Non Govermental Organizations - Part 1

NON GOVERNMENTAL ORGANIZATIONS - PART 1

Introduction:

•    As defined by the World Bank NGOs refers to not-for-profit organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development.
•    These organisations are not a part of the governement, have a legal status and they are registered the specific Act under which they have to be registered.
•    The term NGO in India denotes wide spectrum of organisations which may be non-governmental, quasi or semi governmental, voluntary or non-voluntary etc.
•    In India, based on the law under which they operate and the kind of activities they take up, civil society groups can be classified into following broad categories:

•  Registered Societies formed for specific purposes
•  Charitable Organizations and Trusts
•  Local Stakeholders Groups, Microcredit and Thrift Enterprises, Self Help   Groups
•  Professional Self-Regulatory Bodies
•  Cooperatives
•  Bodies without having any formal organizational structure
•  Government promoted Third Sector Organizations
  

Need For Ngos:
•    Since independence, India has achieved phenomenal economic growth in education, healthcare, poverty alleviation and overall standard of living.
•    Issues of exclusion of women, children and marginalized communities in the development process however remains.
•    Other adverse consequences of inequitable growth include the spread of Naxalism, recurrent violence for reservations and ever increasing cases of farmer suicides.
•    India ranks 130th in the 2018 Human Development Index rankings. The Global Hunger Index for 2018 indicates that 38.4% of children under five in India are stunted.
•    In such an environment civil society plays a key role in raising the concerns of people and ensuring that minorities are not neglected.
•    The state requires the constructive and collaborative engagement of the civil society in its various developmental activities and programs.
•    Non-governmental organisations (NGOs) acts as the operational arm of the civil society and thus have an important role in the development processes.

Legislations regulating the finances of NGOs:

Foreign Contribution (Regulation) Act (FCRA), 2010

•    Foreign funding of voluntary organizations in India is regulated under FCRA act and is implemented by Ministry of Home Affairs.
•    The acts ensure that the recipients of foreign contributions adhere to the stated purpose for which such contribution has been obtained.
•    Under the act organisations require to register themselves every five years.

Foreign Exchange Management Act, 1999:
•    Foreign Exchange Management Act (1999) aims to consolidate and amend the law relating to foreign exchange with objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
•    A transaction under FEMA is called a fee or a salary while the same under FCRA is called a grant or a contribution.
•    In 2016, the powers of Ministry of Finance to monitor NGOs were placed under the FEMA. The idea was to bring all NGOs, which receive foreign contributions, under one umbrella for better monitoring and regulations. The step was taken to that ensure only one custodian monitors flow of foreign funds to these organisations.

Constitutional Provisions for NGOs in India
•    Article 19(1)(c) on the right to form associations;
•    Article 43 which highlights the State’s having an endeavor to promote cooperatives in rural areas;
•    Concurrent List in Entry 28 mentions about – Charities and charitable institutions, charitable and religious endowments and religious institutions”.

Role of Non-Governmental Organisations
The Advocacy/Social Safety-Valve Role:
•    Non-profit organisations play vital role in mobilizing public attention to societal problems and needs.
•    They are the principal vehicle through which communities can give voice to their concerns.

Improving government performance:
•    NGOs can broaden government’s accountability by ensuring government is responsive to citizens at large rather than to narrow sectarian interests.
•    They also induce innovation and flexibility in policymaking by bringing their own independent expertise and research teams.
•    They enhance the efficiency of delivery of many services at the local level through involvement of residents.
•    They also improve policy monitoring and evaluation as Comptroller and auditor general (CAG) takes cognizance of reports and social audits by NGOs while preparing its reports.

The Service Role:
•    The non-profit sector acts as a flexible mechanism through which people concerned about a social or economic problem can begin to respond.
•    It also caters to groups of the population who desire a range of public goods that exceeds what the government or society is willing to support.
•    NGOs help in constructive conflict resolution. In the international arena Track II diplomacy (involving non-governmental bodies) plays a crucial role in creating an environment of trust and confidence.