Foreign funds for NGOs in India
NGOs or Non-Governmental Organizations are one of the most important stakeholders in development work in India. These organizations work for the upliftment of the marginalized sections of society and undertake various social and welfare activities. The work of NGOs is dependent on the availability of resources, and one of the sources of these resources is foreign funds. In this essay, we will discuss the role of foreign funds in the functioning of NGOs in India, the regulatory framework governing foreign funding, and the controversies surrounding the foreign funding of NGOs in India.
Foreign funding of NGOs in India:
Foreign funding is a crucial source of funds for NGOs in India. As per the Ministry of Home Affairs, in the financial year 2019-20, foreign contributions received by NGOs in India amounted to INR 16,894.37 crores. This indicates the importance of foreign funding in the functioning of NGOs in India.
Foreign funding is received by NGOs from various sources such as international donor agencies, foundations, corporations, and individuals. The funds received are used for various purposes such as education, health, environment, rural development, and women’s empowerment, among others.
The regulatory framework governing foreign funding:
The receipt and utilization of foreign funds by NGOs in India are governed by the Foreign Contribution (Regulation) Act, 2010 (FCRA) and the Foreign Contribution (Regulation) Rules, 2011. These laws were enacted to regulate the inflow of foreign funds and ensure that these funds are not misused for activities that are detrimental to the national interest.
Under the FCRA, NGOs are required to obtain registration or prior permission from the Ministry of Home Affairs to receive foreign funds. The registration is granted for a period of five years, and the NGO is required to submit annual returns detailing the receipt and utilization of foreign funds.
The FCRA also lays down the activities for which foreign funds cannot be utilized. These activities include political activities, conversion activities, and activities that are detrimental to the national interest. The law also provides for penal provisions for violations of its provisions.
Controversies surrounding foreign funding of NGOs in India:
Foreign funding of NGOs in India has been a topic of controversy for many years. There have been allegations of misuse of foreign funds for activities that are detrimental to the national interest. Some of the controversies surrounding foreign funding of NGOs in India are discussed below.
- Allegations of misuse of foreign funds:
There have been allegations that foreign funds received by NGOs in India have been misused for activities that are detrimental to the national interest. For instance, in 2015, the Ministry of Home Affairs cancelled the registration of Greenpeace India under the FCRA for allegedly indulging in activities that were detrimental to the national interest. Similarly, the registration of the NGO, Lawyers Collective, was cancelled in 2016 for alleged violations of the FCRA.
- Allegations of foreign interference:
There have been allegations that foreign funds received by NGOs in India are being used to interfere in the internal affairs of the country. For instance, there have been allegations that foreign funds received by NGOs have been used to foment unrest in certain parts of the country. Such allegations have led to calls for stricter regulation of foreign funding of NGOs in India.
- Allegations of targeting of certain NGOs:
There have been allegations that certain NGOs have been targeted for receiving foreign funds. Such allegations have been made in the context of cancellation of registration of certain NGOs under the FCRA. Critics of the government allege that the cancellation of registration of certain NGOs is politically motivated and is aimed at stifling dissent.