Abstract

This case focuses on two non-profit organizations, the Dalit Freedom Network (DFN), from the U.S., and Operation Mercy Charitable Company (OMCC) from India, as they partner to serve the Dalit (formerly referred to as “untouchables”) population in India. The Dalits are the poorest and most underserved population in the country. DFN and OMCC seek to serve them through the establishment of Dalit Education Centers that provide quality education, medical care, and various training programs leading to the establishment of micro enterprises. As DFN and OMCC plan to introduce micro-finance programs in the Dalit Self-help groups (SHG), they face the task of determining what would be the appropriate interest rate for SHG members to charge when members take out loans. Through the interest rate question, this case brings the readers’ attention to the economic and ethical dilemmas surrounding the role of profits in non-profit organizations. The issue of long-term sustainability lies at the heart of the suggestions made by the American consultant who also serves as a critical link with the Cherry Hills Community Church members (and other churches) who offer to commit funds to help launch the projects undertaken by DFN & OMCC in India.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• To expose students to the idea of viewing the world’s poorest (most underserved yet largest) population as potential customers
• To debate the economic and ethical dilemmas embedded in profit-seeking behavior of non-profit organizations seeking to serve them
• To evaluate the concept of sustainability in the context of non-profit organizations.

Keywords

Non-Profit Management, Social entrepreneurship, Microfinance, Ethical dilemma, Sustainability, Bottom-of-the-pyramid, International Management