Nov 14, 2007:ET: Do you contribute regularly to charity?
It pays to read the fineprint before you do charity
Do you contribute regularly to charity? Do your research well before indulging as CAPART, an autonomous body of the Government of India, has blacklisted 769 NGOs, reports Vidyalaxmi
YOU might be passionate about the charity work, but is that enough? A study finds that not all the charity money reach the right individual. Council for Advancement of Peoples Action and Rural Technology (CAPART) recently blacklisted around 769 NGOs who have indulged in unscrupulous activities.
CAPART is an autonomous body registered under the Societies Registration Act, 1860, and functions under the aegis of the ministry of rural development.
It recently blacklisted NGOs such as Rural Education and Development Society (Andhra Pradesh), Indira Gandhi Welfare Institutions (Mohinbad mandal), Mahila Janswasthya Shishu Kalyan Kendra (Bihar), Adivasi Welfare Centre (Gujarat), Nettur Technical Training Foundation (Karnataka), Association of Women for Social Rights and Equality (Kerala), Arogya Dakshata Mandal (Maharashtra) and Society for Social Action and Awareness (Rajasthan). The whole black list is available on the website www.capart.nic.in with state-wise break up.
According to a senior CAPART official: These NGOs have misused the funds sanctioned by the ministry, indulged in financial mismanagement and also submitted forged documents. This entity constantly keeps updating its black list database to ensure that these NGOs do not flout any norms or regulations.
The government of India usually funds NGOs through the Central Social and Welfare Board (CWSB). Apart from that, there are several institutions such as CAPART, which offers financial assistance to NGOs. In turn, these NGOs have to submit their audited accounts, programme details, and their implementation status, etc.
Explains a senior official: Often we have seen entities, under the garb of social work, indulging in various unscrupulous activities with the funds we offer. For example, a NGO based in Andhra Pradesh was into women welfare activities. But some of these names were fictitious, which existed only on paper. By showing an increase in the number of names, the NGO would ask for additional funds to manage their regular activities.
Several people contribute to charity out of good will and get some tax advantage either as 50% tax exemption through Section 80G or a 100% exemption under Section 35 (AC) and Section 80 (GGA). Just pulling out a leaf from your cheque book is not sufficient, it seems. If you really want to work towards the cause, first of all check the credentials of the NGO.
Run a reality check
Check the governance structure of the NGO, which is usually in-built within the organisation. Any genuine NGO has a systematic structure with an active set of trustees. In fact, if the NGO wants to advertise its cause, it usually signs some celebrity or a renowned social worker on the board. This usually adds to the credibility of the NGO, explains The Akansha Foundation chief financial officer Tina Vajpeyi.
Run a reality check
Check the governance structure of the NGO, which is usually in-built within the organisation. Any genuine NGO has a systematic structure with an active set of trustees. In fact, if the NGO wants to advertise its cause, it usually signs some celebrity or a renowned social worker on the board. This usually adds to the credibility of the NGO, explains The Akansha Foundation chief financial officer Tina Vajpeyi.
Another way to check the credential of a NGO is to visit the centre to witness what and how its carrying out the social activity. In fact, we encourage donors to visit our centres to get a feel of what we do. That encourages them to spread the word to more prospective donors as well, Ms Vajpeyi adds.
If you have already made a contribution, the NGO has to keep you abreast of the developments and other details, irrespective of the size of the contribution. Some NGOs send out letters on a monthly/quarterly basis. They also send an email if you have assisted them with your email address. If the NGO is not keeping you informed on their activities or on your funds use, then you have every right to ask. Apart from sending out letters or updates, some leading NGOs such as CRY give you an email id and password, which helps you monitor your funds.
If you are planning to sign a cheque for some NGO, look out if any information on the voluntary organisation is available on public domain. Usually, a genuine NGO advertises its activities either through the media or some form of literature to ensure that its name reaches out to masses. So do some back ground cheque before you do the needful.
Apart from institutions like CAPART, there are some popular NGOs such as Give Foundation or Concern India, which run independent checks on the credibility of NGOs. Even a Mumbai-based entity called Karmayog specialises in this kind of work. Use these resources in making better choice for your charity work.