India’s new-age social and environmental entities

By Shiv Kumar and Raghunathan N

NGO, a widely used term, essentially says what it is not, but not what it is.? If one were to get a bit logical, it essentially means anything under the sun which is an organisation, which is not Government. This binary is further extended to profit and not-for-profit organisations, with the later being synonymous with NGOs. So do loss-making companies also qualify for this tag, even if temporarily?? Welcome to the world of confusion, the multiplicity of narratives, and a strong sense of righteousness all add to the lack of clarity and strong views of what people think they are.

Nomenclature, legal registration, focus, intent, and methods are five key aspects that have led to a delightfully confusing set of terms that emerged in the Social Sector, lending color and confusion to those not closely associated.

Nomenclature: Non-Government Organisations (NGOs), non-profits, and Voluntary Organisations were some terms used in the 70s and 80s, with other terms like Third Sector, Civil society, impact organizations, and social enterprises added along the way. While each of these means specific things for the purists, these terms are understood differently, and some overlap.?

Registration: Organisations are registered under various Acts – Companies (particularly Sec 8), Trusts, Societies, NBFCs, Co-operative Societies, etc., which have a social or environmental goal.?

Focus: Some are domain focused (e.g. health, education), some on geography, and some on communities.

Intent: ?Social and/or environmental impact, non-profit, charitable, and service are some ways these organizations were defined.

Methods: Service, activism, education, mobilization, and collectivization are some key methods these entities used

These five individually and collectively confusing ways represent a range of work. The huge body of work and the complexity of the problems they solve are reflected in this variety.??

Typically the above descriptors of organizations had a simple business model - Donations/grants.? A sixth one has emerged to improve things (and worse for communication) - the ‘Business or operating model’.?

?A whole new array of business models have emerged in the last decade and more.? We are capturing 10 of them that I know; I would love to know if you can add more to this list or clarify/correct:

1. Social businesses are primarily self-sustaining collectives and have used classical market forces as their predominant business model. While they may begin their operations with the help of grants, they eventually develop their self-sustenance model and leave a strong impact. Arvind Eye Hospital is a great example.
2. Think tanks - A think tank focused on specific social policy, political strategy, research, and social advocacy.? The Council on Energy, Environment, and Water (CEEW) is one example.
3. Intermediary aggregators - These entities aggregate smaller NGOs, gather data from them, and present to donors a value proposition for investing through them. Give India and Give to Asia are some of the names in this space.
4. Company Foundations - These are largely funded by Corporate Social Responsibility (CSR) or High Networth Individuals (HNI) funding and implement programs on the ground. Sometimes they also bring in other donors as co-funders. Piramal Foundation and Swades Foundation are some examples of this section.?
5. Single outcome-focused organizations - These organisations prioritise specific outcomes and push for the achievement of the same. For example, the? SELCO (Solar Electric Light Company) foundation works on fighting poverty and climate change through decentralised renewable energy-driven solutions.
6. Alliances and collaboratives - These are voluntary collaborations of social impact organisations that come together for a common purpose.? The Catalyst 2030, Community Action Collab (CAC), and? Rapid Rural Community Response (RCRC) are prominent examples.
7. Financing facilities provide blended other financing options - Samridh facility (IPE/USAID), Avishkar, and Unitus Capital are examples. Funds and funding platforms that are outcome-based - such as Development Impact Bonds, Green Outcome Funds, and Dedicated funding to pay for social outcomes
8. University-backed entities - Academic institution-affiliated organisations would mostly belong to this group. An example is the Johns Hopkins Program for International Education in Gynecology and Obstetrics (JHPIEGO).?
9. Innovation hubs - They promote, screen, fund, and socialise innovations (and?technologies) that have social/environmental. Entities like Social Alpha and Marico Innovation Foundation (MIF) have paved the way for many hubs like this.?
10. Platforms - such as Project ECHO, Deeksha, Avanti, PIE, and For Water leverage open-source technology and knowledge resources to reimagine engagement between several actors.?

Some of these entities can belong to multiple categories at the same time. What is worth acknowledging is the sheer number of organisations working in various capacities in this country, catering to a diverse range of social issues and communities.?

These organisations' vision, strategy, and scope of work give us hope to inch forward confidently in achieving our Sustainable Development Goals (SDGs) in a country and, indeed, a continent that celebrates plurality.

Through this article, we are not pushing for universal description or unification. Given the many challenges to the planet and people living in it, as well as India-specific challenges, there is a need to clearly communicate to the outside world - to improve the standing, and narrative and to increase both investments and talent. It is incumbent upon these entities to bring some clarity to investors and talent wanting to contribute.? Catalyst 2030, a network of Social innovators and Entprenuers (another framing indeed) has taken this difficult task and through its member network of 2000+ organisations in India trying to do precisely this.?

Please share your views and comments; we would like to learn more about your views.

The authors have for the last 30 years blundered through the institutional development field in this sector and worked with over 1000+ organisations and their experience (or the lack of it) has contributed to this opinionated piece.