Talk about the multiplier effect. After more than 6,000 privately run non-profit organizations across India lost their licenses to foreign funding, Indians in need of their help were at a loss. Policy liberalization in the region, which accompanied our embrace of an economy open to global capital, accompanied by a push to quell colonial-era suspicions of outside influence, has never been easier. While the influx was welcomed in most business sectors, security and other concerns kept such money for non-profit endeavors under close watch, at least thwarting any wicked conspiracy hatched overseas against our interests. and funded under the guise of social work. Our rules have been further tightened under the present government, which recently brought back ‘self-reliance’ as a slogan after decades. About half a decade ago, the center amended the Foreign Contribution (Regulation) Act, an emergency-era law that enacted a milder version in 2010, requiring renewal of nonprofit funding permits every five years. Most FCRA license losers reportedly failed to apply for it on time despite reminders, but about 180 applications were rejected due to alleged “violations”. In the first exercises billed as clean-ups in 2015 and 2017, more than 15,000 entities lost theirs. FCRA registration; Duplicate numbers were then regarded as a scam, but some observers pointed to a dual purpose.
In 2020, for those who argued that the Center was out to put a moratorium on non-profits, the FCRA was amended to mandate that foreign funds flow only into the accounts of State Bank of India’s main branch in Delhi, No sub-contract jobs are farmed out, and that expense sheets are submitted four times a year so that administrative costs do not exceed 20% of their foreign intake. Earlier lowering this limit to less than 50% put the finances of many people in trouble, especially with think-tanks and other payroll and service bills. In any business sector, such restrictions would have been reprehensible. But nonprofits face stringent norms. Meanwhile, the acclaimed do-gooders have put their activities on hold. In 2015, Greenpeace, whose activism against the nuclear power plant was overruled by our previous regime, had its FCRA license revoked. Since then this trend is not editing. Last month, shortly after being accused of a role in illegal conversions, Mother Teresa’s Missionaries of Charity lost her permit for an alleged failure to meet renewal conditions. Oxfam and the Indian Medical Association have reportedly joined the list. Even if legally valid reasons are cited, it is difficult to deny that an undue blow has been given to the non-profit overall.
While the Corporate Social Responsibility Fund will be available to those in need, what is not easy to achieve is why India took a policy stance that could deny foreign aid to many of the country’s needy. With state support often less in remote parts, all endowments that can help us overcome the crisis should be welcomed. This is more pressing in times of pandemic, with hard living beings. Similarly for other purposes like education and research. Certainly without strict regulations, misuse of funds can be controlled. As far as self-reliance is concerned, although we have a number of non-profit funds locally, including an active network run by the ideological mentors of our ruling party, the market argument of better results derived from multiple players with diverse views applies in this area as well. Let’s not do well.
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