विश्वविद्यालय Development Impact Fund

FOEII Foundation is underway to sourcing funds with a systematic University Development Impact Bonds: A results-based contracts in which private investors provide pre-financing for University Development and pay back to investors their principal with return if, these programmes succeed in delivering social (educational) outcomes.

The fund will be available for University and Higher Education Institutions (HEI) are work with a systematic fundraising to impact and meet the objectives are: 

1) Academic Research and Innovation toward educational development. 

2) Technology Integration towards policy, practices and quality enhancement.

3) Educational Scholarship to break the economic barriers of education

4) Book-eBook and paper publishing for establishment of Indian content

5) Academic conferences with outcome report and advocacy.

We are inviting to fund contributors (Individuals, Institutional, CSR, Philanthropist, Industrial projects, government agencies, community supports to work with collaborative force to create an impact by Federation of Education in India (FOEII) under the management of FOEII Foundation and leadership of Prof. Younush Rana     

An impact bond, often a "pay-for-success" financing model, is a financial instrument where private investors fund a social program and receive a financial return from a public-sector agency or other "outcome payer" only if the program achieves pre-agreed, measurable outcomes. An impact fund is a pooled investment vehicle managed by professionals that invests in companies or organizations to generate both a positive social or environmental impact and a financial return for investors. 

• Risk Investors: Private investors provide initial capital for the program. 
• Service Providers: Social service providers (often non-profits or social enterprises) deliver the program and interventions. 
• Outcome Funders: Government agencies, philanthropic organizations, or other entities commit to repaying the risk investors if the program achieves the agreed-upon outcomes. 
• Independent Verification: Third-party evaluators independently verify the achievement of outcomes. 
• Repayment: Outcome funders repay the risk investors based on the verified outcomes achieved, often with a return on investment. 

Impact Bond can help governments tackle complex societal needs of development of while also allowing investors to make a difference in society. They can also help create space for innovation with increased transparency. An investor provides funding to creator for a social intervention, and the investor receives a return based on the outcome of the intervention.

The Social Stock Exchange (SSE) in India is a platform regulated by the Securities and Exchange Board of India (SEBI) that enables social enterprises to raise capital for projects with social welfare objectives. It operates as a separate segment within existing stock exchanges like the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The SSE acts as a bridge, connecting social organizations with investors and donors who are interested in social impact investing. 

Key objectives

• To provide a transparent mechanism for social enterprises, both for-profit and not-for-profit, to raise funds.
• To facilitate the funding and growth of social enterprises.
• To establish robust standards for social impact measurement and financial reporting within the social sector. 

Funding mechanisms

Not-for-profit organizations can raise funds through instruments like Zero Coupon Zero Principal (ZCZP) bonds, while for-profit social enterprises can issue equity or debt securities. Other methods specified by SEBI are also available for both types of organizations.

Eligibility criteria

Organizations must be registered and demonstrate a strong focus on social impact, with at least 67% of their resources or beneficiaries related to eligible social activities over the past three years. NPOs need to have been operating for a minimum of three years and meet specific registration and financial requirements. Certain types of organizations, such as corporate foundations and political or religious organizations, are generally not eligible.

Fundraising Platform: Social Stock Exchange-SSEs facilitate fundraising for social enterprises by allowing them to list their securities (like equity or debt) and attract investors who are interested in both financial returns and social impact.

Transparency and Accountability: SSEs are regulated by SEBI, which ensures that listed social enterprises adhere to certain standards of reporting and disclosure, including their social impact.

Impact Investing: SSEs are designed to encourage impact investing, where investors prioritize not only financial returns but also the positive social or environmental impact created by their investments.

Social Enterprises: SSEs connect with organizations that are focused on addressing social issues and creating a positive impact, including for-profit and non-profit organizations. 

• Income Tax Act, 1961: NPOs in India can register under sections of this act to receive significant tax benefits.
  • Section 12A/12B: Provides an exemption from paying income tax on the organization's income.
  • Section 80G: Allows donors to claim a tax deduction (50% or 100%, depending on the cause) on the amount they donate. This makes an organization more attractive for attracting funds.
• Foreign Contribution (Regulation) Act (FCRA): Any NPO planning to receive foreign funding must register under the FCRA with the Ministry of Home Affairs and comply with its strict reporting and usage rules.
• Goods and Services Tax (GST): Many charitable activities are exempt from GST. NPOs must maintain separate books of accounts for any commercial activities that are not incidental to their charitable purpose to retain their tax-exempt status.