Download Resource Mobilization and Co Financing

Resource Mobilization and Co Financing
Community based and local initiatives are the best way to respond to local
problems and also to make such responses community owned and sustainable.
Such initiatives can improve the quality of life of the local community and the
surest indicator of such initiatives being able to meet the community’s demand is
the ability to mobilize people and resources. Every community, even the
poorest, has resources that can be used to implement projects that respond to
local needs. The role of NGOs/CBOs is to generate awareness, facilitate and
implement relevant activities while generating local resources to support such
efforts. At the same time it is also pertinent to generate resources such as cofinance, knowledge, technology etc. from external sources.
Resource mobilization can facilitate the flow of resources from various sources
and catalyze the flow of additional resources from official and private
institutions. For projects and programs that are too large to be handled by one
funding agency, mobilizing co financing from various funding sources can help
meet these large resource requirements.
What are resources?
Resources can be in any form such as finances, technology, manpower both
skilled and labour, knowledge, information, etc.
In cash Co-financing:
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The financial contributions from communities
Grants from local authorities and governments (Panchayats, Elected
representative funds, District authorities, state government and central
government schemes)
Donations from individual to the project
Bank loans to Self Help Groups that is utilized in the project
Savings of the Self Help Groups that is utilized in the project
In kind Co-financing:
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Community’s contribution in terms of labour
In kind material donations by community and other donors, such as building
material, machinery etc.
In kind intellectual services such as know-how, monitoring, impact
assessments etc.
Space such as office space
Why do we need Local RM and Co-financing?
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Without certain human, material, financial and other resources it is
impossible for NGOs/CBOs to implement projects. In many cases these
resources come from outside the local communities from prominent donors.
While it takes more work at the outset, community contributions are a
valuable way to strengthen NGOs/CBOs activities in the community.
Local RM helps the NGO/CBO in building long term relationships with the
community
By contributing their time, money, material and/or labour the community
assumes greater ownership of the project
Builds social capital by building and strengthening social networks and
community’s willingness to help each other and the NGO/CBO’s relation
with external donors and provides better base for future initiatives
Mobilizing community resources increase sustainability of the projects
Raising resources from the community also provides greater independence
and flexibility to implement activities targeting needs that the community
finds important. It reduces chances of projects becoming donor driven
What are the Benefits of Resources Mobilization and Co financing?
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Co-financing link projects to local resources, donors, community
contributions, Government and related institutions.
Find ways to partner in specific geographical areas/sectors or with Industry
Associations, networks for resources sharing etc.
Links are established with institutions e.g. CSIR, Agriculture Universities,
State Dept., others. This helps in strengthening project initiatives.
Involvement of private sector viz. CII etc. more resource mobilization.
Linking the projects to panchayats and local offices helps in leveraging govt.
funds and support within the project and beyond
Link projects to local resources, communities, Government and related
institutions.