The Ministry of Home Affairs (MHA) has recently mandated all Non-Governmental Organisations (NGOs) receiving overseas funds under the Foreign Contribution (Regulation) Act (FCRA), 2010, to keep the government updated monthly regarding their contributions to combat the COVID-19 pandemic. This constitutes the second appeal from the MHA for NGOs to aid in mitigating the transmission of the virus.
MHA’s Need for NGO Assistance
Initially, MHA commissioned NGOs to complement the initiatives by the government and local administration in curbing the spread of Covid-19. The assistance requested included setting up community kitchens for migrants and homeless individuals, along with providing shelter to homeless daily wage workers and the unemployed poor.
This appeal for assistance from NGOs occurs subsequent to a considerable government crackdown on the social sector, resulting in a significant decrease in overseas funding for NGOs. Over the previous five years, the MHA has deregistered approximately 14,500 NGOs. Furthermore, within the last three years, it has revoked the foreign contribution licences of over 6,600 nonprofits due to violations of FCRA provisions.
Foreign Contribution (Regulation) Act (FCRA), 2010
The FCRA regulates foreign funding of voluntary organizations in India and is implemented by the Ministry of Home Affairs. The Act ensures that the recipients of foreign contributions adhere to the stated purpose for which such contribution was received. Under this Act, organisations are required to register themselves every five years. According to the government, FCRA-registered NGOs received a total of Rs 2,244.77 crore in 2018-19, a significant decrease from Rs 16,902.41 crore in 2017-18.
Non-Governmental Organisations (NGOs)
Worldwide, NGOs are defined as an entity neither being part of the government nor a traditional for-profit business organisation. NGOs are groups of ordinary citizens that get involved in a variety of activities that may have charitable, social, political, religious or other interests. These organisations play a crucial role in implementing government schemes at the grassroots level.
In India, NGOs can be registered under numerous Acts such as the Indian Societies Registration Act, 1860, Religious Endowments Act, 1863, Indian Trusts Act, etc. A study commissioned by the government reported that in 2009, India possibly had the world’s largest number of active NGOs – estimated to be around 33 lakh. This figure equates to less than 400 Indians per NGO, and far exceeds the number of primary schools and primary health centres.
Several ministries such as Health and Family Welfare, Human Resource Department, among others, provide funding to a limited number of NGOs. Moreover, NGOs can also receive funds from abroad if they are registered with the Home Ministry under the FCRA. Without this registration, no NGO is allowed to receive cash or anything of value higher than Rs 25,000.
