Charcha 2020: Fundraising and Philanthropy Track, 14–16th May 2020
Speakers: Aditya Natraj, Kaivalya Education Foundation; Tushar Thakkar, Dalberg; Kate Sturla, ID Insight; Akshay Soni, The/Nudge Centre for Social Innovation; Aparna Dua, Asha Impact (Moderator)
About the session: The panel addressed questions on whether blended finance is appropriate for an organisation, and how it can leverage these instruments to raise funding. What are the structural and organizational changes a social enterprise must undergo to become DIB ready and why robust programmatic data is necessary as donors become more data driven.
Watch the video recording of the session here
Key takeaways from the session:
- Why DIBs should be leveraged by non profit leaders:
— Impact Bonds have a razor-sharp focus on results and performance and ensure that nonprofit leaders invest in internal performance management systems, capabilities and also allocate some resources to innovations.
— The focus on results also creates flexibility, allowing organisations to judge how best to allocate program funds to achieve the outcomes agreed upon at the start of the contract.
— In times like these, it also brings together different stakeholders to problem solve and ensure best outcomes for the beneficiaries.
- Building nonprofit capacity requires investing in data systems early on which includes incorporating feedback loops to capture data in real-time and course correct where needed.
- The Performance Manager has a dynamic role and must understand the context of all stakeholders to ensure a smooth functioning of the intervention. The PM works alongside the non-profit and provides critical feedback on intermediate outcomes, and helps with mid-term course correction.
- One needs to balance out rigour and costs of evaluation. Impact Bond structures are high-stake instruments and hence must be backed by rigorous data which does not necessarily have to be randomized controlled trials. Availability of reliable data from the government, and use of technology can help lower costs.
- Understanding the local conditions of the service provider is of paramount importance not just for the Risk Investor as part of the due-diligence but also the Evaluator to leverage existing data and select the right sample for evaluation.