GiveIndia - The Need for Giving in India

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GiveIndia is an online philanthropic exchange with 200+ NGOs which have been screened for transparency and credibility. Make a donation and get a e-Receipt valid in India, US and UK and a feedback report within 4-6 months.

GiveIndia - The Need for Giving in India

  1. 2. Agenda <ul><li>India – Current Situation </li></ul><ul><li>GiveIndia – The Genesis </li></ul><ul><li>Key Stakeholders For GiveIndia </li></ul><ul><li>The Growth Story </li></ul>
  2. 3. India may be a land of opportunities, but plenty of work needs to be done to establish equity within society Source : UNDP Population : 1.15 Bn Annual GDP Growth Rate : 8.7%` 132 nd of 179 countries on the Human Development Index` 34% of the population is below Purchasing Power Parity of USD 1/day 27.5% of the population lives below the National Poverty Line 49% of the women live in poverty 35.2% of the population is illiterate
  3. 4. There is a large social sector in India but not enough giving taking place <ul><li>Strong distrust on the credibility of non-profits due to past experiences, stories heard, inefficiencies reported, no reporting on fund usage, lack of audited financial statements </li></ul><ul><li>Most people want to give but do not know where their money will be properly utilized and therefore end up not giving at all </li></ul>Source : http://www.vexen.co.uk/countries/charity.html, Copal Partners – India Charity Report http://infochangeindia.org/200303236519/Other/Books-Reports/First-ever-nationwide-survey-to-map-contours-of-non-profit-sector.html <ul><li>There are ~1.2 million non-profits, with revenues of ~USD 4.7 bn, in India </li></ul><ul><li>Only 500 non-profits have annual income over USD 100,000 </li></ul><ul><li>53% of the non-profits operate in rural areas </li></ul><ul><li>Nearly 20 million people work on a paid or volunteer basis in the non-profit sector </li></ul>Social Sector in India <ul><li>More than 75 million households give for charitable causes annually either in cash or kind – however a large part of this giving is towards religious organizations </li></ul><ul><li>People feel as if they have a moral obligation to give something back to society especially in the absence of a strong governance structure – but are faced with problems of trust and accessibility to suitable organizations </li></ul>Giving in India
  4. 5. Individual charity in India is amongst the lowest worldwide even as the income disparities between the rich and the poor continue to grow <ul><li>Last two decades have witnessed a widening of the gap between the rich and the poor </li></ul><ul><li>The poor have to deal with lack of basic amenities – access to decent education, healthcare and livelihood opportunities </li></ul><ul><li>In the meantime, the affluent have enjoyed the benefits of greater incomes, reduced taxes, 100% inheritance, etc. </li></ul>The need for a giving culture… Individual Charity as % of GDP Giving by Individuals and Corporates is ~USD 200 Mn. in addition to foreign contributions amounting to ~USD 1.1 Bn. Source : http://www.vexen.co.uk/countries/charity.html, Copal Partners – India Charity Report India’s large social sector needs to be sustained by increasing giving significantly
  5. 6. Agenda <ul><li>India – Current Situation </li></ul><ul><li>GiveIndia – The Genesis </li></ul><ul><li>Key Stakeholders For GiveIndia </li></ul><ul><li>The Growth Story </li></ul>
  6. 7. While India has a huge potential for increased giving, certain obstacles need to be surmounted <ul><li>Increasing affluence of the people at large has created surpluses which can be used for giving </li></ul><ul><li>Large and growing middle-class with growing incomes and consumption has a huge potential to be tapped to increase giving </li></ul><ul><li>There is increased awareness of the need to give back to society </li></ul>Potential of Giving <ul><li>Strong distrust of the social sector due to lack of transparency and accountability </li></ul><ul><li>Lack of convenience in giving (which organization to give to, how to give, getting tax-receipts, etc.) </li></ul><ul><li>Inability to determine how funds were utilized for the ultimate beneficiary </li></ul><ul><li>Inefficient mechanism resulting in only 60-70% of the funds reaching the end beneficiary </li></ul>Obstacles to Giving
  7. 8. GiveIndia is a philanthropy marketplace which aims to ensure that resources reach the most effective organizations in an efficient manner Vision Mission A strong “giving” culture where Indians donate 2% of their income every year to a cause that matters. A vibrant “philanthropy marketplace” to ensure that the most efficient and effective nonprofits get access the most resources To promote efficient and effective giving that provides greater opportunities for the poor in India Operating Model The fundamental premise of our operating model is that the donor is an “investor” looking for “social returns” i.e. mostly the satisfaction of knowing the money made a difference to someone else’s life
  8. 9. GiveIndia provides a vibrant philanthropy marketplace bringing together non-profits and donors on a common platform using the power of the Internet Non-profits get listed with GiveIndia after a rigorous due-diligence Non-profits create donation options for listing on GiveIndia GiveIndia – The Philanthropy Marketplace GiveIndia undertakes various campaigns to attract donors GiveIndia also sells its PRG program to companies
  9. 10. The GiveIndia website is centered around selection of a specific cause and donation options for such a cause
  10. 11. Donors receive a feedback report after 4-6 months informing them on how their money was utilized <ul><li>Report on how the money was utilised for every individual donation </li></ul><ul><li>Details about beneficiary/family and how the money made a difference to their lives </li></ul><ul><li>Verification visits at random to verify the same </li></ul><ul><li>Report sent in 4-6 months </li></ul>What is a feedback report?
  11. 12. Donors can also view their past donations and download receipts
  12. 13. Low cost of fund raising, feedback reports and a large basket of NGOs are the key differentiators for GiveIndia which are difficult to replicate <ul><li>Low cost of fundraising – Peak rate of 9.1% and an average 8% cost of fund raising is unparalleled in the Indian charity sector which anyway has a very low cost relative to US (23-45%) and UK charities (25%) </li></ul><ul><li>Feedback Reports –The GI model of being able to deliver feedbacks at this extremely low unit cost of <Rs50 per report (scalable down to Rs25 per fb) even with an SKU-wise order size as small as 10 units, is unparallelled in the world </li></ul><ul><li>Large basket of NGOs – 150+ certified NGOs and 500+ donation options where the certification is renewed each year and allowing people the choice to choose a donation option of his favourite cause </li></ul><ul><li>iGive – Ability to raise funds for a cause close to the heart of a fund raiser </li></ul><ul><li>Tax deduction receipts – Automatic generation/archival of receipts makes it easy for users to fetch the same while filing returns </li></ul>Key Differentiators For GiveIndia
  13. 14. Agenda <ul><li>India – Current Situation </li></ul><ul><li>GiveIndia – The Genesis </li></ul><ul><li>Key Stakeholders For GiveIndia </li></ul><ul><li>The Growth Story </li></ul>
  14. 15. The GiveIndia marketplace comprises of non-profits, corporates, individual donors and fund raisers` Key Stakeholders for GiveIndia Implementing Non-Profits <ul><li>No. of non-profits : 150+ across 17 states </li></ul><ul><li>No. of donation options : 800+ </li></ul><ul><li>Mode of acquisition : Offline (Workshops, Foundations, etc.) </li></ul><ul><li>Delivery Mode : Online for sharing information and donations </li></ul>Corporates <ul><li>No. of companies : 60+ </li></ul><ul><li>No. of employees signed-up : 25,000+ </li></ul><ul><li>Monthly contributions : USD 100,000 </li></ul><ul><li>Minimum contribution : USD 1 </li></ul><ul><li>Mode of acquisition : Offline (1-1 signups) </li></ul><ul><li>Delivery Mode : Online for donations, receipts and feedbacks </li></ul>Individual Donors <ul><li>No. of users : 30,000+ </li></ul><ul><li>Minimum donation : USD 10 </li></ul><ul><li>Mode of acquisition : Online (SEO, Google Grants, banners, DMs, referrals, etc.) </li></ul><ul><li>Delivery Mode : Online for donations, receipts and feedbacks </li></ul>Fundraisers <ul><li>No. of fundraising pages setup : 250+ </li></ul><ul><li>Funds Raised : USD 150,000 </li></ul><ul><li>Minimum donation : USD 2 </li></ul><ul><li>Mode of acquisition : Online </li></ul><ul><li>Delivery Mode : Online page creation and donation </li></ul>
  15. 16. Non-profits, one of the key stakeholders within the marketplace are “listed” with GiveIndia after a strict due-diligence process In addition, each listed NGO has to undergo a renewal cycle every year which ensures that these organizations are committed to being accountable and transparent Non-profit Organizations – Due-diligence Process Key Stakeholders – Non-profits <ul><li>Non-religious, non-political institutions </li></ul><ul><li>Cater to the poorest sections of society - 50% of the beneficiaries have to be from households earning < Rs. 3000 p.m. </li></ul><ul><li>More than 2/3rds of the Directors cannot be related by blood or marriage </li></ul><ul><li>Salaries and reimbursements of Directors should be disclosed </li></ul><ul><li>Publish their audited financial statements </li></ul><ul><li>Etc. </li></ul>Key Listing Criteria <ul><li>Listed non-profits can setup various donation options on the GiveIndia website ranging from USD 10 – USD 300 </li></ul><ul><li>Being listed with GiveIndia provides non-profits with an ability to raise funds even on its own as it is recognized to be accountable and transparent </li></ul><ul><li>Being listed with GiveIndia provides non-profits the opportunity to partake of other fund raising activities undertaken by GiveIndia – Read To Lead campaign, Bihar Floods </li></ul><ul><li>GiveIndia has currently listed 150+ non-profits </li></ul>Benefits of Listing
  16. 17. GiveIndia considers donors as its primary customers and aims to fullfil their key requirements … they can find effective non-profits to channel their donations People will give more if… <ul><li>GiveIndia’s due-diligence ensures that all the non-profits listed with us are accountable, credible and transparent </li></ul>… they are informed how their funds were used to help the disadvantaged <ul><li>A fund utilization report is sent for every individual donation within 4-6 months </li></ul>… they know that most of the funds are being passed to the final beneficiary <ul><li>GiveIndia passes on more than 90% of the funds to the beneficiary as against the 60-80% norms prevalent in most of the sector </li></ul>… it is made convenient to give <ul><li>Provides a quick and simple mechanism to make a donation akin to a shopping site </li></ul><ul><li>Host of payment options including online banking, credit cards and Paypal </li></ul><ul><li>Tax-deduction receipts for donors in India/US </li></ul>Key Stakeholders - Donors
  17. 18. We also help corporates and High Net-worth Individuals (HNIs) by responding to their philanthropic needs with unique solutions Project Catalog <ul><li>Contains projects ranging from USD 6,000 - USD 30,000 </li></ul><ul><li>Proposals are prepared by our non-profits and vetted by GiveIndia </li></ul><ul><li>Contains details on scope, scalability and cost breakup </li></ul><ul><li>Donor receives a mid-term feedback and end-of-term final feedback report </li></ul>Customised Giving Solutions Corporate Philanthropy Services Client Services <ul><li>Identify suitable non-profits as per the specific needs of the donor </li></ul><ul><li>Design a project with the non-profit that suits the requirement of the donor </li></ul><ul><li>Monitor the project implementation and give periodic feedback to the donor </li></ul><ul><li>Objective is to assist corporates in strategizing their CSR activities </li></ul><ul><li>Assist in aligning CSR activities with the business and stakeholder objectives </li></ul><ul><li>Engagement model includes involvement of senior management, employees, customers, vendors etc. </li></ul>Key Stakeholders – Donors
  18. 19. The Payroll Giving Program of GiveIndia is currently operational in more than 60 companies with 25,000 employees contributing ~USD 1.2 Mn p.a. Concept <ul><li>Employees in a company can set aside a small sum of money (as low as USD 1), each month, from their salaries </li></ul><ul><li>As and when they feel appropriate they can donate this sum to the cause of their choice </li></ul><ul><li>Companies can choose to match an employees contribution thus increasing “giving” amongst its employees </li></ul>Benefits <ul><li>For employees : </li></ul><ul><li>100% pass-through of their contribution as companies pay a cost recovery charge to GiveIndia </li></ul><ul><li>Endorsed by the employer thus setting aside issues of trust and credibility </li></ul><ul><li>Be a part of a larger movement within the organization </li></ul><ul><li>For corporates : </li></ul><ul><li>Strong CSR activity involving participation of all employees </li></ul><ul><li>Little effort as all marketing and sales efforts are undertaken by GiveIndia </li></ul><ul><li>Ability to incorporate their current CSR activities within the GiveIndia umbrella </li></ul>Key Stakeholders - Corporates
  19. 20. The Payroll Giving Program has grown from 3 companies in 05-06 to more than 60 companies across sectors Key Stakeholders - Corporates
  20. 21. Peer-to-peer fundraising is supported by GiveIndia through its iGive product Concept <ul><li>An online fundraising tool for anyone who wants to raise money for a particular cause </li></ul><ul><li>Fund raisers associated with specific non-profits want to develop something specific - like a classroom, medical camp etc which are one-time events and thus not present as donation options </li></ul><ul><li>They will reach out to their friends and families for support to raise money for this cause - Friends and families largely trust the fundraiser and donate money </li></ul><ul><li>Fund raiser needs a convenient mechanism for his friends and families to donate online and obtain tax-deduction receipts </li></ul>Critical Success Factors <ul><li>Emotional personal appeal </li></ul><ul><li>Eye-catching visuals </li></ul><ul><li>Send link to atleast 200 friends and families </li></ul><ul><li>Rigorous follow-ups with potential donors </li></ul><ul><li>Fundraiser should ideally provide some sort of feedback to his/her supporters </li></ul>Occasions to use iGive <ul><li>Special events - marathon, charity dinners, auctions, </li></ul><ul><li>Individual events - Birthdays, Weddings, etc. </li></ul><ul><li>Disaster Giving - Floods, Mumbai Terror Attacks </li></ul>Key Stakeholders – Fundraisers
  21. 22. We believe we have assisted our various stakeholders do their bit for society and they say so themselves “ As an NRI, I had to rely on friends and relatives to make donations…then I found GiveIndia's banner on the ICICI site. I have been a regular donor and have been impressed by the way you have grown to provide a link between the donor and the non-profits .” - Donor “ GI helped identify our primary charitable objectives. The CCS team has been great to work with, providing guidance and advice, but also offering us sufficient flexibility to allow us to do what was best for ING Vysya – VP, ING Vysya “ GiveIndia’s feedback report is awesome!! Detailing how the donated money is utilized and that too with illustrations is very reassuring.” - Donor &quot;We had been grappling with vague good sentiments, but not knowing exactly what to do or where to start. They helped us clarify and articulate our intentions , resulting in a practical plan for effective and meaningful community involvement. “ – Jerry Rao, Chairman & MD, Emphasis &quot;It is due to the efforts of your organization that a large number of non-profits including ours have been able to mobilize such large financial resources from across the world .&quot;- Blind People's Association &quot;I think GiveIndia is doing an excellent job of projecting the potential of getting donations to make a difference in the lives of the poor.” – CINI
  22. 23. Agenda <ul><li>India – Current Situation </li></ul><ul><li>GiveIndia – The Genesis </li></ul><ul><li>Key Stakeholders For GiveIndia </li></ul><ul><li>The Growth Story </li></ul>
  23. 24. GiveIndia is the fifth largest marketplace in the world but only eBay Giving Works has a lower cost of fundraising compared to GiveIndia 607% 648% 385% 45% 25% 28% 10% 42% 18% 8% 51% 119% 21% 4% Cost of Fund Raising $27,000 - - - √ - 2 $175,000 2007 Wokai $820,467 √ - √ √ 14(24 total) 4 $366,280 2001 Net4Kids $1.51million √ - √ √ 68 13 $383,000 2003 Connexion Colmbia $1.7 million - - - √ 200+ 4 $484,217 2004 GiveMeaning $2.08 million √ - - √ 70(Funded) 11 $200,000 2003 Help Argentina $2.12 million - - - √ 580 13 $900,000 2002 Modest Needs $2.5 million √ - √ √ 1,300+ 28 $451,114 2004 GreaterGood South Afirca $4.0 million - - - √ 450 40 $3,20,000 2000 GIVE Foundation $4.7 million - - - √ 563 22 $2.4million 2003 GlobalGiving $6.2 million - - √ - 12,000+ 61 $7.4million 2000 DonorsChoose $26.0 million - √ - - 300(Daily) 32 $5.4 million 2005 Kiva $103 million - - - √ 17,000+ 21 $4.0million 1999 MissionFish(eBay Giving Works) $20,582 - √ - - 98(147 Total) 5 $125,000 2008 Rang de $190,466 √ - √ √ 500+ 15 $732,560 2007 Better place Volun-teers Loans In-Kind Cash Funds Raised (last FY) Resources Brokered Offerings Staff Budget Founded Organisation
  24. 25. GiveIndia has channeled more than USD 12 Mn in the last 5 years and has grown at more than 45% CAGR each year Funds Channeled by GiveIndia (1) (FY2004-08, in USD ‘000s) Others (2) Online Offline (3) Notes: (1) USD 1 = INR 50 (2) Others includes Give2India, grants to channel partners, grants to NGOs and funds channeled directly to NGOs (3) Offline donations, Projects, Marathon related donations PRG CAGR : 47% CAGR (FY04-08) 11% 245% 107% 52% <ul><li>In FY09, GiveIndia will channel approx. USD 6-7 Mn </li></ul><ul><li>Average donation on GiveIndia is approx USD 80-100 while minimum ticket size for donation is USD 10 </li></ul><ul><li>Average donor on GiveIndia donates ~USD 120-150 p.a. </li></ul><ul><li>US donors give ~40-50% more than Indian donors </li></ul><ul><li>Apart from US and India, UK, Singapore and UAE are the major sources of funds raised from GiveIndia </li></ul>Comments
  25. 26. GiveIndia has amongst the lowest costs of fund raising (CoFR) in the non-profit sector worldwide at 7-8% across years GiveIndia – Cost of Fund Raising Share of Expenses as a % of Funds Raised (FY05-09) Do you care how much money reaches the poor? (1) Concerned Not Concerned Would give more Notes : (1) Survey conducted by GiveIndia Source : GiveIndia Annual Reports <ul><li>Donors are concerned about how much of their donations reaches the beneficiary (“pass-through”) </li></ul><ul><li>Most other charities have pass-throughs of 60-80% while GiveIndia has a pass-through of more than 90% </li></ul><ul><li>GiveIndia prides itself in the transparency of its cost structure thus enabling donors to make an informed choice </li></ul>Why is a low CoFR important?
  26. 28. Appendix
  27. 29. While India has made some progress towards its Millenium Development Goals, we can see that there is yet considerable ground to cover (1/2) India – Progress towards Millenium Development Goals Goal 1 : Eradicating Extreme Poverty and Hunger Poverty Headcount Ratio Goal 2 : Achieve universal primary education Drop-out rate Source : Millenium Development Report, India Country Report 2005 Goal 3 : Gender Parity in Education Female Proportion in Primary Education Goal 4 : Reduce under 5 mortality rate Under 5 Mortality Rate (Death per thousand births)
  28. 30. While India has made some progress towards its Millenium Development Goals, we can see that there is yet considerable ground to cover (2/2) India – Progress towards Millenium Development Goals Goal 5 : Reduce maternal mortality rate (MMR) MMR deaths per 100,000 live births Goal 6 : Reduce prevalence of HIV/TB Deaths per 100,000 population on account of TB Source : Millenium Development Report, India Country Report 2005 Goal 7 : Ensure environmental stability Population with access to sanitation Goal 8 : Global Partnership for Development Tele-density
  29. 31. The iGive product was a resounding success during the Mumbai and Delhi Marathons with more than 100 pages being setup Key Stakeholders – Fundraisers
  30. 32. iGive pages have been setup to collect money for the Bihar Flood victims, and Mumbai terror attacks amongst many other causes Key Stakeholders – Fundraisers

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