to P. Chidambaram in 2008, the then finance minister looked on the members with contempt. His views were that all NGOs were frauds and it was only when an individual could not get a job or was unable to do business that he set up an NGO.
Nishit Kumar spoke in favor of the government which helped his erstwhile organization Childline, which provides emergency services for children in distress, to scale up from half a million calls a year to 1.15 million calls a month. It was the government who funded 90% of the budget. On the subject of building infrastructure, corporates were more interested in having their names put on various shelter homes. "It takes time and effort and energy to work with the government but once this is established the effects are long standing.” He believed that the government had its fair share of people with great intentions: one needed to know how to work with them and tap them
Tanya Balsara who runs the Tanya Computer Centre for the Blind and is looking to start an NGO, wondered what percentage should be allocated to administrative costs. Shapiro stressed the need to educate donors and show them that we need to pay well to attract good talent.
Dadrawala thanked several people who had helped CAP since its formation — the Forbes family, Deeana Jejeebhoy, who assisted them to get an office of their own, Tata Trusts, Ford Foundation, CAP chief operating officer Meher Gandevia-Billimoria who had helped bring the organization to its present level. Before proceeding for dinner, it was Gandevia-Billimoria’s task to thank, in a 10-minute presentation, all those who had accompanied CAP on their journey during the last 30 years.