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How to improve the NGO ecosystem to make existing NGOs more productive?

There are adequate number of NGOs existing at present (2 million NGOs in India, around 40,000 NGOs operating globally, 227,000 NGOs in Russia and so on). With so many NGOs around need of the hour is to provide an improved ecosystem to existing NGOs so that they can become more efficient and productive. Trend shows that cost of raising funds is 30% i.e. 30 cents for each USD raised. Further, most of the funds are contributed through corporates and individual donors contributes relatively less amount. Is there a way in which we can increase the participation of individual donors by either changing their perception or making the process more transparent? Can we make the process more fun and involving to capture more and more youth?

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If we look into the NGO working model in detail we can see that two factors affecting efficiency of NGOs are 'Total funds raised' and 'Cost of Fund Raising'.


Challenges for 'Total funds raised' -
* Limited Reach
* Lack of Credibility
* Lack of Tangibility / Transparency
* Human Resource Limitation
* Poor supporting technology infrastructure
* Budget Limitation (Marketing, etc.)


Challenges for 'Cost of fund raising' -
* High cost of fund development (new donors – private and corporate)
* Marketing
* Cost of road shows, etc.


Biggest challenge of all -
* Donor's perception and behavior
- Why should I donate?
- What is in it for me?
- Don't know where my money is going to be used?
- Don't know how much impact will my 5 USD contribution would make?, etc.


We need to think innovative solutions to address these challenges and provide a new ecosystem to NGOs so that
1) Their reach is increased;
2) Their cost of fund raising is reduced; and,
3) There is more participation from private/individual donors


Couple of solutions which I can think of could be:
1) Web based ecosystem for bringing most of the NGOs to same platform (single platform, if possible).
2) Interactive portal to involve individual/private donors:
a) Transparency of my money donated to the detailed level of country, place, project and person if possible.
b) Increased choice of sponsoring project, dreams, child, etc. which are close to individual's heart.
c) Involve and target youth/young audience
d) Application interface with popular social sites like facebook, myspace, etc.
e) Innovative ways to enhance participation on website like some games, act of random kindness events, postcards


Ideas are plenty and lot more can be thought of, all we need is to focus our attention on converting these ideas into innovations which can make existing NGOs more efficient and help the whole community at large.

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Interesting thoughts Rahul! And you can increase your DQ points if you pull over related posts from the Inspiration Phase like Jumo http://bit.ly/hPhWdA. Use the Update button on the right of this post and use the Build Upon feature there.