July 22, 2024

A.T.E. Chandra Foundation

A.T.E. Chandra Foundation, a domestic philanthropy, is just one of the funders profiled in Funder Practices that Strengthen Nonprofits' Resilience: Lessons from India, which describes five pay-what-it-takes principles and profiles funders that are implementing them.

A.T.E. Chandra Foundation logo

Organisation type: 
Domestic Philanthropy

Annual budget: 
Rs 10–50 crore
Year established: 
2015
Team size: 
10–19

Mission:
A.T.E. Chandra Foundation (ATECF) aims to transform the lives of historically marginalised people by investing in rural development projects and building the capacities of social-sector organisations to sustainably scale their impact.

Investment Philosophy

Investment Philosophy

ATECF’s grantmaking principles stem from its leadership’s focus on making catalytic investments that are instrumental in driving sustainable social impact at scale. The foundation invests in research on underserved issues in the sector and develops solutions to fulfill unmet needs. It places an intentional focus on measuring the effectiveness of those solutions and sharing their learning with critical stakeholders. ATECF partners with government and other donors to scale the impact of the solutions it develops as well as to influence other critical stakeholders (such as policy makers and think tanks) to embrace evidence-based decision making.

With a common theme of making high-impact investments, the foundation engages in philanthropic grantmaking in the following distinct ways:

  • Sustainable Rural Development. Over the years, ATECF has identified specific niches in rural development, where it works in partnership with government and nonprofits. Currently, its focus is on rejuvenating water sources to ensure water security in drought-prone regions and advocating for natural farming practices. 
  • Capacity Building. ATECF focuses on building social-sector capacity at three levels: individuals, organisations, and ecosystems. It believes that investing in people and in organisations’ core functions results in a high social return on investment.
    • It supports learning and development programs that build the leadership capabilities of nonprofit founders and senior leadership, middle management, and other domain heads (such as fundraising and communications) — enabling them to build efficient and effective organisations.
    • At the organisational level, it has set up a capacity-building Centre of Excellence program (CoE), where it funds a selected set of nonprofits. The key objective of the CoE is to build evidence of the benefits of supporting organisational development (OD) and make the case to other funders.
    • At an ecosystem level, it identifies white spaces and creates solutions to help make the sector more efficient or effective and funds relevant programs or initiatives — for example, building the retail giving platform GiveIndia and the knowledge platform India Development Review.

Pay-What-It-Takes Principles in Action

Pay-What-It-Takes Principles in Action

handshake iconDevelop multiyear funder-nonprofit partnerships

  • ATECF enters into multiyear partnerships with nonprofit partners across its portfolio.
    • For rural development, the foundation partners with governments (both union and state) and works with a set of nonprofits with strong programme implementation capabilities and community connections. ATECF defines the specific locations and projects in consultation with the government; a partner with on-ground presence and sector expertise undertakes the implementation.
    • For capacity building, ATECF provides multiyear support in different ways across its portfolio, depending on the specific goals of a given nonprofit partnership. Specifically, it commits to supporting the OD needs of a select group of nonprofits for three years as part of the CoE programme. For its investments in learning and development programmes, ATECF works with established nonprofit partners and starts with one-year grants.
    • For investments in ecosystem building projects, it works with partners on building solutions and starts with one-year grants. It follows with multiyear support for two to three years to help the partner fine-tune and sustain the solutions.

fair share icon

Pay a fair share of core costs

  • ATECF aims to support nonprofits to achieve their impact and outcome goals in a cost-effective manner. Its approach to covering core costs varies across its programme areas.
    • For rural development, the foundation has fine-tuned its programme design over the years in partnership with the government and nonprofits. It provides proportionate core costs based on standardised programme designs.
    • Under its learning and development programmes and ecosystem projects for capacity building, the foundation helps partners estimate costs and then provides “all in” project funding. This approach provides nonprofit partners flexibility to allocate core costs according to their needs.

organisational development icon

Invest in organisational development

  • Under the CoE programme, ATECF supports a cohort of nonprofit partners to build their OD capabilities in six core areas: leadership, organisation strategy, monitoring and evaluation, fundraising, communication, and human resources. Each grant under this programme also includes a component to cover the additional costs of documenting and tracking the nonprofit’s progress on its OD initiatives.
  • ATECF has identified the need for more intermediary organisations to help nonprofits with learning and development. Hence, it funds intermediary organisations to develop and offer OD programmes to nonprofits. It also supports programmes focused on non-English-speaking nonprofit leaders, aspiring to break down the language barrier that can affect their OD and hence their impact potential.

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Build financial resilience

  • The foundation encourages nonprofits to diversify funding sources and supports fundraising initiatives through matching grants and by supporting giving platforms such as GiveIndia.
  • It encourages nonprofit partners to focus on financial resilience from the outset by engaging in detailed conversations about finance and budgeting.
  • If sought by a donor, ATECF will refer partner nonprofits to a peer, thus helping partner nonprofits diversify their funder base.

Pay-What-It-Takes Journey So Far

Pay-What-It-Takes Journey So Far

ATECF’s founders’ background as entrepreneurs and investors contributed to its focus on long-term, sustainable impact. By working closely with nonprofit partners, ATECF has been able to better understand and support the unmet needs of the communities it serves as well as the social-sector ecosystem. This approach has also advanced the foundation’s goal of playing a catalytic role in strengthening the social sector.

ATECF has focused on multiyear partnerships and targeted OD support since inception, driven by the founders’ desire to achieve a high social return on investment and contribute to a stronger social sector. The foundation identified OD as an underfunded, high-impact opportunity that aligned with its strengths and impact vision.

To this end, ATECF strives to help its nonprofit partners address their pain points. For example, partner nonprofits often do not have a well-defined, long-term plan or a list of OD priorities, making engaging in multiyear partnerships and providing OD support challenging. ATECF encourages its nonprofit partners to take a longer-term view of their programmes and engages with them to collaboratively prioritise OD needs and identify potential ways to build the necessary capabilities. The foundation also gathers evidence in support of OD investments and helps to make the case for more funding to be directed towards strengthening nonprofit capabilities.

Long-term partnerships give their nonprofit partners a sense of security and flexibility, allowing for heightened focus on strengthening organisational capabilities and enhancing the quality and effectiveness of their work. Additionally, OD support has helped nonprofit partners build the capacities needed to partner with additional stakeholders to advance their work.

Looking ahead, ATECF is interested in providing more multiyear funding aligned with its focus on building nonprofit partner capacities. It also intends to embed diversity, equity, and inclusion within its learning and development programmes to account for regional, linguistic, and other forms of diversity and extend support to a wider set of nonprofits.

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