A new report by Change Engine highlights that India will need nearly USD 750 million in flexible funding over the next five years to create 100 “non-profit unicorns” capable of impacting at least one million people each. The study, part of the “Ease of Doing Good” series, finds that most Indian non-profits struggle to scale due to a lack of unrestricted capital, which limits their ability to invest in teams, systems, innovation, and long-term strategies. Currently, one in two organisations have less than 10% of unrestricted capital, while restrictive regulations, limited understanding of non-profit costs, and small, short-term grants further hinder growth.
Flexible funding is seen as essential for innovation, with organisations reporting that it would allow them to hire talent, experiment with new models, and invest in technology and data systems. The report emphasizes that the challenge is not the absence of capital but its structure and deployment. Co-founders of Change Engine note that, similar to startup unicorns, non-profit unicorns require patient, risk-tolerant funding to achieve population-scale impact and advance India’s social development goals.
To overcome systemic barriers, the report recommends that domestic foundations shift from one-year grants to multi-year commitments, increase unrestricted funding, and allocate a portion of funds to early-stage organisations, enabling non-profits to innovate, scale, and deliver meaningful social impact.
