NGO Insights: Aadhar Bahuddeshiya Sanstha

Dated : 02 Dec 2013
  1. Sector and Positioning:

Aadhar Bahuuddeshiya Sanstha (Aadhar) is among the well-known NGOs based in the Jalgaon district of Maharashtra working towards integrated community development. It has wide presence in the Northern parts of Maharashtra. The organization empowers community by giving them access to healthcare services, primary nutrition to the underserved, elementary education to the destitute and children of female sex workers. Aadhar encourages micro entrepreneurship and has introduced Self Help Groups in the Jalgaon district and the adjoining villages/districts. Aadhar also protects human rights and discourages child labor through various outreach programmes. Women who are victims of domestic violence are provided legal aid in an effort to protect their rights. 

Aadhar has implemented various projects addressing wide range of social issues. Currently, the organization is working on nine live projects which are all financially supported by the social welfare agencies. As on October 2013, Aadhar has reached out to more than 200,000 people in Maharashtra since inception.

 

  1. Financial Parameters:
  • Aadhar posted a negative growth of 8% in FY13 over the previous financial year (Rs5.4mn in FY13 v/s Rs.5.9mn in FY12. This can be attributed to following reasons:
    • Significant drop in Individual Donations collected during the year. Individual donations declined by 98% in FY13 over FY12.
    • Reduction in donations gathered by selling in-house products. The decline was to the tune of 61% in FY13 over the previous financial year.
  • Program Expenses received in the form of Grants during FY13 have been effectively utilized across all nine projects. Projects where amount is over spent, will be received as Grant in the following financial year.
  • Aadhar with its steady income has been able to fund the accumulated deficit posted in FY10 and FY11 with the surplus generated in FY12 and FY13.
  • Loans availed from Trustees have shown a declining trend in past 4 years. Accommodative Borrowings which measures total loan from trustees to total funds has improved year on year at 45% in FY13.
  • Repayment Capacity ratio which measures the amount of funds generated from own funds to pay debt on time has improved from 0.2x in FY12 to 1.2x in FY13.

 

  1. Sustainability Parameters:
  • Aadhar’s income growth rate has remained flat with a 4-Year CAGR of only 4% for the period FY10-FY13.
  • Aadhar has a large team of 90 field workers and 30 officers across 3 offices (2 in Amalner & 1 in Jalgaon); justifying their wider reach over other NGOs in the northern part of Maharashtra.
  • Over 90% of total receipts are donations received in the form of grants from local/central government bodies. This has been the trend over several years now; signifying trust in Aadhar’s team to execute projects independently.
  • The organization has over a period of time developed healthy relations with the local funding agencies that provide financial support regularly for independent projects implemented by Aadhar.
  • National Level bodies supporting Aadhar include: Ministry of Women & Child Development, Maharashtra State Aids Control Society, National Aids Control Society, Central Social Welfare Board, Karnataka Health Promotion Trust, NABARD, Ministry of Family and Health Welfare.
  • Aadhar’s immediate future plan is to build a home for children of female sex workers and children infected with HIV/AIDS.  

                                                                                                                                                                                                

  1. Major Challenges:
  • High attrition rate as compensation offered to employees are below expectations (Salary offered is less than Rs8,000 per month to a one year old employee with the organization).
  • In-house communication skills are limited, particularly in English. This restricts the ability of the team to release research reports and newsletters to maintain the relationship with their existing donors; as well as to develop relationships with prospective donors.
  • As most inflows are through grants, funds are inadequate to undertake concentrated fund raising activities.

 

  1. Governance & Reporting Standards:
  • The Board consists of graduates from Tata Institute of Social Sciences with wide experience in implementing several projects addressing different social issues.
  • The Board meets every month; attendance of each Board Member is compulsory.
  • Aadhar is accredited by Credibility Alliance for its transparency and accountability for maintaining good accounting standards

 

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