NGO's and Voluntary Organisation

Non-Governmental Organizations (NGO’s) have played a crucial role in the development landscape of India, contributing significantly to social welfare, empowerment, and community development. The term “NGO” refers to voluntary organizations that operate independently of direct government control, embodying democratic principles and welcoming individuals who voluntarily choose to become members and contribute to societal well-being.

NGOs in India are characterized by their commitment to social causes and their independence from direct governmental influence. While they may seek financial support from the government, they typically operate based on their own principles and programs. The term “NGO” has gained global recognition and respect for the valuable welfare services these organizations provide to society (Punalekar, during Tsunami 2004 in Toothukudi, Tamil Nadu).

Voluntary Organizations (VOs), a synonym for NGO’s, are designed to be open to voluntary membership, allowing individuals to join or leave the organization based on their own choices. However, it is important to note that membership in these organizations is not entirely unrestricted. VOs often have specific eligibility criteria for admission, and individuals must meet these criteria with the approval of existing members. Therefore, while NGOs are voluntary in relative terms, they maintain a structured and regulated membership process (Masihi, during Tsunami 2004)

Historical Roots and Global Presence

Evolution of International Non-Governmental Organisations (INGOs)

The history of International Non-Governmental Organisations (INGOs) dates back to at least 1839, gaining prominence in pivotal movements such as anti-slavery and women’s suffrage. By 1914, an estimated 1083 NGOs were actively engaged in global affairs. The zenith of INGO influence coincided with the World Disarmament Conference, marking a period of significant impact. However, the term “Non-Governmental Organisation” entered popular usage only after the establishment of the United Nations Organization in 1945.

The United Nations Charter, specifically Article 71 of Chapter 10, acknowledged the consultative role of organisations not affiliated with governments or member states. This recognition laid the foundation for the widespread use of the term “non-governmental organisation.” The formal definition of an “International NGO” (INGO) emerged in a resolution by the Economic and Social Council (ECOSOC) on February 27, 1950. It clarified that an INGO is “any international organisation not founded by an International treaty.”

The pivotal role of NGOs and major groups in sustainable development gained explicit recognition in Chapter 27 of Agenda 21. This acknowledgment set the stage for establishing consultative relationships between the United Nations and non-governmental organisations. The consultation mechanism became a crucial aspect of fostering collaboration on global developmental issues.

The non-governmental sector experienced rapid growth in Western countries, driven by the restructuring of the welfare state. The fall of the communist system further accelerated the globalisation of this process, aligning with the principles of the Washington Consensus. As the non-governmental sector evolved, it played an increasingly vital role in shaping international agendas, advocating for human rights, and contributing to sustainable development initiatives.

Brief history of Voluntary Organisation and NGOs in India

Voluntarism in Ancient India:

Ancient civilizations witnessed the manifestation of voluntarism through charity, philanthropy, and relief activities, addressing needs via religious channels. Even during the Rig Vedic period, communities and rulers actively engaged in assisting those in need during crises such as floods, famine, and epidemics. Voluntarism in early India evolved as a philanthropic endeavour, deeply embedded in cultural heritage. Groups like Atmiya Sabha (1815) and religious institutions significantly contributed to these early voluntary initiatives.

Voluntarism during the Colonial Period:

The colonial period brought new impetus to voluntarism in India. The Laissez Faire policy of the British Government in economic, religious, and social matters left avenues for development through self-help voluntarism. Social reform movements led by figures like Raja Ram Mohan Roy, Rabindranath Tagore, and Swami Vivekananda initiated philanthropic efforts, addressing societal ills. During British rule, voluntary organisations proliferated, engaging in diverse welfare and relief works. Organisations like the Unitarian Committee (1822) and Brahmo Samaj (1828) emerged during this period.

Gandhian Era and Voluntarism:

Mahatma Gandhi significantly influenced the voluntarism landscape in India during the freedom movement. Gandhi’s emphasis on self-reliance, community empowerment, and non-violence transformed voluntarism into a principled and value-based action. Initiatives like Charkha, Khadi, and Gramodyog became symbols of voluntariness and shared responsibility. Various organisations founded by Gandhiji, such as Harijan Sevak Sangh and Gramodyog Sangh, contributed to the voluntarism ethos.

Post-Independence Voluntarism:

After independence, the legacy of Gandhian voluntarism continued with leaders like Vinoba Bhave and Jaya Prakash Narayan promoting initiatives like Bhoodan and Gramdan Movements. The first two decades of independence focused on nation-building, with voluntary organisations playing a crucial role. Government initiatives like the National Extension Service and Central Social Welfare Board further shaped the voluntarism landscape. The 1970s and 1980s witnessed a proliferation of NGOs with increased specialisation, scope, and professionalism. Organisations like Association for Voluntary Agencies for Rural Development (AVARD) (1958) played a pivotal role.

Voluntary Organizations since the 1990s:

Since the early 1990s, there has been a steady growth of voluntary organisations in India. The Seventh Plan emphasised greater involvement of the voluntary sector, and the government provided support through funding and partnerships. The changing paradigm of development, increased international funding, and GO-NGO partnerships contributed to the rapid growth of the voluntary sector. The 1990s marked a shift towards more targeted work with specific groups, such as women, children, and marginalised communities. Notable organisations like Participatory Research in Asia (PRIA) estimated around 1.2 million NGOs working in India.

National Policy on the Voluntary Sector:

In 2007, the Government of India approved the National Policy on the Voluntary Sector, signalling a new working relationship between the government and voluntary organisations. The policy aimed to create an enabling environment, legitimise financial support, encourage collaboration based on trust and respect, and promote transparent and accountable governance in voluntary organisations. The policy recognized the significant contributions of the voluntary sector to addressing societal challenges and advocated for a collaborative and empowering approach.

Various Definition to NGOs

Duggal (1988) defines NGOs in the following manner:

(i) They are registered as public trusts or societies;

(ii) The different programmes adopted by the NGOs are welfare ones and sometimes government funded too;

(iii) NGOs as a rule do not generate their own funds completely but rely on external financial assistances from government agencies-both national and international;

(iv) They are private organisations, but their nature makes them somewhat different from what one generally expects from a private sector. Thus, they are not supposed to make any profit.

Rajasekhar (2000) defines the term NGO that undertakes voluntary action, social action and social movements.

The World Bank defines Non-governmental Organisation (NGO) as a private organisation that pursues activities to relieve suffering, promote the interest of the poor, protect the environment, provide basic social services, or undertake community development”. In other words, NGOs are legally constituted organisations, operate independently from the government and are generally considered to be non-state, non-profit oriented groups who pursue purposes of public interest”.

Characteristics of NGOs

Not-for-Profit Orientation: NGOs are not established for personal profit. Even if they employ individuals or engage in revenue-generating activities, they do not distribute profits or surpluses to members or management.
Voluntary Nature: NGOs are formed voluntarily, and there is typically an element of voluntary participation within the organisation.
Formal or Institutional Existence: Distinguished from informal or ad hoc groups, NGOs usually have a degree of formal or institutional existence. This may involve formal statutes or governing documents outlining their mission, objectives, and scope, with accountability to members and donors.
Independence: NGOs operate independently, especially from government bodies, public authorities, political parties, or commercial organisations.

Bhose (2003) contributes additional characteristics:

Legal Registration: NGOs are registered under specific government acts such as the Societies Act, Trust Act, or Trade Union Act. Some NGOs may also register under the Foreign Contribution Regulation Act (FCRA) to obtain funds from abroad.
Flexibility: NGOs demonstrate flexibility in intervention, free from bureaucratic obstacles, enabling quick decision-making in response to community needs.
Non-Profit Orientation: NGOs are not profit-oriented. Surpluses and gains, if any, are reinvested for development purposes.
Not Self-Serving: NGOs are established for the benefit of the underserved and impoverished, not for the benefit of the promoters.
High Motivation: Members and staff exhibit high motivation to work for the cause, driven by social values and humanitarian principles.
Freedom in Work: NGO workers enjoy maximum freedom in their fieldwork, organising communities, and implementing development schemes.
Value-Driven: NGOs are driven by social values and humanitarian principles, aiming to promote a value-based society.
People-Oriented: People are at the heart of NGOs, involving them in planning and implementation, learning from their experiences, and replicating successful initiatives.

Types of NGO's in India

Manoranjan Mohanty, Anil K. Singh (2001) has classified the NGOs/VOs of India in nine broad groups on the basis of the following parameter /basis:

Organisational Forms/Legal Status:

Societies (e.g., Society for the Improvement of Weaker Sections, Tamil Nadu)
Foundations (e.g., Family Planning Foundation, New Delhi)
Trusts (e.g., Kasturba Gandhi National Memorial Trust, Madhya Pradesh)
Cooperatives (e.g., Chhotanagpur Catholic Mission Cooperative Society, Bihar)
Business & Commercial Organizations or Enterprises (e.g., Rajasthan Consultancy Organisation Ltd.)
Panchayati Raj Institutions (e.g., All India Panchayat Parishad, New Delhi)
Trade Unions (e.g., Textile Labour Association, Gujarat)
Citizen’s Groups (e.g., Citizen Uplift Society, Maharashtra)

2. Sources of Inspiration (Ideological/Political/Economic/Religious Affinities/Philosophical Base/Social Reforms):

Gandhian VOs (e.g., Gandhi Peace Foundation, New Delhi)
Marxist/Left/Radical Groups/Naxalite Groups (e.g., J.P. Seva Samiti, UP)
Christian Missionaries and Church-Based Groups
Islamic/Buddhist/Sikh/Organizations/Temple-Based Developmental VOs
Vivekananda/Ramakrishna Missions
Sri Aurobindo Societies
RabindraNath Tagore Societies
Social Reformist Groups inspired by various leaders like Raja Ram Mohan Roy, Jyotiba Phule, etc.

3. Period of Establishment/Origin:

Pre-Independence/Old Generation VOs
Post-Independence/New Generation VOs

4. Area of Operation:

Rural-Based VOs
Urban-Based VOs

5. Form of Control/Governance:

Self-Controlled/Managed VOs
Private VOs (Privately & Independently controlled by founders or nominees)
Government-Sponsored (Gongos)
Quasi-Autonomous NGOs (Quangos)
Business-Sponsored VOs (Bongos)
Political Party-Sponsored Organizations (Phngos)
Donors-Sponsored Organizations (Fungos)
NGO-Sponsored/Subsidiary NGOs

6. Functional Diversity:

Single-Function VOs
Multi-Function VOs

7. Size:

Small (Village Committees/Rural Youth Clubs)
Medium (Block/District-Level Organizations)
Large-Sized Organizations (Umbrella Support Organizations)

8. Specialized Foundation/Sector-Specific Dominant Functional Role:

Various Needs-Based Clientele Groups/Professional and Consultancy VOs
Advocacy and Information Dissemination Organizations
Research and Evaluation VOs
Service Delivery Organizations
Networking and Alliance Building/Support Organizations/Fundraising VOs
Training and Capacity-Building VOs

9. Target Group:

Youth Clubs
Women’s Organizations
Farmer/Peasant Organizations
Artisan Groups
Scheduled Caste Welfare Organizations
Scheduled Tribe Welfare Organizations
Child Welfare and Development VOs
Aged Welfare Organizations
Physically Handicapped/Less Abled Persons Welfare VOs
Drug/Alcoholics Addiction Centers

10. Sources of Funding/Degree of Autonomy & Independence:

Community Voluntary Source Funded VOs
Government Funded VOs
NGO-Funded VOs

11. Levels of Operation:

Grassroots/Local/Peripheral VOs
National/Intermediary Groups
International NGOs

Need / Significance for NGO’s

Poverty and Hunger Alleviation: NGOs in India play a crucial role in mitigating poverty and hunger by providing essential support such as food, shelter, and livelihood opportunities to marginalised communities. For instance, organisations like Akshaya Patra run mid-day meal programs, ensuring school children receive nutritious meals.
Quality Education for All: Addressing the inequality in education access, NGOs establish schools and educational programs. Pratham, a prominent NGO, focuses on improving learning outcomes among underprivileged children through innovative education initiatives.
Healthcare Access: NGOs organise health camps and awareness programs, ensuring medical assistance reaches vulnerable populations. Examples include the work of organisations like SEWA Rural and Smile Foundation, which provide healthcare services to underserved communities.
Women’s Empowerment: NGOs actively promote gender equality and empower women through vocational training and skill development. The Self-Employed Women’s Association (SEWA) has been instrumental in empowering women in the informal sector.
Environmental Conservation: Addressing environmental threats, NGOs engage communities in sustainable practices. Examples include the efforts of Greenpeace India in advocating for ecological sustainability and pollution control.
Rural Development: NGOs focus on poverty alleviation, sanitation, and livelihood improvement in rural areas. Organisations like PRADAN work towards enhancing the quality of life in villages through sustainable development initiatives.
Child Welfare: NGOs prioritise child rights protection, working to prevent child labour and ensure child protection. Bachpan Bachao Andolan is an organisation dedicated to eradicating child labour and trafficking.
Disaster Relief and Rehabilitation: During natural disasters, NGOs like Goonj and Oxfam India are often the first responders, providing immediate relief and aiding in rehabilitation efforts.
Empowerment Through Skill Development: Skill development programs by NGOs like National Skill Development Corporation (NSDC) equip individuals with employable skills, contributing to poverty reduction.
Promoting Sustainable Livelihoods: NGOs create sustainable livelihoods for marginalised communities by promoting income-generating activities and entrepreneurship. Organisations like Aga Khan Rural Support Programme focus on sustainable rural development.

Role of NGO's in India

Filling Gaps in Government Services: NGOs, such as Prayas and CRY, fill critical service gaps in areas where government resources may fall short, ensuring essential services are provided to those in need.
Advocacy and Policy Influence: Organisations like Amnesty International India actively engage in advocacy, influencing policies and regulations to foster positive social change and protect human rights.
Grassroots Mobilisation: NGOs like SEEDS work directly with communities at the grassroots level, understanding their needs and preferences to tailor interventions effectively.
Disaster Relief: During emergencies, NGOs like ActionAid India and CARE India act as crucial first responders, delivering immediate relief and aiding communities in the recovery process.
Promoting Sustainable Development: NGOs such as TERI (The Energy and Resources Institute) champion sustainable practices, working towards long-term solutions for environmental and social challenges.
Empowering the Marginalised: Organisations like Navjyoti India Foundation empower marginalised communities by providing them with skills, education, and resources, fostering holistic development.

Challenges Facing Indian NGO’s

Corruption: India ranks 86th out of 180 countries in the 2021 Corruption Perceptions Index.

Impact: Rampant corruption affects NGOs heavily, jeopardising funds and hindering social programs. In 2015, around 9,000 NGOs were deregistered for misusing foreign funds.

Lack of Accountability and Transparency: A CBI report highlighted that 58 NGOs misused funds totaling Rs 350 crore between 2016 and 2018.

Impact: Limited checks and balances enable misappropriation of resources, undermining the effectiveness of NGOs.

Lack of Impact Assessment: Only 37% of Indian NGOs have a structured impact assessment mechanism (Centre for Civil Society).

Impact: Without proper impact assessment, evaluating program effectiveness becomes challenging, eroding donor trust.

Inadequate Funding: Funding for NGOs fell by 30% between 2014 and 2017 (Indian Institute of Corporate Affairs).

Impact: Decreased financial support hampers NGO programs, hindering their ability to achieve goals and sustain operations.

Political Interference: 13,000 NGOs were deregistered between 2014 and 2018, citing FCRA violations (Commonwealth Human Rights Initiative).

Impact: NGOs facing accusations of working against government interests experience increased scrutiny and harassment.

NGO Growth and Challenges: Over 3 million NGOs in 26 states, handling substantial funds. Lack of collaboration between government organisations and NGOs, communication gaps, and various operational challenges.

Sources of Funding for Indian NGO’s

Government Grants: The Government of India allocates various grants to NGOs registered under the Societies Registration Act or the Indian Trusts Act. These grants are specifically designed to support targeted social causes, including women’s empowerment, child welfare, and environmental conservation.

Ex: Ministry of Social Justice and Empowerment, Ministry of Women and Child Development, Ministry of Rural Development.

Corporate Social Responsibility (CSR): Numerous Indian companies are mandated to allocate a percentage of their profits to CSR activities, which may involve funding NGOs. NGOs can seek financial support by presenting proposals that align with the CSR objectives of these companies.

Ex: Tata Consultancy Services (TCS), Reliance Industries Limited, Infosys

Foreign Donors: International organisations and foreign governments contribute funds to Indian NGOs. However, it is imperative for NGOs to adhere to the regulations outlined in the Foreign Contribution Regulation Act (FCRA) before accepting donations from foreign entities.

Ex: United Nations Development Programme (UNDP), Bill and Melinda Gates Foundation, Oxfam International

Philanthropic Foundations: National and international philanthropic foundations also play a significant role in funding Indian NGOs. However, competition for funding from these foundations can be intense. NGOs seeking support from philanthropic foundations must formulate a well-defined strategy to enhance their chances of securing funding.

Ex: Azim Premji Foundation, Sir Dorabji Tata Trust, Rockefeller Foundation

Legal framework for NGO's in India

Societies Registration Act, 1860.
- Formation: NGOs can register as a society with the Registrar of Societies. The society must have a governing body, rules, and regulations.
- Objectives: Societies are suitable for organisations with a broader mandate and collaborative approach. They often operate in areas such as culture, sports, education, and welfare.
Indian Trusts Act, 1882.
- Formation: NGOs can create a trust by executing a trust deed, typically involving a trustee, beneficiaries, and the purpose of the trust.
- Objectives: Trusts are suitable for organisations focused on charitable or religious activities. They provide a straightforward structure for managing resources for specific purposes.
Section 8 Companies (Non-Profit Companies): Companies Act, 2013.
- Formation: NGOs can register as Section 8 Companies by applying for a licence under the Companies Act. These companies must have the promotion of charitable objectives and apply profits or income for promoting such objectives.
- Objectives: Section 8 Companies are suitable for organisations with a more corporate structure, and they often engage in activities related to education, science, research, social welfare, etc.
Foreign Contribution Regulation Act (FCRA): Foreign Contribution Regulation Act, 2010.
- Registration: NGOs receiving foreign contributions must register under FCRA. This registration is mandatory for receiving funds from foreign sources.
- Compliance: FCRA regulates the acceptance and utilisation of foreign contributions and establishes a framework for the transparent and accountable use of such funds.
Income Tax Act:
- NGOs are eligible for income tax exemptions under Section 12A and Section 80G of the Income Tax Act, 1961.
- Section 12A provides exemptions regarding income applied to charitable or religious purposes.
- Section 80G allows donors to claim deductions on contributions made to eligible NGOs.
Goods and Services Tax (GST):
- NGOs engaged in providing taxable goods and services are required to comply with GST regulations.
- Certain services provided by NGOs, especially those related to healthcare and education, may be exempted or eligible for concessional rates.
Registration Under Other Laws:
- Depending on the nature of activities, NGOs may need to register under specific laws. For example, educational institutions run by NGOs may require recognition under education laws.

Data / Statistics

NITI Aayog’s Darpan portal indicates over 1.75 lakh registered NGOs, with estimates suggesting the number could be as high as 3 million.
Annual Budget Range: The top 200 NGOs in India operate within an annual budget range of ₹10 crore to ₹800 crore.
Annual Funding Raised: Collectively, these NGOs secure about ₹8,000-9,000 crore in funding annually, with sources split nearly equally between domestic and foreign funding.
Global Affiliation: Approximately 18% of the surveyed NGOs have a global origin or affiliation, receiving 30% of the total funding.
Financial Volatility: Finances within the sector are volatile, with almost 20% of NGOs experiencing an income change of over 50% in 2021-22.
Income Surplus Range: At an aggregate level, non-profits have a year-end income surplus ranging from 4% to 7% of the total money raised each year.

Success Stories of NGO's in India

Pratham Education Foundation:

- Focus: Education
- Success Story: Pratham, founded in 1994, has been instrumental in improving the quality of education in India. Its “Read India” campaign, aimed at improving literacy among children, has been widely successful. Pratham’s innovative teaching methods and community involvement have positively impacted millions of children across the country.

Goonj:

- Focus: Rural Development, Disaster Relief
- Success Story: Goonj, founded in 1999, addresses issues of rural development and disaster relief. Its “Cloth for Work” initiative encourages communities to participate in development activities in exchange for essential items. Goonj’s approach ensures the dignity of the recipients and has gained recognition for its effective and sustainable model.

Akshaya Patra Foundation:

- Focus: Hunger and Education
- Success Story: Akshaya Patra is known for its mid-day meal program, providing nutritious meals to school children. By leveraging technology and innovative logistics, the foundation ensures that children receive hot, nutritious meals daily. This initiative has not only increased school attendance but has also positively impacted children’s health and nutrition.

Sulabh International:

- Focus: Sanitation and Social Reform
- Success Story: Sulabh International, founded by Dr. Bindeshwar Pathak, has been a pioneer in promoting sanitation and hygiene. The introduction of low-cost and eco-friendly toilets, along with efforts to eradicate the practice of manual scavenging, has transformed the lives of many in rural and urban areas.

SEWA (Self-Employed Women’s Association):

- Focus: Women’s Empowerment, Labor Rights
- Success Story: SEWA, a trade union for self-employed women, has played a crucial role in empowering women in the informal sector. By providing support in areas such as finance, skill development, and healthcare, SEWA has enabled women to improve their economic and social status.

Pradan (Professional Assistance for Development Action):

- Focus: Rural Development, Livelihood
- Success Story: Pradan works towards promoting sustainable livelihoods in rural areas. Through its interventions in agriculture, watershed management, and women’s empowerment, Pradan has successfully contributed to improving the economic conditions of numerous villages.

CRY (Child Rights and You):

- Focus: Child Rights
- Success Story: CRY has been working relentlessly to ensure the rights of children in India. Its advocacy, campaigns, and on-ground initiatives have led to positive changes in policies related to child rights. CRY’s efforts have contributed to increased awareness and action for the welfare of children.

Government Schemes Supporting NGOs in India

Swachh Bharat Abhiyan:

Objective: Make India clean and open defecation-free.
Financial Assistance: Provided to NGOs working on building toilets, promoting sanitation, and creating awareness about cleanliness.
Opportunity: NGOs contribute to the Swachh Bharat mission for a cleaner India.

Beti Bachao Beti Padhao:

Objective: Address the declining child sex ratio, promote education, and empower the girl child.
Financial Assistance: Provided to NGOs for supporting education, healthcare, and other services for the girl child and their families.
Focus: NGOs play a crucial role in ensuring the well-being and empowerment of the girl child.

National Rural Livelihood Mission:

Objective: Provide sustainable livelihood opportunities to the rural poor.
Financial Assistance: Provided to NGOs for poverty alleviation, employment generation, and women empowerment in rural areas.
Utilisation: NGOs can use funds for income-generating activities, skill development, and forming self-help groups.

National Health Mission:

Objective: Improve health infrastructure and services in rural and urban areas.
Financial Assistance: Provided to NGOs working on healthcare services, health camps, and awareness programs.
Impact: NGOs contribute to enhancing the health and well-being of communities in their respective areas.

National Skill Development Mission:

Objective: Provide skill development training to the youth of India.
Financial Assistance: Provided to NGOs for skill development, entrepreneurship, and employment generation.
Implementation: NGOs play a vital role in offering vocational training, creating self-employment opportunities, and promoting entrepreneurship among the youth.

Previous Year Questions on NGO's

Q. How can the role of NGOs be strengthened in India for development works relating to protection of the environment? Discuss throwing light on the major constraints. 12.5M (2015)

Q. Examine critically the recent changes in the rules governing foreign funding of NGOs under the Foreign Contribution (Regulation) Act (FCRA), 1976 12.5M (2015)