NGO - Non Governmental Organization

NGO are voluntary organization free from government control who supplements
governments efforts in order to achieve welfare state .
Registration of NGO
They are registered as ;
1) Societies under societies registration act 1860
2) Trust under Indian trust Act 1882
3) Charitable Companies under section 8 of Companies Act.
What is the role of NGO in developmental activities ?
The role of NGO is to give voice the voiceless and power to the powerless by acting
as a two way mechanism between government and citizens.
Their role in achieving welfare state can be understood from their ideas of
supplementing governments efforts as per the provisions of DPSP.
1) Social Democracy :-
Parameter DPSP NGO
Health To increase the level of  Smile foundation is working to
nutrition and standard of living increase accessibility of the
and improve public health people for the health service at
affordable price.
 Rural healthcare foundation
has set up clinical in rural areas
for general medicine and
homeopathic medicine.
Education Article 45 :- Provision for free  Cry :- have started Chotte
and compulsory education for kadam Pragati ki Aur, a literacy
children drive for drop out students
 Barefoot College :- They are
providing training to the local
individuals for teaching to the
students.
Vulnerable Article 46 :- Promotion of  Naandi Foundation :- is
Section educational and economic providing skill to the tribal in
SC/ST interests of Scheduled Castes, Madhya Pradesh to turn them
Scheduled Tribes and other into entrepreneurs
weaker sections
Vulnerable Article 46 :- same as above  Azad foundation works for
Section women who face any kind of
 Women physical and sexual abuse they
provide defense trainings and
make them aware about
reproductive rights.
 MAKAM :- The mission of this
NGO to provide rights to the
women working in agricultural
field for their ownership over
land.
2) Economic Democracy :-
DPSP :- Article 38 :- To Minimize inequalities in Income
NGO ;- YUVA Parivartan , they provide a skill and vocational training to a youth
Emerging Role of NGO
1) Disaster Management :- #Oxfamstandswith Kerala during Kerala floods helps in
rapid needs assessments at the time of disaster and planning for rehabilitation in
post disaster.
2) NGO today using data analytics to customize solutions. E,g Operation Red Alert
– Hyderabad based NGO using data analytics to understand the pattern of sex
trafficking
3) Climate Change :- Vasudha Foundation promotes energy efficient technology
for sustainable use of energy
4) Nuclear Free World :- International Campaign to Abolish Nuclear Weapons is a
coalition of NGO of hundred countries who have promoted the guidelines for
nuclear free world.
Strength of NGO
1) Proximity to the grass root level.
2) Inner drive of the members improves quality of the work
3) Speed of the work is faster because of lack of hierarchy
Weakness of NGO
1) Dependence on Donors :- this is the biggest weakness of NGO, which makes them
unsustainable
2) Limitation with long term and large scale projects
3) Lack of interorganizational communication results in overlapping.
4) Lack of Skilled manpower which is a challenging situation for NGO working in in
remote areas
Challenges of NGO
1) Non Transparent :- CBI report filed in SC shows that only 10 % of total NGO
registered under societies registration act files annual financial statements
2) Funding - NGO relies on two basic source of funding
 Internal sources like membership fees, subscription fees and sell of products
 External Sources :- It includes funding from corporation, foreign sources,
government sources.
Green Peace India believes that finding must be decentralized. Reliance of big
funder are not sustainable
Many NGO’s are known for involved in money laundering and funding ani-
national activities. IB reports says that these foreign donor actually help local
NGOs to collect field reports which are then used to present a case against India
at global platform.
IB Report has also revealed that the negative impact of anti-developmental
protest by NGO lead to a loss of 2-3 % of GDP.
Case Study :- IB Report raised question on 44000 Dollar deposited in the bank
account of convener of People’s Movement of Nuclear Energy which has been
funded by Ohio university to send report on Kudankulam.
Governments response :- FCRA has been amended and it has provided
following guidelines.
1) Any NGO that accepts foreign contribution has to register with the home
ministry and such contributions can only be accepted through designated banks.
The NGO have to report to the central government about any foreign
contribution within 30 days of its receipt.
2) They need to file annual report with the home ministry and to reveal the
source of the funding and the purpose of its use.
3) NGO Corporate Nexus :- The CBI have filed a charge sheet against ‘Advantage
India’ who have misused CSR funds. It has also been observed that corporates
donate fund to NGO to get tax exemption . Later on, NGO deducts 2% of the
amount and return it to corporates. Corporate enters into partnership with NGO
for brand value creation.
Best Model :- Gujarat have appointed CSR authority to look into the working of
NGO and corporate partnership .
4) Lack of Governance :- Many NGO are not having board members and thus the
decision is being taken by the director of NGO which results into monopoly and
mismanagement of funds.
What are the steps taken by government to strengthen NGO?
1) NGO Darpan :- This portal provides for a unique ID card which is mandatory for
the grant approval by the government.
2) Draft accreditation policy : It proposes that how NGO should manage the
records and CAG should audit the NGO receiving more than 75% of finance by
government.
3) National Policy on Voluntary sector :- To create an enabling environment for
maintenance of accounts and to provide transparent and accountable system of
governance.
4) S Vijay Kumar Committee recommendations :- There should be nodal body to
look into interface between NGO and government . Steps should be taken to reduce
the need of physical interface between NGO and public officials.
Critically evaluate the functioning of NGO in the light of recent FCRA amendments.
Conclusion :- The role of the NGO cannot be denied however the regulation by
government will help NGO in maintaining transparency and accountability.
 Philanthropy
India philanthropy report 2018, reveals that individual contribution have increased
by four times between 2011-16 and contribution from foreign sources have
decreased.
Models of philanthropy
1) Impact based philanthropy :- This could be described as western oriented
philanthropy. The emphasis here is on a scale and return of capital. E.g. Dasra Girls
Alliance .
2) Individual Philanthropy / Progressive Philanthropy :- Azim Premji have been
designated as most generous person by Forbes magazine.
3) Corporate Philanthropy :- According to section 135 Companies Act every
company needs to give at least 2 % of the average net profits in the last three
financial years if it has a net worth of 500 crores or turnover of 1000 crores or profit
of 5 crore. e.g. India Health Fund Launched by TATA trust.
4) Community Philanthropy :- Its is the approach of philanthropy that emphasizes
on participation , collaboration and Shared decision making. e.g. in Bhuj , Gujarat
community came forward with the support of Glaxo Smith Kline for building
schools and dispensaries
Importance of Philanthropy
1) Social and Economic goals :- There is gap of 19.5 % between the literacy of men
and women, gap of 17.5 % between ST and National average , gap of 7.5 between
SC and national average
2) Meeting SDG Goals :- according to Indian philanthropy report , India needs 533
trillion rupees to achieve SDG goals
3) Global best practice :- Kaizen , 5S , TQM
4) Innovation ad Culture :- less hierarchy and open culture
Issues with Philanthropy
1) According McKinsey there are 50 subsectors suffers from funding gap but they
are investing in only 10 subsectors such as health and education
2) Big Donors are neither accountable to government and nor to people
3) they are using their funds for tax exemption.
4) the uneven distribution of funding may result into increased inequality.

Role of Community Development

Community involvement plays a critical role which ensures
1) It is relevant to people’s needs
2) It is sustained for long time
3) It brings accountability and generates higher level of trust
Case study
It empowers gram Sabha by raising capacity building of these institutions .
It increases acceptance of government service e.g. ‘Himayat Initiative’ for the local
people of Jammu and Kashmir requires acceptance from the community
Awareness :- It promotes greater awareness of rights and entitlements e.g.
‘sampark’ , a student helpline for redressal of complainants related to RTE.

Challenges of community development

1) It has failed to bring desired results as the village are divided on the lines of caste
and religion.
2) there is a lack of interdepartmental coordination and also between bureaucrats
and villagers
3) Balwant rai Mehta Committee have also highlighted that the women
participation was lacking in community development program.
Human Resource , Education and Health
Human resource means the size of population along with efficiently, productivity
and organizational abilities. The sources of human capital are investment in
education, health, on job training, migration an information.
The first priority of the government for human development is extending relief
through poverty alleviation program. The next task is to engage them by providing
a skills.
Important data
 In Indian everyone in 3 Indians is young. The median age of the country is 28
compared to 37 to china and 48 in japan.
In this context providing skill to the youth becomes important.
Why Skills are important ?

National Policy on Skill Development and entrepreneurship

The core objectives of the policy are
1) Create a Demand for a skill development
2) To meet the demand of the industries with the competency of the skill.
3) Connect the supply of a skilled resource to the global level
4) To foster entrepreneurship by focusing on women and integration with formal
education.
Methodology of the Policy
1) Aspiration and advocacy :- A national campaign will be launched for positive pro
skilling environment
2) Recognition of prior learning by filling the skill gap.
3) Synergy :- A labor market information system will be created by coming together
of different stake holders.
4) By designing incentive scheme
Pradhan Mantri Kaushal Vikas Yojana
The scheme will cover 10 million youth during 2016-2-20. A skill training will be
done based on national skill qualification framework.
PMKVY has following elements
1) short term course :- an average of three month course in soft skills, digital literacy
etc.
2) Kaushal and Rojgar mela will be conducted in every 6 months
3) Monitoring guidelines :- It is to be done by independent body and self-audit
reporting.
PMKVY 2.0 as made placement mandatory and DC will monitor it.
Report card of PMKVY
Approximately 36% of the target got skill training and only 1 million of trainees got
placement .

Issues with skill program

1) Too short courses which do not meet industry demands
2) Absence of ownership . there are 17 ministries dealing with skills which results
into overlapping
3) Financial issue ;- while the government share holding in NSDC is 49 % the
financial contribution from government is 100 %
4) The skill programs are focusing on outputs rather than quality of training

Apprenticeship
Government has taken two key steps to increase the idea of apprenticeship
1) National Apprenticeship promotion scheme :- In this government will reimburse
either the 25 % of stipend or 1500 Rs/Month
Amendment to Apprenticeship act 1951
1) It is now mandatory that the establishment with 30 or more workers are required
to engage apprentice in their establishment
2) imprisonment is no longer a penalty for the violation of provision of this act
Proposed amendment in apprenticeship act 2017
1) the bill amends the definition of appropriate government . It says that any
establishment operating in four or more states will be regulated by central
government.
2) apprenticeship training should be provided to diploma holders and non-
engineering graduate.
3) Companies can add new trades under the act without the center’s approval.
Bests Practices
1) The Kaushal Vardhan project of Gujarat is providing a skills to housewife and
school dropouts.
2) Chhattisgarh livelihood college the Chhattisgarh right of youth development act
2013 ensures that every person in the age group of 14 to 45 have aright to develop
a skills.