Defaulting NGOs a common crisis

For a change, the two states of Andhra Pradesh and Telangana will have to put their differences aside and work together to erase a dubious distinction they have together earned. This is because in the list of 9,948 Non Governmental Organizations (NGOs) across the country, which were sent notices last week by the Union home ministry for not filing details of foreign contributions in the last five years, united Andhra Pradesh topped by accounting for 1,441 defaulters.

In the notices, the MHA made it clear that such NGOs would be de-recognized unless they submit the statutory report on foreign contributions at the earliest. "They did not file their account on the foreign contributions for the years 2009, 2010, 2011, 2012 and 2013. As per the Foreign Contributions Regulatory Act, the NGOs need to file the statutory report with the MHA every year. But these NGOs have been willfully flouting the act," said sources in the Union home ministry. In addition to financial statements, form FC-6, certified by a chartered account, has to also be filed annually listing the names of the foreign donors. This too has not been done, the sources added.

Sources said that if the erring NGOs do not come clean on their foreign contributions, the Union home ministry might enlist the help of the Reserve Bank of India (RBI) to track the inflow of foreign funds as well as the names of the contributors.

Source: http://timesofindia.indiatimes.com/city/hyderabad/Defaulting-NGOs-a-common-crisis/articleshow/44363323.cms

Notice issued to 10,331 NGOs for non-filing of FCRA Returns

This is to inform you that as per section 18 (1) of the FCRA, 2010 and Rule 17 of the FCRR, 2011 associations registered under FCRA 2010 are required to submit annual report in Form FC-6, accompanied by an income and expenditure statement, receipt and payment account, balance sheet etc for every financial year beginning on the 1st day of April within nine months of the closure of the financial year, to the Secretary to the Government of India, Ministry of Home Affairs, New Delhi. Such associations which did not receive foreign contribution during a particular year are also required to furnish a NIL return for that financial year within the aforesaid period. Thus, non-submission of mandatory Annual Return is violation of FCRA 2010 and FCRR 2011.

Further, the Ministry of Home affairs (FCRA Department) has sent a notice to all the organization at their respective addresses who have not filed their returns for the period 2009-10,2010-11 and 2011-12. The copy of the notice and the list of the organizations that have been issued notice is given in the link below http://fmsfindia.org.in/pdf/FCRANotice2014.pdf. If the list includes your organization, you are requested to kindly act on such notice.

In case, you have filed the FC Return, you may furnish the proof of submission to the FCRA Department at the below mentioned address

Under Secretary (MU)
FCRA Wing, Foreigners Division,
Ministry of Home Affairs,
NDCC-II Building,
Jai Singh Road (Opposite Jantar Mantar)
New Delhi-110001

Why Home Ministry sends notice to 10,000 NGOs: Explained

The Ministry of Home Affairs on Tuesday issued show-cause notices to over 10,000 non-governmental organisations (NGO) registered under the Foreign Contributions (Regulation) Act, 2010 (FCRA). What is the issue? The Home Ministry has issued notices for failing to file mandatory annual returns for three successive years starting 2009-2010. It has asked over 10,000 NGOs, why their licences should not be cancelled after they failed to file their annual returns of foreign aid. The Home Ministry orders also said the NGOs which have filed returns should furnish copies and proof of submission. Andhra Pradesh accounts for the largest number of defaulting associations (1,441), followed by UP (1,167) and Tamil Nadu (1,108). What Data say? A MHA report says there are more than 20 lakh NGOs but less than 2 per cent of them (43527) were registered till March 31, 2012. According to a Home Ministry report, NGOs receive over Rs 11,500 crore in foreign funds annually. Crackdown on NGOs Earlier this year, the Ministry issued notice to 22,702 of the 43,527 registered NGOs under FCRA. They had failed in submitting annual return under Foreign Contribution (Regulation) Act. The Ministry had invoked section 46 of FCRA. Who are main defaulters? Some of the defaulters' are the University of Delhi, Jawaharlal Nehru University. Supreme Court Bar Association, Indian Council for Agriculture Research YMCA units in many States. What are the rules? As per rules, associations registered under FCRA 2010 must submit annual report in Form FC-6 to Union Home Secretary. It should be accompanied by an income and expenditure statement, receipt and payment account, balance sheet for every financial year. It should be filed within nine months of closure of the financial year. Associations which do not receive any foreign contribution are also required to furnish a 'NIL' return.

Source: http://news.oneindia.in/feature/why-home-ministry-sends-notice-10-000-ngos-explained-1533001.html

1000 foreign-funded NGOs under scanner

More than 10,000 NGOs receiving foreign funding in the country have come under the scanner of the Union home ministry after they have failed to submit their mandatory annual returns for three years at a stretch between 2009 and 2012.

The MHA’s rap to the NGOs has come after it scrutinised records of all NGOs receiving foreign donations in the country and found their annual returns are missing. Soon after the Narendra Modi government came to power in May, a classified Intelligence Bureau report had reportedly complained of “anti-development’’ activities of several foreign funded non-governmental organisations (NGOs), saying they were “negatively impacting economic development’’ by agitating against big infrastructure projects.

The MHA has now issued notices to as many as 10,331 foreign funded NGOs across states, including 400 in the national capital itself, saying their registration will be cancelled for violation of Foreign Contribution Regulation

Act (FCRA) if their annual returns are not filed with the central government within the stipulated timeframe.

The MHA wants details of their income, expenditure, balance sheets among other document clearly showing the source of foreign wealth and the activities for which it has been put to use.

Showing the rulebook to the NGOs, the MHA in a strong missive has said that apart from the NGOs which are receiving foreign funds on an annual basis, those associations which did not receive foreign contribution during a particular year, but are registered under the Foreign Contribution Regulation Act (FCRA), are also required to furnish a “NIL return’’ for that financial year within the stipulated time frame.

It has categorically said that non-submission of mandatory annual return is in violation of the FCRA 2010 and FCRR 2011.

“On scrutiny of records, it has been found that the mandatory annual returns for the years 2009-2010, 2010-2011 and 2011-2012 have not been received from the associations. Notices are being sent to these associations by post at their known addresses,” the MHA has said in its notice.

The list of erring foreign-funded NGOs includes the highest 1,441 NGOs in Andhra Pradesh, 1,167 in Uttar Pradesh, 1,108 in Tamil Nadu, 990 in Maharashtra, 821 in Karnataka, 748 in West Bengal, 655 in Bihar, 643 in Orissa, 538 in Kerala, 400 in Delhi, 378 in Gujarat, 38 in Jammu and Kashmir and 130 in Assam among others .

Source: http://www.asianage.com/india/1000-foreign-funded-ngos-under-scanner-440

Govt notices to 10,331 NGOs for not filing returns

In a major crackdown under the Foreign Contribution Regulation Act (FCRA), the Union home ministry has issued notices to 10,331 non-governmental organisations (NGOs) for not submitting their annual returns between 2009 and 2012.

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There are around 45,000 NGOs registered under FCRA in India and they receive more than `10,000 crore in foreign funding annually. Some of them are recipients of donations to the tune of around `230 crore annually.

Of the 10,331 NGOs issued notices, the maximum are in Andhra Pradesh (1,441), followed by Uttar Pradesh (1,167), Tamil Nadu (1,108), Maharashtra (990), Karnataka (821), West Bengal (748), Bihar (655) and Odisha (643). In Delhi, there are 400 NGOs that have been issued notices.

All NGOs need to be registered under the FCRA to get foreign funding and non-submission of the annual return is a violation of the act for which their registration can be cancelled.

Immediately after the NDA government took over, an Intelligence Bureau report had castigated ‘foreign-funded’ NGOs for fanning protests against big infrastructure projects. A global NGO, Greenpeace, was also put on the restricted list by the ministry.

Earlier, the ministry had issued notices to 21,493 NGOs registered under FCRA for non-submission of returns between 2006 and 2009. Surprisingly, letters dispatched to 4,138 NGOs had returned to the ministry undelivered as their addresses were not found.

Source: http://www.hindustantimes.com/india-news/govt-notices-to-10-331-ngos-for-not-filing-returns/article1-1270390.aspx

NGOs’ Foreign Funding – Home Ministry Notice

In a much awaited move, the Home Ministry has sent show-cause notices to more than 10,000 NGOs for not filing their annual returns of foreign receipts. The notice asks the NGOs to justify why their licenses should not be cancelled.

The notice which was sent by the Union Home Ministry says, “The mandatory annual returns for the years 2009-2010, 2010-2011 and 2011-2012 have not been received from the associations whose names appear in the annexure. Notices are being sent to these associations by post at their known addresses.”

University of Delhi, Jawaharlal Nehru University, and Supreme Court Bar Association are some of the organisations named in the defaulters’ list.

According to an earlier Home Ministry report, voluntary organisations (NGOs) receive over Rs 11,500 crore in foreign funds annually and the number of associations receiving foreign contributions is increasing. The Union Home Secretary Anil Goswami had said, “The general policy of the Government is not to encourage soliciting of foreign contribution. However, if it is intended for bona fide welfare activities, foreign contributions can be received by obtaining registration or prior permission from the Centre.”

The MHA report further said that there are more than 20 lakh NGOs in the country, but less than 2 per cent of them — which is 43527 — were registered under the Foreign Contribution (Regulation) Act (FCRA) up to March 31, 2012. During 2011-2012, 22,702 NGOs reported receipt of foreign contributions amounting to Rs 11546.29 crore. Imagine what foreign contributions may have amounted to in all 20 lakh of them.

Intelligence Bureau (IB), on June 3 this year, submitted another report to the PMO which said that foreign funding of these NGOs is aimed at stalling development in India. “A significant number of Indian NGOs (funded by some donors based in the US, the UK, Germany, the Netherlands and Scandinavian countries) have been noticed to be using people-centric issues to create an environment which lends itself to stalling development projects.”

Concerned about the same, in July, the Home Ministry had served notice to 21,493 NGOs for not submitting annual return under FCRA. The Parliament was informed about the same. Minister of State for Home Kiren Rijiju had said then that in case of 4,138 NGOs, letters dispatched from the Home Ministry were returned undelivered by the post office as addresses were not found and after due consideration their registrations were cancelled.

Source: http://www.niticentral.com/2014/10/01/ngos-foreign-funding-home-ministry-notice-239632.html

CSR: Now Coercion & Penalty

In July this year, I wrote that the United Progressive Alliance (UPA) had stopped justshort of prescribing penalties for those corporates who fail to spend the mandatory 2% of their net profit on corporate social responsibility (CSR) projects. The CSR provisions in the Companies Act 2013 (the Act) were clearly structured to introduce such penalties, but had stopped at asking companies to explain the failure to comply.

The Narendra Modi government was expected to put CSR rules under the Act on hold and also rework some of its more draconian provisions. Nothing of that sort happened. In fact,The Economic Times reports that Modi sarkar seems set to outdo the UPA-2 on this front.

The paper reports that the government is already planning to introduce penalties for failure to meet CSR targets for two or more years. This is regressive and contrary to the prime minister’s poll promise to eliminate bureaucratic hassles and unnecessary red-tape and make it easier to do business in India.

Consider how things have played out on the CSR front. In July this year, we applauded the ministry of corporate affairs for expanding the scope of CSR eligibility. We believed that CSR ought to be voluntary, or at least not prescriptive, and must include a company’s core strengths.

Instead of doing this, the Modi government is headed in the opposite direction. Industry continues to lobby against CSR, while an army of consultants, who see this as a lucrative business opportunity, are lobbying for stringency.

Meanwhile, public sector undertakings (PSUs) and nationalised banks are pulling in different directions on the issue. SCOPE, the apex body of Central government-owned units, reportedly made an audacious suggestion that ‘angel funding’ or takeover and revival of sick-undertakings should be considered part of public sector CSR. A clear recipe for massive write-offs.

Meanwhile, banks are being pushed to please the PM by building toilets all over India.The finance ministry and the Reserve Bank of India (RBI) also want banks to conduct ‘financial literacy’ seminars in schools and colleges, leading to much irritation. School managements say that say that election duties and frequent holidays have them struggling to complete their syllabus; they have little time to cooperate with companies wanting to meet CSR ‘targets’ with perfunctory workshops aimed at disinterested students. But nobody seems to care.

CSR is laudable when done voluntarily and diligently. It will only lead to mis-directed efforts, fudging and squandering of precious funds when forced upon reluctant companies. The real losers will be entities that are doing genuine and dedicated work for public benefit. With over 14,000 companies expected to spend Rs15,000 crore on CSR, we hope that good sense will prevail about spending scarce funds.

Source: http://www.moneylife.in/article/csr-now-coercion-penalty/38936.html

New guidelines for PSUs on CSR this week: Govt

New Delhi: Government will release a new set of guidelines for public sector undertakings this week on corporate social responsibility (CSR) activities.

This was stated by Joint Secretary in the Department of Public Enterprises AK Pavadia at a Ficci conference here.

Pavadia said that the government is providing an overarching framework in which corporate social responsibility (CSR) is embedded.

He asked businesses not to restrict their social and community spending to 2 per cent as mentioned in the Companies Act, the compulsory CSR spending, and should expand and go beyond it to achieve a sustainable business model. He added that now the PSUs will have to report the sustainability initiatives undertaken by them.

The conference brought together Indian and international Life Cycle Assessment/Management (LCA/LCM) experts and interested stakeholders to promote Life Cycle Approaches in India.

PTI

First Published: Monday, September 29, 2014 - 23:36

Source: http://zeenews.india.com/news/india/new-guidelines-for-psus-on-csr-this-week-govt_1477820.html

CSR not most important effect of business on society: Porter

India underperforming on social progress

NEW DELHI, SEPT. 28:

Corporate social responsibility (CSR) initiatives and philanthropy are not the most important effect of business on society, noted expert on competitive strategy Michael E Porter has said.

They are important effects of business on society, but not the most important, Porter said in an address at the Porter Prize 2014 event organized by Indian Council on Competitiveness here.

“The way business affects society most is through business. These include the way we produce, the raw materials we use and the way we create and put together better infrastructure in communities we do business in ‘, he said.

The problem with CSR is that it is not “self-sustaining”, said Porter, who is a Professor at Harvard Business School.

India is among very few countries that had legislated CSR as a mandatory activity for corporates.

Companies that fall within the ambit of CSR provisions of the new company law need to spend 2 per cent of their net profits on CSR.

It is estimated that nearly 16,000 companies out of total universe of 11 lakh companies registered in India will fall under the mandatory CSR net.

Simply put, the CSR spend obligation under the new company law will fall only on 16,000 companies.

SOCIAL PROGRESS

Porter also said India — when compared with other countries with similar GDP numbers — is underperforming on social progress.

“The social progress in India is less than you would expect, given the level of average income per person in the country.

I do take it into consideration that it’s a complex country with lots of States and city level, but these indicators do give an important perspective”

Srivats.kr@thehindu.co.in

(This article was published on September 28, 2014)

Source: http://www.thehindubusinessline.com/economy/csr-not-most-important-effect-of-business-on-society-porter/article6454769.ece?utm_source=RSS_Feed&utm_medium=RSS&utm_campaign=RSS_Syndication

Building a Sustainable Model Key to Effective CSR: UBM India

- Giving Back - NGO India 2014 Witnessed Participation From Leading Corporates, MNCs, Regulators and Over 120 NGOs From Around the World

- Sustainability to be the key Area of Focus for CSR Activities

UBM India hosted Giving Back - NGO India 2014, its annual CSR event on the 25th of September inMumbai. The event witnessed the presence of leading CSR heads and key dignitaries from companies like Aditya Birla, HSBC, ACC, Jindal Steel, Nissan Motors etc. The event was aimed at creating awareness and addressing various causes from child education, women empowerment, poverty eradication to environment sustainability.

(Photo: http://photos.prnewswire.com/prnh/20140926/10107413 )
(Photo: http://photos.prnewswire.com/prnh/20140926/10107413-a )

(Logo: http://photos.prnewswire.com/prnh/20130226/599595-c )

The highlight of the event was the panel discussion that emphasised on incorporating best practices of CSR and the role of corporates and NGOs in inclusive development. It was concluded that it is imperative for the public - private partnerships for the overall social development. With the New Companies Act, India is all set to become the first country to make the disclosure of CSR activities mandatory.

Commenting on UBM India's CSR initiative - Giving Back- NGO India, Mr. Joji George, Managing Director, UBM India said, "As a part of our commitment to create and promote sustainability among organisations and its impact on society, UBM India initiated Giving Back- NGO India, a platform for dialogue and action amidst NGOs, corporates and policy makers. The UBM India team and the participating NGOs are keen to turn yet another leaf of success with this year's edition and look forward to participation of fraternity icons and industry representatives to further encourage and help the common cause of, together, giving back to the society."

Kajal Aggarwal, said, "Today, being actors and part of the film fraternity makes us public figures and if we can leverage the so-called star power to influence our fans towards a good cause, it successfully renders a mass appeal to a cause and increases its impact by manifolds. Being associated with Giving Back - NGO India 2014, gives me a chance to addressing various causes from child education, women empowerment, poverty eradication in India."

In the panel discussion, key experts who are at the centre stage of developmental activity of CSR in India such as Priyanka Chaturvedi, Spokesperson of All India Congress Committee (AICC), Aloka Majumdar, Head of Corporate Sustainability HSBC, Ashok Sajjanhar, Secretary, National Foundation for Communal Harmony, Brinda Malhotra, Head CSR, Aircel, Vivek Oberoi, Actor and Social Activist, and Anshu Gupta, Founder, GOONJ.

Today, there is a considerable amount of awareness and attempt towards building a sustainable India, amongst various sections of society. Giving Back - NGO India is the only platform of this size in India that brings these sections of society together and consolidates the attempts into a concrete and collective course of action. The theme for Giving Back - NGO India is sustainability and the focus for participating NGOs in the 2014 edition is on healthcare, care for the elderly, children's rights, women's empowerment and restoration. Over 120 NGOs from every area of concern - healthcare, care for the elderly, children's rights, women's empowerment and restoration - participated in the event. Eligibility of NGOs was determined through a stringent 10-point due diligence process, which has been conducted by Guidestar India.

About UBM India

UBM India is India's leading live media and events company that engages people and enriches businesses. We, at UBM India, provide the industry with platforms that bring together buyers and sellers from around the world, through a portfolio of exhibitions, content-led conferences and seminars, tech media, live events, data services and powerful media brands. UBM India hosts over 20 large scale exhibitions and 40 conferences across the country every year; thereby enabling trade across multiple industry verticals. A UBM Asia Company, UBM India has offices across Mumbai, New Delhi, Bangalore and Chennai. UBM Asia is owned by UBM plc which is listed on the London Stock Exchange. UBM Asia is the leading exhibition organiser in Asia and the biggest commercial organiser in mainland China, India and Malaysia.

For further details, please visit www.ubmindia.in

Primary Media Contact: Priya Badshah, priya.badshah@ubm.com, +91-22-61727353, Head - PR, UBM India

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Source: http://www.prnewswire.co.in/news-releases/building-a-sustainable-model-key-to-effective-csr-ubm-india-277186001.html