Non-governmental organizations (NGOs), communities, and other organizations play an important role in encouraging change and becoming a bridge between the community and government agencies to voice opinions and push for change. However, their movement is not easy, facing various obstacles, especially in terms of limited finances and funding, inefficient management, and projects that often exceed budget. These financial problems greatly affect the survival of organizations, with more than 50% of NGOs unable to survive due to financial problems. Therefore, management and members of the organization need to have a good financial understanding and be able to manage finances according to needs.

Responding to this challenge, Campaign.com together with Filantropi Indonesia, a social institution that shares the same values ​​and principles, initiated the Changemakers Gathering with the topic DO IT for DUIT: Strategies for Managing NGO Finances to increase understanding of the importance of financial sustainability for NGOs, organizations, and community. Through this initiative, with the principle “For A Better World,” it is hoped that participants can share knowledge, strengthen understanding, and build resources that are beneficial for all parties involved. In addition, this activity is expected to produce positive changes, improve financial management, encourage more good initiatives, and ultimately create a better world in the future. This event was attended by 43 participants who attended directly at the Anindhaloka building, Bintaro, South Jakarta City District, DKI Jakarta 12330.

Dinda Sonaloka, Program and Communication Manager of Filantropi Indonesia, stated that today’s activity discussing financial strategies and resilience is one of the main focuses of Filantropi Indonesia for the next three years. Based on research in Indonesia Philanthropy Outlook 2022, the three main sources of funding for philanthropy are individual donations, CSR funds, and membership fees. In this context, the main concern is how the institution can manage these funding sources so that if one source stops, the institution can still carry out its initiatives to help the community.

Noriko Adhyanti, Sponsorship & Partnership Manager Campaign.com, in her speech, said that this event aims to discuss financial strategies for NGOs or foundations so they can manage their finances better to create more sustainable financial conditions amidst global instability. It is hoped that this event will provide an opportunity for all participants to learn together, and share experiences and knowledge. The Campaign supports this event and hopes that this will be a useful moment for sharing and deeper understanding, as well as opening up opportunities for future collaboration.

Ahmad Fathul Aziz, Engagement Lead Campaign.com, said that Indonesia has been named the most generous country in the world for six consecutive years, showing great hope to overcome challenges together. To maintain institutional sustainability, collaboration is an important key, including exploring the potential for effective financial strategies.

The campaign initiative through the flagship collaboration program is a concrete example of this collaboration. The program combines the expertise of various organizations, such as in campaigns, to craft attractive proposals for potential sponsors and donors. This step is realized through the #ForABetterWorld Campaign application, which connects organizations with potential donors and the wider community. Through this collaboration, it is hoped that a more robust and sustainable financial strategy can be created for these institutions so that they can continue to contribute positively in solving various problems faced by society.

Novi Meyanto, Associate Director of the PLUS Foundation, added that the PLUS Foundation’s financial management strategy involves the concept of business for good, which leads to the creation of new products, services, or initiatives whose profits are reinvested into the foundation or social business. PLUS Foundation adopted two entities, namely limited companies (PT) and foundations, as a strategy to access more diverse funding sources, considering that each entity has certain limitations.

Diversification is key in this strategy. Dependence on one donor is often a challenge for NGOs or non-profit organizations. For example, nearly 50% of the PLUS Foundation’s annual revenue comes from a single donor, which creates risks when that donor changes its agenda or withdraws its investments. PLUS Foundation recognizes the importance of diversifying the number of donors and considers alternative strategies, such as selling products or services, to reduce dependence on donors.

April Sirait, Secretary of the Foundation and Head of CEO Office EcoNusa, explained that grants or donor funds are the financial backbones for NGOs. The majority, up to 90%, of the organization’s financial support comes from external sources. EcoNusa, for example, receives most of its funding from the Norwegian Government, while the rest relies on philanthropy from Australia, the United States, and several other European countries. Financial support from foreign philanthropies is significant because donors receive benefits in the form of tax deductions. This encourages them to make donations, where they can get tax breaks when helping non-profit foundations.

One of EcoNusa’s strategies is the KOBUMI initiative, which works together with communities to improve economic, food, and social security while protecting forest, coastal and marine ecosystems. The main goal of this initiative is to improve community welfare while contributing to climate change solutions in Eastern Indonesia. In this framework, the community is responsible for planting and harvesting activities, while KOBUMI handles marketing and increasing the added value of the product. This initiative has been running for two years, focusing on developing visibility for ten potential commodities in Papua and Maluku.

As a result, KOBUMI has succeeded in exporting 82 tonnes of nutmeg to the United Arab Emirates and the Netherlands, as well as selling around 1.8 tonnes of shrimp harvested by indigenous communities in forest areas whose palm oil concessions were revoked by the government. This strategy emphasizes the importance of ongoing relationships from upstream to downstream, which do not result in instant profits. EcoNusa reinvests revenues from the sale of these commodities into its programs, so that its impact can be expanded without relying on donors.

The speakers highlighted the importance of collaboration and diversification in the financial management of nonprofit organizations. Ahmad Fathul Aziz emphasized the need to explore effective financial strategies through collaboration. Novi Meyanto explains how the PLUS Foundation applies the business concept for good by diversifying its entities and financial approaches. In addition, April Sirait and EcoNusa emphasized the importance of diversifying funding sources, including philanthropic support, by providing a concrete example through the KOBUMI initiative, which combines local economic development and environmental conservation. Collaboration, diversification, and local community involvement are key elements in creating financial sustainability for nonprofit organizations.