INSPIRE

Jochim Lourduswamy has worked in the field of International Development Aid for 25+ years. As the Head of Finance at VIA DB, he managed an annual budget of 9 million euros. Prior to that, he was the Program Manager overseeing implementation, monitoring and evaluations of more than 150 Development Projects implemented in India alone. For 20+ years, he was on the Selection Committee for the Development Programs in Asia, Africa, and South America. Projects include agro-based trainings, model farms, watershed management, renewable energy, and Technical and Vocational Education Trainings (TVETs). In December 2004, Jochim was on-site for the Tsunami disaster relief works in South India. Together with representatives of other International NGOs he managed the long-term rehabilitation programs with a total budget of 2.6 million EUR. 

He has an MBA in International Business and is also a certified Project Management Professional (PMP) from PMI.

COVID-19 pandemic has exposed the vulnerabilities in the financial preparedness of NGOs across the world. Funding Agencies often require a plan for the financial sustainability of a project after funding ceases. Applicants mention at least one paragraph on it. Most promise it, but very few make it happen. Result: either the project stops when funding ends (proving catastrophic for the beneficiaries and the project staff), or the beneficiaries change to those who can afford to pay. Both possibilities mean that the poor are left behind.

INSPIRE accompanies NGOs in thinking strategically to incorporate the aspect of financial sustainability in the very DNA of the project. Once NGOs get the hang of it, they apply the same logic to their own financial preparedness. 

The shift from a charity-based mindset to a self-reliant approach assures job security for the NGO / project-staff and guarantees continued outreach to the beneficiaries.

For centuries, social work has centred around the concept of charity. The trend continues even today where NGOs largely depend on grants and donations. The pandemic proved just how bad the liquidity crisis can be. For example, according to the Institute of Fundraising, with nearly a third of UK’s International Development Aid income at risk, the sector stands to lose 1.28 billion GBP. Many organizations have had to cut back on their staff and discontinue some of their program due to lack of funds. Millions of people worldwide are impacted!

Governments will bailout the companies; but who will bailout the NGOs?

Main challenge is the ‘mindset’ prevalent in the Development Sector. NGOs in the developing countries still think in terms of money coming from the West. But those in emerging economies like India should be able to move towards their own organizational sustainability.

So the specific problem I’m trying to tackle is the change in mindset of NGOs leaders. Inspire them to make their organizations Financially Sustainable. The best place to start is to help them design/develop a financially sustainable project. This hands-on experience will help them gain a better understanding of the different parameters required to become self-sustainable.

Project INSPIRE takes up a specific project where Neena & I work closely with our Local Partner (LP) in helping them design a financially sustainable pilot-project.

The background …

For the last six years, our LP distributed about 1,000 piglets each year to around 500+ poor tribal families. Pork meat is very popular in the region and rural farmers rear pigs at home for supplementary income. The distribution of piglets was funded by Agencies from the West. The supply of piglets was a huge help to the poor families. However, it was not a sustainable model.

Ever since COVID-19, there is no further funding from the West for piglet distribution. No piglets meant no supplementary income. No income meant, no food.

The plan is to setup a Pig Breeding Farm in a rural area. This Farm will provide quality piglets to the farmers that live within a 50 kms radius. Scaling up involves setting up similar Farms all across the NER to ensure maximum outreach.

82% of the 45 million population in NER live in rural areas. Of these, nearly 49% are female. With an average of 2 females per household, we are looking at impacting nearly 9 million women. 

This pilot-project will serve the poor tribal farmers in the Karbi Anglong district of Assam. In discussions with the tribal village elders, we learnt that most farmers struggle with: 

1. Lack of Access to Funds: Farmers often tie their pigs to trees or let them roam free. Pigs in pens gain more weight and faster but farmers can’t afford to build a proper pig pen. 
2. Poor Quality of Piglets: A vaccinated piglet will cost around 5,000 INR. But farmers usually buy piglets for 2,000 INR and its often not vaccinated, resulting in high mortality rates. 
3. Lack of Know-How: Farmers don’t periodically de-worm the piglets or pay attention to early signs of disease resulting in high mortality rates. 
4. Don’t Get the Best Market Rates: Since the farmer’s pigs are not always the best quality, farmers do not get the best rates in the market. They barely break-even.

The PiG Farm will 1) help farmers with access to Finance, 2) provide quality piglets, 3) support and follow up with farmers to ensure that the piglets attain their ideal weight at the time of sale, and 4) help farmers get the best rates in the market for their pigs.

As the population of the world grows, so does the proportion of the poor people. After our world survives this COVID-19 pandemic, there will be more poor in the world than there were ever before.

NGOs are vital to the achievement of poverty eradication by 2030. Once they become self-reliant, millions of poor people worldwide will benefit thanks to their continued outreach programs.

Project INSPIRE addresses the global challenge of helping NGOs become self-sustainable. It builds awareness among the Grant-makers and the Grant-seekers. It proves by action that financial sustainability IS possible.

For 25 years I’ve been working with a funding agency and transferring millions of euros every year to partners in the developing countries. I know what ‘Donor Fatigue’ feels like. In some cases, the same project was financed for more than 10 years! I was very keen on doing something about it and that is why I co-founded the SAVE Foundation to inspire and support NGOs to think in terms of becoming financially sustainable. A self-reliant NGO can ensure that their mission continues into a foreseeable future. I believe that a hands-on experience is the best way for an NGO to learn. 

In January 2020, we were guests at the piglet distribution by our Local Partner. During the event, the Director of the NGO thanked the donors in the West who made it possible. Later I asked him “What happens when the funds from the West stop? How will you help the farmers?” This question triggered the Director to think in terms of developing a sustainable model. We are now working closely with the LP in designing a pilot-project on Piggery for Income Generation (PiG) Farm. When scaled-up, it can reach out to millions of rural farmers in NER.

In my travels, especially during the recent visit to Sri Lanka, I have seen huge buildings abandoned and derelict. These buildings were once the TVET Centres where the marginalized youth were taught a skill/trade so that they could get better employment. Imagine the millions of EUR/USD that was pumped into constructing those huge infrastructure. Today it lies abandoned because there are no funds to run the Centre or maintain the building. It is not only a shame, but also a crime!  I was shocked. My mission now is to help NGOs so that such waste can be avoided in future. Plan ahead, and plan well.

The pilot-project fascinates me because in the NER the pigs reared by a family belong to the WOMEN of the household. The piglets are hers to rear, hers to sell, and the money she earns from its sale is also hers. Thus, this pilot-project is also about empowering rural women. 

The PiG Farm will be located in a remote village as the people in that region are extremely poor. It’s so beautiful to see the collaboration between the local village leaders and the project-team. This local partnership will be the success of the PiG Farm.

My decades of experience working for a Funding Agency helps me understand their expectations and frustrations. I also have a huge network of partners in India with whom I have worked closely on so many large programs. I understand their aspirations and constraints. This positions me ideally to bring both the Grant-seekers and the Grant-makers to the same table to see how best we can make a project/program sustainable. Not all projects can become sustainable: for example, an awareness campaign. But if that is part of a larger eco-system of projects, then perhaps it can be financed without seeking funds outside the organization.

Also, I’m originally from India. I understand the culture and have my ears on the ground to understand the real needs of the people. My MBA and the Project Management Professional (PMP) certification helps me bring-in the scientific approaches. For example, how does one manage Risk? How many Development Project Proposals submitted actually do an in-depth Risk Analysis? Almost 80% of the time a project fails is because the risks were not correctly assessed and no mitigation plan was developed.

Neena George, co-founder of SAVE Foundation, has experience both in the Corporate Sector as well as the Development Sector. She has been consulting to large multinationals globally. She is also originally from India, speaks several Indian languages, and has travelled extensively across the Indian Subcontinent. 

Together as a team, we complement each other to bring out the best in others. 

When I was Head of India-Desk at DMOS-COMIDE, we had financed many TVET centres across India. Each TVET focussed on a certain group of trades like electrician, fitter, mechanic, etc. The Centres not only trained the youth, but also found them jobs after they graduate. For this, the TVETs had individually approached many companies in India, but the companies were not interested. This frustrated the graduates and increased dropouts. 

Recruitment is crucial to the success of the TVETs. The Management of the TVETs were at a loss and didn’t know how to handle this crisis. They approached me as I was Head of India-Desk. 

My analysis revealed that companies wanted a certain trade that the TVET which approached them didn’t have, but another TVET did. In a brainstorming session with the Management of the TVETs, I suggested that all TVETs  pan-India (120 in total then) come together to form a national-level umbrella organization. They agreed and DB-Tech was formed. DB-Tech built collaborations with large multinationals and the SMEs in India to recruit the graduates. The strategy was a huge success. Today DB-Tech has more than 400 TVETs in its network! I’m very happy to have inspired the founding of DB-Tech.

Tsunami of 2004 was one of the deadliest natural disasters, killing nearly 227,898 people in 14 countries. The south-east cost of India was also severely impacted.

At that time in Europe, seven pan-European Funding Agencies closely collaborated on major projects, but none had any large-scale disaster management experience. I was chosen as the leader to represent those funding the relief works. Lufthansa was a Partner and they sponsored my flight ticket to the disaster-zone in South India. I led the relief works together with other local organizations. The devastation was mind-blowing. But in the face of all odds, we succeeded in saving thousands of lives that would have been otherwise lost.

It was evident to me that our intervention could not stop with just the relief works. We must help the survivors. I discussed this with the coalition of European Agencies. Together they raised around 2.6 million euros and I led the rehabilitation programs for the survivors.

Subsequent to this experience, we initiated guidelines for Disaster Management. I’m so happy to learn from former colleagues on how the coalition of European Agencies followed these guidelines to reach out to millions during the recent COVID-19 pandemic.

Not Applicable.

INSPIRE aims at helping Local Partners design a Development Project that is financially sustainable so that it can continue to serve its target group long after the external funding has ceased.

We bring Grant-makers and Grant-seekers together to help make the projects financially sustainable. It is not the responsibility of just the Grant-seeker to develop such projects. It is also the obligation of the Grant-maker to encourage and reward it. This calls for re-visiting traditional approach to Project-Writing. Sustainability MUST be woven in the very DNA of the project, making it an intrinsic part.

It is disruptive in its nature as the Grant-seeker moves from its dependency on the Donor, to becoming self-reliant by relying on its own resources for the continuance. The approach is not purely theoretical but practical and hands-on. Seeing and experiencing is believing.

As regards the PiG Farm, people in the NER are the largest consumers of pork meat in India. According to the recent Strategy Paper by the Government of Assam, in Assam alone the demand for pork meat is around 363 million kgs/year. Assam produces only 13% of the total demand. The shortfall of 316 million kgs/year of pork meat is imported from other States of India. There is a huge gap in the market. At the present pork meat prices, the potential market size is 900 million USD/year in Assam alone.

The PiG Farm provides a market-driven solution to alleviate Rural Poverty in the North East States of India. This makes it unique.

A. Help the NGOs become financially sustainable

1) Activities include:

• Develop tools and techniques
• Awareness raising & advocacy
• Capacity building workshops
• Accompany in designing specific projects (see Part B)
• Publish handbooks and guidelines

2) Immediate Outputs include:

• Increased awareness on the ‘HOW to do it’
• Self-reliance of projects
• Job security for the project staff

3) Long-term Outcomes include:

• Self-reliant NGOs
• Continued outreach to the beneficiaries.

Supporting evidence:

• Fast Developing India is Putting NGOs Out of Business: https://bit.ly/2AG81Xn
• World Economic Forum on How to Reform NGO Funding: https://bit.ly/3e6i0CN
• International Aid Charities face losing billions of pounds: https://bit.ly/3iMx4JE
• OECD Development Co-operation Report 2014. Chapters 9, 15, & 16: https://bit.ly/2ZVfBGb
• Insights from Institute of Fundraising: https://bit.ly/3ebmIzd
• Voluntary income to halve: https://bit.ly/3iL83OC
• The Impact of Economic Crises on NGOs: The Case of Greece: https://bit.ly/2O3Q1t5
• Determinants of Financial Sustainability of NGOs: https://bit.ly/2CjZWrz
• Financial Sustainability of Local NGOs: https://bit.ly/2Z9OCaz
• Reducing dependence on foreign aid—what will it take?: https://bit.ly/31Vq6M6

B. Specific Project: Help local farmers increase their income by setting up a PiG Farm

1) Activities include:

• Access to finance for the local farmers
• Sale of piglets to the farmers
• Follow up and support to the farmers
• Help farmers get best price for their pigs
• Sale of fatteners and biofertilizer by the Farm
• Awareness raising on Biofertilizers
• Poster campaign on animal welfare & advocacy

2) Immediate Outputs

• Financially sustainable PiG Farm
• Increased availability of quality piglets in the region
• Increase in the supplementary income of the farmers by 125% annually
• Increase in the use of biofertilizer in the region
• Increase in agricultural yield for the farmers
• Increased awareness on animal welfare systems

3) Long-Term Outcomes

• Better living standards of the local farmers
• Increased food security in the region
• Overall improvement in the local soil quality and environment

Supporting evidence:

• Smallholder Pig Farming for Rural Livelihoods and Food Security in North East India : https://bit.ly/3goK6Md
• Economic Contribution of Backyard Piggery in the Livelihood Security of Tribal Families of Assam : https://bit.ly/2B6S3p5
• Success Story on Income Generation from Pigs: https://bit.ly/2XBCxce
• Government of Assam Strategy Paper. Page 16. Table 4: Projected Requirement: https://bit.ly/2ZFoUeF
• Current Pork Meat prices in Assam: https://bit.ly/2Z829Q4

SAVE has been promoting the concept of Financial Sustainability of Projects since early 2019. In September 2019 in partnership with a European Funding Agency and a Local Partner in India we launched a Financially Sustainable Income Generation Program for the Tribal Communities in South India. This project aims to reach out to nearly 800 direct beneficiaries over a period of 4 years. The project has already started generating income, but unfortunately the lockdown and the restrictions due to COVID-19 has temporarily hindered progress.

The PiG Farm is in the Design-phase and expected to launch end of 2020 if COVID-19 is under control in India. It is expected to reach out to …

• 50 local families in Year 1;
• 250 families each year in Year 2 and 3;
• 550 families in Year 4, and 
• 750 families from Year 5 onwards.

Given that on average there are four members in a family, from Year 5 onwards, the PiG Farm will reach out directly to nearly 3,000 people within a 50 km radius of the Farm.

Plus, the biogas plant at the Farm will generate enough bio-fertilizer to cover 37 acres/month. Its high Nitrogen-Phosphorus-Potassium (NPK) content results in high yield from the fields for the local farmers thus increasing their income.

Thus, both projects put together, direct beneficiaries …

• Currently = 69 tribal people (reduced impact due to COVID restrictions);
• Next 1 year = 400 tribal people; and,
• In 5 years = 7,000+ tribal people.

Six goals that anchor my social impact work include:

1. Guide NGOs in developing Financially Sustainable Projects: Each year SAVE will identify one high-impact NGO and coach them to design and implement a financially sustainable project. These projects will be pressure-tested before they are scaled up. The objective of coaching is to bring about an attitudinal shift in the NGO’s leadership from a charity-based approach to a self-sustainable approach.
2. Encourage NGOs to inspire others: Every year, SAVE will showcase innovative projects. The trained NGO’s team will act as catalyst to inspire other organizations to think bolder and bigger! … thus, creating a ripple-effect. 
3. Empower Women: Every planning group, implementation and the running of the projects will ensure at least 40% of women participation. Every project will also reach out to women beneficiaries.
4. Involve the Corporate Sector: Every project will include the Corporates to strengthen the partnership across sectors and together bring about Change in the society.
5. Reduce Carbon Emissions: Every project will adopt visible measures to limit any negative impact on the environment and the local flora and fauna.
6. Raise Awareness and Advocate: Share insights and lessons learnt from every project so that others can benefit.

For the last 1.5 years I have been promoting the concept of Financial Sustainability of the NGOs, I’ve met many inspiring people and also some disbelievers. Common barriers I find include:

1. Disbelief among Funding Agencies: I guess some tried and failed which is why one even told me, “Just give them [NGOs] the chicken instead of trying to teach them how to run a Chicken Farm. They will eat-up the chickens anyway!” It’s true that the traditional perception of local NGO staff is that they are not smart enough. But times have changed.
2. Doubt in their own Ability: Many NGOs have a long tradition of dependency on foreign funding and find it difficult to break away. Better a known Devil, than an unknown God. Even if they want to, they just do not know how.
3. Strategy and Marketing: I know WHAT I want to achieve, but I’m still struggling on HOW best to go about it for the maximum Impact. How to amplify the message? Who best to approach? Which platforms will give me the leverage?
4. Limited Network: My experience has been primarily in the faith-based organisations; but there is a whole world out there. How do I widen my network?
5. Financial Constraints: Since SAVE Foundation is in its early years, we do not have enough funds to hire the right people, promote our mission via social media, to invest in a proper website, or to make sub grants to projects that truly make a difference.

I wish for a Godfather :)

But jokes apart, …

1. Disbelief among Funding Agencies: Their disbelief stems from their past experiences. Once they see how Change can happen, I’m certain they will enthusiastically support and encourage it.
2. Doubt in their own Ability: It’s like teaching a child to take its first steps. The child fears letting go of its support. But once they trust you, they are willing to dare. I will be their Trusted Partner and teach them to Dare. Slowly they will build their confidence and over a period of time, they will not only learn to walk, but also run like the wind!
3. Strategy and Marketing: I’m promoting the concept at different forums. Early this year I made a presentation to the Don Bosco Network South Asia Regional Development Office Meet 2020 on “Towards Financial Sustainability: a strategic approach”. There was a very positive response from the group.
4. Limited Network: Some networks demand a fee which SAVE at this moment cannot afford. But there are also other networks like my MBA Alumni, former benefactors and colleagues who have supported my cause. I will also be publishing articles that will promote the concept and fetch me more Speaking invitations to forums.
5. Financial Constraints: I’m raising some funds via consulting on the same topic. But since COVID-19 has hit everyone so hard, there is a real cash-crunch worldwide. Needless to say that the Elevate Prize money will be a huge help.

King Baudouin Foundation (KBF), Belgium: As SAVE Foundation being newly formed, it is not yet eligible to give tax benefits for the donations and contributions it receives. To overcome this and raise funds for the COVID-19 relief works in India, we have started a Project Account with KBF. All donations towards the relief works are made to a separate account at KBF. They issue the tax certificate to the donor for all donations above 40,- EUR.

We also collaborate with other Funding Agencies in Europe for implementing projects in India by way of sub-grants.

We are also in the process of finalizing our collaboration with a European Agency specializing in Capacity Building of the NGOs in the Developing Countries. This will provide a platform where we can reach out to the leaders and decision-makers of NGOs via workshops. 

The rural farmers of Karbi Anglong District of Assam rear pigs to sell for its meat. As there are no pig breeders in this region, we plan to setup a Pig Breeding Farm there. The seed-money to start the PiG Farm will be raised via Grants.

Farmers need help in securing a loan to setup pig-pens and buy pigs. Also, the know-how on rearing pigs for the ideal weight at the time of sale.

Our Model is 1) help farmers secure a loan so that 2) they can buy the piglets from the Farm. 3) Follow up with the farmer on the growth of the piglets they bought, so that 4) the pigs gain ideal weight at the time of sale and therefore fetch a handsome price in the market.

Healthy pigs make wealthy farmers. A satisfied farmer will buy more piglets from the Farm. This helps create a dedicated customer-base for the Farm.

The Revenue Streams for the Farm include:

1. Piglets sold to the local farmers for rearing.
2. 25% of the piglets born on the Farm will be retained as Fatteners at the Farm. Sale of these Fatteners will cover the operational costs of the Farm.
3. The biogas plant at the Farm will generate biofertilizers which will also be sold to local farmers.

The Farm is expected to break-even in Year 3. The Farm will start with 50 sows and increase capacity to 100 sows in Year 3, doubling its outreach and its income.

The PiG Farm is setup with the sole objective of providing healthy vaccinated piglets to the local farmers so that THEY are able to increase their income. Our research shows that with support of the PiG Farm, the local farmers will increase their earnings from pig-rearing by a whopping 125% annually!

The plan is to start with seed-money (grants) that will cover the Capital Expenditure (CAPEX) plus the Operation Expenses (OPEX) for the first 24 months. In due course, the Farm is expected to generate income through the sale of piglets to the farmers and pigs for their meat.

Pigs reared for meat (fatteners) bring around 50% gross profit margin, while sale of piglets bring around 30% profits. Therefore, the Farm will rear around 400 fatteners on an annual basis to 1) support the expansion of capacity from 50 sows to 100 sows in Year 3, and 2) cover the cost of OPEX from Year 3 onwards.

The Farm is expected to break-even in Year 3.

Slowly the Farm will build its Reserve Funds to cover eventualities and also contribute to the starting of similar medium-sized Pig Breeding Farms in other locations in the NER where there is a great need. This way, the seed-money that formed the initial Capital for this pilot-project will be paid-forward. Each new Farm once self-sustainable will contribute towards the seed-money to start another Farm, thus creating a chain reaction till there are enough Farms to serve the people of the NER.

The pilot-project of the PiG Farm is in its design phase and as such no funds have been raised yet.

Estimated seed-money required to launch the PiG Farm is around 328,720 USD. We are planning to approach Funding Organisations for grants. We hope to raise 258,000 USD before the end of 2020.

258,000 USD. This includes the launch of the project and start of the infrastructure setup.

The Elevate Prize is the magic that will open doors to countless opportunities. It provides the forum and a platform to amplify my idea. 

Very specifically, I look forward to the coaching and the mentorship from the Elevate-Team that will help me prepare for the challenges ahead. Access to International networks will boost the spread of the idea and its acceptance. And to leverage these to maximize impact, I will need help in developing a strategy and implementing it.

The Prize money will be a HUGE help in overcoming the financial constraints!

My dream is to create a Movement. Financial sustainability is not a new concept, but like climbing the Mount Everest, many have attempted and failed till Sir Edmund Hillary together with his Sherpa showed the world that it may be difficult, but it is not impossible. Today, hundreds climb Mount Everest every year.

In the same way, though admittedly ambitious, I believe my tenacity and my indomitable will to succeed will create a pathway that others can follow in helping NGOs become Financially Sustainable. With the support of the Elevate Prize and its team, I can help NGOs build their resilience and create a much greater impact in the Development Sector.

The concept of Financial Sustainability is not new. It’s good to see that Funding Agencies ask for it; even this application has a question on it. But we have to go beyond just ‘asking’. We have to showcase examples, promote success stories, understand the risks, and also highlight the challenges in different regions. For this you need a platform which could be the ACADEMIA or FORUMS where this concept is marketed and promoted with the necessary MEDIA attention. This will bring together organizations with similar challenges to join forces for the greater good.

The wisdom of the MENTORS and the COACHING by the experts will prepare me better and guide me on the right path.

I would be happy to receive a GRANT towards the seed-money to launch the PiG Farm knowing the huge impact it can make.

Every year SAVE Foundation identifies a high-impact NGO and guides them in moving towards self-reliant projects. For example, the Local Partner (LP) we will work with for the PiG Farm manages 2,275 Self-Help Groups with a membership of nearly 50,000 poor people. They have also mobilised around 400 local farmers into 2 Farmer Producer Organizations (FPOs) where the farmers come together to actively market their produce. When we guide and mentor NGOs with such a wide network of beneficiaries, their transition to self-reliance guarantees that their outreach programs will continue to benefit the poor. Their success also inspires other NGOs to become self-reliant.

It’s my dream also to partner with organisations like MacArthur Foundation, Rockefeller Foundation, Open Society, Coca-Cola Foundation, and Robert-Bosch Foundation. Once we narrow down a high-potential NGO, it will be great if these Foundations can financially back the Project including our consulting services and the sub-grants to the local NGO.

I’m also looking at taking up Advisory Role for Funding Organizations interested in promoting the concept for their local partners worldwide (not necessarily limited to India).

Partnering with publishing companies will be great if they can support in bringing out handy booklets that the project-staff could use as a reference when designing a project. A cost-effective practical booklet translated in many languages can aid in promoting the concept further at grassroot level.

Many NGOs, their staff, and their beneficiaries have struggled due to COVID-19. My efforts are to bring some relief to them. Thank you!