WHAT ARE NGOs?
NGO abbreviated as Non-Government Organization. Organizations that are best known for one or other of the two main forms of activities. Which is either the delivery of basic services to people who are in real need. As well as organizing public campaigns for a change.
During the past two decades, the number of NGOs working for development. Increased at all levels be it local, national, or international. There are around 3.2 million registered non-governmental organizations in India. Interestingly there are more per capita NGO’s than hospital beds in India. NGOs have become an essential part of the development process of a country.
According to The Central Statistical Organization of India, there are around 4 NGOs for every 1000 people in urban areas and nearly 2 NGOs for every 1000 rural population.
According to an estimate by The United States which says that there are about 35,000 large established organizations. To be precise NGOs are stated as legally constituted organizations operating independently from the government and being non-profit oriented an association that pursues purposes related to the public interest.
Now let’s discuss certain important points. Everyone must keep this in mind. NGO’s are not “owned” by anyone or the government. They cannot distribute their profits through the form of dividends as such. Whatever profits they might earn through their activities are either reinvested or spent on appropriate non-profit activities.
According to The World Bank, NGOs are private organizations that pursue activities such as to promote the interests of the poor and needy, protect the environment, provide basic social services, or undertake various community development.
The main and typical sources of revenue for NGOs are donations, funding grants from corporations, membership fees, interest and dividends on investments, and other miscellaneous sources.
ROLE IN OUR SOCIETY
1. NGOs act as human rights watchdogs in society.
2. They act as channels for donors by making them contribute easily to the development of low-income/poor countries.
3. Through playing an important role in the development of a country NGOs are now referred to as “THE THIRD SECTOR”.
4. Most NGOs have started creating awareness among the youth of the nation to be the change they want to see.
WHO REGULATES ?
There are separate laws to regulate the functioning of NGOs in India. For the time being, let’s just only know the two most important laws connected with NGOs.
• FOREIGN CONTRIBUTION REGULATION ACT (FCRA)
• FOREIGN EXCHANGE MANAGEMENT ACT (FEMA)
NGOs in India mainly comes under three segments which are as follows :
These are those organizations that are registered under The Societies Registration Act, 1860
There are two types of Trusts, Private and Public. Private Trusts are The Central Governments Indian Trust Act, 1882. Public trust is under state legislation.
• CHARITABLE COMPANIES
These organizations are set-up in accordance with Section – 8 of The Companies Act, 2013. These compliance requirements are high as the availability of loans to them is very easy.
SOME FORMS OF ASSOCIATIONS WHICH MAY ACT AS NGOs
1. A TRUST comprising two or more persons as Trustees therein. The Trust may be registered under the Indian Trusts Act, 1982.
2. A COMPANY which has been registered under section – 25 of the Companies Act, 1956. Remember that usually, clubs, associations of professionals get registered under this provision of The Companies Act, 2013.
3. A SOCIETY of persons which is registered under the provisions of The Societies Registration Act, 1860 along with the Registrar of the Societies, having their aims and objects and a similar structure as laid down in the aforesaid Act. 4. A CHARITABLE TRUST constituted under the Charitable Endowments Act, 1920.
ISSUES REGARDING NGOs
• MISAPPROPRIATION OF FUNDS
• EXTERNAL ISSUE OF FUNDING
It’s been often said that foreign-funded NGOs try to propagate foreign propaganda to stall the developmental projects of a country.
Example: Kudankulam Protest.
• NON ACCOUNTABLE FUNCTIONING
In India CBI records that have been filed in the Supreme Court show and state that only 10% of the total registered NGOs under the Societies Registration Act file annual financial statements.
• MONEY LAUNDERING
Unscrupulous NGOs receiving foreign funds may serve as conduits for money laundering.
UTTEJANA FOUNDATION– NGO FOR YOUTH
We at Uttejana Foundation are on a never-ending mission of creating leaders. Uttejana Foundation is a Non-Governmental Organisation that works in the area of youth inspiration, slum development, women empowerment & youth awareness.
Uttejana itself means “To Inspire” and we truly believe that youth can bring up change.
Our vision aims ‘To inspire’ young people and bring change in our society. We believe that every person has the right and capability to change and influence the world around them.
“ SMALL ACTS, WHEN MULTIPLIED BY MILLIONS OF PEOPLE, CAN TRANSFORM THE WORLD. ” Our Mission is to empower individuals, communities, and societies while enhancing their skills and giving more strengths to those who need us.
The method of achieving the Aim of the foundation is by providing an enjoyable and attractive scheme of progressive training. We at UTTEJANA FOUNDATION are constantly working in areas of youth inspiration, slum upliftment, women empowerment & MUN’S, and various leadership programs.