Danamojo

With an experience of 10 years within the NGO sector Dhaval Udani has
interacted with hundreds of NGOs and practically all the major
intermediaries/aggregators. He hopes his relations with them will help this
enterprise to grow; his deep understanding of products, technology and payments
will help build the platform that will provide a delightful experience to the
donors and NGOs; and having been the CEO of an organization for four years will
help bring an understanding of strategy and management to the organization.

He forms this productive partnership with Rahul Moosad who plans to utilise his experience and in client
relations and client servicing for 10,000 NGOs that Danamojo has put forth as
their goal but while doing so provide them with the best possible experience.

Rahul Masood
Dhaval Udani

How productive will this partnership prove? Read on to find out-
The inspiration to start DM

Dhaval –
 “We believe that the NGOs
working directly with the underprivileged sections of society have the most
inspiring stories of human achievement and social transformation. These stories
are key to inspire retail individual donors, engage them and retain them to
increase their giving over time. Retail donors, indeed, are key to an
organization’s success, not only in fundraising but in achieving social change
by impacting the hearts and minds of hundreds, thousands, millions and
billions!
The most efficient and convenient for retail donors to give is online
through a payment gateway. Yet we have observed that NGOs face tremendous
obstacles in getting a payment gateway from payment aggregators and banks. Even
if they get a payment gateway they have to pay a premium to other merchants as
they are classified as “high-risk”. In addition, they struggle technologically
to integrate (which is an additional cost as well) and manage the same in full
compliance with the law. We strongly believe that non-profits must have access
to the same set of payment options to collect donations as a for-profit has to
maximise revenues. We found it unfair that this was not the case. Indeed it is
imperative to provide this superlative experience to today’s customer to build
a loyal supporter base over time.
What are some things you considered that you feel
all start ups should consider before launching?

Dhaval “So we did a few things that
could be useful for others before starting out:
Knowledge of the Market
Having been associated in this sector for more than 10 years helped us since we
had a basic understanding of the needs of the market, the difficulties it faced
and what solution could possibly be of value. However this was our belief and
at best anecdotal. Thus the market survey was important to validate the same.
Market Research – We did primary market
research by meeting about 50 NGOs across key urban cities of Mumbai, Delhi and
Bangalore and a secondary research through a survey where we got responses from
600+ NGOs. We spoke with people who headed intermediary organizations and thus
were in contact with hundreds of NGOs. This helped us identify not only the
need of the product but also helped us further refine the products that it
should have.
Business Model – We built a business
model to determine the viability of the plan and to understand the scale of
investments required, payback period and return that can be expected.
Finding your initial employees/co-founders – I
think this is critical. Because no matter how small one’s venture is and how
one estimates the quantum of work, very soon one realizes that the work
required is much more. Also it’s a great way to brainstorm ideas.  So I think the best decision anyone can make
is bringing a person on-board right at the beginning. I am happy that I found
someone like Rahul to come on board as we started out. It is imperative for a
Founder to build a team such that everything that he or she is going can be
done by someone else. That way you will be able to focus on the more important
things that need to be done.
Scalable – I think in a country as large
as India, it is important to build something that is scalable if you want to
make a big impact. Thus it is important you think of scale as you start out and
build it into everything you do – the product, the people and the processes.
For example we want to build a platform that will eventually have 10,000 NGOs. While
this may seem very large given that the biggest platforms in India today will
be barely 200 NGOs, it’s yet only 1% of the NGO ecosystem. So while we have a
long way to go, we also will yet be very small in the larger scheme of things.”
How will you ensure that is something an NGO
should opt for?

Rahul “We are
ensuring that if NGOs didn’t opt for a payment gateway as the process was
compliacted, that is no longer the reason that stops them.
Registration – Registration forms are
extremely user-friendly providing suggestions for each answer, tool tips for
each entry to help NGOs fill the correct data, validations which prevent them
from filling the wrong data and created best practice presentations.
Integration – We are assisting NGOs
with the integration and in fact even doing it for them when they can’t do it
themselves.
Fundraising – NGOs will be
encouraged to NGOs get funds, by sending mailers their supporters about their
work and thus receive donations. We will in time provide more tools and training
on this front.”
How have you planned to make it sustainable?
Dhaval “We
retain 4.9% (+ service tax) on every donation that is made through our
platform. However we charge no setup fees, integration fees or annual
maintenance fees. And this is due to one of our core beliefs that we should be
truly adding value in the system and all our incentives should be linked to the
same. So when we link our revenue to the donations flowing through the system
and nothing else (from the NGO), we are clearly focused on ensuring that we
work in all possible ways to increase the amount of donations by enabling NGOs
with the right tools and processes.”
Do you think NGOs in India are sustainable? If
yes, what do you think are the factors? if no, why do you think so & what
are your suggestions/solutions?

Rahul “I
believe NGOs in India are sustainable, however their reach is limited due to
shortage of funds. The NGOs are able to do the amazing work currently purely
due to the determination of their founders who have the passion and will, to
make a difference to lives of the underprivileged. However to improve their
reach and help many more, I believe they need to work towards increasing their
funding and also use technology to their advantage, this will help them reduce
costs and improve their efficiency”
Dhaval “I
fundamentally believe that all NGOs are systemically sustainable but internally
unsustainable. Let me explain these 2 terms – If you see the value that an NGO
adds to society by providing education, skilling a youth or providing eyesight
through the increase value that such beneficiaries add to society through
increased wages, increased output, you will certainly find the work that an NGO
does to be sustainable for the value that it adds to society. However if you
only look at this from the internal books of the NGO it can never be
sustainable – for example how do you find sustainability in educating the
poorest of the poor tribal children in Bastar, or providing quality healthcare
in rural Jharkhand or water to parched lands of poor farmers in Maharashtra.
However if you think about lifetime earning of such a child, ability to work of
people after receiving good treatment and benefit to families of farmers and
the nation on account of better agriculture production, you will certainly find
sustainability.
However there is a category of NGOs that can be sustainable and should
strive to do so – these are the various intermediaries which provide services
to NGOs. I think the value and import of their services can only be judged if
NGOs are willing to pay for them. If they are not, then they must truly
question what it is they provide and if it has benefit to society if the people
for whom the benefit is meant are not interested. There are many ways to do
this, but for that a mindset shift from short-term grants to long-term
revenue-based sustainability is important. Everything else is easy.”

For more details on our Capacity Building Programs do write in to connect@capindia.in
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