Evolution of a Diaspora Foundation

1
Evolution of a Diaspora Foundation May 2008

2
Overview

• AIFs mission is to accelerate social and
  economic change in India
• AIF is the largest collective platform for
  Diaspora-led philanthropy focused on India
• Since its inception in 2001, AIF has directly
  touched nearly 1 million lives in India through
  grant making and various programs
• AIF demonstrates the value of collective
  philanthropy (providing an outlet through which
  individuals and corporations can channel their
  donor dollars) and strategic philanthropy
  (systematically addressing social and economic
  development issues).

3
On the Ground in India
Livelihoods Increasing livelihood security and
options among marginalized workers
Disaster Rehabilitation Special grants made
following major national disasters
Public Health Improving the health and survival
of women and children
Education Increasing access to quality elementary
education
GRANTMAK I NG
PROGRAMS
Digital Equalizer Increasing effectiveness of
education by using computers and Internet in the
classroom
Service Corps Enhancing the capacity of Indian
NGOs through placement of skilled and experienced
volunteers
4
Operational Strategy

• Invest in high quality organizations
• Demonstrate innovative, scalable models
• Develop public-private funding partnerships
• Share best practices across geographies

5
Catalyzing Change
By using a strategic approach in its grantmaking
and programs, AIF has built successful models to
accelerate social and economic change. Sustained
and nurtured by AIFs public-private
partnerships, these models have grown from small
pilot investments to a scale where they
demonstrate the potential for transformational
change in society.
6
Genesis and Initial years

• Credibility Transfer is critical
• Startup requires credibility who buys into this
  idea to help coalesce
• Credibility on both sides
• US Side - Board and Trustees, Advisory Council,
  Chapters
• India Side India Advisory Group, Top-notch NGO
  Partners
• Build, Cultivate, Nurture

7
Building A Diverse Coalition of US Donors

• Largest non-endowed US-based organization for
  impacting Indias development
• Nationwide platform, with offices in New York
  City and Silicon Valley as well as volunteer-led
  chapters in major metropolitan areas
• Also reaches out to non-Indian individual
  supporters and corporations with a deep interest
  in Indias development
• Engaging a growing base of second generation
  Indian Americans through Young Professionals and
  Junior Clubs (middle to high school students)

8
AIF Leadership

• AIFs Board of Directors, Council of Trustees and
  Advisory Council are a powerful blend of leaders
  from India and the US.
• President Bill Clinton serves as Honorary Chair
  of Council of Trustees
• Prof. Amartya Sen, Nobel Laureate serves as Chair
  of US Advisory Council
• Rajat Gupta, Senior Partner Emeritus, McKinsey
  Co., and Victor Menezes, Retired Senior Vice
  President, Citigroup chair AIFs Board of
  Directors
• AIF Executive Leadership has a vast range of
  leadership experience in the private and
  non-profit sector
• AIF has a full-time professional staff across
  offices in New York, Silicon Valley, Delhi and
  Bangalore

9
AIF Differentiators

• Professional staff in India
• Strategic Approach
• Low overheads
• Transparent and Accountable
• Secular
• Nationwide presence in India and US

10
Serving Diaspora Communities

• Establishing a trusted bridge
• Enabling environment for giving
• Credible alternate to religious
• giving and/or narrow geographic
• giving
• Secular approach

11
Serving Countries of Origin

• To spotlight issue of most disadvantaged
• Bring to bear effective and innovative solutions
• Leveraging government support and resources in
  three areas
• Universalizing elementary education
• Increasing access to primary health care
• Draw multiple stakeholders to build effective
  solutions
• Policy shift and thereby enhance impact

12
Challenges

• Trade off in the pursuit of a credible platform
• - Challenge of engaging vast numbers v/s HNWIs
  low hanging fruits
• Super High Net Worth Individuals
• - Focused on private giving and do not wish to
  participate on common platform
• Intimidating cost of engaging people down the
  pyramid
• - Difficult to reach those reasonably affluent
  but not very wealthy
• Physical metaphorical distance between
  end-beneficiary giver
• - To effectively engage long term supporters,
  they actually need to see the work and
  directly interact with the beneficiaries.
  Distance between ultimate beneficiaries and
  giver. (As opposed to neighborhood giving that
  is most visible)

13
Improved facilitation of Diaspora philanthropy

• Build a large enough critical mass of givers and
  derive freedom from the influence of very large
  donors. (which most times comes with strings
  attached)
• More freedom to do the right thing. Helps move
  away from narrow agenda of big givers.
• Greater engagement of corporate sector. Tap into
  global investment in India and make philanthropy
  integral to business strategy
• The influence of the Diaspora on the
  establishment in India is disproportionate to the
  numbers. Better harness this power.