Non Governmental Organisation and Recent Issues

The World Bank refers to organisations that seek activities to relieve suffering, promote social justice, protect the environment, and provide basic social services as non-governmental organisations (NGOs). The role of NGOs is to protect the community. The term “non-governmental organisations,” or “NGOs” refers to an umbrella term encompassing a wide range of legal bodies that function independently of the government and are committed to serving the greater good.

These organisations are known by a few other acronyms, such as charitable organisations, nonprofits, and Civil Society Organisations (CSOs).

The History of the Role of NGOs

• The First Phase of NGOs 

Social reform movements began in India during the first half of the nineteenth century. There was a strong desire to improve the lives of individuals on the edges after seeing these movements for social change. Untouchables were granted the right to school, women were allowed to learn, and many other social aspects of life were recognised. For the first time in Indian history, the role of NGOs came to light as they sought activities to relieve suffering.

• The Second Phase of NGOs

One of the most significant events of the late 19th century was the birth of the Brahmo Samaj, Arya Samaj and Ramakrishna Mission, and other organised reform movements. The government passed the Societies Registration Act of 1860 in response to this.

• The Third Phase of NGOs

The third phase (1900-1947) was established after effectively utilising the volunteer spirit for political engagement and public mobilisation. These events spurred many nonprofit organisations to be formed in the future.

• The Post-Independent Phase

Many non-governmental organisations have been active in nation-building since independence. Neoliberal economic and political policies have spurred the emergence of nonprofit organisations.

Our Society’s Reliance on the Role of NGOs

• With their capacity to function faster and more efficiently than government institutions, private businesses greatly impact society.
• It improves the transparency and accountability of the government.
• It serves as a watchdog for human rights in society.
• Non-governmental organisations (NGOs) act as go-betweens for donors and developing countries with low and moderate incomes.

Issues With the Functioning of the Role of NGOs

• Since many NGOs lack professional financial and legal teams and the means to conduct audits, NGO funds may be misused.
• The question of outside funding: According to official government estimates, 3 068 non-governmental organisations (NGOs) received more than Rs 22,000 crore in foreign money in 2014-15. Some non-governmental organisations (NGOs) have been accused of propagating anti-Indian propaganda to undermine development efforts. An excellent illustration of this is the Kudankulam Protest.
• According to CBI statistics in the Supreme Court, just 10% of NGOs registered under the Societies Registration Act produce annual financial records.
• NGOs that accept unethical or dishonest contributions from abroad run the danger of money laundering.

Who Is in Charge of Nonprofit Organisations?

In India, NGOs are controlled by particular laws. The Act to Regulate Foreign Contributions (FCRA) and Act to Manage Foreign Exchange (FEMA act) are two key pieces of legislation regulating non-governmental organisations (NGOs). 

A Summary of the Foreign Contribution Regulation Act (FCRA)

During the emergency of 1976, the Indira Gandhi-led government adopted this legislation. This legislation covers all grants, non-Indian gifts, and charitable donations given by non-Indian residents to Indians. Foreign contributions are equally forbidden from being received by any organisations mentioned earlier. The law’s declared objective was to prohibit foreign intervention in domestic matters.

Role of NGOs and the FCRA

• A requirement of the Foreign Contribution Registration Act (FCRA) is that any non-governmental organisation (NGO) receiving foreign contributions register with the Ministry of the Interior (MoI).
• The NGO must inform the central government within 30 days of receiving a foreign gift.
• They must submit an annual report to the Ministry of the Home Affairs. In addition, NGOs must reveal the number and source of foreign donations and the intended purpose and manner they were put to use.
• The government may penalise an NGO if it fails to comply with the FCRA’s requirements. According to the government, nonprofit groups who do not file annual financial reports may be subject to consequences, including suspension or termination of their foreign finance licences.
• In the preceding two years, the central government has cancelled the permits of approximately 20,000 nonprofit groups for infringing several sections of the FCRA Act. To prevent them from gaining any foreign financing, the NGOs were prohibited.

Conclusion:

A regulatory structure should monitor the financial activities of nonprofit and volunteer organisations. If these firms fail to produce their balance sheets, the government should establish certification, account maintenance, and restitution requirements. The Home and Finance ministries may prevent a clash by bringing together the regulation of nonprofits under a single roof. Non-governmental organisations must be governed by comprehensive legislation prepared according to the General Financial Rules of 2005.