Funders and NGOs in India have strikingly different views on whether grantees receive adequate financial support for their organisational development (OD) needs, indirect costs, and reserves. To close the gap, our new research finds that understanding the motivations and beliefs of funders might help NGOs communicate more effectively with them and build the trust needed to shift entrenched attitudes and practices.

The new research is a continuation of the Pay-What-It-Takes India (PWIT) Initiative – a collaboration between Bridgespan and anchor partners A.T.E. Chandra FoundationChildren’s Investment Fund FoundationEdelGive Foundation, and Ford Foundation – which aims to build a stronger and more resilient NGO sector in India.

In our most recent survey, 75 percent of the 77 funders surveyed said they invest in grantees’ institutional growth and sustainability; yet in our PWIT India report last year, 70 percent of 388 NGOs surveyed said that most funders do not support these needs. Additionally, 68 percent of funders believe their policies allow for flexibly financing expenses for administrative and support functions not tied to a specific programme, but 83 percent of NGOs say they struggle to secure such funding.

Read the full article about funding the true costs of NGOs by Pritha Venkatachalam, Donald Yeh, Shashank Rastogi, Anushka Siddiqui, Kanika Cupta, Lahari Shekar, and Roger Thompson at The Bridgespan Group.