The rise of collaboration for social impact

In early 2020, Bridgespan Group released a report, “Philanthropic Collaboration in India: The Power of Many”, which examined nexus between development sector actors – funders, non-governmental organizations (NGOs) and governments. Those stakeholders bet that their combined funding, skills and assets would outweigh the allies’ impact by more than the sum of their shares.

And, yet, at that time, India had few philanthropic allies. This is no longer the case.

Co-produced by three or more independent actors, including at least one funder, a philanthropic partner follows a shared vision and strategy for social impact. In 2019, we studied 15 such collaborators in India. Since then, at least 18 more allies have come together. These include COVID ActionCollab, India Protectors Alliance, The Future of Impact Collaborative, and The Coalition for Women Empowerment.

Sixteen of these work in several states. Most of the focus is on implementing social programs and raising funds. For example, Swasthya has created a one-stop tele-medicine portal, while ACT grants mobilization of financial resources for innovations in combating COVID.

Allies are also raising more and more money. In 2019, the annual budget of 13 associates ranged from ₹ 50 lakh to ₹ 50 crore. In comparison, the multi-year financial commitment for eight new associates ranges from ₹2 crore to ₹600 crore (budget data not available for the other 10). At least three of them aim to raise around ₹100 crore.

The emphasis is on inclusion, equality and justice. The new generation of collaboration is increasingly focusing on marginalized communities such as informal waste pickers, frontline workers and migrant workers.

path to scaling

The devastation to lives and livelihoods caused by the novel coronavirus pandemic is clearly prompting organizations to work collectively. Many partnerships now involve businesses that harness the power of private capital for the social good.

Consider the Migrants Resilience Collaborative (MRC).

On March 24, 2020, soon after the nationwide COVID-19 lockdown, the NGO Jan Sahas released the results of a survey that revealed the disproportionate impact of the lockdown on migrant workers. Of the 3,196 migrant construction workers interviewed, 90% had lost their source of income and 62% were unaware of the government’s emergency aid efforts.

There are about 14 crore migrant workers in India. Jan Sahas founder, Ashif Shaikh concluded that the scale of the problem far exceeds the capabilities of any single NGO and requires cooperation. Jan Sahas launched the MRC in partnership with the EdelGive Foundation, the Global Development Network and other organizations, aiming to provide relief facilities for over 10 million migrant workers across 13 states. More than 40 community-based organizations, 25 companies and industry associations and three state governments have partnered with the MRC.

Although collaborators can increase the odds of achieving a sizable effect, collaboration is complicated. Building trust among multiple partners and balancing their priorities and goals of the partner can be challenging. In 2020, we found that it took many years for allies to move from “coming together” – where they define their shared mission and strategy – to actually “working together” and delivering results.

This new crop of allies is forming relatively fast. Of the 18 we tested, 15 are already “working together”. There is no doubt that the pandemic has prompted allies to raise funds and develop rapidly. Equally important to the MRC is its reliability and clarity.

Since 2000, Jan Sahas has worked to end commercial sexual exploitation and forced labor, focusing on migrant workers from socially excluded communities; 90% of Jan Sahas employees come from the community it serves. Hence Jan Sahas can draw a deep well of trust and relationships for the MRC.

To ensure the alignment of the MRC’s stakeholders, Mr Sheikh set out a list of “non-negotiable” goals: such as achieving minimum wages for migrant workers and ending exploitation of women workers. While there was some disagreement between the partners, the clarity on “non-negotiable” ensured they remained on the same page.

to stay here

Mr. Sheikh identified another factor, besides the pandemic, to promote cooperation.

“Funding for NGOs, especially community-based and grassroots organizations, has declined significantly,” he said. “It is encouraging small and medium-sized organizations to collaborate especially at the state and district levels. Then they can get strategic and financial support and a platform to implement their programmes.”

To be sure, as more NGOs and funders pool their resources and expertise, few start-up partners will struggle to partner effectively and achieve a collective impact. Nevertheless, given the significant increase in philanthropic collaboration over the past two years, it is likely that formal collaboration between multiple stakeholders – including private business – is set to become a distinctive and enduring feature of India’s social sector.

Pritha Venkatachalam, partner in the Mumbai office of the Bridgespan Group, heads the firm’s market impact initiatives in South Asia. Akshay Gambhir is Case Team Leader at Bridgespan Group’s Mumbai Office