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Funding for NGOs

In the past five-six years, many people, friends, and students showed interest and contacted me to take my advice about opening a Non Government Organisation NGO. Most of these people were doing well in their life but their hearts were crying to help people and bring change in the society.

They were moved by the poverty, illiteracy, etc, as expressed by them and determined to open an NGO to serve the people. They wanted to properly utilize their connections. I thought to explore and examine the real motive behind it which is discussed below. Motive behind opening an NGO. People are opening an NGO because it is a business with sure profit.

Most of them were having contacts and were eager to use it. One can mint money in an NGO way if either of the following is true. If you know a powerful person a politician or a bureaucrat so well that he will do business with you, if you know some non-resident Indian NRI whose heart is bleeding with love and care for India, if you have impressed the international funding agencies, or if you are a powerful person like a politician or a bureaucrat.

Many NGOs are against this government move to enact the legislation to ensure their accountability and transparency and introduce a measure to involve the elected representatives in their working.

Alternatively, in many NGOs, staff work in projects and salary goes to the head of the NGO whose designation and roles were elaborated in project budget. For most of the government project, there is fixed share and commission by NGOs which goes to politicians, bureaucrats, and other officials. To influence the monitors or evaluators, even money and women are used by few organisations.

In few organisations, two parallel financial management systems are in practice, one for themselves in the name of General Fund and other for the donors and auditors. Hence, it is difficult to find faults in their financial management system. Many organisations are easily luring or impressing the donors by showcasing their work without doing anything.

There are good numbers of consultants available to develop proposals, write reports, case studies and documentaries which can be sold to donors.

Minting Money in an NGO Way | The Global Journal

Besides, nowadays many awards are also available which one can buy or manage for their organisation. One does not need to worry about transparency and accountability, particularly in respect of the funds received from various sources.

One can spend a sizable portion of funds in personal asset building, air travel, and purchase of vehicles. Even most of the training opportunities, fellowships, conference participation and foreign trips are attended by the head of the family and their members. There are instances where donors have sponsored international fellowships and foreign trips to family members or for the senior bureaucrats.

Under Societies Registration Act , there is a mandate to have seven members in the governing body of the organisation having no blood relation to promote representation of diverse sections of the society. However, to defy this clause, many organisations heads have made their daughters-in-law or other family members the board members who are part of the family but not having direct blood relation.

Mostly treasurer posts are confined within the family members and majority of the board members are kept out of fence and everything revolves around one or two members. Rest of the members remain silent signatory to validate the board decisions which they hardly aware of. Just transfer the special skills and prepare them to inherit the NGO.

For instance, an NGO in Jharkhand, established in the beginning of s, now is in the process of transferring the leadership to their sons.

Interestingly, despite the fact that many staff have devoted decades in the same organisation but they will not get the leadership, title and ownership. In another organisation in Bihar, after the death of its secretary, his wife became the secretary, as his son was minor.

After attaining 18 years of age, her son took over the secretary position. Similarly, one need not worry about dowry. This situation is not only prevalent in Bihar, Jharkhand, or Odisha, the state of Uttar Pradesh also has the culture of giving dowry in the form of NGO. There are NGO owners who want to employ professionals to run their NGOs and earn money for them. Nowadays, NGO buying and selling is increasingly emerging as a good business and one can buy an NGO in thousand depending on how old it is or having FCRA or not.

The paper does not mean that all NGOs are money making entity. Many NGOs have set up examples of transparency. But there is still a long way to go. The only way to stop these people to become the part of minting money in an NGO way is to make strong legislation and monitoring body.

Misuse of hundred and fifty years old Society Registration Act is common where anyone and everyone can register an NGO. Society Registration Act needs a thorough review and amendment. The existing legislation and monitoring bodies for NGOs are weak and powerless.

People make profitable ventures to NGOs to gain money : Kailash Satyarthi | NGO News

There is a need of strong accreditation body to monitor and regulate NGOs to improve transparency, governance, and accountability. The government and planning commission needs to relook their policy on NGO partnership. The Government should also take the responsibility of the development of its people and should stop transferring their responsibility to NGOs in the name of public-private-partnership. Author is thankful to all those who shared their experience, provided relevant information, and helped in developing this paper.

Their names are not mentioned as it might hamper their career. The views expressed in this paper are not against any individual or organisation.

Therefore, name of NGOs are not mentioned in the paper. Opinions voiced by Global Minds do not necessarily reflect the opinions of The Global Journal.

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