NON-GOVERNMENTAL ORGANIZATIONS

NON-GOVERNMENTAL ORGANIZATIONS 

NGOs: Self-governing + Private + Not-for-profit + Non Violent group. They work to improve the quality of life for disadvantaged people, protect the environment, provide basic social services or undertake community development.

Characteristics of NGOs

• Ability to mobilize resources locally and from outside
• Initiated and governed by its own member ideally on democratic principles
• Voluntary in nature
• Definite aims and objectives
• Usually legal entity – society, trust, charity
• Work through inner drive of members
• Autonomous entities

Types of NGOs

• Operational NGOs: Design and implement a project.
  • Example: Education based, development or relief oriented
• Advocacy NGOs: Defend or promote a particular cause.
  • Example: Amnesty, Greenpeace
• Activist NGOs: Try to influence govt policies and decisions through activism, org. protests etc.
  • Example: Narmada Bachao Andolan, India Against Corruption
• Research NGOs: Engaged in research and analysis regarding various issues.
  • Example: Centre for Science and Environment
• Quango (Quasi autonomous NGOs): They carry out govt functions and may even include appointees by government. These are Quasi-Autonomous in nature.
  • Example: International Organization for Standardization (ISO)

Reasons for rise in NGOs

1. Economic reasons
   • Increased funds availability: Due to more wealth creation post LPG reforms.
   • Foreign funding: Opening of economy increased foreign NGOs as well as funding from foreign NGOs. Ex: Transparency International, Compassion International
   • Failure of market: Trickle-down effect did not take place instead increased inequalities which lead to need for a social sector.
2. Creation of space for NGOs: Perceived and demonstrated inadequacies of state-led development, like poverty, inequalities, discrimination, corruption etc., created space for NGOs.
3. Deepening of Democracy: Significant political mobilization took place during emergency period origin of NGO.

Role/Functions of NGOs

• Mediatory role: It helps bridge the gap between State agencies and the general public.
• Consultative role: NGOs are consulted during policy making as they represent sizeable aspects of the civil society.
• Monitoring role: They highlight and expose violation of specific laws dealing with HRs, environment, industries, etc.
• Mobilising role: They help in the formation of SHGs and other social sector groups, etc. Example: Kudumbashree
• Training role: They aid in skill development through vocational and professional training. Example: SEWA
• Education and advisory role: They play a vital role in social mobilisation through awareness and educating people. Example: PETA
• Leadership role: In several areas, they are the organisers, mobilizers, and change agents. They act as the eyes and ears of the government and carry the voice of people to policy makers.

Importance of NGOs/Contribution of NGOs

1. Right-based movements: They took up issues which later gained political significance and hence got enacted as a law.

• RTI, NREGA – Led by MKSS [Aruna Roy]
• Naz Foundation for LGBT, HIV affected people
• PUCL – Filed a writ petition in SC in 2001 asking for country’s food stocks to be used for public works and other social security schemes. This paved way for important food security initiatives like Mid Day Meal Scheme, PDS reforms, National Food Security Act, 2013.
• Software Freedom Law Centre supported Faheema Shirin case where Kerala HC recognized Right to internet as a FR.

2. Environmental protection

• Centre for Science and Environment (CSE) – Aided in the implementation of CNG in Delhi.
• Shuddhi – For environmental and climate change, emphasized on ‘go green’ – green products, promoting digital education of children.

3. Address poverty and rural livelihood

• SEWA, Kudumbashree: Promoting financial independence of women.
• Dastkar: A Delhi-based NGO to promote rural livelihood – Dastkar fairs and its success led to initiatives like Surajkund Mela (Haryana), Delhi Haat, Taj Mahotsav.
• Sahyog NGO: Empowerment of slum dwellers and re-settling them in Delhi NCR region, providing remedial classes in slums, vocational training, SHG formation, health camps for keeping a check on the health of slum dwellers.

4. Alternate service delivery: Government delivery service is inefficient, corrupt whereas NGO models are efficient, cost-effective, and less corrupt.

• Example: Fair price shops – MKSS functioned without corruption, efficiently.
• NGO ‘Doctors for You’ took charge of operating a COVID-19 facility established by the Delhi government at a banquet hall.

5. Complement to Government Work

• State Governments partner with NGOs like The Akshaya Patra Foundation, Milaan, Isha Education to implement the Mid-Day Meal Programme in order to increase the number of children they reach out to.
• Swades Foundation and the Maharashtra State Government signed an MoU to work in the area of tackling anemia in children across the state.

6. Bringing innovation

• Rural Changemakers: Has helped locals build skateparks in Andhra Pradesh, Odisha, and Rajasthan. Young skaters must stick to three non-negotiable rules: ‘No school, no skating,’ ‘Everyone is equal,’ and ‘Girls first’. This has improved school attendance.

7. Promoted interest of vulnerable sections of the society

• Vishakha: For sexual harassment at the workplace.
• Sambhavana: Brought to the forefront the issue of less seat allocation for PWDs as against the legislative requirement.
• Jagori: Delhi-based NGO which runs a helpline for women victims of violence.
• Youth for Social Development: Distributed sanitary pads free of cost to women migrants walking back home to maintain basic hygiene—called the Kishore Shakti Project.

8. Promoting social harmony

• Pune-based NGO ‘Sarhad’: Will launch a series of literary and cultural programs to strengthen connections between Maharashtra and West Bengal to mark the death anniversary of Tilak and foster the spirit of Lal, Bal, and Pal.

Issues

1. Ethical Issues
   • Corporate NGO Nexus: For the purpose of tax evasion. Example: Fake transactions in the name of NGO Bharosa [2011].
2. Security related
   • Anti-government activities: Due to foreign funding. Example: Greenpeace case protests against Kudankulam nuclear power plant.
   • Extremism: Intelligence Bureau suspects funding and links with fundamentalists and extremists. Example: Mercycorps alleged to be involved in funding of extremists in North-East and J&K.
   • Religious conversions: Union Home Ministry has suspended licenses of six NGOs that were alleged to have used foreign contributions for religious conversion.
3. Finance related
   • Lack of ability to mobilize resources leading to increasing reliance on government, corporate funding, and foreign funding.
4. Governance issues
   • Lack of transparency and accountability: Data indicates that only 2% NGOs are registered, out of which more than 90% do not submit their balance sheets.
5. Internal challenges
   • Changing nature: Career-oriented model from voluntary social activism.
   • Human resource issues: Deficiency of trained manpower and dedicated workers.
   • Lack of cooperation and coordination: Between NGOs, leading to duplication of activity and wastage of resources.
   • Regional imbalance: Due to uneven regional presence. For example, mainland states such as Uttar Pradesh [15,635], Maharashtra [14,943], Tamil Nadu [7,812], etc., have a high presence of NGOs compared to North Eastern States, Arunachal Pradesh [411], Meghalaya [263], Nagaland [373].
   • Sectoral imbalance: A large number of NGOs are involved in areas of education [63,841], children [40,048], women’s development [38,401] while NGOs working for skill development [186], prisoners’ issues [4,117], etc.
   • Mis-utilization of funds: The annual inflow of foreign contribution has almost doubled between the years 2010 and 2019, but many recipients of foreign contributions have not utilized them effectively, the same purpose for which they were granted prior permission under the FCRA 2010. 

Steps by the Government 

1. Kudal Commission (1982): It was set up to investigate the role of NGOs in the anti-emergency movement.
2. National Policy on Voluntary Sector, 2007
   • The government commits to encouraging, enabling, and empowering an independent, creative, and effective voluntary sector with diverse forms and functions so that it can contribute to the social, cultural, and economic advancement of the people of India.
   • Objectives:
     • Creating an enabling environment.
     • Enabling volunteer organizations to mobilize necessary local and foreign resources.
     • Identifying systems by which the government may work together with volunteer organizations based on the principles of mutual trust and respect and with shared responsibility.
     • Encouraging volunteer organizations to adopt transparent, accountable systems of governance and management.
3. Foreign Contribution (Regulation) Act, 2010: It is a consolidating act whose scope is to regulate the acceptance and utilization of foreign contributions.
   • Restriction on use of funds: The Act was amended in 2020 to reduce the use of foreign contributions for administrative purposes. Now, not more than 20% of the total foreign funds received could be defrayed for administrative expenses. In FCRA 2010, the limit was 50%.
4. Lokpal Act, 2013: It covers those NGOs which receive more than Rs. 10 lakh foreign funding.

Way forward

• Social Stock Exchange: Proposed in Budget 2020 for social and voluntary organizations so that these entities can raise capital. It will solve the problem of resource mobilization and funding.
• National Accreditation Council: To ensure compliance by NGOs. It should consist of academicians, activists, and retired bureaucrats.
• Stakeholder capitalism/compassionate capitalism: As against shareholder capitalism, to make it beneficial for the public at large.
• Encouraging volunteerism: Universities should collaborate with NGOs and conduct campus interviews for interested young graduates. NSS and NCC can be involved.

Impact on Community: 

Dependence on donor agencies (NGOs) for development reduces the importance of community participation in the following ways:

• Influenced by Politics: International donors are affected not only by national but also by international politics, and in most cases, such political interests impede smooth learning of civil society organizations and local participation.
• Erodes Legitimacy: Excessive dependence on donors erodes legitimacy and affects the relationship between donors and civil society organizations, which in turn impedes the planning processes.
• Creates Contradictory Provisions: While providing funding to local NGOs, donors often create contradictory policies.
  • Example: Although donors maintain that their main aim is to strengthen civil society, they often end up reducing the ability of the community to meet the needs of the local community and society.

• Cost Recovery Constraints: Due to the programs which are supported by the donors, a condition of cost recovery occurs in different sectors like education and agriculture, and the situation increases the inaccessibility of the services offered by the state to the less fortunate in society.
• Top Bottom Approach: In most cases, the donors and the NGOs form very close relations which ends up affecting the effectiveness of civil society since the same can result in major conflicts.
  • Example: It is clear that most donors use the top-bottom approach which is characterized by professionalism, centralization, materialism, and short-term goals.

REGULATION OF NGOs

NGOs receive substantial foreign funds for their activities; thus it is imperative to have certain regulatory guidelines in place to ensure no malpractice takes place that is detrimental to India’s national security.

Need to regulate

1. Political
   • State interest: Such funds can be misused to create disharmony and fund nefarious activities.
     • Example: Charity Alliance and Human Welfare Foundation offices were raided by NIA in connection to funding Kashmiri militancy.
   • For More Transparency: Less than 10% of NGOs have complied with the rules and more than 90% do not submit their balance sheets.
   • Political Funding: These funds can be used to fund election campaigns illegally.
   • 3rd Party agendas: Such funds can be used to influence policy and public discourse in India.
2. Economic
   • Black Money/Money laundering: It must be regulated to ensure no black money is being round-tripped back into India.
   • Foreign Exchange Management
3. Social
   • Religious appropriation: Such funds have in the past been used for illegal religious conversion and religious propagation.
     • Example: In 2017, Compassion International was barred from donating to India, which was used to convert people into Christianity.
     • Example: Most of the foreign funds are received by faith-based charities.
   • Effects on Social Welfare: Such funds can be used to manipulate gullible people, especially in rural areas, and thus must be regulated.
     • Example: Many groups resort to Ponzi and networking schemes in the name of NGO activities.

Provision for NGOs Regulation in India

• Foreign Contribution (Regulation) Act, 2010: Regulates the receipt and usage of foreign contributions by NGOs in India. Recently, the FCRA (Amendment) Act, 2020 came into force.
• Foreign Exchange Management Act, 1999: The Act is mandated to oversee the orderly development and maintenance of the foreign exchange market in India.
• NITI Aayog’s NGO DARPAN: This portal enables NGOs to enroll centrally and facilitates the creation of a repository of information about NGOs, Sector/State wise.
• Right to Information Act, 2005: NGOs receiving substantial financing from the government are bound to give information to the public under the RTI Act.
• National Council of Social Work Bill: This proposed bill seeks to regulate quality, autonomy, flexibility, and innovation in social work education and practice.

Foreign Contribution (Regulation) Amendment Act, 2020

Objective is to strengthen compliance, enhance transparency and accountability in the receipt and utilization of foreign contributions, and facilitate genuine NGOs working for the welfare of society.

Key Provisions:

• Public Servant: Prohibits any public servant from receiving foreign contributions.
• Transfer of funds: Foreign contributions cannot be transferred to any other person unless such person is also registered to accept foreign contributions.
• Single bank account acceptance: The funds must be accepted only in a single branch of a specified scheduled bank.
• Reduction in Utilization limit: The earlier limit of 50% for administrative expenses has been reduced to 20%.
• Surrender: Allows the central government to permit a person to surrender their registration certificate.
• Increases Suspension period: Extends the period of suspension from 180 days to an additional 180 days.

Issues with the Amendment:

1. For NGOs
   • Impedes their Activities: Regulations can impact the working of NGOs in many social sectors as accessing foreign funds becomes difficult.
   • Bureaucratic red-tapism: Increases difficulty for Indian NGOs to seek foreign donors.
   • Geographical Issues: The new rules require NGOs to have an account in SBI Delhi, although 93% of FCRA-registered NGOs are outside Delhi.
   • Operating restrictions: The mandate of only 20% utilization of funds for administration may impede operations.
   • Reduced Funding: Foreign donors may be deterred from making donations due to strict regulations. For example, funds have declined by 40% since the FCRA amendment.
2. For Beneficiaries
   • Impedes welfare: As NGOs fill the gaps left by the state in social welfare, regulations may leave the targeted public vulnerable.
   • Inhibits Development: Projects undertaken by NGOs for social upliftment may get hampered.
   • Inhibits Humanitarian aid: It may discourage foreign donors from funding and reduce the volume of foreign aid to India.
3. Others
   • Non-compliance with International norms: The amendment fails to comply with India’s international legal obligations and constitutional provisions to respect and protect the rights to freedom of association and expression.
   • Impacts Inter-NGO Collaboration: As fund transfers become stricter, smaller NGOs may face financial troubles as they rely on larger NGOs.
   • Competitiveness: Domestic NGOs will suffer against their foreign counterparts due to excessive regulations, making them non-competitive.
   • Cash Crunch: Indian requirements for funds exceed domestic capability, making foreign funds vital. For example, Rs 4.2 trillion annually is needed to achieve five of the 17 sustainable development goals.
   • Misuse: Regulations can be used to target those who speak against the government or NGOs critical of government activities.

Way Forward

1. For NGOs
   • Strengthen domestic fund-raising capability: Innovative fund-raising techniques such as crowdfunding can be used to reduce dependency on foreign donors.
   • CSR Collaboration: Working in collaboration with corporates on their CSR projects in similar sectors can also help.
   • Shared Service Centre: Can aid in sharing administrative expenses and creating a pool of divisible resources.
   • National Accreditation Council: Should consist of academicians, activists, and retired bureaucrats to ensure compliance by NGOs.
2. For Government
   • Ban on NGO donations to Political Bodies: To avoid creating inequality in the political arena, as donations could enable some bodies to gain more influence than others.
   • Whistle Blowing: Establishing a whistleblowing policy in NGOs to highlight any malpractice.
   • Non-Arbitrariness: Any cancellation of a license should be based on sufficient proof and not political motivations or to stifle dissent.
   • Surveillance: Regulations should also cover domestic malpractices, such as spreading misleading knowledge in the name of education.
   • Improved Coordination between Ministries: The Home Affairs and Finance Ministries should collaborate to monitor and regulate unaccounted funds.

ROLE OF NGOs DURING COVID

NGOs are playing a vital role in the COVID Pandemic. The scale and extent of the pandemic make it imperative that the government work alongside civil society groups like NGOs/VOs for more effective relief and recovery.

Importance of NGOs during Pandemic

• Network: NGOs have a wide on-ground network of workers and subsidiaries which can help in rendering relief and aid work.
• Community Understanding: NGOs have a key understanding of community values and situations and can provide more effective support.
• Augmenting Government: During a pandemic, civil society groups need to work in cooperation with the authorities for efficient redressal.
• Public Trust: Existing NGOs enjoy public trust in their domain areas, making awareness generation easier through them.
• Deep Understanding: NGOs understand the concerns of their populations beyond immediate health risks, including socio-economic impacts.
• Experience: NGOs have vast experience in extending relief and social campaigning, both essential in this pandemic.

Role played by them

1. Migrant Crisis

• Cash Transfers: Many NGOs working with poor slum dwellers transferred cash to the bank accounts of their beneficiaries for immediate relief.
• Rescuing: Several NGOs helped rescue stranded migrant laborers from different locations.
  • Example: One NGO helped rescue stranded fishermen from ports in Southwest India.
• Distribution of relief material: Jan Sahas, an MP-based NGO, provided dry ration support, cooked food, and mobile recharges to migrant workers.
• Sheltering homes: NGOs set up health camps and isolation facilities for stranded laborers.
  • Example: Samerth Charitable Trust provided rooms and sanitation facilities to laborers in Chhattisgarh.
• Reverse Migration: Many NGOs arranged transportation for stranded laborers to return to their home districts.
  • Example: Yu Metta arranged buses for labor in Chhattisgarh.
• Food Material: NGOs engaged in food material delivery and provided meals.
  • Example: Mazdoor Kitchen is a citizen-run voluntary initiative, providing meals and subsistence to daily wage workers.

2. Medical Aid

• Medical Oxygen: Citizen groups and NGOs streamlined access to oxygen, especially in COVID-hit regions like Delhi.
  • Example: Mission Oxygen initiative by a community of founders and entrepreneurs across Delhi/NCR.
  • Khalsa Aid International provided free oxygen concentrators to COVID patients.
• Preventive Health Services:
  • Example: Swasth Foundation improved the well-being of the poor by providing affordable primary-preventive health services in Mumbai.
• Nutrition:
  • Example: Spoorthi Foundation is providing vitamin tablets, dry fruits, and mineral tablets to children and women in Telangana.

• Ambulance Service: NGOs are augmenting state capabilities by assisting people with ambulance services.
• Last Rites: NGOs are funding last rites and funeral services for the poor and those who are far away from families.
  • Example: United Sikhs NGO is performing funerals and last rites of COVID victims for free.
• Survival kits: NGOs are distributing masks, gloves, sanitizers, and basic medications to the poor and needy.
• Telemedicine: Many NGOs are collaborating with medical professionals to conduct telemedicine sessions for those seeking virtual medical aid.
  • Example: In Kolkata, Switch On NGO has been collaborating with government doctors and professionals.

3. Awareness Generation

• Mental Aid: The lockdown has affected the mental state of many families, with NGOs extending counseling services.
  • Example: Minds Foundation offers coping strategies and self-care resources provided by health professionals.
• Community Sensitization: NGOs use existing networks to create communication materials in local languages to spread COVID-19 awareness.
  • Example: CARE India has used methods like rangoli and posters to spread awareness in villages.
• Social Campaigns: Topics include social-distancing, public health best practices, and behavior change.
  • Example: NGOs work on the ground to reduce vaccine hesitancy among village populations.

4. Education

• Online Classes: Many NGOs and individuals have conducted online classes for children stuck at home and those without online infrastructure.
  • Example: Miracle Foundation has collaborated with childcare institutes to provide classes through online platforms, WhatsApp, and other media.
• Digital Daan: Various groups collect unused smartphones and laptops for needy students.
  • Example: Digital Empowerment Foundation seeks old devices for children in rural areas to learn online.

5. Women

• Alternative Incomes: With many women out of work, NGOs have partnered to help them earn by sewing masks and other activities.
  • Example: NGO LAKSHYAM pays women Rs. 5-8 per mask to help compensate for their job loss.
• Domestic Violence: Groups and ASHA workers intervene in cases of domestic violence and alert authorities.
• Maternal Health: NGOs, along with ASHA workers, provide maternal health aid to pregnant women in remote areas, especially with high COVID transmission risks.

Issues faced by them during Pandemic

1. COVID Related

• Fund Crunches: Despite their ability to quickly adapt to emerging constraints, participating NGOs require funding from external sources.
• Diversion of Funds: Most external funds are being diverted to government and healthcare authorities, leaving very little for donations towards NGOs.
• Social Distancing: Social distancing guidelines impact the mobility and access of aid workers in terms of awareness generation and delivery services.
• Lack of Staff: With high infection rates, NGOs suffer from a lack of staff on the ground due to fear or stigma.

2. Others

• Suspension of Other work: Due to the lockdown, NGOs have had to suspend other social work and divert attention towards COVID relief, impacting their activities for women, children, and other marginal groups.
• Groundwork affected: Workers on the ground or those collecting surveys and data collections had to stop due to COVID.
• Infrastructure: Many NGOs do not have the adaptability to operate digitally and rely mostly on ground work. The pandemic has caused concern for them.