July 22, 2024

Mahindra Group CSR

Mahindra Group CSR, a corporate social responsibility funder, 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.

Mahindra Group logo

Organisation type: 
Corporate Social Responsibility

Annual budget: 
NA
Year established: 
2005
Team size: 
NA

Mission:
Mahindra Group CSR is a diversified conglomerate that has brought its many CSR activities under a single umbrella — Rise for Good. Mahindra is committed to advancing positive change in the lives of individuals and the communities it serves and believes “only when we enable others to rise will we rise.”

Investment Philosophy

Investment Philosophy

Mahindra Group CSR aspires to improve the lives of girls and women by funding innovative programmes in education (including skill building and livelihood development) and the environment. It seeks to achieve outcomes at scale by partnering with like-minded funders and values-aligned nonprofits.

Mahindra Group believes that nonprofits are the best equipped to design programmes to meet the specific needs of the communities they serve. Hence, it takes a flexible approach to funding nonprofit partners while supporting them in becoming more effective.

Pay-What-It-Takes Principles in Action

Pay-What-It-Takes Principles in Action

handshake iconDevelop multiyear funder-nonprofit partnerships

  • Respecting the expertise of its nonprofit partners and recognising the complex nature of the social issues it aspires to solve, Mahindra Group CSR takes a multiyear approach to funding.
  • Mahindra Group CSR funds pilot projects to assess nonprofits’ ability to implement and scale programmes and build trust with them. Pilots serve as a learning, testing, and, potentially, a failure space for both Mahindra Group CSR and the nonprofits. Mahindra Group often builds long-term partnerships based on these efforts.
  • Mahindra Group CSR often enters three- to five-year partnerships (in the form of a memorandum of understanding) with nonprofits, subject to annual grant renewal in compliance with CSR law. These long-term partnerships (which span multiple funding agreements) have resulted in high-impact programmes such as Nanhi Kali, which supports the education of girls from low-income families. Though Mahindra Group CSR was established in 2005, it has been involved with philanthropy since the founding of the K.C. Mahindra Education Trust in 1953. The support of Nanhi Kali started in 1996, and the partnership continues to this day through Mahindra Group CSR.

fair share icon

Pay a fair share of core costs

  • Mahindra Group CSR believes that funding core costs enables nonprofits to deliver programmes more effectively and efficiently. It understands the challenges nonprofits face in covering core costs and the negative consequences insufficient core-cost coverage can have on achieving the desired impact.
  • Mahindra Group CSR focuses on understanding the true cost of achieving desired impact and considers the total cost of programme delivery (e.g. total cost per person trained) as an essential metric. Nonprofits can, as needed, reallocate grant funds to meet specific organisational or programmatic needs.

organisational development icon

Invest in organisational development

  • Mahindra Group CSR provides non-financial support for its nonprofit partners’ organisational development (OD) needs. Its CSR team organises workshops, provides advice, and shares knowledge of policies and processes in areas such as human resources and governance.
  • Mahindra Group CSR encourages employees to give back to communities through its Employee Social Options Programme. This programme provides nonprofits with an opportunity to take advantage of employee expertise for OD. For example, Mahindra Group teams supported the development of a digital monitoring system for Nanhi Kali, helping to streamline policies and improve programme activities.

Pay-What-It-Takes Journey So Far

Pay-What-It-Takes Journey So Far

Mahindra Group CSR has been synonymous with philanthropy since the establishment of the K.C. Mahindra Education Trust in 1953. Its group companies have pursued social activities in their own capacities ever since. As part of its 60th-year anniversary celebration in 2005, it announced its commitment of 1 percent of profit after tax towards CSR activities.

Mahindra Group CSR has found that multiyear partnerships and a flexible approach to funding lead to more effective nonprofit programmes. Its experience indicates that leaders at its nonprofit partners benefit from multiyear funding, as it frees them to spend more time on operations and programme delivery and less on fundraising. Mahindra Group CSR has also seen that long-term engagements build mutual trust while helping nonprofits establish credibility with other funders.

The partnership-focused approach has also allowed Mahindra Group CSR to monitor its nonprofit partners’ evolving needs and tailor its support accordingly. For instance, when Mahindra Group CSR learned that a nonprofit partner was incurring higher costs than originally proposed, it changed its funding structure for the project. It revised costs upwards to ensure that the grant provided the true cost (on a per‑participant basis) of programme delivery.

Mahindra Group CSR has seen many gains come from its approaches to covering costs and providing OD support. For example, supporting core costs, including non-programme staff salaries, has made it easier for nonprofit partners to attract and retain quality talent, which is critical to achieving Mahindra Group CSR’s as well as its nonprofit partners’ impact ambitions. Its employee volunteering and mentoring programme not only has allowed Mahindra Group CSR to support its nonprofit partners’ OD needs but also has boosted employee morale and benefitted the company’s public image. The CSR team also consults internal and external legal experts in case of any regulatory changes and facilitates workshops on regulatory changes and compliance for nonprofit partners.

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