NGO's a Perspective 31-01-2015

8/9/2019 NGO's a Perspective 31-01-2015

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NGO’s – A Perspective

Dr.R. Vaidyanathan

Professor of Finance andControl

Indian Institute of

ManagementBangalore

[email protected]

Prof.R.Vaidyanathan, IIMB, 2!" !


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NGOs--Introduction

Traditionally, NGOs are known as – •Voluntary Organizations (VOs) & Voluntary Agencies(VAs)

•ecently as Voluntary !e"elo#$ent Organizations (V!Os) or

Non-Go"ern$ental !e"elo#$ent Organizations (NG!Os) or Non- %roit Institutions (N%Is)'

•Tere are eui"alent na$es or NGOs a"aila*le in dierent

Indian languages+ like in indi NGOs are called waya$se"i

anstayen or waya$se"i angatan'

Prof.R.Vaidyanathan, IIMB, 2!" 2


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%ast--• Te .nited Nations !e"elo#$ent %rogra$$e (.N!%) India and te .N Volunteers

(.NV) #rogra$$e organized a /oru$ in 0anuary 1223 at te .N!% oice in New

!eli, to discuss te issues relating to i$#le$entation o te .N and*ook on

Non#roit Institutions (N%Is) in te yste$ o National Accounts in India'

• e#resentati"es o %lanning 4o$$ission and te 5inistry o tatistics and %rogra$$e

I$#le$entation (5o%I) o Go"ern$ent o India, NGOs, .NV eaduarters, and te

4entre or 4i"il ociety tudies o 0ons o#kins .ni"ersity, wic is leading te eort

to i$#le$ent te .N N%I and*ook in countries trougout te 6orld, attended te

$eeting'

• In tis /oru$, te .N esident 4oordinator and .N!% India esident e#resentati"e

stressed te need or i$#le$entation o .N and*ook on Non#roit Institutions in order

to ca#ture te contri*ution o N%Is to te national econo$y

Prof.R.Vaidyanathan, IIMB, 2!" #


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%ast-1-

• Te National %olicy on te Voluntary ector, ado#ted in 5ay 1227 8 #resu$a*ly

under te guidance o te ten National Ad"isory 4ouncil9 #ledges to encourage,

ena*le and e$#ower an inde#endent, creati"e and eecti"e "oluntary sector, wit

di"ersity in or$ and unction, so tat it can contri*ute to te social, cultural and

econo$ic ad"ance$ent o te #eo#le o India'

• It constitutes te *eginning o a #rocess to e"ol"e a new working relationsi#

*etween te go"ern$ent and te "oluntary sector, witout aecting te autono$y

and identity o "oluntary organizations (GoI:%lanning 4o$$ission, 1227)'

Prof.R.Vaidyanathan, IIMB, 2!" $


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4riteria : Acti"ities

• Two i$#ortant criteria –

– tey sould *e inde#endent ro$ go"ern$ent

– Organizations not $eant or $aking #roit'

• Acti"ities in"ol"ed ro$ >aging issues? to >corru#tion? to >u$an

rigts? to >waste $anage$ent?'

• 5any are 4urc-related organization and oters in"ol"e in u$an rigts

issues as a ci"il society organization'

Prof.R.Vaidyanathan, IIMB, 2!" %


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ow $any dierent ways to *e an NGO

y!es of "egistration #

Te $ain statutory laws go"erning te "arious ty#es oregistered non!rofit Organi$ations are@ A. Non#!rofit organi$ations created for the larger !ublic good

!.Te ocieties egistration Act, B32

1' Te Indian Trusts Act, BB1

;' %u*lic Trust Act, CD2

E' Te Indian 4o$#anies Act (ection 1D), CD3

%. "eligious non#!rofit organi$ations

' eligious Fndow$ents Act, B3;

1' Te 4arita*le and eligious Trust Act, C12

;' 5ussal$an 6ak Act, C1;

E' 6ak Act, CDE

D' %u*lic 6aks (F


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o$e /acts

• Hy 122C, a total o ;; lak societies re#orted as >ocieties registered? 84O –

ur"ey9

• O tese, te tate !irectorates o Fcono$ics and tatistics 8!Fs9 got inor$ation

a*out 11'DB lak units

• his means &ndia has an NGO for every '(' !eo!le but one co! for )*+ !eo!le,

-O& an +/#2+0'1

• Hut 4entral tatistics Oice (4O) could not trace laks o te$' O te rougly

11 lak NGOs it tried to "eriy, only 3'CD lak could *e traced'

Prof.R.Vaidyanathan, IIMB, 2!" '


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Any wic wayNot known• Tese igures did not include non-#roit organizations registered under

Te 4arita*le and eligious Trust Act , C12 wic, i counted, would add a ew

tousands to te nu$*er' Ten tere are non-#roit co$#anies under te Indian

4o$#anies Act, CD3, and oter laws tat also el# set u# trusts'

• Te nu$*ers also did not include $any grou#s and associations - wic in co$$on

#arlance are reerred to as $ass-*ased grou#s, usually o#erating at *lock and "illage

le"els, at ti$es ederating into larger organizations or s#eciic #ur#oses or ca$#aigns'

• &n some states, a study by P"&A and ohns o!kins University suggested nearly '+

!er cent of the total voluntary organi$ations in &ndia were not registered under any

law.

Prof.R.Vaidyanathan, IIMB, 2!" (

http://www.business-standard.com/search?type=news&q=The+Charitable+And+Religious+Trust+Acthttp://www.business-standard.com/search?type=news&q=1920http://www.business-standard.com/search?type=news&q=1920http://www.business-standard.com/search?type=news&q=The+Charitable+And+Religious+Trust+Act


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Only 2J o 11 lak NGOs ile any returns@ 4HI

• Only a*out 2 #er cent o te o"er 11 lak non-go"ern$ental organizations

scanned *y te 4entral Hureau o In"estigation, on te u#re$e 4ourt=s directions,

ile teir annual inco$e and e


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No' o NGOs iling returns

Prof.R.Vaidyanathan, IIMB, 2!"

tate No' o NGOs No' o NGOs iled returns

.ttar %rades DEBEB C222

5aarastra DBE;7 77733

Kerala ;32222 -

%unLa*, aLastan & 6est

Hengal

;72222 72BC

0a$$u & Kas$ir E7 E7

ource@tt#@::www'teindu'co$:news:national:tn-reuses-to-sare-data-on-ngos-wit-c*i:article37D73EB'ece

!!


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5aaraLas a$ong NGO=s/4A unded

alient /eatures – 12-1

•A total o E;D17 Associations

•11721 Associations re#orted a total recei#t o an a$ount o s'DE3'1C

crore

•igest ecei#t – tate –

– !eli (s' 11BD'7D crore)

– Ta$il Nadu (s' 72E'73 crore)

•Te igest recei#t – !istrict –

– 4ennai (s' BBC'CC crore),

– 5u$*ai (s' B1D'E2 crore)

Prof.R.Vaidyanathan, IIMB, 2!" !2


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Maharajas among !"#s$FCR%funded

alient /eatures – 12-1

•igest recei#t - Associations

– 6orld Vision o India, 4ennai, (s' 1;;';B crore)

– Helie"ers 4urc India %atana$titta, Kerala (s' C2'2D crore)

•!onor 4ountries –

– .A (s' ;B;B'1;crore)

– .K (s' 1C'21crore)

•/oreign donors –

– 4o$#assion International, .A (s' B;'B; crore)

– 4urc o 0esus 4rist o atter day aints, .A 85or$ons9

(s';2'77 crore)

)o*rce + htt&'(())).mha.nic.in(fcra.htmProf.R.Vaidyanathan, IIMB, 2!" !#


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*+.. !"s recei,ed ma-imum foreignfunds in /01203#

• In 12;-E, till No"e$*er E, te go"ern$ent recei"ed annual returns ro$ ,;EE Ta$il Nadu-*ased

NGOs disclosing tat tey ad recei"ed a*out s'DE7 crore during te #eriod'

• econd in te list were tose ro$ Andra %rades (,211), wic recei"ed a cu$ulati"e total o

s'EB2 crore ro$ oreign sources'

• In Kerala, CD organizations iled returns disclosing recei#t o s';BD crore, wile 7;E NGOs in

5aarastra recei"ed s';7B crore'

• As su*$itted in te ok a*a go"ern$ent statistics re"ealed tat a total o B,3;3 NGOs across te

country iled teir returns, sowing recei#t o oreign donations to te tune o s';,7BE crore'

• Te a$ount is al$ost al o te oreign unding (s'2,C3; crore) disclosed *y B,1C7 "oluntary

organisations in 121-;' Also, te go"ern$ent in 12-1 recei"ed annual returns ro$ 11,7C

NGOs sowing recei#t o s',DDE crore in oreign unding'

• Te $a


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ha-ravarty’s aon/ Mahara0as+NGOs –

HI records say te international NGOs a"e not *een registered wit any

Go"t agency

Hank Inor$ation 4entre,

A"aaz, ;D2'org

ierra 4lu*

Green#eace

o$e Aairs 5inistry - /reeze te low o oreign unds to tese our

non-go"ern$ental organizations'

4ource'htt&'(())).thehindu.com(ne)s(national(funds2free7e2ngos2yet2to2get2intimation(article5850/06.ece9

Prof.R.Vaidyanathan, IIMB, 2!" !"


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y!e of Activities of NGO6s


Age 4are

Agriculture

Ani$al 6elare

Art & crat

4aste

4ildren

4ities

4o$$unity !e"elo#$ent

4ulture and eritage

!isa*ility

!isaster 5anage$ent

Fducation

Fn"iron$ent

ealt

IV:AI!

ousing and lu$s

5icro /inance

%o#ulation

%o"erty

ural Transor$ation

Tri*als

6aste 5anage$ent

6ater

6o$en

Oters

4ource1 Indiann/os.co

!%


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ypica3 4ors of NGO’s


Ite$ Ty#e o NGO=s

Advocacy3 Tese NGO=s ad"ocate or ca$#aign on issues or causes' Tey do not i$#le$ent #rogra$$es:#roLests' %FTA

ad"ocate te cause o etical treat$ent o ani$als

1' 7onsultancy4"esearch organi$ations3 Tey work on ocial and !e"elo#$ental esearc and 4onsultancy

;' raining4 7a!acity %uilding organi$ations@ Training is called ca#acity *uilding *y NGO=s and so$e NGO=s work on ca#acity

*uilding o oter NGO=s

E Networking organi$ations@ Tey #ro"ide network or oter NGO=s in s#eciic ields' AVA! works on networking NGO=s in

rural de"elo#$ent

D' 8other NGO6s3 Tese are reci#ients o unds as well as gi"ers' Tey a"e a work ocus *ut instead o i$#le$enting #roLects

tey identiy #roLects and $onitor, e"aluate and *uild ca#acities o oter #artici#ating NGO?s' 4M is one e


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Trend o"er last 2 years

• N*5er of re/istered associations *nder 4RAhas /one *p fro near3y 2 to $"

• On3y ha3f of the re/*3ar3y 63e ret*rns

• ota33y ore than Rs. !, crore have coe

into the co*ntry

Prof.R.Vaidyanathan, IIMB, 2!" !'

" i i t A i ti 2++9 +) t 2+00 02 :" ;


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o! "eci!ient Associations 2++9#+) to 2+00#02 :"s crore;


+"P FIV: R:CIPI:+ %44"CI%+I"4

Foreign Contribution ;Rs. in crore9

%ssociations /0020 %ssociations /0/200 %ssociations //orld Vision "fIndia? +amiladu 11.1=

>orld Vision ofIndia? +amil adu 11.83

>orld Visionof India? +amiladu /=.orld Visionof India? +amiladu 0omensDe,elo&ment+rust? %ndhraPradesh 8.86

Caruna BalVias? +amiladu =.5

Belie,ersChurch India 0//.8

Source: Ministry of Home Affairs –Foreigners Division, FCRA wing !(


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To# /i"e %ur#oses


R:C:IP+ %D +II%+I" "F F"R:I! C"+RIB+I"

+">%RD4 +"P FIV: PRP"4:4

Foreign Contribution ;Rs. in crore9

PRP"4: /0020 PRP"4: /0/200 PRP"4: //


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NGO6s as &nvestment %ankers

• Organizations gain - s' D2 4rore *y way o interest eac year'

• Organizations gain - s' 322 4rore *y way o eturn on In"est$ents eac year'

Tus, tey are likely to a"e in"ested around s' 3222 4rore in /i


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Purchase of lands

• Bear after year, around "s. '+ 7rore comes from abroad to !urchase land in &ndia

• In 12-1 & 121-;, te a$ounts are unusually large, due to increased inlu< o unds

or tis acti"ity or an Organization wose /4A registration is in te !eli seuence,

*ut wic is located in Hangalore' It is called PIndian ociety O 4urc O 0esus 4rist

O atter !ay aintsP, QEC;, AnLali %laza, 4'5'' oad, Indiranagar, Hangalore,

Karnataka - D322;B' Teir acti"ities in India can *e learnt ro$ teir we*site

tt#@::lds'org'in:districts-in-india-*angalore-$ission ' Teir /43 returns or te year

12 and 121 are ere and ere res#ecti"ely'

• An organization located in a gi"en tate need not s#end te oreign unds it recei"es in

te sa$e tate'

• Summary 3 he meek shall inherit the >arth.

)o*rce1http1;;si/h5a5oo.53o/spot.in;2!$;&;to


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P%urcase o and> – 4alculation

• ow do we calculate tis a$ountR 6ell, as usual, *y studying te /43 return iled *y te

Indian NGOs e"ery year wit te 5inistry o o$e Aairs' Tere are a##ro


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eligious !eno$ination - #eciied• 112EE organizations ro$ ; tates a"e iled returns so ar

or 12-1' CB2C Organizations ro$ tis set are located in

Lust 12 tates wic are o interest to us' Among them, *9''

of them have declared their religious denomination of that

*0)( are 7hristian -2+00#2+021

• Total oreign unds recei"ed *y suc 4ristian organization

was "s.(25* crore out of total 0+/'2 crore received in 2+00#

02 -based on


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!onors to /4A-NGOs 6ord clouded (tate-wise)

• 6e also learnt a*out su*tle, *ut non-negligi*le dierences in

te sources o unds to dierent tates' /or instance, KeralaUs

sources a"e a largely 4atolic la"or, Ta$il Nadu as a

6estern Furo#e (& candina"ian) la"or wile Andra%rades (& Telangana) a"e a $ore Nort A$erican one' Te

e"angelical sta$# in all tese re$ittances toug, as *een

un$istaka*le'

)o*rce1http1;;si/h5a5oo.53o/spot.in;2!$;!!;donors+to+fcra+n/os+


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Cord Clouds for erala


:ord 3o*d of 4*33 Naes of 4orei/n 7onors

)o*rce1 http1;;si/h5a5oo.53o/spot.in;2!$;!!;donors+to+fcra+n/os+


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Cord 7louds for Derala


:ord 3o*d of


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NGO's a Perspective 31-01-2015

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