Non-Governmental Organizations (NGOs)

About

• A NGO is a non-profit entity that features independently of the government, that specializes in humanitarian, social, or developmental goals. 
• Formation of NGOs in India: 
  • Societies: Registered under the Societies Registration Act, 1860. 
  • Trusts: Private Trusts are registered under the Indian Trusts Act, 1882 which is a critical legislation. 
    • Public Trusts are registered under respective state legal guidelines. 
  • Charitable organisations: Registered as non-profit organisations underSection 8 of the Companies Act, 2013. 
• Foreign Contribution Regulation: NGOs that get hold of foreign contributions or donations need to acquire earlier registration or permission under the Foreign Contribution (Regulation) Act (FCRA), 2010, administered by means of the Ministry of Home Affairs (MHA). 
  • The FCRA, 2010 governs the receipt and utilization of foreign finances by individuals, institutions, or businesses, including NGOs.  
  • Its major goal is to prevent foreign contributions from undermining India’s sovereignty, integrity, security, economic or scientific interests, public order, or main to any offence or harm to individuals. 

Key Roles and Responsibilities of NGOs 

• Governance: NGOs give a boost to democracy by promoting transparency and duty, exemplified by the Association for Democratic Reforms (ADR) whose PILs led to mandatory disclosure of candidates’ criminal records, education, and assets.  
• Social Reforms: NGOs protect human rights (e.g., Bachpan Bachao Andolan), empower women (SEWA), represent marginalized groups like PLWHA (People dwelling with HIV/AIDS) and LGBTQIA+ communities (Naz Foundation), and alleviate poverty (Goonj). 
• Disaster Relief and Rehabilitation: NGOs like SEEDS India play an important position in supplying instant useful resources and long-term rehabilitation support during natural failures and emergencies.  
• Environmental Conservation: Many NGOs like World Wide Fund for Nature (WWF) work to protect natural resources, promote sustainable development, and fight climate change through cognizance campaigns and grassroots projects. 

Key Challenges Related to NGOs in India 

• Regulatory Restrictions: Strict FCRA policies have resulted within the cancellation of NGO licenses, limiting access to foreign donations, even as domestic CSR finances are in large part directed in the direction of company-connected NGOs, leaving smaller groups underfunded and struggling. 
• Trust Deficits: NGOs face accusations of “anti-national” activities, leading to audits, raids, and the closure of NGOs. E.g., Greenpeace India changed into banned for allegedly obstructing economic development through its campaigns against coal mining and nuclear strength initiatives. 
• Lack of Transparency: Some NGOs had been criticized for poor accountability and failure to conform with reporting necessities, leading to expanded government scrutiny and a lack of public trust.  

Key Reforms Are Needed to Strengthen NGO Regulation in India 

• Implement second ARC Recommendations: FCRA implementation must be decentralized to ease bureaucratic hurdles, with balanced legislative interpretation that protects actual NGOs from excessive regulations even as stopping misuse of foreign investment.  
• Stronger Anti-Money Laundering (AML) Checks: Link NGO investment regulations to FATF pointers, as India is a member. Strengthen measures to block shell NGOs, much like the 2017 crackdown on over 11,000 fake NGOs. 

Encourage Domestic Funding: Provide tax incentives for Indian donors, and encourage Corporate Social Responsibility (CSR) partnerships with credible NGOs, including Tata Trusts’ education programs.

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