Impact Partner Selection Process
We view our impact partnerships as one of the most significant parts of Rang De's operations. In order to have effective and efficient partnerships on board with Rang De, we follow a rigorous, five-step process of selecting an impact partner.
An Organization interested in partnering with Rang De must fulfill the following minimum criteria:
- It should be registered as a legal entity (NGO, NGO-MFI, SHG Federation, Trust, Sec. 25 Company etc.)
- It should be operational for at least 3 years (should have performed 3 financial audits) at the time of application.
- The organization should have a strong focus on creating meaningful impact in the communities. The organization is asked to submit case studies if any so that the nature of intervention can be gauged.
- The organization should not have any inclination towards any political or religious affiliations
- The organization should not be located in a politically volatile area.
In this phase, we study and analyze a few necessary documents of the potential partner. These documents include:
- Copy of the registration certificate
- Copy of MOU/ Objectives of Society/Trust
- Copy of latest annual report
- Copy of audited statements of last 3 years, with receipt and payment statements.
- Copy of 12 A and 80 G certificate
- Operational manual of micro credit operations. If there is no manual in place, a brief note about the processes involved in administering a micro loan is required.
A partnership committee comprises of experts from finance, business, and social space both from within Rang De and outside. All the details pertaining to the potential partner organization is presented in front of the committee. The partnership committee guides the impact team in terms of how the partnership should be taken ahead and what are the various dimensions that the team should take cognizance of during the due diligence visit to come to a fruitful conclusion. Partnership committee disapproves when lack of alignment in the mission of Rang De and the organization at hand is visible.
Once the committee approves of the organization, representative from Rang De carry out a due-diligence visit in the operational area of the organization. The objective is to understand the nature of the intervention, type of community, nature of credit appetite and need in the community, meet the management and staff, and understand the processes in place. The observations are shared with the organization at the end of the visit.
On- boarding would mean that a MoU will be shared with the partner organization and will be signed by both the parties once all the clauses are deemed suitable. Following this Rang De will organize a three- day training in Bangalore which is attended by professionals from the partner organization. The partnership essentially starts with a three-month pilot phase. At the end of this period, impact team members carry out the first social audit in the operational area of the partner organization. If the assessment is positive and the organization is comfortably engaged in the day to day operations of Rang De both in the field as well as handling the technological aspects, then the partnership is finalized. The partnership can be terminated post the pilot phase when instances of inappropriate utilization of funds provided are brought to light or when Rang De’s guidelines are not adhered to.