Tuesday, April 10, 2012
Money makes the NGO go round
Home Ministry report says voluntary organizations,
mostly based in South India, got more than Rs 10,000 crore from foreign donors.
Arecent report of the Union Home Ministry showed that more than Rs10,000 crore was pumped into India during 2009-2010, mostly from the USA and Europe to NGOs in India.
The report says that while it is not proper to make sweeping generalisations, it is necessary to note that the NGO sector in India is vulnerable to the risks of money laundering and terrorist financing. "Therefore, necessary steps for rigorous enforcement as well as coordination with foreign countries for law enforcement will continue. Our efforts for coordination with State police organisations and other specialised organisations will also continue towards this direction," the report said.
The report revealed that major donors from abroad and receivers in India are Christian Missionaries and Church-sponsored NGOs.
The analysis of the Home Ministry's 42-page report shows that 14,233 NGOs received foreign contribution of Rs10,337.59 crore. The highest contribution came to Delhi (Rs1,815.91 crore) followed by Tamil Nadu (Rs1,663.31 crore) and Andhra Pradesh (Rs1,324.87 crore). Interestingly, in district-wise analysis Chennai topped the list of foreign contribution with Rs 871.60 crore, followed by Bangalore (Rs703.43 crore) and Mumbai (Rs606.63 crore).
The biggest fund inflow to NGOs has come from the USA (Rs3,105.73 crore) followed by Germany (Rs1,046.30 crore) and the UK (Rs1,038.68 crore). These three countries have topped in the donors' list of Home Ministry for many years. Most the funding has been generated from Christian missionaries of these three nations. The donor missionaries have also formed their Indian subsidiaries.
The other toppers come from Italy (Rs 583.47 crore), the Netherlands (Rs509.46 crore), Spain (Rs 437.25 crore) Switzerland (Rs302.06 crore), Canada (Rs297.98 crore), France (Rs189.12 crore) and Australia (Rs148.28). The eleventh big donor to Indian NGOs is from UAE with Rs133.15 crore.
"The list of foreign donors is topped by the Gospel For Asia Inc of the USA (Rs 232.71 crore) followed by Fundacion Vicente Ferrer, Barcelona, Spain (Rs 228.60 crore) and the World Vision Global Centre of the USA (Rs197.62 crore)," said the report of Home Ministry on foreign contribution and regulation for the period of year 2009-2010. These three are evangelical organisations. The fourth largest donor, Compassion International, is also from the US (Rs131.57 core) and belongs to the same category.
Interestingly the fifth biggest donor is India's HCL, which has made the contribution through its Mauritius subsidiary HCL Holdings Private Limited. HCL's entire donation of Rs 94.28 crore has gone to educational organisation in Chennai, knows as Sevasubramania Nadar Educational Charitable Trust, formed in the name of HCL owner Shiv Nadar's father.
"The highest amount of foreign contribution was received by the World Vision of India, Chennai, Tamil Nadu (Rs 208.94 crore), followed by the Rural Development Trust, Ananthapur, AP (Rs 151.31 crore), and Shri Sevasubramania Nadar Educational Charitable Trust, Chennai (Rs. 94.28 crore).
"The highest amount of foreign contribution was received and utilised for establishment expenses (Rs 1,482.58 crore), followed by rural development (Rs 944.30 crore), welfare of children (Rs 742.42 crore), construction and maintenance of school/college (Rs 630.78 crore) and grant of stipend/scholarship/assistance in cash and kind to poor/deserving children (Rs 454.70 crore)," says the Home Ministry report on the fund utilisation by NGOs.
According to the report, during the year, 133 NGOs received foreign contribution in excess of Rs 10 crore, 179 associations between Rs 5 crore and Rs 10 crore, 1,594 associations between Rs 1 crore and Rs 5 crore, and 12,327 below Rs 1 crore. Out of 21,508 associations, 7275 have reported 'nil' receipt of foreign contribution.