Reasons for failure: The plausible reasons for the failure of the Venture are: y Total reliance on a single

source of finance and inability to find any additional/ alternate sources of funding for its operation. Earlier, he completely relied on the American lady for donations and after relations worsened with her, his only support is Pathway Another plausible reason appears that he is unable to prove himself in front of his colleagues which is evident by the lack of confidence that is shown by his fellow workers by suggesting to close down the operations of 7th Star Centre and to let Pathway take over it

Using another institutional support

PROS No permanent investment except for buildings etc No loans/liabilities The strengths of both the institutions can be utilized to tap maximum advantage and to reach out to maximum number of people

CONS Total dependence on another organization

Absence of self sustenance Loss of managerial control of the institution. Getting involved with large organizations, in some occasions introduces bureaucracy into the system. Increases visibility to the outside world and Requires frequent auditing and reports to creates a better interface between the donors, directors, etc. which adds to the organization and the donors. paper work. Focussing on such aspects sidelines the primary purposes of the organization Better operational efficiency due to resource and knowledge sharing

Learning from the model: The case is a great source of learning where the 7th Star Center serves as an example where we can learn from our mistakes: y y One should not rely on only one source of funding because it creates a financial dependence, which might create problems in future. Methods should be adopted to increase self sustainability. This will not only help decrease the reliance and dependence on others but also increase the confidence of

the people in the organization which can further lead to better fund collection and growth of the institution

Some of the alternate plans that can be adopted by Paul are: y Today, the Government of India has mandated every organization with a turnover of Rs 1,000 crores or net profit of Rs 5 crores or more to earmark 2% of their net profit for the preceding three years on CSR. This means that there are a number of prospective sources who would be willing to shell out their profits for the benefit of Pauls organization He should carry out steps that increase the confidence of the donors as well as the colleagues in his organization. A very basic step towards this would be correct promotion of his NGO to bring to the notice of the people about the great work he aims to do. Contact the rich philanthropist(mostly the retired or NRI people). They are willing to dedicate both time and money for the cause of social welfare. They can be generally met at socio-cause events such as blood donation camps, free medical check up units, etc and a good relationship should be established with them, so that they become potential resource for Pauls organization. Establishing good contact with few of these people, would widen the horizon. Generally such people have a huge network of other philanthropists which can be used. Sharia banks extend loans without interest for social causes. But this option can only give a temporary financial boost, because repaying the loan becomes a question mark? Several government and private institutions(both commercial and educational) have a mandatory Social awareness programme which involves community services. They can provide valuable human resources and first links to possible donors for the organization.

y y y

PROPOSED 3 YEAR ACTION PLAN: y Document all the works of the organization and create a professional outlook for it. Create a portfolio of the organization which is sent to target donors and philanthropists. Establish good relationship with long term potential donors (both individual and corporate) Get attached to bigger NGOs and improve the visibility of the organization. Publish the social welfare work of the organization in the media to attract public attention. This would help raise finances and human support. Improve operational efficiency by gaining suitable insights from other social welfare organizations and reduce operational costs Send the children to schools and skills development centers and make the employable. This would generate good alumnus support for the organization

y y

y y