Today, humanity exists in an interconnected globe with severe collective problems such as climate change or poverty/inequalities. The United Nations established the Sustainable Development Goals (SDGs) as a reference to address such conflicts and give better lives for people in all areas of our planet. Their main aim is to tackle these challenges along with others to make the world more sustainable for future generations. But what exactly are these SDGs, and what benefit can we or the environment get from them? Well, here we will discuss the same and cover their aim, objectives, importance, and more.

Sustainable Development Goals Meaning

There are 17 goals defined in SDGs and they are focused on the sustainable development of our future generations. These are designed explicitly for poverty eradication, environmental protection, and the promotion of our well-being. The SDGs meaning is no longer confined with terms like goals- they have been taken as a blueprint for sustainable development that lasts.

The Evolution of SDGs from MDGs

MDGs, formed in 2000, were focused on reducing poverty, mortality and lack of education in developing nations. MDGs were successful to an extent. However, there were some issues related to the way they were implemented. Later on, in 2015, SDGs came into action with motivation similar to that of MDGs. This sustainable development project is more inclusive as it embraces both developing and developed countries. The SDGs were created with the conviction that every nation will have to participate in the achieving of these goals thus leading toward sustainable development.

Key Differences Among MDGs and SDGs

Even though it is easy to assume that SDGs are similar to MDGs, which is to some extent true, however they both are somewhat different in some factors. These are:

• MDGs were meant for more developing countries and contained individual problems focused on poverty, hunger and health. SDGs are more wholesome and focus on both developing countries as well as sustainable management.
• MDGs consisted of 8 goals; SDGs increased to 17 goals, including more factors.
• MDGs were focused on poverty, education, and health. Besides these topics, SDGs also promote equality, climate change, gender equality, and more.

Overview of the 17 SDGs

The SDGs are grouped into three broad categories: Social, Environmental, and Economic Goals. As mentioned, there are 17 SDGs, and they are:

1. No Poverty: Complete eradication of poverty in all of its forms everywhere.
2. Zero Hunger: End hunger, promote agriculture, and provide food for every person.
3. Good Health and Well-being: Ensure health and provide care for everyone regardless of their age.
4. Quality Education: Ensure quality education that is equitable and inclusive.
5. Gender Equality: Eradicate gender-based discrimination and empower all women.
6. Clean Water and Sanitation: Ensure and develop appropriate water supply and waste disposal systems.
7. Affordable and Clean Energy: Provide access to affordable, reliable and modern energy.
8. Decent Work and Economic Growth: Provide constant and inclusive enhancement of economic activities.
9. Industry, Innovation, and Infrastructure: Develop resilient infrastructure and enhance creativity.
10. Reduced Inequalities: Further decrease and eradicate the inequalities that exist.
11. Sustainable Cities and Communities: Develop cities and communities that are inclusive, safe, resilient and sustainable.
12. Responsible Consumption and Production: Promote patterns of consumption and production that are sustainable.
13. Climate Action: Make urgent efforts to combat climate change and its effects.
14. Life Below Water: Protect and manage the oceans, seas, and marine resources.
15. Life on Land: Conserve and promote the sustainable use of land-based ecosystems.
16. Peace, Justice, and Strong Institutions: Support the achievement of peaceful and constructive solid societies.
17. Partnerships for the Goals: Revamp and strengthen global partnerships for sustainable development.

Why Are SDGs Important?

SDGs are essential to build a better future. Following are the reasons that make these important:

• Extend to creating a universal response to various issues being faced.
• A balance among the environment, society, and economy is created.
• Upon achieving these goals, natural resources are sustained.
• Eradicate poverty along with promoting development.

Conclusion

SDGs are more than just the goals to be achieved; they are the means to make a sustainable and peaceful future. These goals cover the issues that are highly faced in both developing and developed countries as well. If these are achieved, then the coming generations will not only coexist with nature but will flourish.

Tias Dutta, Geeta Tiwari | Published: 23 October, 2024

Outcome-based Financing (OBF) is a promising funding model for Nonprofits. It promotes transparency, accountability, and a focus on long-term outcomes. CIFSI’s latest report Navigating Outcomes- Based Financing in India: Perceptions of the Not-for-Profits Outcome-Based Financing (OBF), finds out the gaining popularity of OBF for funding, with organisations appreciating OBF benefits for NPOs more than its associated risks and market challenges.

71 NPOs across India in diverse sectors were surveyed to understand how they view OBF as a funding tool. They were presented with a mix of typical risks, benefits and challenges in Outcome-Based financing, and their responses were measured on a Likert scale to arrive at actionable trends.

A Positive Outlook on OBF

An impressive 83% of nonprofits are enthusiastic about OBF's potential, viewing it as a promising alternative nonprofit funding model to traditional funding. According to the data, nonprofits rate the benefits of OBF at an average of 3.6, compared to a lower rating of 2.6 for potential risks and 3.0 for market-level challenges in Outcome-Based Financing.

Enhancing Accountability and Transparency

Nonprofits appreciate OBF as a tool to diversify non-profit funding strategies and as a mechanism to strengthen their operational practices for driving accountability, evidence-based decision-making, and transparency. Benefits such as "showcasing validated evidence," "better measurement of outcomes," and "stronger data systems for tracking impact" were rated high. Interestingly, “lack of trust in third-party/external evaluation", often perceived as a risk, has been rated low, highlighting nonprofits' openness to external assessments and commitment to accountability.

The Challenge of Flexibility

While OBF for funding theoretically offers greater flexibility in fund usage and project implementation than traditional funding models, this benefit appears less important to nonprofits. “Flexibility in fund usage" and "innovation and flexibility in service delivery" received lower ratings as benefits. This suggests that while non-profits recognise the theoretical advantages of OBF, other benefits, such as accountability and transparency, currently hold more relevance.

Financial Concerns Remain

Despite the advantages, financial concerns are common among NPOs of various sizes. They commonly perceive risks such as "inadequate working capital" and the "risk of funding being stopped halfway if outcomes are not achieved" as significant challenges in Outcome Based Financing. OBF models like Development Impact Bonds (DIBs) are designed to address these risks by involving risk investors who provide initial capital with reimbursement based on achieved outcomes. This highlights the need for increased awareness and education about how OBF instruments can mitigate financial risks.

The Need for Impact Standardisation

Another key challenge identified is the lack of impact standardisation. This contrasts with our previous observations where nonprofits hesitated about standardising impact due to sector complexities. This change in perception over time underscores the importance of engaging all stakeholders, particularly nonprofits, to understand their perspectives on impact standardisation and develop effective frameworks and metrics. Most nonprofits face challenges in measuring their impact effectively, which reduces their confidence in OBF for funding. As a result, defining outcomes becomes particularly challenging when projects are in their early stages. A shared understanding of impact indicators and baseline metrics is needed to address this, alongside increased collaboration to establish standardised frameworks.

Moving Forward

The positive reception of OBF among nonprofits underscores its potential to transform funding practices and enhance non-profit funding strategies and practices. By addressing financial concerns, improving awareness on OBF instruments, and exploring solutions for impact standardisation, the sector can better leverage OBF to drive positive social outcomes. As NPOs continue to navigate these challenges, the insights gained from recent studies will be crucial in shaping the future of OBF and its role in the nonprofit landscape.