Being a part of the NGO sector (through ShikshaDaan Foundation), we have the opportunity to see the functioning of a number of NGOs across India, in more detail. But before we get there, some interesting and some disturbing statistics about this sector:

India has an NGO for every 600 citizens but a cop for every 943 citizens

We have an estimated 2.2 to 3 million NGOs registered in India and it is the highest number of NGOs for any country in the world 

50% of the total NGOs in India are registered in just six states, Maharashtra, Seemandhra, Telangana, Uttar Pradesh, Kerala and Karnataka

Despite a Supreme Court order seeking details of NGO operations from states (basis a PIL), several states such as Seemandhra, Telengana, Tamil Nadu, Karnataka, Bihar, Delhi, Rajasthan, Haryana, Odisha, West Bengal, Himachal Pradesh,  Chattisgarh and few others are yet to submit the data

Only 2% of the NGOs registered with FCRA have filed their annual IT returns in the last few years

Amount of foreign funding to our NGOs is about 11,500 crores and the total funding to NGOs in India estimated to be between 40000-80000 crores

Home Ministry issued notices to about 10,000 NGOs for not filing their returns for the past several years

Since March this year, Bindu and I have met several NGOs in Agra, Bhopal, Chennai, Delhi, and several in Himachal Pradesh where we are currently travelling. We have met a number of NGOs doing oustanding work but they are few in relation to the number that we tried to reach out through emails, messages and calls, after extensive research and got no response or their operations are dubious. If there is concern and even suspicion amongst people about this sector, it is well placed and needs to be addressed, NOW. One of my favorite jokes is that ten years back if an NGO wanted to rent a place, they would have got a discount of about 10 to 25% to the prevailing market rents. But in the last few years, landlords have started asking for a premium on the market rents as they perceive that NGOs make huge money. 

What is unfortunate is many NGOs get setup for all the wrong reasons and because of them, the few good ones are also painted with the same broad brush of suspicion. Be that as it may, I was happy to read the news item this morning of the home ministry cancelling the registrations of about 9000 NGOs who have not responded despite notices being sent to them. It’s time for the stakeholders to come together and work out a model that brings transparency and accountability to this sector. Bindu and I are ensuring that everything related to ShikshaDaan is completely transparent and stands the test of any scrutiny and we have ensured our partner NGOs are with impeccable credentials. 

The govt cannot do everything and needs the NGO sector to fill in the gaps in social welfare. While there are good laws and many people with good intentions there is need for reform and urgently. Charity has to be well directed and not misused.