Unlocking Philanthropic Capital for Small and Medium Non-profits: Funder Experiences & Learnings

This qualitative study explores how individual philanthropists in India evaluate and support Small and Medium Nonprofits (SMNs), and how they build long-term partnerships with them. It examines the chronic financial fragility of grassroots nonprofits, which often remain caught in a “project-rich, institution-poor” cycle as short-term, restricted grants leave core operating costs uncovered. The study also traces a shift in funder practice from passive “cheque-book” charity to more engaged stewardship, showing how donors value founder integrity, relational trust, and direct field engagement over rigid compliance checks. It makes the case for multi-year unrestricted funding, reporting requirements proportionate to an organisation’s size, and tailored non-financial capacity building to strengthen institutional resilience.

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