- Sector and Positioning:
Paramshantidham Vridhashram Trust (PVT) is a Navi Mumbai based NGO providing shelter to underprivileged senior citizens since 1988. Nearly 70% of total beneficiaries at PVT are rescued from streets/slums and remaining 30% are elderly people abandoned by their families. The inmates are allowed to reside permanently at PVT’s premises near Taloja.
PVT is perhaps the only NGO in Navi Mumbai offering free shelter (zero admission fee) and regular medical aid to all inmates. At present, PVT can accommodate only 75 inmates at a time. The NGO is adding a second floor (present facilities: G+1) which will increase the accommodation capacity to 125 by end of FY14. Annual cost per beneficiary is between Rs25,000 and Rs30,000.
- Financial Parameters:
Total Income: Total income for FY13 declined marginally by 9% Y-o-Y. The total income for FY13 was Rs3.6mn v/s Rs4.07mn in FY12. Individual donations (83%) was the major contributor to FY13 income. Income from Government (16%) and Interest Income (1%) were other contributors to FY13 income.
Individual Donations: For the period FY11-FY13, PVT received a minimum 80% of total income from individual sources each year. For FY13, income from individual sources was Rs3.6mn. As no bifurcation of income was available, donations received from corporates and non-government funding agencies (NGFA) are also classified under individual donations. The NGO receives financial support from Shree Babulnath Mandir Charities Trust, Concern India Foundation and IG Petrochemicals.
Programme Expenses & Overheads: Only 49% of total expenses in FY13 was incurred towards direct programme expenses v/s 70%-75% spent by other NGOs in the same space. During FY13, the NGO spent Rs1.1mn while conducting various programme related activities. With Y-o-Y decline in total income, direct programme expenses also shrunk by 6%. Direct programme expenses have been declining Y-o-Y since FY10 i.e. from 44% in FY10 to 30% in FY13; this is owing to Y-o-Y drop in total income and increasing overheads.
Overheads for FY13 was 24% i.e. Rs0.5mn v/s Rs0.3mn in FY12; this is slightly on a higher side than the sector average of 18%-20% for the same period.
Corpus, General Reserves & Property Funds:
- The NGO has a small corpus of Rs65,249 since FY10.
- General Reserves increased from Rs4.8mn in FY12 to Rs6.7mn in FY13; this can be attributed to Y-o-Y increase in surplus since FY10.
- Property Funds was to the tune of Rs4.4mn since FY10. The funds will be used to increase PVT’s accommodation capacity. PVT started accumulating funds these funds since 1994.
Fixed Assets: Funds tied up in fixed assets was as high as 83% at Rs10.4mn at the end of FY13. Funds tied up in fixed asset ratio for PVT is more than the sector average of 50%-60% for the same period. However, such high ratio is acceptable for an NGO which has been in existence for over two decades owning land and building to carry out its activities.
Cash & Bank Balance: Towards the end of FY13, the NGO collected funds from trustees and well-wishers on completing 25 years of its existence. Part of these funds collected is deposited in bank a/c to be utilized in the following year. This resulted in an increase in the cash & bank balance from Rs5mn in FY12 to Rs21mn in FY13.
- Sustainability Parameters:
Income Growth Rate: PVT posted a 4-Year income CAGR of 10% for the period FY10-FY13. The Y-o-Y income flow has been very erratic since past four years, suggesting uncertainty in income flow for the coming years. However, the trustees are making concentrated efforts to partner with more donors to ensure long term sustainability.
High Self Sufficiency Ratio: The organization’s self-sufficiency ratio deteriorated substantially, reducing from 247% in FY12 to 173% in FY13. The decline is owing to: (a) significant Y-o-Y increase of 58% in overhead expenses i.e. Rs0.59mn in FY13 v/s Rs0.37mn in FY12 and (b) a 23% Y-o-Y drop in income from individual sources, the largest contributor to income. Self-sufficiency ratio indicates ability of an organization to meet its expenses from its own funds.
- Major Challenges:
Fundraising: The NGO doesn’t have a dedicated team to focus on fund raising. It may also be noted that the NGO is largely dependent on its existing donors; which could pose a threat on the NGO’s sustainability.
Accommodation capacity: PVT, with its existing facility of G+1 premises can accommodate only 75 inmates. The construction of 2nd floor has been in progress for several years now, but due to scarcity of funds, the construction work was stalled for two-three years. Due to limited beds, the NGO is unable to accommodate more beneficiaries.
- Governance & Reporting Standards:
The Board is composed of seven members. Out of these, three members are actively involved in the day to day operations of the NGO and the others provide strategic support. The Board members meet every quarter to review the overall performance of the NGO.
The NGO does not publish detailed annual reports, but releases an annual activity report. Although the organization is not listed with organizations like Give India, Guide Star India, United Way; NGO receives funds from Concern India Foundation.
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