Lack Of Funding, Minimal Support: Decoding Indian NGOs Struggle To Survive

"Non-local elderly without having any proper documents such as Aadhar and residential proof certificate or local guardian are causing risk and burden to the management of our non-governmental organisation (NGO),” said a caretaker of Good Samaritan Senior Citizens Home in Kohima, Nagaland.

The caretaker who wished to be unnamed stated that because there is limited seat capacity dedicated for local people in the state, each case of new inmates is investigated to check if they are legally and morally genuine. Moreover, the home has decided to reserve only limited seats for “genuine” candidates [who have no one to look after them] who are not part of the local population having an Aadhar card or a local guardian to introduce them.

“Recently, it has been noticed that many employers are seeking old age homes for their illegal immigrant employees who are terminally ill and are stroke patients who have been living with them for many years,” he stated.

This particular NGO is an old age home run by the Good Samaritan Women Society (GSWS) for the past 18 years in Kohima. Other than this, the society also runs an old age home in two other districts; Longleng and Peren. Currently, each of these homes has 25 inmate capacity. Since 2004, the Missionary Children's Home is another project that GSWS has been running that sponsors education of poor children till class 10 or 12.

In Nagaland, many immigrants from other states as well as from neighbouring countries cross over mainly for job seeking. "They sometimes stay in Nagaland for many years and lose contact with their family and relatives in their native state or country. As they grow old or sick, they become a burden to their employers who abandon them or seek old age homes to take care of them. So far we have had around 15 immigrants in our Home but most of them are Nepalis, first settlers in Kohima,” the caretaker added.

Notably, many NGOs rely on donations and apply for government schemes for financial assistance to conduct their activities. Through grants, contracts and cooperative agreements NGOs receive international funding or financial assistance from the central government. In FY14-15, GSWS applied for the scheme Integrated Programme for Senior Citizens, now called National Action Plan for Senior Citizens (NAPSrC) implemented by the Ministry of Social Justice and Empowerment, through the Department of Social Welfare, Government of Nagaland and received their first instalment, amounting around Rs 1.15 lakh.

However, for four years they did not receive any funds and only after the governor intervened in 2023, they received a grant this year for FY23 along with another old age home run by the Yimkong Welfare Society in Dimapur. Yimkong Welfare Society had received funds in 2022 as well even though it was not functioning properly with no inmates in their home.

In 2019, the Manipur Regional Resource Training Centre sent the Inspection team under IRDEO-RRTC Manipur visited the site to inspect existing old age homes in the state that sought financial aid from the Ministry of Social Justice and Empowerment. Again in 2020, Elderline, Nagaland, visited all old age homes in the state for data collection, according to the guidelines of the Ministry. Both times, the Yimkong Welfare Society was found inefficient.

After the first inspection, they reported that they would start the home after releasing funds. During the second visit by the Elderline, Nagaland a national helpline for senior citizens they were found collecting a few elderly people from the neighbourhood. This was reported to the Ministry and yet they received funds regularly, raising questions about the legitimacy of the ministry's selection criteria and process.

The Big Gamble
Before 2019, inspections were usually done over the phone without on-site inspection. So when an official from the Regional Training Resource Centre (RRTC), Manipur called the TZUR Society for inspection, they did not respond. Hence, RRTC approached the inspection team under IRDEO-RRTC Manipur during the pandemic in 2021 to check whether the Old Age Home in Longjan Village, Mokomchung District, run by the TZUR Society is running properly.

The inspection team found that there were no old age home in existence. Additionally, when the field officers of Elderline Nagaland went to the village to meet the Tzur Society President and some members for data collection they found no existence of the old age home. Notably, the society members informed the inspection authorities that they are not able to run the old age home properly but once a year they organise the International Day of Older Persons on 1 October and gather elderly people and provide refreshments.

One member of the inspection team (who wished to be unnamed) told BW Businessworld that multiple attempts to reach the secretary did not yield any result as he refused to meet them saying he was out of the station. People familiar with the situation told BW that the society has an internal connection with someone in the government department.

The National Capital Of Delhi
In Delhi, there are premium old age homes that charge a hefty amount for admissions. One such institution is the Golden Estate, a facility offering apartments to ageing elders. The bookings include a deposit that can be anywhere from Rs 20 to Rs 40 lakh. Notably, about 25 per cent is paid up front and the rest in the form of a postdated cheque payable at the end of three months. If the guests are not satisfied in three months, the 25 per cent is returned. Apart from this, they are also charging for food, electricity and so on. However, affordability is the only drawback of these houses.

Several NGOs in India maintain their operations without government interference and seek to diversify their funding sources, including foreign contributions. The central government states that to ensure national security, it seeks to regulate the acceptance and utilisation of foreign donations to NGOs in the country, through FCRA registration. The registered NGOs can receive foreign contributions for social, educational, religious, economic, and cultural purposes.

The Foreign Contribution (Regulation) Amendment Act, 2020 was introduced in the Lok Sabha on 20 September 2020, amending the Foreign Contribution (Regulation) Act, 2010 (FCRA). The amendment was said to aim at balancing genuine NGOs’ work while preventing the misuse of foreign contributions against national interests.

As per the data, about 16,242 NGOs were operating with active FCRA licences as of 3 April 2024, while 20,701 NGOs have had their licences cancelled. Currently, there are 1302 FCRA Registered Associations in Delhi. As reports of over 12,000 NGOs, including Oxfam with a long history of humanitarian responses, including their Delhi flood relief that reached over 6000 people; and Jamia, lost foreign funding licences, questions like what future stores for Centre government and non-governmental organisations like Oxfam, amid Foreign Contribution Regulation Act emerged.

The Capital City of Delhi
In Delhi, some retirement homes demand substantial fees for entry like the Golden Estate, providing flats for the elderly. Here, admission requires a deposit ranging from Rs 20 to Rs 40 lakh of which, 25 per cent is paid initially, with the remainder due via post-dated cheque after three months. Additional charges are also applied for meals, electricity and other amenities. However, the steep costs make these homes inaccessible to many.

Numerous NGOs in India operate independently of government control and aim to diversify their funding sources, including overseas contributions. The central government maintains that to safeguard national security, it must regulate foreign donations to NGOs through FCRA registration. Registered organisations can receive foreign funds for social, educational, religious, economic and cultural endeavours.

The Foreign Contribution (Regulation) Amendment Act, 2020 was presented in the Lok Sabha on 20 September 2020, amending the Foreign Contribution (Regulation) Act, 2010 (FCRA). The amendment purportedly aimed to prevent misuse of foreign contributions against national interests.

According to records, about 16,242 NGOs held active FCRA licences as of 3 April 2024, while 20,701 NGOs have had their licences revoked. Presently, there are 1302 FCRA Registered Associations in Delhi. As reports surfaced of over 12,000 NGOs, including Oxfam with its extensive history of humanitarian efforts, such as their Delhi flood relief reaching over 6000 people; and Jamia, losing foreign funding licences, questions arose about the future relationship between the Centre government and non-governmental organisations.

The Ongoing Struggle
Many NGOs have ceased or significantly reduced operations, resulting in many job losses. The government's FCRA dashboard shows only 15,947 NGOs with active FCRA licences — permissions for 35,488 NGOs have either been cancelled or have lapsed without renewal. Following Modi's re-election this year, civil society actors fear the crackdown will persist. Swedish V-Dem Institute data reveals India's civil society participation index has plummeted from 0.84 in 2013 to 0.61 in 2023, its lowest point in 47 years.

When Tata Institute of Social Sciences (Tiss) dismissed over 100 staff members after Tata Education Trust withdrew funding (later reinstated), it once again highlighted the instability and turmoil in India's philanthropies and nonprofits. Shortly after, the parent trust of the Centre for Financial Accountability had its FCRA licence cancelled. Experts noted that many of India's most prominent NGOs and think tanks are now struggling, as are the lives they impacted.

Following the 2020 amendments, Home Minister Amit Shah stated it had enabled effective monitoring to check organisations involved in "anti-national activities, religious conversions, political opposition to development projects or propaganda against government policies".

In 2022, the FCRA registrations of approximately 6,000 NGOs lapsed, either due to the Ministry of Home Affairs rejecting their renewal applications or the organisations failing to apply for renewal, effectively halting their operations. In 2023, following a reference from the Ministry of Home Affairs, the Central Bureau of Investigation (CBI) 2023 filed a case against Oxfam India and its office-bearers for allegedly violating India's foreign funding regulations.

Oxfam India petitioned the High Court due to delays in processing its renewal application, prompting the Centre to be directed in November 2022 to decide within six weeks. However, in December 2022, the Ministry of Home Affairs ultimately rejected Oxfam India's application, resulting in the denial of renewal for its FCRA registration.

Responding to the Modi government's decision to refuse renewal of Oxfam India's Foreign Contribution Regulation Act (FCRA) registration, Amitabh Behar, CEO of Oxfam India said, " The restriction will severely affect our ongoing crucial humanitarian and social work in 16 states across the country. This includes setting up oxygen plants, providing lifesaving medical and diagnostic equipment such as oxygen cylinders and ventilators, and delivering lifesaving food to the most vulnerable communities during the Covid-19 pandemic."

According to NGO DARPAN data from 2023, compiled by Niti Aayog, there are approximately 187,395 non-governmental organisations (NGOs) in India. Uttar Pradesh leads with 27,270 NGOs, closely followed by Maharashtra with 24,784. Statista reports that in 2016, about 3.1 million NGOs were registered in India, with Uttar Pradesh having the highest number at roughly 548,000, and Maharashtra following closely with about 518,000.

A survey titled India's Philanthropic Activity, conducted by consultancy firm Bain & Company, revealed a 40 per cent decline in foreign funding between 2015 and 2018. Despite a 13 per cent annual growth in social sector spending, the report noted that India fell short of Niti Aayog's spending target of 13 per cent of gross domestic product (GDP), necessary to meet the 17 UN Sustainable Development Goals (SDG) commitments by 2030.

Over the past five years, India's social sector spending reached approximately Rs 23 lakh crore in FY 2023, accounting for 8.3 per cent of GDP. India's SDG commitments include poverty eradication, quality education and healthcare, gender equality, and climate action. Research by the Bridgespan Group on 9 June 2021 found that NGOs in India consistently lack adequate funding for administrative costs and support functions.

Experts have highlighted the need for voluntary intervention, particularly in areas of humanitarian aid, as India continues to grapple with poverty and discrimination against minority communities. As India's social sector navigates stringent FCRA regulations and deals with the ongoing impact of the pandemic, funders and non-profits face challenges in implementing effective funding practices, ultimately hindering impact.

During a panel discussion following the release of a study by Azim Premji University, representatives from Prajayatna, Aga Khan Rural Support Programme (India) and PHIA Foundation highlighted various issues they encountered. Mary Punnoose, Chief Functionary of Prajayatna, stated, “We had to deal with a delay or lack of funds, quality of work we were undertaking during this period had also dropped and though there were numerous schemes to help people, barely 10 per cent were able to access them.”

Meanwhile, policy experts emphasised the need for more liberal policies and the eradication of corruption within government offices.

Ruukuonuo Liegise

BW Reporters is an intern with BW Businessworld