NGO Insights: Grace Peter Charitable Trust

Dated : 17 Oct 2013
  1. Sector and Positioning:

Grace Peter Charitable (GPC) Trust aims to develop rural India through children’s education and by conducting empowerment programmes for women. GPC Trust is keen to provide children with education but faces a shortage of funds and good quality staff for teaching. As a result, they are only able to provide educational support to children. It distributes Rs2,500 worth of material per child every year in the form of uniforms, schoolbags, notebooks, etc. using the donations coming through GiveIndia.  It also provides vocational training to women in jewellery making and offers a certification course in dress making. It also distributes sewing machines to help women earn their livelihood. This NGO would have liked to reach out to more underprivileged people and also increase the impact of its services but is constrained by availability of funds.

  1. Financial Parameters:
  • This is a very small NGO with an income of only Rs569,000 in FY12. Compare to average income of Rs24.7m in the Development space. The income of this NGO has been falling – it declined by 55% y-o-y in FY11 and remained flat y-o-y in FY12.
  • The falling income has led to a sharp drop in number of beneficiaries, from around 3,200 in FY10 to around 600 in FY12. Due to the lack of funds GPC Trust limits the number of HIV/AIDS affected children to whom they provide nutritional food to 10 per month (rather than the 65 who have been identified).
  • Employee cost is decreasing due to a reduction in paid staff and increased use of volunteers (38 in FY11 to 54 in FY12). Overall cost is efficiently managed by the team of GPT as travel, overhead/admin costs shows decreasing trend in the past two years.  

  1. Sustainability Parameters:
  • During FY12 GPC Trust shut down its Lily Garment Unit. Work at this Unit was impacted due to   irregular electricity supply and it was difficult to continue paying workers on a daily basis. This closure adversely affected GPC’s income levels in FY12 and forced them to rely only on donations.
  • Local sources contribute 65% of total income and the remaining 35% comes from foreign sources. It is averagely sustainable and is highly dependent on individual donations. Their biggest donors include their family members who live abroad and help this NGO financially on regular basis.
  1. Major Challenges:
  • Insufficient funds - The first and the foremost challenge for this NGO, or any other NGO situated in remote areas, is regular flow of funds or money supply.
  • GPC Trusts attempt to provide jobs to rural people in their Garment unit did not work as the Unit was shut down due to shortage of electricity.
  • The NGO provides nutrition worth Rs300 each to children affected by HIV but is able to reach children only on a rotation basis due to shortage of funds.

 

  1. Governance & Reporting Standards:

Financials of GPC are well presented and graphical pictorials are created to represent their growth. GPC is quite transparent and happy to share information about their activities. It is good to know that any shortfall of funds is generally made up by family sources. Only 2 family members out of 6 trustees are on the board.

 

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