At Give2Asia, we have a network of over 2,000 nonprofit organizations across 25 countries in Asia that we have vetted and or partnered with. In the past decade, our experience has highlighted a notable growth of nonprofits. For example, in China, the number of nonprofits grew 10% in the past two years alone to over 600,000 organizations. In India, the number of registered nonprofits is even more staggering, with a total of 2 million organizations. A similar trend can also be observed in South Korea, Taiwan, Philippines and other countries across the region.

Expansion inevitably leads to an over-stressed staff and inefficient operations, a phenomenon that is exacerbated by the fact that most donors support project-specific grants that designate between 10% to 20% of the total grant amount towards operational costs such as staff salaries, systems strengthening, or leadership training.

Observing this trend has been very exciting! Across Asia, we have witnessed local nonprofits working every day to strengthen communities, provide critical services to indigenous populations, and advance access to equal opportunity and services. However, as the number of nonprofits in Asia grow to meet increasing social needs, they face challenges that limit their ability to make sustainable impact.

Faced with limited and uncertain funding opportunities, lack of confidence from donors, and an inadvertent communication trap, nonprofits are left with very little time, capacity, or funding to develop efficient staffing, systems, and leadership to quell donors’ fears and sustain successful programs for local communities.

Nonprofits who are successful in attracting donors feel obligated to expand their services due to pressures to maximize impact. Expansion inevitably leads to an over-stressed staff and inefficient operations, a phenomenon that is exacerbated by the fact that most donors support project-specific grants that designate between 10% to 20% of the total grant amount towards operational costs such as staff salaries, systems strengthening, or leadership training.

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Aqeela Jogee is the Vice President of Programs at Give2Asia.