Professional Documents
Culture Documents
What is Fundraising?
Fundraising is the process of collecting money as donations,
for a cause from, individuals and companies. A person who
raises the money from them is known as a fundraiser. It was
usually used to gather money for non-profit organizations,
but, over the years fundraising has evolved a lot and it is now
used to fund various important causes. These causes may
include anything, from helping a group of people injured in a
war, to supporting religious causes. Traditional fundraising
happen offline whereas the modern day crowd funding
happens online.
Fundraising is the main step for running and managing the
decided and expected programmes and activities of NGO.
The basic source to raise and maintain the funds is through
internal sources of the members of the NGO which includes
membership fees and individual donation. Another way is to
collect funds from public by introducing schemes and
projects through which the grants can be received from the
Government, Funding donor organisation, companies under
corporate social responsibility and also from foreign funding
agencies.
Importance of Fundraising:
Fundraising forces NGO to take a step back and think about
how they are going to achieve their projects, with what
resources and in what time frames.
Fundraising helps in unifying the team and its different
project goals into one general mission.
The process of fundraising gives NGO an objective outlet to
pick the most relevant projects.
If a NGO does not fundraise, it is vulnerable to its source of
funding ending.
Fundraising tries to create awareness among the people.
Raising money gives tangible help to causes that need it
most.
Types of Fundraising:
1. Micro fundraising: It is a method of raising funds in small
values. It is like the concept of little drops of water makes a
mighty ocean. This can be implemented only inside native
country India.
2. Macro fundraising: It is a method of raising funds in
affordable values. This is the concept of getting high-level
donors inside India. This can be implemented only inside
native country India.
3. Foreign fundraising: It is different from local fundraising. It
is possible in small and high-value with or without online
fundraising methods. Any foreign related fundraising from
countries needs special permission and certification from
concerned countries.
4. Online fundraising: It is the recent day's method, which has
the highest risk of raising funds, though it is said as easy. The
main risk in this is that the organization must know the
person identity who donates or from whom with raising
funds. There are possibilities of risk in raising funds from
outsiders of a country who may be a stranger or an illegal
entity.
5. Government fundraising: It is the submission of project
oriented. Every year Social welfare ministry and other sectors
announce welfare projects in India. NGO needs to apply for
such projects and they shall raise such funds and grants,
which can help NGO to serve the public in best ways. One
must have all the legal eligibility to work with Indian
Government.
6. Institutional or Corporate fundraising: It is a method of
fundraising by getting sponsorship for NGO campaign or
projects which are run by NGO. Several wellreputed
corporates are sponsoring and supporting NGO Campaigns
and NGO Projects.
Funding of NGOs
NGOs whether big or small they need money for its existence
and for carrying out its work. “The amount of budget differs
from NGO to NGO. It may be a few thousands in the case of a
small NGO and may run into crores for large organizations”
(Chandra and Trollope 2015:125).
Following are the main sources of funds for NGOs:
1. Members contributions
Membership contributions are almost universal in the NGOs.
However, it is not sufficient for carrying out a meaningful
activity. If the membership fee is so high, then very few
people will join the NGO as a member. If it is too low, then it
will be difficult to undertake projects of public welfare and
the very purpose for which the NGO is created will be
defeated. Then, it will ultimately let the NGO to depend on
public donations or government grants.
2. Public donations
Public donations are the major source of funds for new and
old NGOs. For raising funds from the general public, it is
necessary for an NGO to build an identity. Here, building
identity means becoming a legal entity. It should get
registered according to law. The aims and objectives of the
organization become a part of the Memorandum of
Association submitted at the time of the registration.
However, every donor whom the organization will
approach may not have the time and willingness to go
through this legal document. Therefore, it would be useful
if the organization keeps a sort of manifesto where it
explains the aims and objectives it wants to achieve and
also their importance to the community. If the organization
has a website, then it should publish its manifesto on it.
Through this, the donors can properly assess the validity of
its projects and also its impact on the political, social and
economic condition of the community. They will also be
able to go forward of developing a long-term partnership
with the organization. After properly clarifying the main
goals and areas of activity, the need is to design projects by
assessing the requirements of the community. Then the
organization can contact the potential donors to become
partners in the execution of the project.
NGOs can also raise funds by organizing some religious or
social events. In the Western part, marathon races and fund-
raising dinners are organized. Some NGOs also organize a
second-hand market. Volunteers collect unwanted goods like
books, clothes, furniture etc. by going from door to door.
Then they sell these goods at a fixed price or at no price.
People pay the price by treating as donations. In India,
religious events can also attract substantial donations.
Sometimes, famous dancers and singers agree to perform
without any fee and the money collected by selling tickets
goes to the NGO.
3. Government Grants
Tax Exemptions:-
While raising funds, the NGOs must know all the rules and
regulations applicable to their income and also the exemptions
given to them. Certain tax exemptions have been made on the
income of the NGO and also for the donors under the Income
Tax Act.
The Income Tax Act, 1961 which is an all India Act applies
to all the non-profit organizations with regard to tax
exemptions. However, certain conditions need to be fulfilled
for getting tax exemptions under Section 12 and 12A of the
Act. The organization must have religious and charitable
purposes. It has to spend 85 percent from its income in any
financial year (1st April to 31st March) for fulfilling the
objectives of the organization. The organization has to agree
to this condition within these 12 months. However, it has to
give full justification of the reason why it has not been able to
spend the required percentage of money. Surplus income can
also be collected for certain specific projects for a period of 1
to 5 years.
The organization should deposit its fund as mentioned in the
Section 11(5) of the Income Tax Act. The organization should
not spend its income or property directly or indirectly for the
benefit of those founder, trustee, relative of the founder or
trustee or a person who has donated more than rupees 50,000
to it in a financial year.
The organization needs to file its annual income return timely
and this income should be collected or applied in India. But
trust income can be applied outside India without any tax for
promoting the interest of international community in which
our country has an interest. The accounts of the organization
has to be reviewed or audited by a chartered accountant and
the report needs to be submitted along with the tax return. The
members of the organization should submit an application in
the prescribed form before the Income Tax Commissioner
within one year from the date of the establishment of the
organization.
1.2.OBJECTIVES AND NEED OF THE STUDY
Following are the objectives of the study:
To understand what is fundraising and its importance.
To study the projects and initiatives carried out by DBM.
1.3.Summary
Different funds and donations owe a lot of revenue in process
of making money with respect to run an NGO. The key factor
that enables an NGO earn money is to raise funds and
generate different schemes in this regard. This is done by
different renowned companies and donor agencies interested
to collaborate and work for a particular NGO.
This project report is carried on the topic “Fundraising and its
importance in Dharma Bharathi Mission”. This study focuses
on fundraising and its importance in a particular NGO. The
NGO studied in this project is Dharma Bharathi Mission
(DBM) which is an initiative of Navsrushti International
Trust. It also includes the activities and projects done by them
and the ways they use to raise funds for their NGO in detail.
While doing this project I learned about how to raise funds for
NGO and how it can help many people and also
understanding the importance of fund raising for the poor
children and the need of fund raising for their future as well as
for the future of India.
CHP. 3 .REVIEW OF
LITERATURE
1.Peggy Antrobus volume 15, supplement 1, Autumn
1987, Pages 95-102 (Funding for NGOs: Issues and
options) This paper investigates the choices accessible to
native NGOs (clients and go-betweens) in getting assets for
their projects. The issues with benefactor financing are
identified: inclination for project over program help, the
new declines in aggregate sums accessible, the propensity
to move reserves randomly, the impact and responsibility
frequently requested by givers, and the reliance such
subsidizing makes for beneficiary NGOs. Choices
accessible to native NGOs for producing their own assets
locally include: consultancies, preparing, and the offer of
instructive materials and different distributions. The
creator focuses on the requirement for contributors to
make a genuine, long haul obligation to working with poor
people; assets ought to be assigned to NGOs for
organization building and center staff; benefactors ought
to turned into a "market" for native NGO
administrations; less guide ought to be tied; and blessings
ought to be laid out for native NGOs which have a
demonstrated history.
11.
https://www.sciencedirect.com/science/article/abs/pii/0305750X87901471
http://www.ssbfnet.com/ojs/index.php/ijrbs/article/view/94
https://link.springer.com/article/10.1007/s11266-008-9059-7
https://onlinelibrary.wiley.com/doi/abs/10.1111/1467-7660.00120
https://www.sciencedirect.com/science/article/abs/pii/S0305750X17301717
https://onlinelibrary.wiley.com/doi/abs/10.1002/nvsm.1542
https://journals.sagepub.com/doi/abs/10.1177/0899764002312004
https://www.tandfonline.com/doi/abs/10.1080/02185385.2022.2035250
https://link.springer.com/article/10.1007/s11266-019-00099-3
https://www.taylorfrancis.com/books/mono/10.4324/9780429434518/non-governmental-
organizations-development-david-lewis-nazneen-kanji-nuno-themudo
CHP. 3.
INTRODUCTION TO
THE TOPIC
3.1. ABOUT DRM
Vision
We accept that even subsequent to acquiring Independence we
have just acquired political opportunity. Accomplishing
monetary opportunity through schooling and work starting
with opportunity from the dehumanizing hunger is our vision.
Objective
Our witticism is Begin with self. Start today. Start little. We
want to set out open doors, foster a sustaining and helpful
climate, and give schooling and preparing to the all
encompassing development of kids and youth.
Research Methodology
We intercede in schools and work on the general learning and
instructing conditions. We give late morning suppers,
educator preparing and work on the nature of instructive
practices being followed. We give professional preparation to
jobless youth and assist them with procuring livelihoods.
Vocational Training
Between now and 2025, over 250 million young people are
estimated to enter the Indian workforce, while only 5% of
youth aged 20-24 have obtained vocational skills through a
formal training system. Many students drop out of the formal
educational system unaware of the alternative educational and
employment opportunities available. Currently it is estimated
that only 2.3% of the workforce in India has undergone
formal skill training as compared to 68% in the UK, 75% in
Germany, 52% in USA, 80% in Japan and 96% in South
Korea. Large sections of the educated workforce have little or
no job skills, making them largely unemployable. Therefore,
India must focus on scaling up skill training efforts to meet
the demands of employers and drive economic growth. India
has the advantage of the „demographic dividend‟ i.e. younger
population compared to the ageing population of developed
countries, which can be educated to build a skilled workforce
in the near future.
Maharashtra has the 5th largest pool of employable youth in
India in the age group of 18-25 years. DBM runs 3 month and
6 month vocational training courses in 4 centres spread in
Central Mumbai. These centres currently train 500 to 800
students per year in courses. These courses include
Beautician, Tailoring, Computer Applications, Balwadi
Teacher Training and Para Nursing. Youth who complete
these courses are then provided On Job Training (OJT)
ranging from 3 to 9 months before certifying them. Along
with Vocational Training, all the students are provided
personality development and job readiness trainings over a
weekly basis. Post training, youth pursuing employment are
connected to local businesses and reputed hiring agencies for
placements. In the year 2017, DBM trained 1652 students.
Also, the Tailoring OJT centres provided employment to 34
women which helped them to earn Rs.2000 each over 3
months by working for 3 hours a day.
In the year 2017-18, DBM has a renewed focus. The focus is
on livelihood provision and employment and not just training
but on providing jobs and employment. DBM will focus on
partnership with employment agencies, employers and even
new courses and trainings that can help place youth in jobs.
The key to providing stable and sustainable employments is a
combination of soft skills and technical skills along with
strong support and counselling. DBM intends to start a
personality development and life skills development module
for the students. Over the course of their time at DBM, these
students will be given the skills and the counselling by
specialized coaches who will help build their soft skills and
employability.
Second Innings