Building the Future of Outcomes-Based Financing in India: Launching the Outcomes Readiness Framework
The British Asian Trust, Indian School of Development Management (ISDM), and Atma, with the support of 360 ONE Foundation, have launched the Outcomes Readiness Framework, that defines, measures and enhances preparedness for outcomes-based financing (OBF) among non-profits in India.
Outcomes-based financing refers to development funding and delivery models where a meaningful proportion of funding is tied to pre-agreed measurable, verifiable outcomes. These models incentivise outcomes, foster accountability and ensure resources are strategically directed towards the end impact.
India has witnessed significant growth in outcomes-based financing over the last decade, with over $55 million mobilised across sectors such as healthcare, livelihoods, education and benefiting over 5 million people. Despite this progress, many non-profits face challenges in participating in such models. The Outcomes Readiness Framework addresses this critical gap by enabling non-profits to understand what is needed to be outcomes ready, evaluate their readiness, and signpost them to helpful resources.
The partners driving this initiative have meticulously developed the Framework through an extensive literature review and in-depth consultations with over 20 stakeholders, including donors, investors, non-profits, enablers, and experts with hands-on experience in outcomes-based financing initiatives in India.
The Framework identifies three core components —outcomes culture, organisational capabilities, and programme maturity—that together define a non-profit’s preparedness for OBF projects. Based on the Framework, an online, free-to-use, public tool is currently being developed that will rate and rank 12 sub-sections within these three core components (such as leadership, governance, monitoring and evaluation, programme maturity, and so on) to provide a ‘readiness score’ to non-profits, with access to curated resources within identified areas of improvement.
As funders and non-profits increasingly seek to shift their focus from ‘inputs’ to ‘outcomes’, we believe that tools and resources such as the Outcomes Readiness Framework will be critical to supporting wider understanding and uptake of outcomes-based financing. Providing non-profits with access to the right capacity building tools can democratise and demystify these avenues of funding. Ultimately, the mission of donors and non-profits alike is to create a positive impact on the lives of the communities we all serve, and outcomes-based financing offers a strategic route to impact, one that we hope more non-profits can access in the future.
About the partners:
360 ONE Foundation was established to design and deliver Corporate Social Responsibility (CSR) solutions on behalf of 360 ONE WAM - a leader in wealth and asset management. 360 ONE Foundation reinforces 360 ONE’s commitment to leverage its core competencies and expertise to maximise both financial and social returns. The foundation has reimagined traditional grant-giving by deploying grants using a catalytic approach to generate higher leverage by unlocking further capital, recycling funds, co-funding, and a strong focus on achieving measured outcomes. Given its innovative approach, powered by blended finance and outcome-based funding, the foundation’s programs continue to deliver exponential impact for underserved communities even after the first cycle of grant deployment. This enables a multiplier effect to every contribution made.
The British Asian Trust was founded in 2007 by His Majesty King Charles III and a group of British Asian business leaders, to unlock the potential of disadvantaged people in South Asia. The Trust is a leading international development organisation and a pioneer and champion of outcomes-based finance in India.
The Indian School of Development Management’s Centre for Innovative Finance and Social Impact (CIFSI) supported by Citi India’s CSR efforts aims to mainstream innovative finance for social impact as a complement to government and philanthropic spending. The Centre seeks to provide knowledge and capacity-building tools to facilitate social purpose organisations to access private capital for social change.
Atma – An Accelerator for Non-Profits builds the capacity of non-profits in India by developing their knowledge, skills and setting up systems and processes, helping them grow into sustainable and scalable organisations.