Visit to the Loneliness Mitigation Centre in Pune to atte...Read More
SGP is Plug-and-Launch SaaS Solution for mutual funds and their investors.
It is a tailor-made hynGO solution which enables mutual fund investors, on the basis of their consent, to contribute 10% of their investment every year to NGOs vetted and monitored by HelpYourNGO.
The idea to create SGP was born out of our desire to create a steady stream of fund flows for genuine and trustworthy NGOs. NGOs in India do not have the skill set for raising money – but mutual fund houses do! What if their money-raising abilities could help NGOs to rely upon a pool of capital to support the fantastic work that they do?
In an era where companies are meant to do more than just focus on profit, our ask of the owners of the mutual fund houses is very small: Add this simple but powerful SGP unit and help India achieve the 17 UN SDGs.
Globally, university endowments and foundations invest their corpus for long term capital appreciation. Typically, the earnings / capital distributions from these endowments fund nearly 50% of their annual operating budgets.
What is true for Harvard is true for the hundreds of other university endowments or private endowments like the Bill & Melinda Gates Foundation. It is this steady stream of financial support that allows Harvard to focus on being a world-class university!
What if NGOs did not have to focus on raising funds but could rely upon a similar pool of capital to support their incredible work?
The idea to create SGP was born out of our desire to create a steady stream of flows for genuine & trustworthy NGOs. SGP will allow NGOs to focus on implementing the great work that they do, rather than wasting their resources on fund raising – which they may not be good at.
Our interaction with NGOs has made us realize the challenges the smaller, un-branded NGOs face in fund raising. Larger, established NGOs hire teams (and pay external marketing agents an exorbitant 30-35% to collect donations!) while the smaller NGOs struggle. The potential benefit to the identified NGOs could be just like Harvard's!
Steps by the regulator, SEBI have already revolutionized the Indian Mutual Fund industry. Collectively, there is approximately Rs 15 trillion of Assets Under Management (AUM) in the equity funds. Even if 1% of this corpus moved to SGP units for distribution to NGOs for furthering of the SDGs, that would be Rs 150 billion of AUM. And if 10% of this was disbursed each year to hundreds of NGOs, that would be Rs 15 billion every year! That’s the potential cascading impact of SGP!
Quantum Mutual Fund was the first fund house which plugged its systems and investor base into the SDG framework and branded their product as the SMILE facility. The power of small (or large) pooled donations via the SMILE units has the potential to systematically support NGOs selected by individual investors. Like Harvard University, these NGOs can then focus on improving the impact of their great work.
Since 2018, Quantum investors have supported the programs of seven credible NGOs from diverse sectors via SMILE — provided financial literacy to women, home-based palliative care to underserved cancer patients, vocational & life skills training to youth, maternal and new-born health care, helped meritorious students complete their graduation, and others.
For Mutual Funds
Steps by the regulator, SEBI have already revolutionized the Indian Mutual Fund industry.
Collectively, there is approximately Rs 15 trillion of Assets Under Management (AUM) in the equity funds.
Even if 1% of this corpus moved to SGP units for distribution to NGOs for furthering of the SDGs, that would be Rs 150 billion of AUM.
And if 10% of this was disbursed each year to hundreds of NGOs, that would be Rs 15 billion every year! That’s the potential cascading impact of SGP!!
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