Limited investment in capacity building undermines sustainability. Under-investment in overheads limits providers ability to build capacity and ensure that programs are effective in the long run. Social sector funding is often heavily geared towards projects and without adequate allowances for overheads and other non-project costs that contribute to their success. As a result, they lack adequate systems for finance, HR, training, and managing resources and capabilities.
Social Finance India recognizes that delivering to outcomes, rather than inputs or even outputs, is a fundamentally different approach which has significant implications on funding, and management and delivery practices of organizations
For service providers with limited previous exposure to outcomes-based financing, this shift is likely to require a substantial commitment by the trustees, executive and management teams
Social Finance India is committed to supporting high quality providers by building their capacity to deliver to outcomes and developing the required M&E and management capabilities. This will be done through capacity building and technical assistance at various stages of the investment lifecycle.