India, Sept. 24 -- India's economic ecosystem has matured considerably over the past two decades, particularly in its support for enterprise-led growth. Consider the micro, small, and medium enterprises (MSME) sector: There are over 63 million registered enterprises, employing more than 250 million people, gaining from targeted incentives, working capital access, and formalised institutional support. This structured approach has enabled scale, resilience, and innovation. India's non-profit sector holds similar potential. With over 3.9 lakh registered NGOs, many complement public systems and service delivery. These NGOs are partnering on flagship government programmes such as the Swachh Bharat Mission and Right to Education, among others. Their adaptive, frugal models bridge last-mile delivery gaps effectively at low costs. Yet, most function with constrained institutional capital and short-term funding cycles, making long-term planning and organisational development difficult. Many organisations work in critical sectors such as early childhood care and education (17%), health and nutrition (9%), rural development (11%), or livelihoods and skilling (8%), among others. They often work in close proximity to underserved communities, and their role in implementation is substantial and growing. Yet, capital support has not kept pace. According to the India Nonprofit Report (INR) 2025 by Dasra and Kearney, a survey of 400 NGOs revealed 91% operate on annual budgets below Rs.10 crore, similar to micro enterprises in the private sector. However, over 70% reported funding deficits based on their annual budgets, and only one in five has a reserve corpus. Smaller organisations, most proximate to marginalised communities, are especially vulnerable to underfunding. India's policy support for MSMEs offers a useful parallel. Credit guarantees, collateral-free loans, and skilling schemes have unlocked scale and resilience in the sector. Recent reforms, including Budget FY26's increased investment and turnover limits, signal long-term commitment and a recognition of the sector's structural needs. Given the demonstrated success of such an approach for MSMEs, a similar opportunity exists for the non-profit sector to achieve greater scale and resilience. Based on the INR 2025 survey, non-profit organisations working within a range of Rs.1-10 crore of funding are largely reliant on government grants, corporate giving, and family philanthropy. The Centre is building supportive infrastructure, such as the Social Stock Exchange and the NGO Darpan portal, to multiply avenues for domestic capital to engage with India's non-profit ecosystem. This showcases investor confidence in the sector's capabilities. While current funding remains predominantly short-term and project-based, there is a growing scope to strengthen institutional resilience through patient, flexible capital. Just as with MSMEs, an ecosystem approach, combining financial instruments with capacity-building, can enable non-profits to invest in infrastructure, leadership, and innovation. To enable meaningful impact, funders must adopt a catalytic role - moving beyond short-term, project-based funding toward investments that build institutional strength. This means supporting not just the programmatic work of non-profits, but also the foundational capacities that allow them to deliver impact at scale. Such support includes leadership development, strengthening core operations, and investing in systems such as data, digital infrastructure, and talent. It also involves enhancing fundraising capabilities to help non-profits access more diverse capital and investing in narrative-building efforts that benefit the broader ecosystem. Crucially, this kind of support needs to be tailored to the specific needs and issue areas that non-profits work in - capacity building for a non-profit working in mental health may differ from what a climate or education-focused organisation needs. Ultimately, catalytic funding is about providing flexible, multi-year, trust-based support that gives non-profits the room to plan, adapt, and grow with resilience. Family philanthropists are uniquely positioned to lead this shift. With fewer constraints, they have the autonomy to make bold bets, support underfunded causes, geographies and communities, and invest in long-term capacity. MacKenzie Scott's giving offers a compelling example. In just five years, she has provided over $19 billion in unrestricted funding to more than 2,000 organisations. These grants helped recipients more than double their corpus reserves and invest in strengthening back-end systems, retaining talent, and expanding programmes often into new geographies and populations. Non-profit leaders also reported increased confidence, reduced burnout, and improved innovation. Her approach illustrates that when non-profits have the flexibility to direct funding where it's most needed, they gain the agility to deepen their work, adapt to shifting needs, and expand reach. A few Indian philanthropists are beginning to adopt this approach, prioritising open dialogue with non-profits and treating them as equal partners in the pursuit of long-term impact. This shift is reflected in the work of families like Rati and Riah Forbes, and Rohini Nilekani, among others, who are championing a more collaborative, long-term, and trust-based model of giving. As India moves toward the Viksit Bharat goal, non-profits will be critical to ensuring that growth is inclusive, equitable, and sustainable. Like India Inc., which has positioned the country as a global business leader, Indian NGOs are building locally rooted solutions with the potential to serve as blueprints across the world. Unlocking this potential calls for philanthropy to go beyond funding programmes and begin enabling institutions. It will take collaborative action across governments, donors, and NGOs to build a strong ecosystem, foster transparency, and ensure meaningful contributions to SDG betterment. Investing in non-profit resilience isn't just good strategy, it's integral to shaping a more just and thriving India....