Small and medium-sized nonprofits generally are even less likely to engage with high net worth supporters. One of the reasons may be that, the rich support organisations with which they are connected through their own networks. One solution to this that is beginning to achieve positive results has been the formation of giving circles.
It has been my privilege to have met the founders of two such groups in Mumbai, India where I have been this month. Both are successful. What is interesting is their quite different approach. The difference is one that fascinates me and has wider significance in the discourse around evaluating nonprofits (For examples, here or here) . The difference can be summarised in my view by that hardy perennial phrase 'qualitative vs. quantitative'.
In the quantitative corner is the better known of the two, Dasra. It was founded 15 years ago by husband-and-wife Deval and Neera. It is Deval whom I have met more than once. He is an engaging, articulate and urbane late thirty something. Both he and Neera are US educated and both former Wall Street analysts. They came to India determined to make a difference using their financial-analytic skills (though of Indian origin, neither are Indian by birth). Over the 15 years, they have developed a formidably successful organisation. It now employs some 40 plus staff, crammed into a ramshackle two-storey building in a downmarket part of West Mumbai. Nowadays, too, it boasts two small outposts (most likely working from home offices) in New York and London.
Dasra says it has assisted inject some US$37 million into nonprofits and social enterprises. It also runs a very successful Indian Philanthropy Forum, which brings together some of India's most active philanthropists and successful nonprofits. A version of the Forum was recently staged in New York for the first time.
Dasra identifies and thoroughly researches both key areas for intervention and potential partner organisations working in those fields. As well as working to thoroughly understand the problem, it investigates which nonprofits and social enterprises may have the skills and capacity to solve it. More often than not it works closely with these organisations to encourage and train them to think and act more analytically. The mechanism it advocates is 'the theory of change'. Their goal is to create solutions that can be 'scaled up' and achieve as big an impact as possible for the resources invested. I once, tongue-in-cheek described this style of approach in an earlier blog as ‘philanthropy for bankers’: I had Deval partly in mind!
Once, Dasra is satisfied that it has a grasp of the problem and suitable partners it will begin to recruit donors to a 'giving circle'. Members of a giving circle agree to provide a fixed amount over three years to achieve a significant change in the problem area.
The second organisation I have just met on my current trip. It is a semi-formal organisation called Caring Friends. I met its founder, Ramesh in the tiny two room office, up a narrow staircase, that he shares with a former business partner. His support staff comprises a team of two administrators and a driver. Ramesh was a senior manager of a well-known Indian corporation. His travels through India had brought him into contact with the notable activist, Baba Amte and his centre for leprosy patients and the disabled called Anandwan.
Moved by his initial experience he sent an article together with a letter to around 50 of his friends and acquaintances inviting them to support the work of Baba Amte. He became a regular visitor and supporter and his subsequent outlook has been much influenced by the friendship that developed between him and Baba Amte.
Ramesh then began to take an interest in other nonprofits and became aware of their challenges and limitations. These in particular he described to me as the lack of financial resources; their limited vision; and deficiencies in human resources and training. He began to apply his own skills as a business executive to assist nonprofits.
He later found an ally, Nimesh, and together they created Caring Friends. The name is taken from the quote usually attributed to anthropologist, Margaret Mead: “Never believe that a few caring people can't change the world. For indeed that's all who ever have”.
Caring Friends is not a legal entity and does not fundraise. Its website makes the point, "In fact, Caring Friends does not have a Bank Account. We do not accept cheques in our name. Cheques are made directly to the NGOs, hence 100% of the funds go to the NGOs." It adds that “we have zero overheads.”
The group has grown into a network of around 200 wealthy (some very wealthy) individuals who support the nonprofits that Ramesh and Nimesh identify and on which they have undertaken 'due diligence'. These supporters meet every 2-3 months and invites a nonprofit to present their work.
Ramesh describes the due diligence as based on visits to the nonprofits and the areas where they work. These visits are undertaken by Ramesh and Nimesh. Above all, they are looking for integrity. They focus on whether the nonprofit is well ordered, and maintenance aspects such as record-keeping and cleanliness of the premises. Often, he says, they will support the nonprofits out of their personal resources before recommending them to others of the Caring Friends.
Ramesh, who is now in his 70s has retired from his corporate role to become a partner in the small business whose office he still occupies. This allowed him the flexibility to continue and fund his philanthropic work . Nimesh too, runs a business.
The support nonprofits receive through Caring Friends may vary from between 25 to 80% of their total financial resources. Projects featured oin Caring Friends' brochure are making a difference to hundreds of thousands of individuals spread across India.
Both Dasra and Caring Friends are exceptional organisations that - though, very different in approach- are making a major difference. Which, I wonder would be the approach you find most attractive: the very quantitative, methodical approach of Dasra; or the more subjective, qualitative approach of Caring Friends?
And which, are likely to work best to attract wealthy donors where you are? I would be fascinated to hear your answer.
