Doing Good Index 2024

The Doing Good Index 2024 sheds light on the evolving landscape of India’s social sector, offering a comprehensive analysis of its current strengths and challenges. The report highlights critical insights into rising service demand, funding sources, and regulatory hurdles that influence the sector's growth trajectory. Here’s a closer look at the findings and their broader implications:

1. Rising Demand for Social Services

The report reveals that 69% of organizations experienced an increase in the number of beneficiaries and demand for their services over the past year. Despite this mounting pressure, 76% of organizations remain optimistic about their growth prospects and the sector's overall outlook.

This surge in demand underscores the deepening socio-economic challenges in India, ranging from income inequality to access to basic services. The optimism within the sector is promising; however, meeting this demand sustainably requires scaling operations, building institutional capacities, and strengthening collaborative frameworks between the government and non-governmental organizations (NGOs).

Domestic funding contributes 48% of the total budgets for the social sector, but 80% of organizations consider this support insufficient.

Corporate funding now accounts for 23% of total budgets, with 55% of organizations reporting corporate sponsorships.

The rise in corporate contributions, driven by the mandatory Corporate Social Responsibility (CSR) initiatives in India, reflects a positive shift. However, the inadequacy of domestic funding highlights the sector's over-reliance on limited sources. Diversifying revenue streams—such as leveraging micro-donations, social impact bonds, or public-private partnerships—is essential to address this shortfall. Additionally, increasing transparency in fund utilization can foster greater trust and attract more donors.

3. Regulatory Hurdles: The FCRA Challenge

Organizations seeking foreign funding face significant delays due to the Foreign Contribution (Regulation) Act (FCRA), with approvals often taking up to two years.

While the FCRA plays a critical role in ensuring accountability, its rigid procedures and prolonged timelines hinder the sector’s ability to access timely international support. Such delays can disrupt crucial interventions and exacerbate resource constraints. Streamlining FCRA processes, digitizing approvals, and adopting risk-based monitoring mechanisms can improve efficiency without compromising regulatory integrity.

Broader Implications and Recommendations

The findings of the Doing Good Index 2024 point toward a pressing need for systemic reforms and innovative approaches to unlock the full potential of India’s social sector. Here are some actionable recommendations:

1. Strengthening Policy Frameworks

Simplify regulatory processes for foreign funding while maintaining robust oversight.

Introduce incentives to encourage higher domestic contributions, such as increased tax benefits for individual and corporate donors.

2. Enhancing Capacity Building

Equip NGOs with digital tools and platforms to optimize resource allocation and service delivery.

Promote knowledge-sharing initiatives to help organizations adopt best practices in fundraising and impact measurement.

3. Driving Public-Private Collaboration

Encourage multi-stakeholder partnerships to pool resources, expertise, and networks.

Foster platforms for dialogue between corporates, government bodies, and civil society to align on sectoral priorities.

4. Diversifying Funding Models

Explore alternative financing mechanisms like crowdfunding and social impact bonds.

Strengthen grassroots fundraising campaigns to build a culture of philanthropy at the community level.

The Doing Good Index 2024 highlights both the promise and challenges of India’s social sector. The rising demand for services, coupled with increasing corporate contributions, demonstrates the sector's pivotal role in addressing socio-economic disparities. However, regulatory bottlenecks and funding inadequacies pose significant hurdles.

For India’s social sector to thrive, it requires an enabling environment supported by policy reforms, innovation in funding, and collaborative efforts. By addressing these challenges head-on, the sector can better meet the needs of millions, creating a more equitable and inclusive society. The journey ahead is undoubtedly complex, but with the right interventions, doing good in India can truly transform lives.