With most of CSR funding going to PM CARES Fund, a majority of NGOs face budget cuts due to the COVID-19 pandemic
While most corporates are pooling their resources to support government initiatives to fight the COVID-19 pandemic, a majority of NGOs are left to fend for themselves to take care of their beneficiaries.
Most NGOs expect to see budget cuts, according to “The Impact of COVID-19 on India’s Nonprofit Organisations: A Snapshot Report” brought out by the Centre for Social Impact and Philanthropy, Ashoka University.
One of the main reasons is that more than half of Corporate Social Responsibility (CSR) funding is going to PM’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) and other Covid-19 relief efforts, according to Sattva’s “India Data Insights on CSR’s Covid-19 Response and Outlook for FY 2020-21.” Sattva works with corporations, philanthropists, foundations and non-profits in pursuing their social impact goals.
NGOs need to start thinking about how to significantly reduce costs while maintaining key capabilities so that their work in core areas can be ramped up when the funding returns, say Sujata Rathi, Ashish Karamchandani and Johan Thuard, authors of a report on “The Impact of COVID-19 on CSR Funding for Indian NGOs” by FSG, a mission-driven consulting firm for corporates, foundations, and nonprofits.
Since the near- and medium-term focus of CSR funders is likely to be COVID-19, it would be helpful for NGOs to align their work accordingly. For instance, if an NGO works to build awareness on preventive health care, it should focus on the coronavirus. Similarly, skilling organisation should focus on sectors for which the demand is likely to be high after the lockdown, add the authors.