The new approach in fundraising and carrying out development programs

However, there is still a local NGO that has found its way when step by step asserts its position and grows stronger.

Declining in foreign aids and challenges

Vietnam has recently become a middle-income country, which means that developed countries and international organizations has begun to change supporting policies in Vietnam. For example, cutting off Official Development Assistance (ODA) and ODA grant, raising interest rates on concessional loans, curtailing activities or even closing their representative offices in Vietnam.

Vietnam has become a middle-income country leading to a decline in non-governmental assistance

According to the statistics of Working Committee on foreign non-governmental organizations (directly under the government), the total value of foreign non-governmental aids after peaking in 2014 with 304.5 million USD / year decreased to 286.8 million USD / year in 2018. Along with the decline of sponsorship value, in 2018 alone, 17 foreign NGOs stopped operating, although there were still new organizations registered to operate. Vietnam has become a middle-income country leading to a decline in non-governmental assistance.

Align with international organizations ceasing operations and cutting funding, local non-governmental organizations are also affected. Many organizations have to narrow their operations or even stop because they do not receive funding from international organizations. This is a huge challenge for local NGOs to maintain their operations as raising funds is not an easy task. Fundraising is generally difficult, and fundraising in Vietnam is even more difficult due to the fact that people do not have the habit of donate money for organizations to implement development programs.

Meanwhile, Vietnam is just a low middle-income country. In 2019, per capita income of Vietnam reached $ 2,800 / year but still lower than the world average of about $ 8,000.

Vietnam still faces many risks and challenges in the development process. Immediate risks include the high rate of poor households, the gap between rich and poor, disparities in development levels among regions, impacts of climate change and natural disasters, environmental pollution, or longer-term risks such as failing to overcome the middle income trap, population aging when the economy is not really developed ("getting old before getting rich"), unsustainable development, etc.

The new approach

As aforementioned, fundraising in Vietnam, especially crowd-funding is not easy for NGOs. The reason is not only people’s low income, but also their uncommon habit of giving away. Although this habit is steadily changing, it is still challenging for people donating money willingly to NGOs in order to implement development programs.

Fundraising from businesses is also not easy. Many businesses are concerned about social responsibility and have a budget for charity - humanitarian activities but are not ready to fund NGOs to conduct social activities in a methodical and professional way.

Fundraising from individuals and businesses is a new direction for NGOs, but requires the ability to mobilize resources.

The first reason is the dedication, aspiration and prestige of the founders of the organization. That passion and desire expressed through a clear vision and mission, which is comprehensive improvement of the stature, physical and mental health of Vietnamese children - for a mighty Vietnam in the future. In order to realize that vision and mission in a methodical and professional way - rather than a spontaneous charity - this organization has been set up in the form of charitable - social and non-profit organization under the license of Ministry of Home Affairs in 2014 as an independent legal entity. This is especially important because many businesses and some press agencies also set up charities, but these are not independent legal entities and act as corporate departments. Because it is licensed to operate as an independent legal entity, its fundraising activities are not restricted. In the face of such challenges, a non-governmental organization has found its own way of raising funds and attracting resources to implement social security and community development programs. By this particular approach, this organization has not only mobilized the participation of individuals but also organizations and businesses.

Next comes the expertise of the organization’s operators. These are all senior people working in domestic and international non-governmental organizations. Therefore, although it is a young organization, its programs, projects and activities are not immature at all.

With the enthusiasm and prestige of the founders plus the expertise of the organization’s operators expressed through programs and projects that are designed and implemented methodically and professionally, many individuals and businesses have been "convinced" and decided to accompany with the activities of the organization. Of course, this is a mutually beneficial relationship, but more important, towards the needs of disadvantaged individuals and communities in society.

By the end of 2019, the organization has received funding from 44 businesses and tens of thousands of individuals. The amount of money and objects has raised and disbursed up to hundreds of billion Dong, of which the scholarship awarded to excellent students nationwide is more than 74 billion Dong. The big and long-term projects that this organization has done and get noticed are the Project "For Mother and Baby - for Vietnamese stature" (implemented since 2017), and the Student Support Initiative - DynaGen Initiative (implemented in 2019). With the project "For mother and baby - for Vietnamese stature", nearly 10,000 people have benefited after 3 years of implementation.

"Good reputations spread", many businesses and organizations have actively sought to cooperate with this organization, including international organizations. Up to now, the organization has had formal cooperation relationship with three international organizations, including receiving grants or consulting fees from these organizations to implement activities.

As a typical example of a successful model in attracting businesses to implement social activities (both sponsors and beneficiaries), this organization has been invited to share experiences at a training workshop on child rights in business principles organized by Save the Children and MSD Vietnam on December 23rd 2019.

Previously, this organization was named as Asia's best non-profit organization in 2019 by the Asia Philanthropy Awards (APA) and many other domestic and international awards. Not only that, representatives of the organization were also invited to participate in the Social Service Leadership Exchange Program (SSLEP) in Singapore in 2018 with other representatives from 10 countries. 

And the organization we are talking about here is For Vietnamese Stature Foundation!

Source: Gia Dinh & Phap Luat Newspaper