Fundraising for NPO-SSE-Impact Fund & CSR विश्वविद्यालय Impact Fund (Social Impact Bond)

Impact by Federation of Education in India भारतीय शिक्षा संघ

Transforming Universities with futuristic way of fundraising

A flagship initiative of Federation of Education in India FOEII FOUNDATION in association with Y R Consulting to work for University Development and creating a corpus of futuristic educational investment to work with capacity of Social Impact Bonds (SIBs) approved by SEBI and listing on Social Stock Exchange (SSE).

Transforming Universities /HEI with futuristic way of fundraising to Impact for Education in India.

FOEII Foundation is underway to sourcing funds with a systematic University Development Impact Bonds: A results-based contracts in which private investors provide pre-financing for University Development and pay back to investors their principal with return if, these programmes succeed in delivering social (educational) outcomes.

The fund will be available for University and Higher Education Institutions (HEI) are work with a systematic fundraising to impact and meet the objectives are:

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1) Academic Research and Innovation toward educational development.

2) Technology Integration towards policy, practices and quality enhancement.

3) Educational Scholarship to break the economic barriers of education

4) Book-eBook and paper publishing for establishment of Indian content

5) Academic conferences with outcome report and advocacy.

We are inviting to fund contributors (Individuals, Institutional, CSR, Philanthropist, Industrial projects, government agencies, community supports to work with collaborative force to create an impact by Federation of Education in India (FOEII) under the management of FOEII Foundation and leadership of Prof. Younush Rana

An impact bond, often a “pay-for-success” financing model, is a financial instrument where private investors fund a social program and receive a financial return from a public-sector agency or other “outcome payer” only if the program achieves pre-agreed, measurable outcomes. An impact fund is a pooled investment vehicle managed by professionals that invests in companies or organizations to generate both a positive social or environmental impact and a financial return for investors.

FOEII Membership

FOEII FOUNDATION (Federation of Education in India) is a not-for-profit organization with a collaborative and collective platform to work for educational support system and all members will be the participant to work for objectives of the FOEII.

FOEII membership is a platform to create opportunities for Academia will become an Educator, Researcher, Innovator and Member of “Board of Studies” and Industry Professionals and Business Leaders will become a “Professor of Practice of UGC and Trainers will become a part of Skill India, Entrepreneurs will become a Training Partner (TP), Managers will become an Administrator of Education System of India towards Viksit Bharat.

FOEII Members are welcome to join become a beneficiary of fund

Outcomes-Based Financing:

Funding is tied to achieving specific, measurable outcomes, rather than just providing funding for activities or inputs.

Private Sector Involvement:

Impact bonds leverage private sector capital and expertise to address social challenges.

Risk Sharing program & Support

Investors provide upfront capital is repaid only if the program achieves pre-defined outcomes, thus sharing the risk.

Incentive Alignment for Impact

The model aligns the incentives of all parties involved (investors, service providers, and funders) towards achieving desired outcomes.

Key characteristics

Pay-for-Success Model: Investors provide upfront capital for social programs and are repaid by outcome funders (governments or philanthropic organizations) only if specific, measurable outcomes are achieved.
Focus on Results: They shift the focus from traditional measures like training completion to concrete results, such as job placement and retention, or improved educational attainment.
Stakeholders: Impact bonds involve three main players:
- Investors: Provide the upfront capital, taking on the financial risk.
- Outcome Funders: Public sector bodies or philanthropic organizations that commit to repaying investors based on successful outcomes.
- Service Providers: Organizations that implement the social programs.

Benefits

Cost-Effective Public Spending: Governments only pay for programs that deliver measurable results, leading to more efficient public spending.
Financial and Social Returns for Investors: Offers investors a dual return, combining financial gains with positive social impact.
Stable Funding for Service Providers: Provides upfront and stable funding, enabling organizations to focus on service delivery rather than fundraising.
Improved Services for Beneficiaries: Leads to higher-quality services and better results due to the outcome-focused nature.

How Impact Bonds Work:

Real Development of NGO & Not Profit: NON GOVT. Organization

Risk Investors: Private investors provide initial capital for the program.
Service Providers: Social service providers (often non-profits or social enterprises) deliver the program and interventions.
Outcome Funders: Government agencies, philanthropic organizations, or other entities commit to repaying the risk investors if the program achieves the agreed-upon outcomes.
Independent Verification: Third-party evaluators independently verify the achievement of outcomes.
Repayment: Outcome funders repay the risk investors based on the verified outcomes achieved, often with a return on investment.

Impact Bond can help governments tackle complex societal needs of development of while also allowing investors to make a difference in society. They can also help create space for innovation with increased transparency. An investor provides funding to creator for a social intervention, and the investor receives a return based on the outcome of the intervention.

Our Expertise

Our team has deep expertise in a variety of areas, including process improvement, compliance, management, financial management, and more. We bring a wealth of experience and knowledge to every project we work on, and we’re committed to delivering measurable results.

Social Stock Exchange in India

The Social Stock Exchange (SSE) in India is a platform regulated by the Securities and Exchange Board of India (SEBI) that enables social enterprises to raise capital for projects with social welfare objectives. It operates as a separate segment within existing stock exchanges like the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The SSE acts as a bridge, connecting social organizations with investors and donors who are interested in social impact investing.

Key Features of Social Stock Exchange-(SSE)

Key objectives

To provide a transparent mechanism for social enterprises, both for-profit and not-for-profit, to raise funds.
To facilitate the funding and growth of social enterprises.
To establish robust standards for social impact measurement and financial reporting within the social sector.

Funding mechanisms

Not-for-profit organizations can raise funds through instruments like Zero Coupon Zero Principal (ZCZP) bonds, while for-profit social enterprises can issue equity or debt securities. Other methods specified by SEBI are also available for both types of organizations.

Eligibility criteria

Organizations must be registered and demonstrate a strong focus on social impact, with at least 67% of their resources or beneficiaries related to eligible social activities over the past three years. NPOs need to have been operating for a minimum of three years and meet specific registration and financial requirements. Certain types of organizations, such as corporate foundations and political or religious organizations, are generally not eligible.

Fundraising Platform: Social Stock Exchange-SSEs facilitate fundraising for social enterprises by allowing them to list their securities (like equity or debt) and attract investors who are interested in both financial returns and social impact.

Transparency and Accountability: SSEs are regulated by SEBI, which ensures that listed social enterprises adhere to certain standards of reporting and disclosure, including their social impact.

Impact Investing: SSEs are designed to encourage impact investing, where investors prioritize not only financial returns but also the positive social or environmental impact created by their investments.

Social Enterprises: SSEs connect with organizations that are focused on addressing social issues and creating a positive impact, including for-profit and non-profit organizations.

Benefits of Social Stock Exchange (SSE)

Bridging the Funding Gap:

SSEs can make it easier for investors to find and invest in social enterprises that align with their values.

Attracting Impact Investors:

SSEs can make it easier for investors to find and invest in social enterprises that align with their values.

Promoting Social Impact:

By facilitating impact investing, SSEs can contribute to the growth and sustainability of social enterprises that are making a positive difference in society.

We offer a wide range of services to help businesses thrive, including strategic planning, financial management, marketing and sales, and more.

Legal structures for NPOs in India

In India, an NPO (Nonprofit Organization) is a legal entity that operates for a charitable or social cause, rather than to earn profits for its owners. NPOs in India can be registered under three primary legal structures: a trust, a society, or a Section 8 company.

Section 8 company

Governed by: The Companies Act, 2013.Ministry of Corporate Affairs, Government of India.
Formation: Incorporated with the Registrar of Companies (RoC). It has more stringent compliance regulations but is also seen as more credible by stakeholders.
Purpose: Promotes activities in areas like commerce, art, science, sports, education, and social welfare.
Profit utilization: Any profit must be used for the company’s objectives and cannot be paid as dividends to its members.

Trust

Governed by: The Indian Trusts Act, 1882. Some states also have their own Public Trusts Acts.
Formation: Created when a “trustor” transfers property to a “trustee” for the benefit of a “beneficiary”.
Purpose: A public trust benefits the general public, while a private trust is for a specific group of individuals.
Oversight: A registered trust is overseen by the Charity Commissioner of the state / UT.

Society

Governed by: The Societies Registration Act, 1860, which has been adopted by most states.
Formation: Requires a minimum of seven members to form and is registered with the state’s Registrar of Societies.
Purpose: Formed to promote literature, science, arts, charitable activities, and other similar purposes.
Governance: Run by a governing council or managing committee elected by its members.

Key regulations and tax exemptions

Income Tax Act, 1961: NPOs in India can register under sections of this act to receive significant tax benefits.
- Section 12A/12B: Provides an exemption from paying income tax on the organization’s income.
- Section 80G: Allows donors to claim a tax deduction (50% or 100%, depending on the cause) on the amount they donate. This makes an organization more attractive for attracting funds.

Foreign Contribution (Regulation) Act (FCRA): Any NPO planning to receive foreign funding must register under the FCRA with the Ministry of Home Affairs and comply with its strict reporting and usage rules.
Goods and Services Tax (GST): Many charitable activities are exempt from GST. NPOs must maintain separate books of accounts for any commercial activities that are not incidental to their charitable purpose to retain their tax-exempt status.

Indian market of NPO

The nonprofit sector in India is one of the largest in the world, estimated to consist of over 3.7 million registered organizations. These organizations are known by various names, including Non-Governmental Organizations (NGOs), Voluntary Organizations (VOs), and Civil Society Organizations (CSOs).