New FCRA Regulation Really Affected Voluntary Action?

Volunteers of CINI (Child in Need Institution) are providing foods and hygiene material to Covid-19 affected people in West Bengal, with the support of The Hans Foundation. (Photo source: swachhindia.ndtv.com)  

Since the Covid-19 pandemic began to affect India, voluntary organisations popularly known as Non-Governmental Organisations (NGOs) have been playing their significant role by addressing immediate relief activities and socio-economic impacts of the pandemic. They have worked relentlessly at the grassroots and engaged closely with communities. The government also reached out to the NGOs knowing that there is nobody other to understand and combat against it.

At the same time, thousands of NGOs, from district level organisations to nationwide ones, are afraid of the governments' attitude towards voluntary actions. Most of them are facing financial crisis due to government policies, especially the amendment of the Foreign Contribution Regulation Act (FCRA). It was made in September 2020 when India was in the midst of the first wave of the Covid-19 pandemic.

The NGOs are actively involved in combating challenges related to the environment, education, health, poverty, women empowerment, child protection, social justice, and human rights, etc. for many years. There are nearly 3.6 million NGOs registered in India, out of them nearly 30,000 are registered under FCRA. The FCRA ensures that foreign donations to NGOs do not adversely affect the internal security of the country. Enacted in 1976, it was amended in 2010, 2016, 2018 and now in 2020.

The pandemic will have an end but its social, economic, environmental and other impacts will create new challenges. Civil society and NGOs have a responsibility to understand and address the crisis and fulfil the expectations of society.

Therefore, most of the NGOs are very critical of new FCRA regulations and other restrictions on them by the government. How genuine is the fear of NGOs? Or has the amendment really affected voluntary organisations activities?

The FCRA applies on all organisations which intend to receive foreign donations. The registration is initially valid for five years and can be renewed subsequently if they comply with all norms. Registered organisations can receive the foreign contribution for social, educational, religious, economic and cultural purposes. Filing of annual returns, on the lines of income tax, is compulsory.

The new act says that foreign contributions received by an organisation cannot be transferred to any other person or organisation unless that person or organisation is also registered to accept foreign contributions. It will be received only in an account designated by the bank as an “FCRA account” in a branch of the State Bank of India, New Delhi, which will be notified by the central government. No funds other than the foreign contributions should be received or deposited in this account. The use of foreign funds to meet administrative costs by NGOs is reduced to 20 per cent from the existing 50 per cent. 

Voluntary Action Network India (VANI), the apex body of Indian voluntary organisations, said in a statement: “The FCRA will be a death blow to the relief, scientific research and community support works of the NGO community, as it prohibits collaboration with other Indian organisations.”

Obviously, the government has its own logic in favour of new FCRA, as bringing transparency, stopping misuse of funds, ensuring that things are done as committed etc. but there is no end of criticism to Modi Government for muzzling the social sector by blocking funds and stopping voices against the government. Most of the NGOs think Modi Government is excessive against voluntary actions. It is also proved by government data. According to the home ministry, FCRA registration certificates of 20,675 NGOs have been cancelled between 2011 and 2019. Among these, 16,746 (about 80%) were cancelled under the Modi regime.

By : Indra Chand Rajwar


ADVT


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