NGOs in India Get Most Foreign Donations

The receipts of funds by NGOs in Karnataka and Maharashtra were 1,109 crore and 1,038 crore, respectively. Between, the top ten states/UTs, states like Kerala, WB, Gujarat, UP and Orissa, make upto 87 percent of total foreign donation inflows.

Most recently, the Ministry of Home Affairs has directed the Reserve Bank of India to take prior permission of the Home Ministry’s FCRA (Foreign Contribution Regulation Act) Department before clearing any foreign aid. This latest directive issued recently is likely to put on hold direct funding for NGO from abroad since each transaction has to be scrutinized by the RBI.

An MHA official said, “This has been done to streamline the foreign funding process of NGOs after some deficiencies were discovered during course of scrutiny,” reports The Pioneer.

A U.S.-based non-profit consultant exclaimed, "NGOs across the world compete for getting increased funding each year—be it from parent associations or other foundations. The fear that their welfare activities—such as medical relief—could be construed as having a devious motive is likely to have an adverse impact in the coming years. No foreign donor would like to be dragged into a controversy," reports The Times of India.

With the ongoing scenario by the Modi led government to ban receipt of foreign donations by an NGO or allow such donations only with prior permission, it is high time foreign funded NGOs to follow the procedure so that they can execute their task only for the welfare of the masses.

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