Almost every grassroots nonprofit aspires to expand its social impact so that its services and efforts can reach more people. This process of expansion not only allows them to increase their scope but also strengthens their identity within the community.
However, this is not an easy journey. Conversations with grassroots nonprofits such as Navachar Sansthan, Chittorgarh, and Kotra Adivasi Sansthan (KAS), Udaipur, reveal that there are many obstacles to scaling.
What difficulties do grassroots nonprofits face in building their identity and scaling up?
As responsibilities grow and workload increases, grassroots organisations experience many challenges. These mainly include effective management, handling of finances, prioritising tasks, identifying new opportunities, and having a strategic vision.
1. Limited financial resources for community activities
It has always been hard for grassroots nonprofits to raise regular and sustained funding. Arun from Navachar says, “Most of our funds reach us after going through other organisations. In such cases, it is often pre-decided that the money can only be used for community activities. This leaves the organisation struggling for funds to expand, build the capacity of its workers, and address other related aspects.”
Instead of exploring local resources to meet their operational and financial needs, some nonprofits rely on international donors. They believe that international donors understand their needs to a greater extent. However, after the recent issues with the Foreign Contribution Regulation Act (FCRA), applying for foreign funding has become tougher.
2. Lack of long-term priorities
Sarfaraz, director of KAS, says, “It is not a bad thing for an organisation to be small. For instance, Anna Hazare worked in a small rural area like Ralegan Siddhi, but today it has become a model village for the whole of India. People should work towards building more such model villages.”
Today, many social service organisations lack a long-term vision and clear mission, which hinders their growth and development. Bringing a lasting change in society is a lengthy process. However, often nonprofits have to prioritise working with communities on emerging social challenges, while future plans for their own growth get sidelined.
3. Obstacles in the use of existing human resources
Many nonprofits fail to adapt to changing demands, which affects their effectiveness. Grassroots organisations still pay less attention to analysing the capabilities of their workers, assigning them appropriate roles, and understanding their challenges. Distributing work without reviewing skills and capabilities leads to suboptimal results.
Arun notes, “Grassroots nonprofits are not always equipped to understand the required shift in roles. They often continue to work on their old mission, and are not always ready to come out of their comfort zone.”
The lack of proper HR policies to utilise available human resources is an additional barrier. In such a situation, the idea of scaling is often put on hold for fear of complicating more immediate issues.
4. Lack of professionals
The rapid advancement of technology has also changed the needs of grassroots organisations. “Nowadays, it is expected that every nonprofit will have a website, and social media has also become necessary for connecting with the community,” says Arun. “But technically skilled professionals are not willing to work for a longer term at low salaries and in rural areas. Moreover, people in the sector are now focusing less on the organisation and giving more importance to strengthening their resume. There is nothing wrong with this, but to bring about a change, one needs to devote time. Retaining people in grassroots nonprofits like ours is indeed a serious challenge.”
In the last few years, the contribution of technology in management, funding proposals, data analysis, project reports, and more has increased rapidly. In such a scenario, nonprofits with limited technical skills fail to amplify their goals.
5. Weak capacity-building methods
Nonprofits need better strategic planning, monitoring, and evaluation to enhance their work. This requires continuous capacity building efforts for employees. Sarfaraz says, “It is not that organisations do not work on capacity building, but the methods are outdated. We are still working on old content and not focusing on making it more effective.” Many nonprofits are also hesitant to invest in capacity building because they do not have the necessary financial resources for it.
6. Complex government policies
Complex government policies and compliance requirements act as a hindrance as well. Sometimes, there are strict government rules and restrictions on nonprofits and social service organisations, which makes it difficult for them to expand their work. Sarfaraz says, “We have two accountants. One of them spends the whole day just completing government compliance documents such as 12A and 80G. Due to the complicated paperwork, many nonprofits are not able to access external funds even though they have FCRA.”
Arun adds, “When CSR began, there was hope that the financial situation would improve. But gradually, corporates started running foundations around the topics of their choice. This increased financial difficulties for nonprofits working on local issues. The government should think about and analyse this issue deeply.”
How can grassroots nonprofits scale?
Since grassroots nonprofits face many challenges, a better understanding of these problems can help in finding solutions or alternatives. Organisations can carve their own path, and these are some recommendations they can consider:
1. Diversifying financial resources
It is essential for nonprofits to promote financial diversity while raising funds in order to move forward. This can include various forms of financial support such as individual donations, corporate partnerships, and government grants.
Additionally, a strategy for sustainable funding should be developed and relations should be built with potential donors. Sarfaraz says, “Nowadays, people who give funds want data points, precise details on the subject, clear analysis on issues. We should be prepared for this.” Arun adds, “Many organisations in Rajasthan have subjectwise WhatsApp groups. Campaigns such as Soochna Evam Rozgar Adhikar Abhiyan and Bal Sanrakshan Abhiyan keep sharing opportunities on these groups. In addition income sources can also be explored in collaboration with the community.”
2. Developing second-level leadership
Sarfaraz says, “If you want to expand your work, you will have to let go of the concept of ‘ekla chalo re’. You should give opportunities to young and moderately experienced people in your leadership and move ahead by trusting them.” Nisha, who is in a leadership position at I-Partner, says, “It is difficult for nonprofits to move forward with just one efficient leader; more people will be needed for this. Our organisation has recently prepared the next line of leadership. Although this is a bit of a long process, many training programmes have been organised to build this capacity. A lot of trust and patience is required in this process.”
Co-leadership has become increasingly popular in leadership development today. Organisation heads can embrace this approach by assigning responsibilities to a partner and fostering a collaborative learning environment. Arun adds, “There is a need for leadership development at every level. Grassroots workers should also experience growth in the organisation, and nonprofits should clear the path for them to succeed. This deficiency can be met by collaborating with other nonprofits, universities, and training institutes as well.”
3. Focusing on technology and networking
Grassroots nonprofits must understand that better communication is essential to improve their work. To do this, they should start using modern technology. For example, the use of social media and other networks should not be limited to reaching out to the community or making them aware of your work. These can also be means to attract donors; network with groups, channels, and other nonprofits related to the social sector; and stay aware of current issues and necessary opportunities.
However, Arun says, “Due to financial constraints, it will not be easy for nonprofits to extensively use mediums such as websites and apps. But they can start by constantly staying updated on social media.”
4. Understanding government policies
Nonprofits should have a good understanding of government policies and legal frameworks so that they can follow the rules and complete their work without any hindrance. To know more about these policies, they can take the help of professionals or networks. Sarfaraz reiterates, “The good thing about this sector is that organisations work on every subject. All you have to do is build your network. There are many people working on legal frameworks as well. If you are willing to help people, they will also be ready to help you. You just need to connect with them.”
The challenges in expanding grassroots nonprofits are real and cannot be ignored. However, a strategic and open approach, continuous learning, collaboration, developing leadership, and building strong relationships with communities can be a pathway to scale as well as growth.
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