Running an NGO has become big business and many people live off it, while the cause for which they raise money through the NGO is ignored.
Non-government organizations with NGO as an acronym are a subgroup of organizations founded by citizens, which include clubs and associations that provide services to their members and others. NGOs are usually nonprofit organizations, and many of them are active in humanitarianism or the social sciences.
Globalization during the 20th century gave rise to the importance of NGOs. NGOs have developed to emphasize humanitarian issues, developmental aid and sustainable development.
Combating poverty and illiteracy, protecting the environment, health issues, promoting civil liberties, protecting human rights and educating people are indeed good aspects of non-profit organizations but like two sides of the same coin, some NGOs also have a dark side.
For many being associated with an NGO is a fashion statement. A place to go and gossip. But the real intent of helping those who are marginalized in our society, those in need of help the most is sadly forgotten. One would not ordinarily think of an NGO as an easy place to commit fraud. However, it is very common to see NGOs being used to launder money.
Getting an NGO registered is not a difficult task and if one has a competent lawyer an NGO can easily be established. The main purpose to set up an NGO is to get a tax exemption because in India the NGO’s are exempted from corporate income taxes of the income of certain NGOs carrying out specific types of activities, with unrelated business income being subject to tax under certain circumstances which is used as a loophole.
On the one hand, many NGOs speak out against the importance of transparency and accountability in every public policy, yet at the same time, some NGOs themselves are not transparent and accountable to the public, including staff and beneficiaries of the program.
Some NGOs receive funding for program with falsified and manufactured data. All such activities can make the life of an NGO owner very luxurious.
Non-government organizations are also transferred from father to son or mother to daughter as in many NGOs some of the key positions within the organization are held by close relatives.
Speaking on condition of anonymity out of fear of reprisal, a women rights activist working for a local NGO told that we receive enough funds regularly from foreign countries on the basis of doctored reports. But the biggest problem occurs when inspection or evaluation happens without prior notice. In such drastic situations, we usually bring in fake beneficiaries to make the centres look functional.
The Delhi High Court, in May 2013, had called for tightening the law for NGOs, observing that many of them were “frauds”. A Bench of the Delhi High Court said, “Most privately-run so-called philanthropic NGOs do not understand their social responsibilities. Ninety nine per cent of the existing NGOs are fraud and simply money-making devices. Only one out of every 100 NGOs serves the purpose they are set up for.” The court also added, “There is a need for toughening of licensing norms and legislature has to keep this in mind.”
The Supreme Court, in September 2015, directed the Centre and State Governments to shut down all children’s homes run by unregistered NGOs, saying many of these centres had become child-trafficking hubs.
The Supreme Court had advised the Union Government of India to take steps against racketeering NGOs by December 31, 2015. However, the deadline has come and gone but little has happened.
In October 2020, the Union Ministry of Social Justice and Empowerment has blacklisted 200 centres run by state-funded non-governmental organisations (NGOs) for providing sub-par services and violating the standard norms set up by the ministry. These centres work in the fields of drug rehabilitation and de-addiction, homes for senior citizens and residential schools for SC\ST children.
After so much efforts of the government, still the legitimacy and effectiveness of NGOs is being questioned due to their ever-growing number and their effect on developing countries. Therefore, we have to ask if the actions of NGOs are really effective? How long are we to continue spreading a begging bowl in front of other countries to resolve problems discovered by them? What is the capacity of people who want to work for their country to solve problems related to their own country?
For how long we will let such kind of money-making devices spread venom in the name of gender inequality, pseudo feminism, patriarchy, human rights or social development?
Choices yours…… Decide wisely.