SMERA launches a grading product for NGOs

MUMBAI: With a number venture philantropist interest in the Indian market , ratings firm SMERA has started grading NGOs which will help them identify viable entities.

SMERA’s product assesses the key risk factors affecting the sustainability and operational viability of the NGO by evaluating an NGO’s integrity, impact and implementation. The ratings firm has already graded an NGO and has been in discussion with 25 other entities.

SMERA is the second raings firm after Crisil to launch this product. “Globally venture philantropists are investing in NGOs and their interest in Indian NGOs is rising. A grading of NGOs will help them in their funding decision.”said Kaushal Sampat, CEO of Dun and Bradstreet, one of the promoters of the ratings firm.

SMERA offers five gradings ranging from the one reflecting NGO’s strong performance to reflecting weak performance. “ The grading will be priced in the range of Rs. 35,000 to 50,000 per grading, which lasts for 1 year and can be revisited later, said Sankar Chakraborti, CEO of SMERA Ratings. The whole process takes three to four weeks from the date of mandate

However the sector faces several limitations such as inadequate availability of information, extreme fragmentation and lack of reliable comparable data, the sector suffers from low credibility.