NGOs
May 21st, 2008Almost everyone with investments receive regular mail from groups like World Vision which are registered as NGO requesting donations which could improve the life of a child. If there is any problem, the NGO’s get a lot of coverage in the media. However, there is very little information about the actual activities of the NGO’s in India.
By definition, a NGO or a non-governmental organization is any non-profit, voluntary citizen’s group or association. They can be registered as a trust, society, co-operative or company and may operate locally, nationally or internationally. These NGO’s cover a range of activities which vary from education for the underprivileged to waste management activities.
NGO’s receive a lot of concessions and tax benefits since they are expected to work for the benefit of society on a non-profit basis. They are also independent of the government. The NGO’s get their funding from domestic and foreign agencies. Foreign contributions are regulated by the Foreign Contribution’s Act and the NGO’s are expected to report these contributions to the government. However, the number of registered organizations reporting information accurately has decreased and it is believed that a lot of contributions are not reported.
The largest foreign donors are Gospel and missionary trusts in USA and UK, and the largest recipient of the funds are World Vision India (more than 200 crores) and Caritas India (more than 180 crores). However, though these are voluntary organizations, a large part of the money they receive (30-70%) is spent on fixed expenses like posh offices, vehicles for transport, phone bills, salaries and foreign travel. Only a small amount is spend on actually helping the underprivileged!