ILSS Flags Governance, Leadership Gaps Shaping India’s Social-Impact Ecosystem

As brands, CSR units, and foundations increase their involvement in social-impact work, the operational backbone of the nonprofit sector is coming under sharper scrutiny. Fresh data from India Leaders for Social Sector (ILSS) suggests that India’s nonprofits are moving toward a two-tier governance model—a structure more commonly seen in mature CSR and corporate-foundation setups.

Released at the second edition of the India Women Leadership Conference, the ILSS–Antara Advisory report, “The State of Advisory Boards in India’s Social Sector,” shows advisory boards becoming a preferred mechanism for organisations looking to formalise strategy, diversify funding, and improve accountability. The study notes that many nonprofits are essentially operating like early-stage enterprises: high intent, lean leadership, and rising expectations from funders.

For brands and CSR teams, the shift is relevant. Advisory boards offer sector expertise, market-linked insights, and program-governance oversight—three areas that funders increasingly demand before committing long-term capital.

The second report, “Leadership and Management in India’s Social Sector,” underlines the operational strain on organisations scaling faster than their internal systems. Key weak spots include founder-dependency, inconsistent talent pipelines, limited management depth, and lagging digital readiness—all of which translate into friction for funders, corporate partners, and ecosystem collaborators.

The study calls for structured leadership development—management training, coaching, peer-learning cohorts, and succession planning. It also points out a clear expectation from the corporate ecosystem: nonprofits need stronger institutional capabilities to manage compliance, reporting, and multi-stakeholder partnerships.

At the launch, former Accenture India head Rekha Menon emphasised the need for leadership investments that match the complexity of development challenges—an area where corporate India’s involvement has grown, but capacity-building contributions haven’t kept pace.

ILSS founder and CEO Anu Prasad said the conference aims to create a space for leaders across nonprofit, philanthropy, CSR, and corporate ecosystems to exchange insights on governance and organisational development.

The event brought together around 190 stakeholders from nonprofits, corporates, philanthropy, and grassroots organisations—indicating growing cross-sector interest in building more structured, execution-ready impact organisations.