SC tells govt to decide on regulating NGOs in four weeks

The court was hearing a writ petition filed by advocate Manohar Lal Sharma, alleging misuse of funds by Anna Hazare's NGO Hind Swaraj Trust <br>

The apex court on Wednesday gave four weeks to Centre to examine bringing in a legislation to regulate funds for NGOs. or make provisions for prosecution in the event of misuse or misappropriation of funds or non-filing of annual statements.

The top court's direction follows the submission made by Additional Solicitor General Tushar Mehta that certain instructions were required to be taken "from the top level" to bring in a legislation or draft some guidelines and also include some penal provisions.

The court was hearing the writ petition filed by advocate Manohar Lal Sharma, alleging misuse of funds by Anna Hazare's NGO Hind Swaraj Trust. It had earlier expanded the scope of Sharma's PIL plea to include the status of all NGOs.

"See, these are serious issues. Make a fair decision. Our direction is already there. Just implement it to give the authorities more teeth," a bench headed by Chief Justice JS Khehar told the ASG, as reported by Livelaw.in. The court was hearing a PIL filed by advocate ML Sharma for keeping a tab on the functioning of the NGOs.

According to the report, the bench earlier expressed unhappiness over the proposed guidelines to keep a tab on the nearly 30 lakh NGOs in the country, saying "it may not meet the enormity of the situation due to the non-accountability of the funds given to the NGOs."

On direction from the bench of Chief Justice JS Khehar and Justice DY Chandrachud, Additional Solicitor General Tushar Mehta, who submitted the draft guidelines, had handed over a copy to Amicus curiae Rakesh Dwivedi for including his suggestions and inputs, the report added.

Previously, in January, the Supreme Court had pulled up the Centre for no provision to monitor the funding of NGOs. It directed the government to audit nearly 30 lakh NGOs which received public funds but consistently failed to submit their returns or balance sheets and other financial details to the authorities.

The Supreme Court demanded that the government file a compliance report by March 31. On April 5, the Centre had submitted to the Supreme Court fresh draft guidelines for accreditation of NGOs and voluntary organisations.

CBI records filed in the Supreme Court show that only 2,90,787 NGOs out of a total of 29,99,623 registered under the Societies Registration Act file balance sheet with the authorities.

In some states, the CBI said the laws do not even provide for the NGOs to be transparent about their financial dealings.

In the Union Territories, out of a total of 82,250 NGOs registered and functioning, only 50 file their returns.

New Delhi has the highest number of registered NGOs among the union territories at 76,566. But none of these organisations submit returns, the CBI chart showed. In Kerala, which has 3,69,137 NGOs, there is no legal provision to submit returns. The same is the case for Punjab, with 84,752, and Rajasthan, with 1.3 lakh NGOs.

Among other States, Uttar Pradesh, which has the highest number of NGOs at 5.48 lakh among 26 states, has only about 1.19 lakh filing returns. Tamil Nadu has about 1.55 lakh NGOs registered but only 20,277 file returns. Andhra Pradesh has 2.92 lakh NGOs, though only 186 file financial statements annually. West Bengal has 2.34 lakh registered NGOs, of which only 17,089 active NGOs file annual returns.

Source: https://www.nationalheraldindia.com/corruption/sc-tells-govt-to-decide-on-regulating-ngo-in-four-weeks

India’s Red Card to 6,000 NGOs Can Impact Ties With the West

India's Home Ministry has issued notices to nearly 6,000 non-governmental organizations (NGOs) receiving foreign funding for failing to file annual tax returns for the last five years.

"However, in spite of sufficient and adequate notice, it has been observed that 5,922 associations have not uploaded their annual returns for three or more than three years within the stipulated time given in the notice," the circular said.

New Delhi (Sputnik) — The ministry's Foreign Contribution Regulation Act (FCRA) division served the show cause notices to 5,922 NGOs. The reason: these organizations have not filed mandatory annual income and expenditure records from 2010-11 to 2014-15, despite repeated notices. Now, the government has put the ball in their court, asking why their license shouldn't be cancelled.

The NGOs were required to file their annual tax returns until June 14 without paying any fine, as directed in a circular issued by the home ministry.

The government had asked 18,523 NGOs to respond with details of their income and expenses in May. Now, these organizations will have to furnish their replies by July 23, failing which it will be presumed that they have nothing to say and action will be taken as per FCRA norms.

Some of the prominent names in the Home Ministry list include Indira Gandhi National Centre for Arts, the Indira Gandhi National Open University, Nehru Memorial Museum and Library, Indian Institute of Technology-Kanpur, Mayo College Central Council Society, Ramakrishna Mission Ashram, Delhi College of Engineering, Punjabi University (Patiala), Mata Vaishno Devi Shrine Board, Khadi Gramodyog Samiti and Oxfam Trust.

Prime Minister Narendra Modi's government has faced criticism for targeting the NGO sector and since 2015, the government has canceled registration of over 10,000 organizations under FCRA.

The Modi government's measures to ensure greater compliance from the NGO sector has garnered attention in the West as well, with many US-based civil society organizations' operations curtailed or completely shut down.

In March this year, influential Congressman and chairman of the House Foreign Affairs Committee, Ed Royce and more than 100 members of the US Congress had written to India's Home Minister Rajnath Singh, asking him to allow US-based charity Compassion International to continue its work in India.

Source: https://sputniknews.com/asia/201707121055464161-india-ngo-west-ties/

Decision in 4 weeks on new law to regulate NGOs, their funding: Govt

New Delhi: The NDA government on Wednesday told the Supreme Court that a decision would be taken within four weeks on the need for a standalone law to regulate activities, funding and expenditure of non-governmental organisations (NGOs), lakhs of which have mushroomed across the country.

Additional solicitor general Tushar Mehta said the decision has to be taken at the highest level and sought four weeks to inform the court about it. A bench of CJI J S Khehar and Justice D Y Chandrachud said, "The issue is very serious. We do not want to push the government... Whether you want to enact a separate legislation or not, you have to take a decision."

"Previously, we found that not many have filed audited accounts. The government has already initiated civil and criminal proceedings against defaulting NGOs. So, it is not as if there is no legal framework available to take action," it said.

Petitioner-cum-advocate M L Sharma said that till date, not a single NGO was prosecuted "because 90% of NGOs are owned either by politicians or linked to bureaucrats". On January 10, the SC had ordered governments to scrutinise accounts of lakhs of NGOs and voluntary organisations, which together received thousands of crores of rupees of public funds, and take civil and criminal action if they were found to have misused the grants. On April 5, the Centre had filed in the SC the draft guidelines to regulate NGOs and said all such organisations, which intended to receive funds from governments, must register afresh online with Niti Aayog's 'NGO-Darpan' portal giving details of its past work, fund utilisation, yearly audit reports and key persons responsible for managing the NGO.

"The registration system should facilitate seamless operation of applicable provisions of Income Tax Act and Foreign Contribution Regulation Act (FCRA) with respect to NGOs without the need for cumbersome and intrusive processes, which create mutual distrust and scope for misuse," the draft guidelines said.

Another provision in the guidelines intends to deter non-serious NGOs from seeking government funds. It mandates NGOs and its office-bearers to execute a bond, equivalent to the fund amount received, promising to refund to the government with 10% interest the entire amount if the funds were found misused, misappropriated or not used for the purpose for which they were sanctioned.

The CBI had informed the SC that it had detected 32.97 lakh registered NGOs and voluntary organisations but less than 10% of them, 3.07 lakh, filed their audited accounts with the Registrar of Cooperative Societies.
 
The CBI was directed to find out the number of NGOs on a PIL filed by Sharma, who had accused Anna Hazare's NGO of misappropriating funds allotted by the Council for Advancement of People's Action and Rural Technology (Capart). The court said the problem of NGOs with no accountability was a much larger issue than the Rs 5 crore grant given to Hazare's NGO.

Source: http://timesofindia.indiatimes.com/india/decision-in-4-weeks-on-new-law-to-regulate-ngos-their-funding-govt/articleshow/59569189.cms

SC gives Centre four weeks to decide on regulating NGOs

New Delhi, July 12 (IANS) The Supreme Court on Wednesday gave the central government four weeks' time to decide how to regulate the funding and functioning of the NGOs and voluntary organisations

New Delhi, July 12 (IANS) The Supreme Court on Wednesday gave the central government four weeks' time to decide how to regulate the funding and functioning of the NGOs and voluntary organisations — a large number of which are found to be functioning in breach of the rules.

The bench of Chief Justice Jagdish Singh Khehar and Justice D.Y. Chandrachud sought a response from the government as Additional Solicitor General Tushar Mehta told the court that a decision on whether to enact a law or frame guidelines for regulating the funding and functioning of the NGOs would be taken at highest level at the earliest.

Making it clear that it would not like to push the government on the course it may adopt for regulating the NGOs — overwhelming number of which are flouting the norms, the bench said it would be appropriate if government took a call on the matter.

Telling ASG Mehta that misuse of public funds by the NGOs could not be allowed, the court said it was not the absence of law on regulating the funding and functioning of the NGOs and voluntary organisations that prevented in initiating proceedings against errant NGOs.

The top court in the last hearing in the matter on April 26 had asked the Centre to consider putting in place a statutory regime to regulate registration, funding, compliance and audit of the NGOs getting state support.

The court said this during the hearing of a PIL by Advocate M.L. Sharma, who has sought probe into the alleged misuse of funds given to NGO Hind Swaraj run by anti-corruption crusader Ana Hazare.

However, later the scope of the PIL was expanded to look into the funding of the NGOs by the state and their accountability mechanism.

Following a direction by the top court, a probe by the Central Bureau of Investigation (CBI) found that of the 32 lakh NGOs, only three lakh submitted their audited accounts to the authorities.

Source: http://www.india.com/news/agencies/sc-gives-centre-four-weeks-to-decide-on-regulating-ngos-2315816/

FCRA department has issued show cause notice

Recently, FCRA has issued show cause notice to 5992 NGOs asking for reasons why their FCRA registration may not cancel.

Earlier in this May, FCRA has issued list of organizations, who have not filled FC returns online for previous year or years. And give them opportunities to update the same as early as possible. Also after that, 5992 organizations have not updated their FC returns and thus final show cause notice issued to them.

Download Notice from here: https://fcraonline.nic.in/home/PDF_Doc/Show_Cause_08072017.pdf

Download List of 5992 NGOs from here: https://fcraonline.nic.in/home/PDF_Doc/Show_Cause_List_08072017.pdf

It is also mentioned that, these organization have to give their reply in email to 

fcrarenewal-mha@gov.in within 15 days.

 

NO GST on NGOs for Charitable Activities

Are you worried about GST? Here are eleven clarifications to help you sleep better:

1. Goods and Services Tax (GST) applies only to business activities. It is not applicable where an NGO provides goods or services to others as part of its charitable activities or at nominal prices. It is also not applicable on grants received by NGOs.

2. Some NGOs also sell products or charge market-based fees for various services. If the NGO's total intrastate turnover from these taxable supplies is below Rs. 20 lakh p.a. (Rs. 10 lakh in hill states), then GST will not be applicable. Intrastate turnover means that these supplies are made to customers within the state.

3. If an NGO sells goods or provides services to anyone outside its state, the NGO must register for GST. In such cases, it does not matter that the total turnover is below the threshold of Rs. 10/ 20 lakh.

4. If you were already registered for VAT or service tax, then you must register for GST also.

5. If an NGO is registered under GST, it must pay GST on all taxable supplies made by it. Remember, this does not include grants for charitable activities.

6. If the NGO provides any goods or services (e.g. training or group formation) to a donor, then GST would be attracted.

7. If an NGO displays business logo etc. of a corporate donor in a prominent manner, then GST will be attracted.

8. If an NGO is registered for GST, then it must also pay reverse charge on services or goods received from unregistered vendors. This includes consultants, caterers, shopkeepers, etc. if they are not registered under GST. Casual supplies (<Rs. 5,000 in a day) from micro-vendors are excluded from reverse charge.

9. Reverse charge is deductible from GST payable as Input Tax Credit.

10. Education and medical services are not chargeable to GST. Export of services is charged at zero-rate, but is counted towards total turnover.

11. There is no general exemption from GST for supplies purchased by NGOs.


Please share this with your friends as an act of charity. No GST will be charged on such sharing.

ବିଦେଶୀ ଅନୁଦାନ ହରାଇବେ ୬୦୦୦ ଏନଜିଓ !

ନୂଆଦିଲ୍ଲୀ : ଦେଶର ପ୍ରାୟ ୬୦୦୦ ଏନଜିଓ (ସ୍ୱେଚ୍ଛାସେବୀ ସଂଗଠନ) ବିଦେଶୀ ଅନୁଦାନ ହରାଇବାର ଆଶଙ୍କା ଉପୁଜିଛି । ବିଗତ ପାଞ୍ଚବର୍ଷର ଆୟବ୍ୟୟ ହିସାବ ଦାଖଲ କରିନଥିବାରୁ ଜୁଲାଇ ୮ରେ କେନ୍ଦ୍ର ସ୍ୱରାଷ୍ଟ୍ର ମନ୍ତ୍ରାଳୟ ପକ୍ଷରୁ ଏହି ସ୍ୱେଚ୍ଛାସେବୀ ସଂଗଠନଗୁଡିକୁ କାରଣ ଦର୍ଶାଅ ନୋଟିସ ଜାରି କରାଯାଇଛି । ଜୁଲାଇ ୨୩ ସୁଦ୍ଧା ଜବାବ ଦାଖଲ କରିବାକୁ ସେମାନଙ୍କୁ ନିର୍ଦେଶ ଦିଆଯାଇଛି । ଯଦି ସେମାନଙ୍କର କୈଫିୟତ ସନ୍ତୋଷଜନକ ନହୁଏ ତେବେ ସରକାରଙ୍କ ପକ୍ଷରୁ ସେମାନଙ୍କର ଲାଇସେନ୍ସକୁ ବାତିଲ କରାଯିବ । ଏହାଫଳରେ ସଂପୃକ୍ତ ସ୍ୱେଚ୍ଛାସେବୀ ସଂଗଠନଗୁଡିକ ବିଦେଶୀ ଅନୁଦାନ ପାଇବାରୁ ବଞ୍ଚିତ ହେବେ ବୋଲି ମନ୍ତ୍ରାଳୟର ଜଣେ ବରିଷ୍ଠ ଅଧିକାରୀ ଜଣାଇଛନ୍ତି । ଜୁନ ୧୪ ସୁଦ୍ଧା ଆୟ ବ୍ୟୟ ସଂକ୍ରାନ୍ତ ହିସାବ ଦାଖଲ କରିବାକୁ ଚଳିତବର୍ଷ ମେ'ରେ ସରକାରଙ୍କ ପକ୍ଷରୁ ୧୮୫୨୩ଟି ସ୍ୱେଚ୍ଛାସେବୀ ସଂଗଠନକୁ ଥରକ ପାଇଁ ସୁଯୋଗ ଦିଆଯାଇଥିଲା । ବିଦେଶୀ ଅନୁଦାନ (ନିୟାମକ) ଆଇନ (ଏଫସିଆରଏ) ଅନୁଯାୟୀ ଏହି ସଂଗଠନଗୁଡିକ ପଞ୍ଜୀକୃତ ହୋଇଛି । ଏହାକୁ ଆଧାର କରି ସେମାନେ ବିଦେଶରୁ ଅନୁଦାନ ପାଇଥାନ୍ତି । ତେବେ ଏହି ସଂଗଠନଗୁଡିକ ବିଗତ ପାଞ୍ଚବର୍ଷର ଆୟ ବ୍ୟୟ ହିସାବ ଦାଖଲ କରିବାକୁ ମନ୍ତ୍ରାଳୟ ପକ୍ଷରୁ ସେମାନଙ୍କୁ ମାସକ ପାଇଁ ସମୟ ଦିଆଯାଇଥିଲା । ଏପରିକି ଇମେଲ, ଏସଏମଏସ ଆଲର୍ଟ ଜରିଆରେ ମଧ୍ୟ ସେମାନଙ୍କୁ ନିୟମିତ ବ୍ୟବଧାନରେ ସୂଚୀତ କରାଯାଇଥିଲା । ପର୍ଯ୍ୟାପ୍ତ ସମୟ ଦିଆଯାଇଥିବା ସତ୍ତ୍ୱେ ଏହି ସଂଗଠନଗୁଡିକ ନିର୍ଦ୍ଧାରିତ ସମୟ ମଧ୍ୟରେ ୫୯୨୨ଟି ସ୍ୱେଚ୍ଛାସେବୀ ସଂଗଠନ ବିଗତ ତିନି ବର୍ଷ କିମ୍ବା ତଦୁଦ୍ଧ୍ୱର୍ ସମୟର ଏହି ହିସାବ ଦାଖଲ କରିନାହାନ୍ତି । ତେଣୁ ସେମାନଙ୍କର ଏଫ୍‌ସିଆରଏ ଲାଇସେନ୍ସ କାହିଁକି ବାତିଲ କରାନଯିବ, ସେ ସମ୍ପର୍କରେ ଜବାବ ଦାଖଲ କରିବାକୁ ସେମାନଙ୍କୁ ନୋଟିସ ଜାରି କରାଯାଇଛି । ଜୁଲାଇ ୨୩ ସୁଦ୍ଧା ଜବାବ ଦାଖଲରେ ବ୍ୟତିକ୍ରମ ଘଟିଲେ ସେମାନଙ୍କର ଲାଇସେନ୍ସ ରଦ୍ଦ ହେବା ସୁନିଶ୍ଚିତ ।  

ଏନଜିଓ ସ୍ଵଛାସେବୀ କ୍ଷେତ୍ର — ବିକାଶପିଡିଆ

Please visit for Odisa information's related to NGO activities at:  

http://or.vikaspedia.in/social-welfare

How can NGOs become more credible watchdogs?

Non Governmental Organisations (NGOs) are indispensable watchdogs against corrupt practices and global challenges found in complex, modern societies. Yet sometimes, NGOs themselves can struggle to live up to the ambitious standards they demand of others, such as responsible advocacy, ethical fundraising, and meaningful participation of stakeholders. In this piece, Prize Fellow Stefan Hielscher and his co-authors Jan Winkin and Ingo Pies discuss their recently published research, which suggests that strengthening the rules of "fair competition" among NGOs is a promising avenue to increase their credibility.

Stereotyping by NGOs

With so many causes competing for attention from the public, it's perhaps inevitable that NGOs may opt for shock tactics. Some controversial tactics can be very effective in raising public attention, gaining member support and securing funding, "Poverty pornography" provides a telling example. Critical observers invoke the term to describe the use of shocking but misleading imagery in NGOs' fundraising campaigns, such as the notorious "potbellied child." Critics claim such campaigns conceal the root causes of poverty, misdirect well-intentioned help, and violate the dignity of those in need. The website Rusty Radiator collects a variety of impressively frustrating examples, awarding the "fundraising video with the worst use of stereotypes" on an annual basis.

Granted, poverty porn is an extreme example. But it is the case that NGOs are sometimes tempted to simplify messages, thereby misrepresenting complex issues, and this may result in the root causes of the problem being misunderstood. For example, recent research reveals serious inconsistencies in advocacy positions related to the global food crisis in 2008. Before the food crisis, NGOs claimed that low food prices would promote poverty and hunger in rural areas in developing countries. After the food crisis, however, the very same NGOs claimed that high food prices cause hunger and poverty in urban areas in developing countries.

NGOs and responsible advocacy

To address challenges to their accountability and strengthen their credibility, in 2008 the international NGO elite founded "Accountable Now" (AN). Responsible advocacy is one of 12 agreed-upon accountability standards, and includes fact checks and clear procedures for advocacy positions. A complaints handling mechanism was designed to give stakeholders a voice to critique misrepresented interests or other questionable advocacy practices. A 2016 survey by AN of members and non-members however, revealed sobering results. NGOs seem to fare quite poorly in "stakeholder responsiveness" and "responsible advocacy." Only about 10% of NGOs responded to complaints raised by AN's evaluation team in a blind test, and many NGOs lacked robust fact checks and clear procedures to adopt or exit advocacy positions.

How competition affects NGO behaviour

Why is it that even member NGOs struggle to comply with AN's standards? Our research suggests that NGOs operate in a highly competitive environment, all seeking funding, members and media attention. All these are necessary, but scare resources, and the competition for these can impede responsible advocacy.

NGOs are facing a "social dilemma" here. They can either choose the easy option and seek out attention without worrying too much about potential negative side-effects, or present a measured view which incorporates the best available knowledge on a controversial issue. The danger is that by taking the easy option, other NGOs will follow suit to secure their piece of the pie. As a result, the whole third sector's reputation and credibility as a promotor of social change is put at risk.

Creating an enabling environment for responsible advocacy

Can we expect NGOs to refrain from this kind of race-to-the-bottom competition, and to engage in responsible advocacy on a voluntary basis? While some international "giant" NGOs may have the resources to take the moral high ground, some smaller NGOs are facing much stronger threats to their survival. For some of them, every successful fundraising campaign counts. Some NGOs will be able do the right thing only if the organisational benefits outweigh the associated costs. They will need to be sure that their competitors for public attention will follow suit in responsible advocacy.

This is why Accountable Now is such an important initiative. NGOs need to establish their own regulatory framework to raise standards for the whole sector. Within the AN's NGO community, some voices are demanding stronger leadership to make this happen. Others are looking more towards external monitoring.

Our research has found that to be effective, both strategies need be designed so as to create a more enabling environment for NGOs and therefore to improve the cost-benefit balance. Effective monitoring of stereotyping campaigns requires graduated "reputational sanctions," for example by raising public awareness of bad examples. Conversely, AN could reward best practice with public attention, by, for example, awarding prizes for responsible advocacy to leading NGOs.

There are no ready made solutions for these issues. It is important for NGOs, though, to acknowledge that they are not spared from the adverse impact of competition just because they are siding with the weak, the marginalized, the neglected and the poor. The insight of economics also applies here: good intentions need be supported by appropriate incentives, to do the right thing and to do things right.

Image by Howard Lake

Source: http://blogs.bath.ac.uk/business-and-society/2017/07/12/ngo-credible-watchdogs/

Petitioner: 90% of suspect NGOs belong to political parties and bureaucrats

Advocate Manohar Lal Sharma brought to light a startling fact at the Supreme Court on Wednesday (July 12).  In the case emanating from his PIL alleging that funds allocated in the form of financial aids and grants to various NGOs – including one of Kishan Baburao (Anna Hazare) – were being misused, Sharma submitted that no action has been taken till date because "90 percent of the NGOs belong to political parties and bureaucrats".

The case is being heard by the bench of Chief Justice JS Khehar and Justice D Y Chandrachud.

Sharma's PIL said funds allocated were misappropriated. In the last hearing the court had ordered that the public funds dispersed needs to be properly audited in consonance with rules. The court suggested to the Union of India on January 10 that guidelines be framed before money is given to NGOs.

The court also said that guidelines should also be there for the manner in which the accounts were to be maintained by the NGOs and eventually the process of auditing the utilisation of the funds.

All this was needed to formulate a procedure for recovering dispersed grants in case of misappropriation. On Wednesday one Mr Dey, representing Union of India, said the guidelines prepared by Union of India were sent to 76 different ministries and departments.

This was done to obtain the views of those departments which are all related to the disbursement of funds to NGOs.

It is also apparent from the factual position indicated above that the process to initiate criminal action has commenced. The affidavit of CAPART clearly depicts that facilities and infrastructure are insufficient to take meaningful action in respect of the finances dispersed to NGOs.

It was also pointed out that CAPART is only one of the agency, representing the ministry of rural development, whereas 76 different ministries are involved in dispersing funds.

Additional Solicitor General Tushar Mehta asked for time to seek instructions from the government and to comply with earlier orders.

The matter has been adjourned for four weeks.

—India Legal Bureau

Source: http://www.indialegallive.com/news-of-the-day/news/petitioner-90-suspect-ngos-belong-political-parties-bureaucrats-30072

For more NGO News please visit: http://www.indialegallive.com/topic/ngo