NGOs told to adopt a combination of revenue model
“Civil societies should be embodiment of values”
HYDERABAD: It may come as a surprise to many but the Harvard Business School, the institution which produces the world’s best business brains, makes only 40 per cent profit on their fees. The rest of the profits come from the contributions from the ‘rich and famous’ alumni.
“This is what I call the ‘deferred Contingent Fee’,” says Mr. Vijay Mahajan, CMD, Basix delivering the key note address on ‘Role of Civil Society Organisations and their Relationship with State and Business’. He was addressing the participants attending the ‘Certificate Programme in Resource Mobilisation and Communication’ jointly organised by the Resource Alliance and The ICFAI Business School, Hyderabad, here on Tuesday.
While giving an overview of the 20th Century economy and the present state of inflation, Mr. Mahajan underlined the need for the civil society to take initiative and get proactive. “While the battle between government institutions and the institutions of market is on, what stops us from institutionalising ourselves?” he questioned.
He commended the initiatives of Satyam Foundation, Dr. Reddy’s, Naandi, Aakruti and said that it was imperative for the NGOs to adopt a combination of revenue model, which includes grants (donations) and fees. “But, resource mobilisation,” Mr. Mahajan reminded the participants, “should be a rigorous analysis of financial situation than always focussing on seeking more grants. Ultimately, civil societies should be embodiment of values, that too, consistently, he concluded.