{"id":3716,"date":"2019-05-25T12:14:25","date_gmt":"2019-05-25T12:14:25","guid":{"rendered":"http:\/\/blog.srr-foundation.org\/?p=3716"},"modified":"2019-05-25T12:14:25","modified_gmt":"2019-05-25T12:14:25","slug":"resource-mobilisation-donations","status":"publish","type":"post","link":"https:\/\/blog.srr-foundation.org\/?p=3716","title":{"rendered":"RESOURCE MOBILISATION – DONATIONS"},"content":{"rendered":"\n

DONATIONS <\/strong><\/p>\n\n\n\n

In the 2nd part on this series of Resource\nMobilisation, lets focus on Donations, second most (if not the first) popular\nform of income of NGOs. One can say donations are birth right of a non-profit and\nhence should be one of the mainstay for resource mobilisation. In a way,\nsuccess in raising donations also indicates the popularity of the non-profit or\nacceptability of the causes that it espouses for. Donations can be raised in\nseveral ways.<\/p>\n\n\n\n

Using persoanl influence: Any\npromoter of a non-profit would start raising resources from its area of\ninfluence, i.e. well-wishers, friends, relatives, and of course own funds, etc.\nHowever there would always be limitation in such kind of resource mobilisation,\none, due to limitation of such contacts; second, same persons may not wish to contribute\nagain and again. Hence a better way would be to try to make your friends a\nstakeholder in the work that you propose to do. If convinced, not only will\nthey contribute with more zest, but also bring in more persons. <\/p>\n\n\n\n

Raising Funds online: In today\u2019s\ntime raising of funds online has to be most efficient. This mode can be adopted\nin different ways. Non-profits can develop online site for raising of funds, on\ntheir websites, social media, through apps, etc. One could also consider\nposting its activities, e-journals \nregularly on social media. As the saying goes, if you are in their mind,\npeople will remember you when they wish to donate. <\/p>\n\n\n\n

Crowdfunding: Most\nrecent example of crowdfunding is raising of Rs 77 lakh (as allowed by ECI) by\nKanahyia Kumar as his election funds through Crowdsourcing. <\/p>\n\n\n\n

There are several platforms in India, which allow you\nto raise resources through crowdfunding, such as  https:\/\/www.ketto.org\/<\/a>, https:\/\/www.impactguru.com\/<\/a>.\nMore can be found through google search. Crowdfunding is cost efficient. Infact\nyou may not need to pay initially on some of the sites and pay only certain\npercentages when funds are collected. Several crowdfunding sites have large\ndatabase \/ subscribers, thus enhancing the reach even for smaller non-profits. Crowdfunding\nis found to be effective only if your campaign has certain emotional appeal. Thus\npackaging of the campaign is quite important. Second you need to respond\nquickly to any queries that potential donors may have. Best way forward is to\ncontact such crowd-funding sites, understand their terms. Also do contact\nothers who may have raised funds using such sites and who can share their\nexperience and help you avoid pitfalls. <\/p>\n\n\n\n

SPONSORSHIPS<\/strong><\/p>\n\n\n\n

One of the flaw of donation, as a resource\nmobilisation, is that it focuses on raising funds from an individual only once.\nSponsorship is the instrument which has built-in instrumentality of repeated\ndonations. Traditionally sponsorship was undertaken for causes of children,\nwhere an NGO working on Child Rights, could offer a bouquet of sponsorships.\nFor example, for health of a child, for education of a child, for complete\ngrowth of a child, etc. Generally a fix amount is offered. It is upto a\nnon-profit to innovate and develop sponsorship instrument for other causes. <\/p>\n\n\n\n

Sponsorship is both a challenge and an opportunity. A repeated\ndonation indicates a satisfied donor, while a donor who does not repeat a\ndonation could indicate \u2018a failed opportunity\u2019 to satisfy a donor. Developing\nSponsorship program requires several strategies, developing & packaging the\nproduct, engagement & effective communication with the donors. Developing a\nsponsorship program which has impact on resources of the non-profit is not\neasy, it requires planning & perseverance. However once developed, such a\nprogram will help organisations become relatively free to undertake programs\naccording to your own plans and do not have to depend on donors. Major\nadvantage of sponsorships is that funds would not be slashed just because one\ndonor decides to move away. Thus there is stability. <\/p>\n\n\n\n

HelpAge, as stated by Mr Mathew Cherian, in his\nMemorial Lecture receives 60% funds from individuals. This is a huge\nachievement. There have been other organisations, who worked to develop their\nown sponsorship models, which helped them achieve stability in their programs.\nDeepalaya is one such example. <\/p>\n\n\n\n

Late Mr Vijay Sardana, was one big advocate of\nsponsorship and he believed that sponsorship model must be integral to each\nnon-profits resource mobilisation program. His initiatives helped SRRF to\norganise a Training Program for helping set-up a Sponsorship Unit within a\nnon-profit. SRRF still believes in utility of such a program, and if there is\nsufficient demand could consider organising the same again. <\/p>\n\n\n\n

Tax Aspects<\/u><\/p>\n\n\n\n

Most\nnon-profits would be registered under S.80G, thus providing tax benefit\nincentive to the donors of upto 50% of the amount donated. There are certain\nnationally recognized funds, which get 100% deductions, like PM Relief Fund,\nNational Defence Fund, National Sports Fund, National Children\u2019s Funds, etc.  <\/p>\n\n\n\n

Donations\nmade to specified institutions undertaking scientific & statistical\nresearch and approved under\n(S.35(1)(ii))  (S.35(1)(iii))\nrespectively would attract 100% deduction under S.80GGA. <\/p>\n\n\n\n

Please\nnote, do not take cash donations above Rs 2,000\/-, person giving such cash donations\nwould be denied tax exemption. Tax authorities, could treat such donations as\nanonymous donations in the hand of non-profits and tax them, unless PAN or some\nother KYC identification can be provided. <\/p>\n\n\n\n

FCRA Aspects<\/u><\/p>\n\n\n\n

In\ncase of online donations, please be careful, that you have sufficient details\nof donor. In case of foreign donors, donation should be accepted only in FCRA\ndesignated account. All donations rec\u2019d in local accounts must be only from\nIndian citizens. <\/p>\n\n\n\n

_______________ \u200e
Socio Research & Reform Foundation (NGO)<\/strong>
\u200e512 A, Deepshikha, 8 Rajendra Place,
New Delhi \u2013 110008 <\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

DONATIONS In the 2nd part on this series of Resource Mobilisation, lets focus on Donations, second most (if not the first) popular form of income of NGOs. One can say donations are birth right of a non-profit and hence should … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[5],"tags":[],"class_list":["post-3716","post","type-post","status-publish","format-standard","hentry","category-fcra-tax-legal"],"_links":{"self":[{"href":"https:\/\/blog.srr-foundation.org\/index.php?rest_route=\/wp\/v2\/posts\/3716","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.srr-foundation.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.srr-foundation.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.srr-foundation.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.srr-foundation.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3716"}],"version-history":[{"count":1,"href":"https:\/\/blog.srr-foundation.org\/index.php?rest_route=\/wp\/v2\/posts\/3716\/revisions"}],"predecessor-version":[{"id":3717,"href":"https:\/\/blog.srr-foundation.org\/index.php?rest_route=\/wp\/v2\/posts\/3716\/revisions\/3717"}],"wp:attachment":[{"href":"https:\/\/blog.srr-foundation.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3716"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.srr-foundation.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3716"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.srr-foundation.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3716"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}