Working of NGOs - Additional Inputs

With all your inputs on functioning of NGOs, we have a clear roadmap on issues, causes of those and solutions that need to be implemented. Please take a read below and suggest any other specific solutions that must be implemented to improve functioning of NGOs in India.

NGOs in India - Issues, Root Causes, Solutions

Issues Identified:
1. Some NGOs are being used for money laundering
2. Most of the NGOs do not provide their source of funds
3. Many NGOs carry some hidden agenda
4. NGOs are not listed & categorized by their work
5. Most of the NGOs are working just to oppose Government’s developing projects
6. Some foreign countries are funding NGOs to spread their agenda
7. Many NGOs are being used for political purposes
8. Improper accounting system is being followed by NGOs
9. In many cases, NGOs are only set up to get funds/land from the Government
10. In many cases, NGOs pay bribes to secure funds from Government and then conduct fraud, inappropriate or illegal activities
11. Many NGOs are run by big companies with some vested interest
12. Many genuine NGOs are short of funds while fake or fraud ones manage to get huge funds
13. Genuine NGOs are not able to attract good talent
14. In a lot of cases, the NGOs are not able to execute their plans
15. There is a lack of transparency in the working of most NGOs

Root Causes Identified:
1. Government supervision on NGOs is weak
2. No dedicated body to check the workings of the NGOs
3. Setting up an NGO is quite an easy process
4. Rules and regulations are not clear and NGOs often bend them in their favour
5. Many NGOs are run by big businessmen to offload their black money
6. Many NGOs are politically driven and supported
7. Many NGOs have been getting away with illegal/non-impactful work for decades
8. Policies make it easier to get funds/land from Government for NGOs
9. Many genuine NGOs lack the capability of raising funds
10. NGOs are not good paymasters and hence people do not like to work for them
11. Many NGOs depend on the community support for their livelihood
12. NGOs don’t do audits for years
13. There is a lack of transparency and accountability in the NGO system
14. Many NGOs bribe the authorities to keep their transactions going

Solutions Identified:
1. The transactions of the NGOs should be monitored seamlessly
2. NGOs should be forensically audited both financially and socially
3. Every NGO must be driven to follow prompt accounting system and the annual accounts shall be audited by the authorized Chartered Accountants and submit the Financial Statements to the Social/ Public Welfare Department of the Government concerned
4. If any irregularity is found, the auditors and verifying officials should be made accountable
5. Governments should not allow any NGO whether running with Indian or Foreign funds to take up Religious Expansion campaigns to prevent unrest in the Nation
6. The NGOs should utilize the Land , Buildings and Funds only to the and for the purposes notified in their Memorandum and as specifically certified by the Government
7. No NGO should be allowed to collect more than the reasonably estimated Funds without the further licenced permission from the Government concerned
8. NGOs which do social good need to be promoted, while those which encourage agitations needs to be discouraged
9. 9. NGOs permission must be for fixed duration of 5 years, subject to on-line renewal on showing audited statement of finance as well activities how effective they have been
10. The rules for the formation of the NGOs should be made stricter
11. Transgression of major acts covering NGOs should attract severe penal provisions imprisonment etc.
12. The implementation of the foreign Contribution (Regulation) Act should be made stricter
13. No Government grant to be given to NGOs run by politicians
14. All NGOs must use minimum 60% of the donated amount on capital and a record of the same should be submitted in their annual report
15. All NGOs must be asked to register on single web portal where they should update their monthly activity with details of donation received
16. Local NGOs should be made to register with respective local circle and engage local community
17. Government must clearly give guidelines for the percentage of money of the total collection that can be spent for the NGO
18. NGO’s financial transactions should be brought under RTI
19. Every NGO should be required to circulate their audited accounts to the donors of that particular year within a period of 3 months from the date of their end of financial year. If it does not comply their 80 G certificate should be withdrawn. more