Cleaning the NGO Landscape in India – Progress Made but it’s a Long Journey
Popular perception
is that non-governmental or voluntary organisations (NGOs/VOs) are organisations
having social or humanitarian agendas, and are funded in their noble missions by
philanthropists and other individual and institutional donors. NGO uniting
platforms such as WANGO and INSO reinforce these perceptions with lofty
declarations of serving humanity and promoting world peace. In an ideal world, every
NGO should provide some form of social or humanitarian support to individuals
and sections of society where governments may not be able to reach. India’s
population size combined with finite resources with governments gives
individuals and NGOs unlimited opportunities to promote such initiatives.
So, how many NGOs does India really have?
In 2013,
triggered by a Public Interest Litigation seeking transparency in finances of
an NGO run by social activist Anna Hazare, the Supreme Court asked the Central
Bureau of Investigation (CBI) to identify all registered NGOs and statuses of
filing of their balance sheets. CBI declared the number of NGOs in India to be a staggering 31 lakhs. Of these only 99125 were self-declared in NGO Darpan, a NITI Aayog platform that “provides space
for interface between VOs/NGOs and key Government Ministries / Departments /
Government Bodies”.
It is worth
noting that NGOs and VOs can be registered in India under a variety of acts,
such as Indian Societies Registration Act (1861), Religious Endowments Act (1863),
Trusts Act and Section 8 of the Companies Act. The 31 lakh NGOs identified by
CBI were only the ones registered under Indian Societies Registration Act. So,
the number includes all societies, including organisations not
performing conventional NGO activities, and does not include NGOs
registered under the other applicable acts. In addition, the exercise is five
years old. So one cannot at all be certain of even the approximate number of
NGOs in India having social agendas. A listing of NGOs/VOs operating in India could
not be found in Union government sites. So there are several unanswered
questions – how many real NGOs/VOs does India have? How many of them are
Indian, how many non-Indian? And very importantly – What is the agenda of each?
Who are their promoters and their donors?
In the
world’s largest democracy with literally countless NGOs operating across the
country, it is critical that Union and state governments are aware of the
number of real NGOs operating, their declared agendas, having oversight
on their activities, sources of funding, financial spend, as well as their key appointments.
Undoubtedly,
this will be a colossal exercise requiring greater clarity to be introduced in
the law itself, then filtering social, religious and political NGOs from all registered
non-profit organisations, and finally, ensuring governance of them.
Because of
the longstanding lack of legal clarity on definition of NGOs, another
interesting aspect about them isn’t know yet – how many have registered in
India over the last 25-30 years, and whether the numbers can be related to the
national governments in power at the time of their registration.
In addition
to seeking answers on NGOs, it’s worth exploring one more dimension – the
amount of funding they have been receiving, and its sources. Given the
ambiguity around definition of NGOs, the amounts or percentage contributions by
Indian and foreign donors will not be easy to figure out. However, some
information on foreign funds sent to NGOs in India is publicly available. Based on Foreign ‘Donations’, With
Hidden Agenda, Are Serious Danger To India's National Security (Outlook, 28-Jan-20), and inputs from GoI, below are graphical representations of amount
of foreign funding that has flowed into India to NGOs from 1998-99 till 2018-19
– a period that spanned Union governments under National Democratic Alliance
and United Progressive Alliance.
From ₹3295
crores in 1998-99, NGOs/VOs received ₹20011 crores in 2018-19.
In percentage terms, with 1998-99 as base year, there was an increase of over 400%
in the last two years of this period. Apart from three years during this
period, the inflow has always been higher than in the preceding years. The
biggest jump in foreign funding during this period happened in 2005-06, the
first year of the Indian National Congress-led United Progressive Alliance
(UPA) being in power. There was another steep one in 2015-16, a year after the
Narendra Modi led National Democratic Alliance (NDA) came to power.
According
to the same article, on 01-Apr-17 the total foreign origin funds brought
forward by the NGOs were ₹15,907 crores. Meanwhile, an amount greater
than that brough forward – ₹19,764 crores – was further pumped
into India in the year 2017-18. Since when did money become this cheap?
Further, more
than 50% of the amount brought forward on 01-Apr-17 is concentrated in the
hands of about 2% of the NGOs that receive foreign funds. As if all this is not
fishy enough, of the 22,39,971 NGOs in 20 states examined by CBI up till 2015, less
than 10% (2,23,428) had filed balance sheets with the authorities (‘It’s Raining NGOs in India, 31 Lakhs
and counting’, LatestLaw.com, 01-Aug-15).
To sum
up the situation, India has an unusually large number of NGOs with their
categorizations not being clear, a very small percentage of NGOs are attracting
huge amounts of sustained foreign funding, those NGOs are hoarding large amounts
of money but still attracting funds year after year, over 90% of the ones
investigated weren’t filing balance sheets, and only a tiny fraction have
registered in NGO Darpan.
Clearly, such
a situation that would make any government suspicious.
What exactly are the wealthy NGOs doing?
For sure,
many NGOs in India are fulfilling the purpose for which they are created –
feeding the hungry, providing education to children, supporting enterprising
women to become financially independent, rehabilitating those affected by
natural calamities, and so on.
But what are
some others up to? Here are some insights.
In 2012 in a
rare display of assertiveness (only just, but welcome nevertheless), the then
Prime Minister of India, Dr Manmohan Singh had accused NGOs funded by United States and Scandinavian
countries of disrupting India’s development objectives, specifically, pursuing nuclear
power and genetically modified crops. Based on an Intelligence Bureau (IB) report,
the UPA govt had gone a step further and accused certain NGOs of indulging in
antinational and political activities. The stand taken by UPA came none too soon.
According to UPA’s Environment Minister, Jayanthi Natarajan, certain NGOs had penetrated the highest levels of
decision making in her ministry. INC has a history of warmth towards NGOs. Ford Foundation was illegally
accommodated in India soon after Independence by no less than India’s first
Prime Minister (Ford Foundation an entity outside
law. The Sunday Guardian, 06-Jun-15). And two political generations on, an
extra-constitutional body National Advisory Committee, which “advised” the UPA
govt, was established. Headed by UPA Chairperson Sonia Gandhi, it had people
linked with NGOs as its members.
UPA seems
to have done little more than order the investigation and subsequently protest
publicly during the last two years of its rule. In spite of Jayanthi
Natarajan’s statement, there were no media reports of a cleanup of her ministry
(or any other, if those too had been compromised). Another area UPA seemed to
be unwilling to challenge was religious conversions by some foreign money
funded NGOs. To be clear, only a handful of Indian states have laws against
conversions. So technically, organisations can promote conversions in other
states. However, according to the Foreign Contribution (Regulation)
Act 2010, there are
restrictions on acceptance of foreign funds for religious conversions.
What has the NDA govt done?
The IB
report was submitted to Prime Minister Narendra Modi soon after he assumed
office in 2014. Credit must go to the NDA for taking decisive action against
wayward NGOs.
According
to CBI in 2015, only 10% NGOs were filing their
balance sheets. NDA
cracked the whip by cancelled FCRA licenses of
approximately 14,500,
and the registration altogether of over 1800 NGOs for non-submission of returns
in 2017-18.
Multiple
India-based entities under Amnesty International have landed into trouble with
GoI over several FCRA violations. Amnesty International was accused
of violating FCRA in Nov-19 and its offices were raided by CBI. Last week AA closed down its
operations in India, while claiming that GoI was on a witch hunt.
The
crackdown in general has led to aggressive attempts to show the
violative NGOs as victims and the usual performances by the
usual actors on social media. If indeed GoI agencies have fabricated violations
in spite of accounts showing compliance to FCRA, what stops AA or any other NGO
from approaching the Supreme Court? Why are they not grabbing this golden
opportunity to prove their longstanding charges of fascism against the Narendra
Modi-led govt?
On NGOs
promoting religious conversions NDA has taken the bull by its horns. In 2016 it
barred an institutional American
donor from funding religious conversions via a Tamil Nadu-based NGO. In Sep-20 it suspended the foreign funding
licenses of 13 NGOs,
allegedly over conversions, in violation of FCRA 2010. This stand has had the
expected backlash. Two US government-sponsored reports have taken strong exception to the FCRA and
anti-conversion laws being misused to “undermine” religious freedom. Consider a hypothetical situation
of some Hindu organisations setting up branches in democracies having non-Hindu
majorities, receiving considerable sustained funding from Hindu temple trusts,
even from GoI, and converting non-Hindus while possibly disguising their agenda
with social initiative. Will such an arrangement have governmental support in
those democracies?
In addition
to actions against illegalities of various NGOs including high profile ones,
the Union govt has also introduced reforms. The FCRA Amendment Bill 2020 mandates declaration of Aadhaar for
each office bearer of an NGO, prohibits public servants from receiving any
foreign funding, prohibits transfer of received foreign funds to another
association/person. So far NGOs have had allowance to budget up to 50% of their
funds as administrative expenses. According to the 2020 amendment, this has
been capped at 20%, aligning NGOs more closely with their noble missions than being
about lucrative careers. It also aligns with sentiments of genuine donors, who
would rather pay for meals or education of underprivileged children’s than for
business class travel of executives of NGOs.
Earlier
amendments to FCRA by NDA have included all members of NGOs seeking foreign
contribution to declare that they have not been “prosecuted or convicted” for
“conversion” from one faith to another and for creating “communal tension and
disharmony” and made
it mandatory for all non-governmental organisations that receive or hope to
receive foreign funding to register with NGO Darpan. Although passed by Parliament, the
2020 amendment bill too was met with trademark opposition by INC and others on
various provisions.
What more should GoI do?
The NDA
govt has undoubtedly taken a series of bold steps to get a clearer picture on
NGOs versus non-NGOs in India, increase transparency in NGOs’ funding and
activities, channel greater amount of donors’ money towards social and humanitarian
causes, and improve governance over compliance to FCRA and other applicable
laws. Clearly, these were long overdue. Governments in India may never have
sufficient resources to provide for fundamental needs of all individuals and society.
This makes the role of genuine NGOs critical in extending govt initiatives, and
evolving their own. A fruitful NGO-government partnership in India is a distant
goal, but several significant steps have been taken towards it.
Originally published in Organiser on 10-Oct-20.
Hi Vikram
ReplyDeleteThanks for the well researched article. Only today there is an article in news where a few places were searched by NIA in connection with an NGO using funds from foreign sources for nefarious activities.
Thank you so much for reading! After previous govts have been soft on dubious NGOs, I'm hoping the present one maintains a touch stand and sweeps out the wrong ones. Amnesty was just the start!
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