Institutional readiness of grassroots NGOS for social stock exchange and CSR funding: Evidence from an apex NGO model in India

Abstract

The emergence of the Social Stock Exchange (SSE) and the expansion of Corporate Social Responsibility (CSR) have transformed the funding ecosystem for non-governmental organizations (NGOs) by emphasizing institutional governance, financial transparency, and measurable social impact. This study examines the institutional readiness of grassroots NGOs in the Vidarbha region of Maharashtra, India, based on qualitative evidence from Fast Track Institutional Assessment Reports prepared by Gramayan under an ICSSR–Western Regional Centre (WRC) funded Minor Research Project. Adopting a qualitative multiple-case study design, the research employs thematic analysis to evaluate governance structures, financial management practices, impact measurement systems, CSR readiness, Social Stock Exchange preparedness, and organizational sustainability across four selected NGOs. The findings reveal that although the NGOs exhibit statutory compliance and significant community engagement, substantial institutional gaps remain in governance formalization, financial planning, impact reporting, and monitoring systems. These deficiencies constrain their ability to access diversified funding through CSR initiatives and the Social Stock Exchange. The study further identifies institutional capacity as a critical determinant of funding readiness and long-term organizational sustainability. The evidence also demonstrates the strategic role of Gramayan as an apex NGO in strengthening grassroots institutions through institutional assessments, capacity-building interventions, exhibition-based market linkages, and guidance for governance reforms.