--- On Tue, 24/3/09, Nishant Shah <[email protected]> wrote:
> From: Nishant Shah <[email protected]>
> Subject: Re: [silk] the business of charity!?!
> To: [email protected]
> Date: Tuesday, 24 March, 2009, 10:56 AM
> I think the basic problem with this
> article is that it is grounded in an
> archaic, romanticised imagination of an NGO as essentially
> consisting of
> 'jhola' carrying social workers who move in the
> underdeveloped regions, in
> their open shoes, caring for the people at a personal
> level. It probably
> also imagines all NGOs as necessarily in the domain of
> 'voluntary extras'
> where people have full time jobs and then spend their time
> and money doing
> this other important thing which needs to be attended to.
>
> The very headline suggests that the writer is hoping to
> invoke derision from
> like-minded people, by calling the NGO industry a
> 'business'. Strangely, as
> somebody who has worked with many NGOs in the past, and
> indeed, as somebody
> who runs an NGO now, the headline doesn't offend me. I
> think it extremely
> reasonable that the recruits from the Management institutes
> shall put their
> efforts into the development sector and help reap results
> which have often
> been elusive because the passion for a cause was not always
> matched by a
> head for practicalities or account books.
>
> I personally would feel hugely crippled in my work, if I
> did not have an
> efficient staff who specialise in different administrative
> tasks so that
> they run the office, take care of the finances and
> co-ordinate logistics
> where I can spend my efforts in what I am trained to do -
> to work, think,
> network and make interventions in the areas of my interest
> and expertise -
> rather than spending worrying time trying to figure out
> Tally and audits and
> management of resources et al.
>
> The only value that this article has for me, is to remind
> me, of how the
> development sector in the realist cinema imagined and
> indeed crippled a
> large part of the NGO movement in India because it forced
> them to adhere to
> some Khadi wearing Gandhian swayam-sevak, thus keeping the
> best talents in
> the country away from the field - most people preering to
> opt for corporate
> jobs.
>
> On a different analogy, this reminds me of the Englit
> classes where old
> foggy professors who looked like they were chanelling the
> spirit of Chaucer,
> would come and sneer at authors who were 'successful' or
> 'rich' or 'both',
> and made snide remarks about artists 'who were appreciated
> in their own
> time!'
>
> Nishant
>
> On Tue, Mar 24, 2009 at 10:27 AM, Mahesh Murthy
> <[email protected]>wrote:
>
> > I think it's a little silly.
> >
> > There are billions spent in India from sources like
> the Bill & Melinda
> > Gates
> > Foundation, the Ford Foundation, the Michael Dell
> Foundation and the like
> > which go to NGOs that do a whole lot of good.
> >
> > I am not sure anything can be gained by shutting this
> source of funds.
> >
> > Yes, some of this money does go to religious and
> quasi-religious
> > organisations. Including - let me say the dreaded
> words - Jesuit
> > organisations and madrassas.
> >
> > Just as loads of money comes from rich NRIs to fund
> the VHP in India.
> >
> > How will you differentiate one from the other?
> >
> > And once the money comes in, dos it matter very much
> that it came from a
> > religious or a non religious source?
> >
> > And why does the author complain about buying jeeps
> and renting offices?
> > Can
> > one be expected to work in rural or urban India
> without a place of work or
> > transportation?
> >
> > Mahesh
> >
> >
> >
> >
> >
> > On Tue, Mar 24, 2009 at 10:18 AM, . <[email protected]>
> wrote:
> >
> > > http://www.dnaindia.com/report.asp?newsid=1241042
> > >
> > > It's time the government shut the foreign-funds
> tap for NGOs
> > > Prof R Vaidyanathan
> > > Friday, March 20, 2009 23:59 IST
> > >
> > > Mumbai: A non-governmental organisation (NGO) is
> any voluntary,
> > > non-profit, citizens' group which is organised on
> a local, national or
> > > international level. It could be registered as a
> society, trust or
> > > under section 25 -- companies, even though some
> cooperatives also
> > > claim this label.
> > >
> > > There are two important criteria: the
> organisation should not be for
> > > making profit and should be independent of the
> government. However,
> > > many NGOs get money from the government.
> > >
> > > NGOs are also expected to be value-based
> organisations. The range of
> > > activities they are involved in is mind-boggling
> and can extend from
> > > issues of ageing to waste management.
> > >
> > > The funding for these NGOs is substantially
> international. The
> > > international flow of funds is regulated by the
> Foreign Contributions
> > > Regulation Act (FCRA). Table-1 provides the
> trends in the number of
> > > reporting registered associations and the amount
> of money received
> > > under the Act.
> > >
> > > We find that the number of reporting associations
> has declined
> > > (percent wise) over the period and the numbers of
> those not complying
> > > with the laws have increased. For instance, the
> ministry has placed
> > > 8,673 associations under "prior permission"
> category in 2005 for
> > > failure to furnish annual returns for the three
> previous consecutive
> > > years. There exists substantial under-reporting.
> > >
> > > We also find that in the last three years, the
> amount received has
> > > shown a phenomenal increase and it was 56% more
> in 2006-2007 than in
> > > the previous year. The report of the home
> ministry also provides other
> > > information regarding the states receiving the
> largest amount and
> > > purpose, etc pertaining to the year 2006-2007.
> > >
> > > It suggests that important states or union
> territories are Tamil Nadu
> > > (Rs 2,244 crore), followed by Delhi (Rs 2,187
> crore), Andhra Pradesh
> > > (Rs 1,211 crore) and Maharashtra (Rs 1,195
> crore). Among donor
> > > countries, USA leads in the list of donor
> countries (Rs 2,972 crore),
> > > followed by Germany (Rs 1,649 crore), UK (Rs
> 1,425 crore) and
> > > Switzerland (Rs 605 crore).
> > >
> > > The leading donor agencies are Misereor Pastfach,
> Germany (Rs 1,244
> > > crore), World Vision International USA (Rs 469
> crore), Foundation
> > > Vicente Ferrer Spain (Rs 399 crore) and ASA
> Switzerland (Rs 302
> > > crore).
> > >
> > > The largest recipients are Ranchi Jesuits of
> Jharkhand (Rs 622 crore),
> > > followed by the Santhome Trust of Kalyan,
> Maharashtra (Rs 333 crore),
> > > Sovereign Order of Malta, Delhi (Rs 301 crore),
> World Vision of India,
> > > Tamil Nadu (Rs 256 crore), Jesuit Educational and
> Charitable Society,
> > > Karnataka (Rs 230 crore).
> > >
> > > Tamil Nadu, Maharashtra and Andhra Pradesh are
> some of the states with
> > > a large number of NGOs. It is curious to note
> that the poorest states
> > > like Bihar and Uttar Pradesh, etc do not have as
> many numbers. Among
> > > the top 15 recipients, each with more than Rs 90
> crore receipts from
> > > abroad, at least 14 are easily identifiable as
> Christian charity
> > > organisations from their names.
> > >
> > > The interesting information is regarding the
> purpose of the donations
> > > (see Table-2). Establishment expenses top the
> list, followed by relief
> > > and rehabilitation, rural development, child
> welfare and construction
> > > and maintenance of schools and colleges.
> Substantial sums are spent on
> > > construction of places of worship and maintenance
> of priests.
> > >
> > > Establishment expenses consist of buying land,
> buildings, jeeps,
> > > setting up fancy offices, mobiles, laptops,
> expensive cameras,
> > > salaries, consultancy fees, honorarium, and
> importantly, foreign
> > > travel etc, which make up 35-70% of the expenses.
> This goes against
> > > the grain of service motto where the ultimate
> recipient is supposed to
> > > get the maximum.
> > >
> > > By definition, NGO activity is voluntary and
> hence one expects that
> > > the overheads of the organisations are lean. In
> financial parlance,
> > > the fixed cost is expected to be relatively
> small.
> > >
> > > Contrary to this belief, we find that the
> establishment expenses are
> > > the major reasons for receiving donations from
> abroad. In other words,
> > > NGOs are perhaps becoming like top-heavy
> government departments
> > > wherein a substantial portion of developmental
> expenses is spent on
> > > salary wages and other expenses such as
> telephone, travel (both
> > > domestic and international), etc. Nowadays, they
> even recruit
> > > "executives" from management institutions.
> > >
> > > NGOs are active in pointing out the deficiencies
> in the functioning of
> > > the government, be they on human rights or the
> Right to Information or
> > > Tribes Act or dam oustees.
> > > Hence, it is all the more important that their
> activities are
> > > transparent, particularly from the point of view
> of their sources and
> > > uses of funds.
> > >
> > > I have tried unsuccessfully to get the annual
> reports including annual
> > > accounts from the website of the top 25
> recipients, many of whom are
> > > often mentioned or quoted in newspapers and TV
> channels and stress the
> > > importance of "transparency" in the functioning
> of the government.
> > > Many do not have any information in their
> websites. Some of their
> > > websites contain all razzmatazz but nothing on
> finances.
> > >
> > > Physician heal thyself is very much applicable to
> this body of
> > > self-proclaimed saviours of Indian masses and who
> also claim
> > > themselves to be the "civil society." Given the
> declaration by various
> > > Evangelical groups in the USA and Europe that
> Asia is the next major
> > > place to "harvest the Souls "and "plant the
> churches" India should
> > > exercise caution in allowing foreign funding of
> these groups. They
> > > affect social harmony and foment communal
> disturbances by their
> > > conversion activities in small towns and tribal
> India.
> > >
> > > Indian NGOs can and should access funds from
> domestic sources and
> > > there are millions of charity minded Indians. It
> is not required for
> > > Europeans or Americans to send money for our NGOs
> who spend it on
> > > establishment expenses and conversion propaganda
> to fill up the
> > > statistical "soul harvesting" exercise of foreign
> evangelical groups.
> > >
> > > For instance, Russia recently approved a bill
> that introduces
> > > stringent control over the activities of
> foreign-funded non-government
> > > and non-commercial organisations in a move
> designed to pre-empt any
> > > "coloured revolution" in the country.
> > >
> > > It says, "The Kremlin has learnt its lessons from
> a string of
> > > "coloured revolutions" in the former Soviet
> Republics-- the "rose
> > > revolution" in Georgia, the "orange revolution"
> in Ukraine and the
> > > 'tulip revolution" in Kyrgyzstan -- all inspired
> and orchestered by
> > > western funded NGOs. The bill allows NGOs to be
> shut down if they
> > > threaten the country's "sovereignty,
> independence, territorial
> > > integrity, national unity and originality,
> cultural heritage and
> > > national interests." There are 4,50,000 NGOs in
> Russia representing
> > > religious organisations, charities, think tanks,
> and professional
> > > groups. The US Congress has allocated $85 million
> for the support of
> > > democracy in Russia in 2006."
> > >
> > > Incidentally, there is an act in the USA called
> Foreign Agents
> > > Registration Act (FARA), which provides for
> penalties up to 10 years
> > > in jail for any one acting as a foreign agent or
> getting foreign funds
> > > without notification to the Attorney General.
> FARA was originally
> > > passed in 1938 to prevent the spread of Nazi
> ideas and propaganda.
> > >
> > > It would be appropriate that all NGOs insist they
> be covered under the
> > > Right to Information Act, even though as of now
> it is not applicable
> > > to those who do not receive funds from the
> government. This insistence
> > > will go a long way in establishing their
> credentials as real believers
> > > in transparency and right to information.
> > >
> > > To enhance their credibility, they need to
> publish their sources and
> > > uses of funds voluntarily on their websites,
> including the break-up
> > > between administrative and other expenses. Last,
> but not the least, it
> > > is important that the government bans foreign
> funding of our NGOs. We
> > > are no more the "white man's burden."
> > >
> > >
> > > --
> > > .
> > >
> > >
> >
>
>
>
> --
> Nishant Shah
> Doctoral Candidate, CSCS, Bangalore.
> Director (Research), Centre for Internet and Society,(
> www.cis-india.org )
> Asia Awards Fellow, 2008-09
> # 00-86-21-66130376
I think this is the most appropriate counter to the article, that the social
sector is indeed important, too important to be left to jhola-wallas and
jhola-wallis, loveable though they are. The sector, from personal experience,
needs a strong dose of management input, down to basic accounting systems, and
to some elementary education on separation of personal and task related
expenses. I am not being either sarcastic or denigratory; unfortunately many of
the most innovative efforts grew out of personal initiatives, and out of
personal funding, and a distancing of these at a particular stage proves very
difficult without professional support.
There is also an unfortunate tendency to assume that work here should be paid
differently, on the basis of voluntarism, thus scaring away young people, most
of whom are under enormous pressure from their parents and family to show
reasonable social return on investment. It tends to become the refuge of
burnt-out people at the end of their careers, and of part-time volunteers who
never have the time to put together good systems or - more important - to
implement them. Regulation of this sector has nothing like the rigour applied
to regulation of the industrial and commercial sectors; not that regulation
avoids cases like Satyam and DSQ Software, but some rules are better than no
rules.
The article itself is tendentious; Christian contributions bad and meant for
perverted priests and houses of worship where the innocent are converted,
Muslim contributions go to buy bullets and bandannas, Hindu contributions are
not Hindu contributions, they are morally committed individuals doing their
humble bit for the upliftment of Mother India. This has never been stated in so
many words, but the examples speak for themselves. The individual author
responsible also needs to be known and identified in his political context for
the article to make full sense.
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