Dear Ashutosh ji,
I am doing my MBA in finance and I am working in an Educational NGO. I want to do my project either on NGO taxation or on NGO financial management but I am not getting much idea of it. Can you please help me to explore it.
Thanks in advance.

From India , Vadodara
Hi Malikah!

Let me see, if I can be of any help to you as I have very little exposure to NGO funding and objectives. I believe that in an NGO both, funding and functioning, vary widely.

Based on funding it may be appropriate to classify them as follows:

1. One time big grant or donation:

2. Based on regular donations only:

3. Non-profit Organization:

4. Sponsorship based

a. Activities

b. Assets

c. Beneficiary

I wish you could add more to this.

A similar classification can be made base on their objectives too. This classification should be classified based on the type of funding that may be required like:

a. An eye camp for cataract treatment, proving eye testing and spectacles etc. (just one time activity).

b. Running a school for urban poor (a continuous activity), with initial huge capital expenses and then regular running expense.

c. Sponsoring poor children for studies or aid awareness (continuous, but not huge one time expense). Etc.

To help an Organization, to last for ever,

1. it is important that it has more receipts than the expenses it incur. This is applicable even for No-Profit Organization.

2. they achieve their objective(s).

The objective(s) will guide us about the model of financing we should adopt. It is pointless to have an NGO that fails to achieve its main objective(s).

We hay may to look NGO financing from two point of view. Like:

Part I: Now based on the type of organization and the type of objectives, you may suggest the financing model that may be followed by them.

Part II: Now based of the viability of resources, how can me modify the means to achieve our objective(s).

Just to give you an example, if the objective is to provide better eye care, we should have good and affordable eye hospitals. But if we do not have the resources, then we pay just have a small clinic to achieve a part of the objective and occasionally, whenever we get a sponsor, we can hold an eye camp and reach the masses for a short period.

I believe, you will finally have matrix display of your result, where by you display the type of funding available on one excess and the nature of main objective on the other and the probable functioning in the relevant cells.

I am sorry to be bit crude in explaining the whole thing. Please feel free to revert, if anything is not clear.


Ashutosh Rai

From India , Pune
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From Canada, Toronto

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