9 Tips to Unlock the Power of HNI/UHNI Funding

Funding from High Net Worth Individuals (HNIs) and Ultra-High Net Worth Individuals (UHNIs) has the potential to transform the landscape of domestic funding for Non-Governmental Organizations (NGOs) in India.  Philanthropy-inclined HNIs and UHNIs are looking to fuel meaningful change by joining hands with NGOs to create a more equitable and sustainable world and the available pool of funding is on the rise.

According to Knight Frank's 'The Wealth Report 2023', India is witnessing a remarkable rise in UHNI/HNIs. This increase in wealth is estimated to bring with it increase in private philanthropy.  The 'Philanthropy Report 2023' by Dasra and Bain & Company reveals a remarkable shift. Domestic private philanthropy in India has surged by 12% over the last five years, reaching a staggering $3.6 billion (INR 29,600 crore) in FY 2022, primarily driven by the increased participation of HNIs and affluent givers. In FY 2022 alone, HNIs and affluent individuals contributed INR 25,300 crore, marking an 11% increase over FY 2021. Their contributions consistently hover around 28% of the total, a notable rise from 26% in FY 2021 and 27% in FY 2017.

HNIs and UHNIs aren't just looking for places to park their wealth; they have the opinion of aligning their resources effectively with the causes they feel about so that they are able to leave a lasting impact, influence social change, and bring about a better future for generations to come. HNIs want to ensure that their contributions are making a genuine impact, they are looking to collaborate and they want to feel involved. So the responsibility falls on us as NGOs to present the synergies between our projects and their vision and to seek to build and nurture long term relationships and not just ask for money.

Following are some of the key points to keep in mind while pitching to HNIs to make a strong and compelling case:

1. State the mission and vision clearly: Clearly articulate the mission of your organisation and the overarching vision for the impact you aim to achieve. HNIs/UHNIs are always looking for initiatives that align with their values and have a measurable impact on the communities they serve.
2. Highlight expertise and track record: HNIs/UHNIs want to invest in organisations or projects that demonstrate expertise and a proven record of success in the field. Highlight your team’s qualifications and relevant experience, and successful outcomes achieved in the past to build trust and confidence in your organisation’s capacity to deliver results.
3. Showcase innovation and scalability: HNIs/UHNIs are often attracted to innovative approaches that offer scalable solutions to complex problems. Showcase how your organisation utilizes innovative strategies, technologies or partnerships to optimally use resources and achieve sustainable, scalable impact.
4. Demonstrate transparency and accountability: HNIs/UHNIs value organisations with strong governance practices and transparency in financial management. Clearly communicate your financial management practices, monitoring and evaluation processes and reporting mechanisms to ensure transparency and accountability in the use of funds and instil confidence in potential donors.
5. Showcase collaboration and partnerships: Highlight your ability to collaborate with other stakeholders including governments, NGOs and local communities. Demonstrating effective partnerships not only strengthens the impact of your work but also shows that you understand the importance of coordination and collective action. A track record of effective partnerships with governments or corporate bodies goes a long way to establish credibility for your organization
6. Offer personalised engagement opportunities: HNIs/UHNIs often seek meaningful engagement beyond just financial contributions. Provide personalise opportunities for them to actively participate, contribute their time, skills or expertise and have a hands-on role in shaping the outcomes of the projects they are funding such as mentoring programs or participating in field visits.
7. Communicate long term sustainability: HNIs and UHNIs are often interested in supporting initiatives that have long term sustainability beyond their initial funding. Clearly outline your sustainability plan, including strategies for scaling up, diversifying funding sources, building local capacities, fostering community ownership, and ensuring the long-term viability of your organisation or project. 
8. Provide measurable and compelling impact stories: Sharing impactful stories and concrete examples of how your work has positively affected individuals or communities can be highly persuasive. Use data and narratives to demonstrate how lives have been positively impacted by your organisation, making a direct emotional connection between potential donors and beneficiaries.
9. Express gratitude and recognition: Most HNI and UHNI donors appreciate being recognised for their support and generosity. Offer personalised recognition opportunities, such as mentioning their contribution in annual report, involvement in media campaigns or participating in events. Expressing gratitude and recognition opportunity is essential to build and maintain a strong and lasting relationship with your donors.

Remember, every HNI or UHNI is unique, so tailor your pitch to their specific interests and passions. By crafting a compelling narrative that encompasses these key points, you can increase your chances of securing funding from HNI donors in the development sector.