India Social Sector: Two-Tier Governance Model Needed

New Delhi, Dec 2 (PTI) A two-tiered governance model in which advisory boards work alongside governing boards is critical for India's emerging social sector to improve performance, strategy, and accountability, according to a report.

The report by India Leaders for Social Sector (ILSS) seeks to guide organisations and board leaders on how advisory boards can strengthen decision-making, help scale impact, and enable better institutional outcomes.

All nonprofit organisations in India are legally required to have governing boards. They hold legal discretionary powers over organisational functioning and are charged with fulfilling fiduciary duties, the ILSS report said.

As India's social change ecosystem confronts increasingly complex issues, advisory boards have emerged as an important complement, contributing networks, expertise, and strategic insight to strengthen organisational effectiveness, it suggested.

As governing boards continue to focus on their core imperative of ensuring compliance, advisory boards serve as a transformative structure in enabling this shift from operative to strategic and generative.

ILSS, in its second report, Leadership and Management in India's Social Sector, highlighted the urgent need to build professional leadership capabilities to ensure long-term organisational resilience and impact.

The report, unveiled at the second edition of the India Women Leadership Conference last week, pointed to key internal challenges such as over-dependence on founders, limited talent pipelines, and weak organisational systems, as well as external challenges including compliance burdens, fundraising pressures, and uneven digital readiness.

The second edition brought together 190 women leaders from the social sector, corporates, philanthropy, and grassroots organisations.

Anu Prasad, Founder and CEO, ILSS, said: By recognising and celebrating women's leadership, we can inspire the next generation of leaders to pursue their aspirations with confidence and determination."

Rekha Menon, former chairperson and MD, Accenture India, said: “If we want meaningful, lasting change, we must be as intentional about building leadership in the social sector, especially women's leadership, as we are in the for-profit sector.