As we have seen, the social sector in India is undergoing a fundamental change. Today, social commitment is no longer the preserve of voluntary workers. There has been a focused approach towards incorporating conventional management methods and metrics into the non-profit model, with the aim of using unconventional means of finance to provide unique solutions for social problems. Furthermore, there is a growing focus on sustainability and the need to improve upon the limitations of traditional models.
The non-profit market has also expanded, with the entry of companies, business networks, NGO networks and social entrepreneurs blurring traditional boundaries. This has resulted in the emergence of new organization structures and a focus on “profitability”, while ensuring that the social aspect of the organization is not lost.
At the same time, there is awareness that a majority of our social challenges will always need grant-based support, whether it is midday meal schemes, the care of challenged children or women’s rights programmes. Such issues will not have “revenue model” solutions and will need donor funds to hire the “right” people, develop systems and processes and create institutions that can drive sustainable change over long periods of time.
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Growing breed
The social sector is no longer restricted to NGOs. There is a growing breed of non-profits and other Indian entities working for the underprivileged that have become business savvy and embraced modern management methods.
Illustration: Jayachandran / Mint
Cooperatives have been successful models for non-profits in India, starting with Amul and extending to multiple products, such as the handicrafts cooperative of SEWA. However, these models have now extended to include various facets of the offering, resulting in true non-profit enterprises.
Friends of Women’s World Banking (FWWB) supports the Sammaan Foundation, which was formed with a vision to empower the rickshaw pullers’ community. In addition to the monetary support, the initiative, currently on in Noida and Patna, extends to tie-ups with the Indian Institutes of Technology in Delhi and Kanpur and National Institute of Design in Ahmedabad for technical inputs for the rickshaws, provides space on them for corporate advertisements and has set up community kitchens run by the rickshaw pullers’ wives.
It is an example of an initiative that goes beyond economic support, encompassing issues such as technology, marketing, innovation and team building, all contributing to success and sustainability.