In this article, Tina Thomas, Head of ESG & Sustainability, explores why capacity building is often the missing link in NGO–corporate collaborations, how power imbalances and the risk of “mission drift” can undermine NGO independence, and what is needed to shift from short-term, transactional engagements to more meaningful, transformational partnerships.

This article was first published in The Star on 30 May 2025.

Resource Mobilisation and Capacity Building in NGO–Corporate Collaboration

In recent years, the lines between business and social responsibility have blurred. Corporates are no longer judged solely by their bottom line, but by the impact they have on people and the planet. From community outreach to climate action, the rise of ESG (environmental, social, and governance) agendas has made one thing clear: companies can no longer do it alone.

This is where non-governmental organisations, or NGOs, come in. Known for their close community ties and issue expertise, NGOs have become essential partners for companies looking to deliver on their sustainability commitments. Whether it’s providing disaster relief, advocating for gender equity, or rolling out education programs in rural areas, NGOs bring invaluable credibility and reach.

But beneath the surface of these growing collaborations lies a deeper story, one of uneven power dynamics, fragile infrastructure, and the urgent need to rethink how corporate-NGO partnerships are built and sustained.

More Than Just Delivery Partners

Corporates today are increasingly outsourcing their CSR implementation to NGOs. In many parts of Asia, where regulatory mandates require companies to spend a portion of profits on social causes, NGOs serve as the go-to agents to get things done. The logic is simple: NGOs already know the terrain, have existing networks, and can reach underserved populations more effectively than most companies.

And for NGOs, the promise of consistent funding, access to corporate tools, and greater visibility can be a lifeline, especially as traditional donor streams become less predictable. For many, partnering with a large company brings stability and opportunities to scale impact.

Yet, this surge in partnerships has raised concerns across the NGO sector. There’s growing unease about NGOs being treated like short-term contractors rather than long-term collaborators. Many report that their involvement is limited to project delivery, with little say in program design, impact metrics, or strategy. In some cases, NGOs are hired to execute activities that have already been planned by the corporate partner, leaving them to carry the reputational risks while having minimal control.

This transactional model may work in the short term. But over time, it weakens NGOs’ ability to operate independently, erodes their strategic vision, and can leave them chasing donor-defined priorities rather than addressing the real needs of the communities they serve.

The Hidden Cost of Dependency

One of the most pressing challenges for NGOs is dependency. When a large portion of an NGO’s funding comes from one or two corporate sources, the organisation becomes vulnerable to sudden shifts in corporate strategy, leadership changes, or market downturns.

NGOs that rely heavily on corporates often find themselves adjusting their missions to align with donor priorities, risking what many in the sector call "mission drift." This can undermine trust with grassroots stakeholders and cause internal tension within the organisation. Over time, NGOs can lose their distinct voice, becoming less agents of change and more facilitators of brand-driven campaigns.

Moreover, dependence on project-based funding can trap NGOs in short-term cycles, leaving little room for innovation, reflection, or long-term planning. Without flexible or core funding, many NGOs struggle to invest in staff development, digital systems, or organisational resilience — elements that are critical to surviving crises and growing impact.

Capacity Is the Missing Link

While corporates often demand professionalism, speed, and scalability from their NGO partners, few invest in building the internal capacity that would enable NGOs to meet those expectations.

This is especially true for small and mid-sized NGOs, many of which operate with limited staff, outdated technology, and lean budgets. These organisations may have deep community trust and expertise, but lack the systems needed to produce the kind of reports, dashboards, and KPIs that corporates require.

As a result, NGOs often find themselves locked out of major funding opportunities or judged unfairly for not meeting corporate compliance standards. This perpetuates a frustrating cycle: NGOs can’t grow without funding, but they can’t access funding because they haven’t grown.

Capacity building, whether in financial management, data systems, governance, or impact evaluation, is essential if NGOs are to thrive as credible partners. Yet, it remains one of the most underfunded areas in corporate giving.

Shifting from Transactions to Relationships

What’s needed is a fundamental shift in mindset, from seeing NGOs as service providers to recognising them as strategic allies.

True partnership means co-designing programs, sharing risk, and acknowledging the value that each party brings. It means building trust, not just through formal agreements, but through regular dialogue, shared decision-making, and transparency.

Corporates can start by committing to longer-term funding arrangements, supporting unrestricted grants, and embedding capacity-building support into project budgets. Providing training, secondments, or access to digital tools can go a long way in strengthening NGO operations. Equally important is creating space for NGOs to contribute to strategy, shape outcomes, and speak up when something isn’t working.

NGOs, on their part, must also professionalise, without losing their mission or values. That means investing in internal systems, training their teams, and clearly communicating their impact and capabilities. It also means being transparent about challenges and willing to engage in honest feedback loops with partners.

Towards a Shared Vision

There are encouraging signs of progress. Some corporates are moving beyond one-off CSR projects to build long-term relationships with trusted NGOs, offering flexible funding and supporting institutional growth. Others are setting up partnership platforms that bring multiple NGOs together around common goals, be it climate resilience, youth development, or inclusive healthcare.

Governments, too, have a role to play, through clearer regulations, incentives for capacity building, and frameworks that ensure accountability without stifling innovation.

Ultimately, strong NGO–corporate partnerships are not built on paperwork or publicity campaigns. They are built on shared purpose, mutual respect, and a joint investment in making things better, not just for today, but for the long haul.

Final Word

The road ahead will demand more from both corporates and NGOs. But if done right, these partnerships have the power to transform not only communities, but the institutions themselves. Because when we stop thinking in terms of donor and recipient, and start thinking in terms of partners, real change becomes possible.

And in a world grappling with inequality, climate change, and social fragmentation, that change has never been more needed.