GAP: A humanitarian initiative of Ramakrishna Mission for underprivileged children

Disclaimer:

This case is prepared by Dr. Jyotirmoy Dalal (IIM Lucknow) and Dr. Vinay Ramani (IIM Visakhapatnam)
as a basis for class discussion rather than illustrating effective/ineffective handling of the problem
situation. The organization, people, activities, and problem situations are all real; however, some data
and names are disguised.

Background

The Gadadhar Abhyudaya Prakalpa (GAP) is a Pan India project undertaken and implemented by the
Ramakrishna Mission (RKM), one of India's most reputed philanthropic organizations. The RKM has
been functioning since the year 1897. The program was launched in October 2010 as a part of the 4-
year long 150th Birth Anniversary Celebration of Swami Vivekananda, aiming for the holistic (i.e.,
physical, intellectual, and mental) development of the needy and backward children living in various
poverty-prone areas across the country. Since then, this project has been running through about 170
GAP units across India (Exhibit 1) to uplift the lives of neglected rural and urban slum-dwelling children.
Till September 2014, annually about 17,000 underprivileged children were benefited (each GAP unit
then used to cover 100 children), but thereafter, yearly about 9000 children are getting the benefit.
The children get registered at any GAP unit only after a thorough survey of the backward areas by the
monks and volunteers from RKM. Approximately 600,000 INR is annually required to run one GAP
unit that serves around 50 underprivileged children in the 5 – 12-year age group.

The GAP project

GAP attempts to serve as many underprivileged children as possible and improve their lives by
providing them with the basic needs, e.g., education, culture, humane values, physical needs, etc., to
be self-reliant, become good citizens and lead fruitful lives. The monks, teachers and volunteers of a
GAP unit meet the “GAP children” daily for approximately 2-3 hour long or more, through morning
and/or evening sessions (about 25 days per month) to deliver a composite program with different
physical, mental and intellectual development (see Exhibit 3). A brief description of the various
activities of GAP is given below.

A. Aiming at physical development:

1. Physical Activities: Teachers at the GAP units conduct exercise- and game sessions that include
free-hand training, yoga, games such as rope-skipping, running, cricket, football, etc.
Competitions are organized, and prizes are awarded for inspiring the GAP children.
2. Providing Nutritive Food: As the GAP children are generally malnourished due to poverty,
nutritious food items are served daily at the GAP units.
3. Medical Check-up and Treatment: The children’s health and physical fitness are examined at
the fortnightly arranged medical treatment camps. The children get free medicines and tonics
as prescribed by the doctor. The teachers and doctors continuously monitor their physical
growth at the GAP units by periodically recording every child’s height and weight.
4. Health Awareness Sessions: The doctors conduct sessions at the GAP units to teach the
children general concepts of health and hygiene such as safe toilet practice, the necessity of
safe drinking water, benefits of brushing teeth every day, washing hands before eating, and
regularly clipping nails. The GAP teachers regularly check the children’s cleanliness before the
classes begin. The GAP children are periodically provided with toiletry items (e.g., toothpaste,
 toothbrush, bathing and washing soap, hair oil, towel, and nail cutter), umbrellas, footwear,
and warm clothes.

B. Aiming at mental development:

All the GAP units organize daily prayer and meditation sessions, where the GAP children are taught
prayer, meditation, and chanting. Generally, their day at a GAP unit starts with the games session,
followed by the prayer session, and then the academic session begins. Also, sessions on drawing,
singing, drama, etc., are conducted by the concerned teachers. Aesthetic sense development and
instilling value education (both by theory and practice) among the children are primarily targeted.

C. Aiming at intellectual development:

1. Daily coaching classes are conducted on various subjects, paying particular attention to the
academically weaker children. Several non-school-going children are also registered at many
GAP units (Exhibit 4) with a view that they might join good schools later. Periodical exams on
school subjects are conducted to evaluate the children’s academic growth.
2. Some GAP units conduct computer classes to teach the basics of computer usage to the senior
children, who participate with great enthusiasm.
3. Poor parents are reluctant to send their children to schools to avoid the expenses of essential
educational items. Therefore, the GAP children are provided with essential educational items
such as school bags, uniforms, notebooks, pens, pencils, and other study materials.

The administrative aspects of the GAP project

Branch centers: The GAP units are run through branch centers (regional RKM offices) situated in
different parts of India (Exhibit 1). The monks and volunteers look after this project with service-
mindedness. The GAP teachers take classes on school subjects, exercises, meditation, painting,
singing, and value education by following a daily routine (Exhibit 3). The GAP units are primarily
operated at the branch center premises. At certain remote places where any branch center is not
present, the project is implemented via some local philanthropic organizations under the supervision
of a branch center.

Headquarter (HQ): These GAP units are monitored and funded through the Headquarters of RKM at
Belur Math, West Bengal (India), from where the yearly required funds get disbursed to the
implementing branch centers.

Evaluation and monitoring: The activities of all GAP units are monitored based on the reports and
accounts periodically sent by the branch centers and direct information from the GAP project sites. A
team of monks from the Headquarters visits the GAP-implementing places to oversee the activities
and collect first-hand information. Frequent communication by letters and over the phone between
the Headquarters and the branch centers – aiming at proper implementation - is an integral part of
this project. Specific parameters related to the children’s physical, mental and intellectual growth are
periodically measured and analyzed.

Fundraising for the GAP Project

The GAP project was initially supported for four years, i.e., October 2010 to September 2014, with
financial assistance from the Ministry of Culture, Govt. of India. However, the positive impact of the
program created a strong demand among its beneficiaries. Numerous requests from the GAP
children’s parents convinced the RKM to continue the project even after the Government support
stopped after September 2014. Since then, the program has been running with small individual
donations from the public and devotees, and financial support from corporate houses.

Fundraising from corporates is a massive task in itself due to various challenges associated with it.
Merely sending appeals to companies does not work. The donation amount can vary widely - from a
few hundred thousand to a few million INR a year. Also, a company funding some GAP units in the
current financial year can withdraw its support – fully or partially – in the next year. Sustained financial
support is essential to ensure the smooth operation of the existing 170 GAP units. The HQ attempts
to collect the funds required to run as many GAP units as possible. Efforts are made to provide
adequate funds to the branch centers towards all the 12 budget-heads to support all the activities (as
already discussed in Section 1.1) for one full financial year.

RKM sends the appeal and the budget estimate (Exhibit 2) for running one GAP unit for three years to
potential donor companies to attract corporate donations. The companies are requested to sponsor
several GAP units in totality, i.e., for all the 12 heads (rows in Exhibit 2). RKM discourages donations
earmarked for some specific budget-head(s) to reduce the overhead of preparing and maintaining
separate financial and functional records (e.g., audited accounts, reports, pictures). For example, even
if just two corporate donors are allowed to sponsor the 12 budget heads on a shared basis at a single
GAP unit, RKM would be obliged to maintain and submit two audited accounts to those two donors.
This additional requirement would overburden their finance team, preoccupied with various day-to-
day operations of the HQ and branch centers.

RKM generally gives its corporate donors the freedom to choose from a list of GAP units the number
and locations of GAP units to finance for the next few years. Often the companies have internal criteria
for providing the CSR funding, for example, (i) districts/states to cover, (ii) distance between their
offices/plants/factories and our GAP units, (iii) whether the GAP units are at remote areas or in
cities/suburbs, etc. Some companies leave it to RKM to decide these. In either case, the funds are
always earmarked for specific GAP units.

A Decision-making Problem for the GAP project-in-charge

The current approach of RKM encourages only the large donors who can fully cover the 12 budget
heads for one or more GAP units. While this strategy may reduce the accounting overheads, it restricts
the potential donation sources and donation amounts by not allowing many small donors who might
only cover a GAP unit’s expenses partially. Considering the fund crunches that have only worsened in
the post-COVID-19 pandemic, the GAP project in charge at the HQ of RKM feels a need for
reconsidering the current fundraising strategy. He is facing an issue requiring urgent decision-making.

A large Public Sector Undertaking (PSU) is willing to donate a significant amount but on certain
conditions of their own. The PSU representative has clearly stated that the company would not
provide any funding for four specific budget heads: ‘Nutritive food supplements’, ‘Water, electricity,
etc.’, ‘Overhead Expenses’ and ‘Contingencies’. The company had a bitter experience of funding some
NGO in a project that involved food donation activities to poor children. An unfortunate event of food
poisoning had generated ample negative media exposure of the PSU, forcing them to resolve not to
provide CSR funds for any feeding-related activity in the future.
The GAP in charge explained the difficulties regarding the increased workload due to the overheads if
the PSU earmarks their funds for the remaining eight heads. Also, it would be difficult for RKM to
arrange funds only for the four heads that the PSU has refused to fund. Reconsidering the issues of
RKM, the PSU’s representative has made a revised proposal with two alternatives. First, if they provide
funds for all the 12 heads, they would get internal approval for funding only up to two GAP units. Their
second alternative states that they would sponsor multiple GAP Units, except those four budget
heads.

The GAP in charge now wants to evaluate the merits of the PSU’s two proposals objectively. The first
proposal is straightforward as it neither incurs an overhead cost nor any extra fundraising effort on
RKM’s part. However, if the PSU just sponsors one or two GAP units, the donation amount would be
significantly lower than what the PSU can potentially donate. On the other hand, the second proposal
forces the RKM to bear the overhead cost of putting extra effort into maintaining and preparing
separate accounts related to the PSU’s funding for the eight heads. Additionally, RKM would bear the
cost of raising funds from other donors for those four left-out budget heads at each GAP unit that the
PSU would engage in. As the PSU is open to sponsoring multiple GAP units (for the eight budget heads),
it becomes crucial for RKM to determine the correct minimum number of GAP units that RKM should
request the PSU to sponsor. At least, that would justify the extra efforts of RKM in terms of bearing
the overhead and fundraising costs.

Case Questions

1. Assume that the PSU allocates its donation for the eight out of the 12 budget heads at each
GAP unit that it funds. Consider 10% of each head’s estimated budget as the administrative
and accounting-related overhead cost incurred by RKM. Also, assume 20% of each missed
head’s budget as the cost to RKM to raise funds for those heads. Develop a quantitative
approach to determine the number of GAP units that RKM should ask the PSU to sponsor.
2. Develop an Excel model to compute the number of GAP units that a donor should sponsor if
it refuses to donate for all the 12 heads. In the excel model, an user should only enter the
information regarding the budget heads that the donor does not want to cover.

3. What are the issues an organization like RKM can face related to earmarked donations?

4. RKM is faced with the issue of donors providing vertically integrated funding (i.e., funding all
heads at a GAP unit) versus pooled line item funding (i.e., funding specific budget heads at a
GAP unit). What does your answer to Question 1 inform you about the merits or demerits of
each of the above types of funding?

Acknowledgments

We acknowledge valuable discussions and insights from Swami Dayakarananda, the project in charge
of The Gadadhar Abhyudaya Prakalpa (GAP) at the Ramakrishna Mission at the Belur Math
Headquarter, West Bengal, India. The support of Swami Bodhasarananda, Assistant General Secretary
of Ramakrishna Mission (Belur Math), is gratefully acknowledged.
Exhibit 1. GAP centers across India

Note: In FY 2019-20, 140 GAP units were run through the RKM HQ. The remaining 30 GAP units, which did not
receive the HQ-fund, were run in FY 2019-20 at a small budget by some branch centers themselves.
 Exhibit 2. Estimate of various operating expenses for running a single GAP unit

Phone PBX: (033) 2654-1144, 1180, RAMAKRISHNA MISSION

Tele-fax: (033) 2654-4336 (The Headquarters)
E-mail: [email protected] PO Belur Math, Dist. Howrah
Webpage: www.belurmath.org West Bengal 711 202, India
A Budget Estimate to run 01 GAP unit for 03 Years
Amounts in Rupees
Budget Heads Particulars st
1 Year 2nd Year 3rd year
For running 01 GAP unit (i.e., having about 50 children)
Honorarium to 02 teachers @ Rs.4,000/- per
96,000 96,000 96,000
month × 12 months
Honorarium to 01 attendant @ Rs.2,000/- per
24,000 24,000 24,000
month × 12 per months
Establishment
Expenses Payment to 01 Paediatrician / Medical Officer
(monthly 2 visits) @ Rs.2,500/- per month × 30,000 30,000 30,000
12 months
Water, electricity, mats, utensils, globes,
15,000 15,000 15,000
maps, charts, etc. for the GAP unit
Textbooks, study materials, books / DVDs on
Educational Value Education, school bags, umbrellas /
50,000 50,000 50,000
Expenses raincoats, footwear, school uniforms, etc. to
children
Nutritive Food Supplements and Medicines
(e.g., multi-vitamin tablets, tonics, etc. for the
3,00,000 3,00,000 3,00,000
GAP children) @ Rs.20/- per day per child ×
Health & 50 children × 25 days per month × 12 months
Hygiene
Toiletries to the children (toothpaste, washing
& bathing soap, oil, toothbrush, tongue- 30,000 30,000 30,000
cleaner, nail-clipper, towel, etc.)
Overhead Paper, postage, printing, stationery and
15,000 15,000 15,000
Expenses general maintenance
Computer, projector, etc. to show educative
Equipment &
films / to teach basics of computers to the 50,000 0 0
Furniture
children; furniture, ceiling fans, etc.
Conveyance Travelling: staff, children etc. 25,000 25,000 25,000
Sports Sports materials 5,000 5,000 5,000
Contingencies Contingencies 10,000 10,000 10,000
Total Amount required to run 01 GAP Unit 6,50,000 6,00,000 6,00,000
Grand Total Amount required to run 01 GAP Unit for 03 Years: Rs.18,50,000/-
Note: The unspent balance under any budget head will be spent towards additional direct benefits to
the GAP children, e.g., winter clothes, extra food items, study materials, prizes, dresses, etc.
Exhibit 3. GAP in action: A few snapshots showcasing various activities in GAP units. (Source: GAP
brochure of RKM)

Health awareness session in GAP unit in Ponnampet, Karnataka

Plantation by GAP children at Kishanpur, Uttarakhand

Prayer session and evening computer class at the GAP unit in Lucknow, Uttar Pradesh
Distribution of educational materials at the GAP unit at Swatal Tila, Assam

Coaching class at the GAP unit at Lohara, Uttar Padesh

Exhibit 4. Impacts of GAP – A snapshot