The Hindu : Tamil Nadu News : Self-help is not enough

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Tuesday, Aug 26, 2008
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Tamil Nadu

Tamil Nadu

Self-help is not enough

Sruthi Krishnan

Instead of just depending on donor contributions, some non-governmental organisations (NGOs) have come up with a model to generate revenues on their own. But, in a situation of rising costs, even this model of social entrepreneurship may not prove to be adequate insulation.

“We received land from the government for our organisation. But, the project was delayed for two years. With skyrocketing costs of materials, cost of construction has gone up from Rs. 650 per square feet to Rs. 1,300. We need to complete construction by February because our current landlord is asking us to vacate. It’s really tough,” says C. Govindakrishnan from Nethrodaya, an organisation for visually disabled persons.

Nethrodaya has a light music troupe, which performs concerts to supplement the income from donors. “Transportation, sound systems, and cost of staying elsewhere have shot up. We have to spend money from our reserve funds,” says Mr. Govindakrishnan.

The drastic rise in costs of operation also eats up any additional income generated.

“For meal schemes, it used to cost Rs. 750 to provide breakfast for a group. Now it costs Rs. 1,000. Pulses, oil, all costs have risen,” he says.

“We started a production studio to make films for other NGOs and CSR (Corporate Social Responsibility) initiatives of Corporations. That helps us raise 25 to 30 per cent of revenues, but that’s not enough,” says Sriram Ayer of NalandaWay Foundation, an organisation that helps children through arts. “Rentals have shot up. In some cases, the rent has been hiked from Rs. 6,000 to Rs. 25,000. So, they need to move out of the city. Food and travel now form 25 – 30 per cent of the budget, instead of 10 per cent. Also, the income generated by non-governmental organisations is being taxed,” he adds.

“Inflation has hit us, but we have not reached a crisis mode,” says Paul Basil, founder of Rural Innovations Organisation, which funds and mentors rural innovators to take their product to the market. “Salaries have shot through the roof. Inflation is one factor but the rising demand and a short supply of talent is also the cause. There is also an increase in cost of making the products,” he says.

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