The Editorial

As India’s social sector grows in ambition and complexity, so too must the ways in which it is financed. The funding landscape is expanding, with social sector funding growing at a healthy 13% compound annual growth rate (CAGR) over the past five years (Bain–Dasra Philanthropy Report, 2025). More companies are coming under the CSR mandate, family offices are multiplying, individual philanthropy is on the rise, and an increasingly engaged Indian diaspora is contributing not only capital but also expertise and networks. These shifts point to a rapidly growing pool of resources. Yet beneath this encouraging picture lies a harsh reality. Nearly three in four nonprofits cite funding as a primary challenge to their effectiveness and sustainability, while 91% operate with annual budgets below ₹10 crore. Even more concerning, only 22% have a corpus, and 76% face persistent constraints in talent, governance, technology, and leadership. 

Alongside traditional funding, newer financing models such as blended finance, outcomes-based funding, the Social Stock Exchange, and others are opening fresh possibilities for the sector. Yet these opportunities also place new demands on organisations. Access to capital increasingly depends on readiness, requiring stronger governance, robust evidence systems, financial discipline, organisational resilience, and the ability to collaborate across stakeholders.

This edition explores how newer channels of capital and financing models could reshape the social sector ecosystem. Our Cover Story by Abha Thorat-Shah invites leaders to rethink innovative finance not as a fundraising shortcut, but as a strategic exercise in matching the right capital to the right problem. In the Guest Column, Archana and Amit Chandra reinforces that institutional strength, rather than just funding, determines whether organisations can effectively absorb and deploy emerging forms of capital. ILSS Conversation with Sheena Gandhi demystifies the Social Stock Exchange, one of India’s newest fundraising pathways, while highlighting the importance of transparency, collaboration, and long-term institution building. In ILSS Tips, Ritu Jain and Ravi Bagaria unpack the concept of true cost funding, arguing that sustainable impact depends not only on well-funded programs, but also on investing in leadership, systems, technology, and organisational resilience. Another Guest Column by Alex Counts and Shoba Viswanathan explores how Indian nonprofits can engage a rapidly evolving diaspora community by building trust and cultivating enduring relationships across generations.

We hope this edition expands the imagination of fundraisers and sector leaders, encouraging them to explore emerging financing models with curiosity, collaboration, and the institutional readiness needed to translate capital into lasting impact.