Donors giving in India are not making the most of their money, according to new research from New Philanthropy Capital (NPC) and Copal Partners. Those giving should consider how their money can make the most impact and encourage non-governmental organisations (NGOs) in India to measure their results and be more transparent, according to the research.

Donors can make a difference by paying for central costs, lending their skills to build the capacity of NGOs, investing in impact measurement and consistently asking the right questions, according to London-based charity and donor advisor NPC and Delhi-headquartered financial research firm Copal Partners, who spent over a year researching the funding market and performance of local NGOs all over India.

The two reports, Giving in India and Starting strong, launched 28th September, provide advice for philanthropists on how to choose effective NGOs. The reports recognise the growing philanthropy market in India – it’s estimated that private giving to causes in India could amount to several billions of pounds a year, coming from Indian nationals, Indians living abroad and other donors around the world. But the market is not working effectively because funding decisions are not being based on impact, say the studies.

By speaking to over 150 NGOs researchers found that only 3% were measuring their results in a robust way. The report comes as a series of events encouraging philanthropy in India are launched this week by GiveIndia (a leading Indian-based organisation that promotes transparency and credibility among NGOs).

Abha Thorat-Shah, Director of the British Asian Trust, which works with British Asian philanthropists, says, “This report is a very good reflection of philanthropy in India,’ and backed the call for more strategic giving.”

Chris Mathias, philanthropist and Chair of CMG Partners, who has been involved in giving in India for many years, calls for the growth of a much more formal charity sector.
 
Neelima Khetan, from Seva Mandir, a major Indian charity supporting rural development in Rajasthan, also believes that things need to change. “We have large allocations for poverty alleviation and a vibrant democracy, yet the needs of the poor are ill-served. Indian philanthropy needs to adapt itself to these circumstances. Further research is needed to guide philanthropy on what kinds of interventions are most effective in dealing with the deep-seated constraints to building a better society.”

To download Giving in India and Starting strong, visit the NPC website.