Vijay Sardana Memorial Lecture May 6, 2019

Summary of the lecture by Mathew Cherian

Is financial viability of the Voluntary Sector a mirage? The way forward

PART-III

ACCOUNTABILITY AND TRANSPARENCY

We need to open our financials to scrutiny to the smallest donor, reporting bodies and to be accountable to the last penny. There is no escape from frugality and public inspection. I will give you a personal anecdote. In HelpAge or doors are open to all from IB inspectors to small donors.  One day as I came in the morning, I was pleased to see a well dressed gentleman waiting in the morning. He said his wife had given a donation cheque and she had requested him to drop it by. It was none other than the past SAIL chairman Mr Rungta. Something must have impressed him about helpage that he called me to his office a week later to give a CSR grant. It is very important that your reception is kept efficiently  and that even your peons/ staff know about your work. It is said that Mahatma Gandhi the best non profit fundraiser sat next to a window facing the gate both at Sabarmati and at Sewagram in Wardha. It gave a transparency to the leader to the public.

This brings me to the next point of admin costs to programme costs. While framing minimum standards for Credibility Alliance we have debated this ad nauseum. Most people are willing to fund projects but not to fund administrative overheads.  Even corporates who are used to high salaries will not give any funds for non profit salaries. You are supposed to live on love & fresh air! This is an area which needs donor education and is an area we all need to work at.

 Corpus is an area which all small and big non profits need to work on to improve their long term viability if the organisation needs to survive through bad times. Corpus in my experience needs to be built brick by brick and will serve the organisation in the long run. It is another tool for not just viability but independent functioning.

We have seen big companies like ILFS  go bust and so have many others. If we do not build up our internal viability based on internal fundraising and good governance then please do not expect to grow and prosper.

GOOD GOVERNANCE

Governance within the non profit sector has to also be strengthened.  Ensure good governance,transparency, grievance redressal mechanisms, open house sessions, regular audit and whistle blower provisions including prevention of sexual harassment.  It is also pertinent that Vijay Sardana in the last few years before he passed away was working on Governance standards along with Subash Mittal. It is probably his clairvoyance in non profit matters.

There is no magic mantra or a magic wand  for financial viability. It is simply hard work 

HOWEVER COMMITMENT TO A MISSION, ACCOUNTABILITY AND TRANSPARENCY ALONG WITH GOOD GOVERNANCE WILL TAKE YOU ON THE PATH OF VAIBILITY (CAG- COMMITMENT, ACCOUNTIBILITY AND GOVERNANCE)

I can offer you all a talisman “ Be good to your big donors who sometimes can be terrible as they can support large infrastructure and the other needs but be equally good to small donors and even the smallest donors , our school children, and some of them become future CEO’s and leaders and will remember your organisation with fondness. Small donors can be your most  committed regular donors and their money is most important.

I am often met by people from all walks of life who tell me proudly that they have fundraised for Helpage india as school children and still treasure a trophy or a certificate we have given them. Acknowledging all donors and keeping them informed about work achieved is critical.

Vijay Sardana showed a way both in financial sustainability and in governance and perhaps even had a price to pay for his stand.  I will never forget his birthday August 13 which he shared with my partner Amita and  we used to wish him regularly . I miss his soft spoken gentle presence and friendship and hope some of you will make the effort  to bring in transparency, good governance and accountability as civil society organisations viability financial and otherwise will follow if we are responsive, innovative and responsible recepients of public funds for public causes in a country where 30 % of our brethren still go to bed hungry in our villages and cities and live without basic amenities. May a 1000 thousand  flowers bloom in the non profit civil society space in India led by those who choose to stay idealistic, perhaps even hungry and foolish…..