Social Purpose Organizations (SPOs), especially small and mid-sized ones, face persistent challenges in achieving high standards of governance and accountability. Limited resources, insufficient governance training, and complex regulatory requirements often redirect their focus from core missions to administrative compliance. Recognizing this gap, the Indian School of Development Management (ISDM), supported by the Ford Foundation, has launched an initiative on Catalysing Good Governance & Accountability Systems. Anchored in the context of social sector priorities, challenges, and opportunities, this initiative aims to:
Phase 1: Needs Assessment Study
Need assessment to understand the perspectives, challenges, enablers and priorities of key stakeholders to anchor the solution in their needs
Phase 2: Solution approaches for capacity development
Phase 3: Pilot and Scaling
Pilot the solution approaches and make them ready for scale
Details on Phase 1 Needs Assessment Study - Towards Accountability and Resilience - The initiative’s first phase involved a comprehensive needs assessment report titled Towards Accountability and Resilience, undertaken by ISDM with NAVGRAAM Development Consulting LLP. This study, based on surveys conducted and insights from interviews with SPO leaders and compliance experts involving over 234 SPOs , revealed key challenges and gaps within the sector:
The Decoding Good Governance report also identified promising practices among larger SPOs, which are more likely to implement strong internal controls, regular audits, and compliance management software. These practices foster greater accountability and stakeholder trust. However, smaller SPOs often lack the budgets and workforce to adopt similar measures, highlighting the need for targeted capacity-building initiatives.
Recommendations emerging from the study - Based on Decoding Good Governance, the initiative has proposed targeted recommendations for stakeholders:
Ecosystem Enablers:
Facilitate knowledge-sharing, organize workshops, and promote simplified reporting standards to ease governance burdens.