CHAPTER III

Role of Government in Development of NGO

In the previous chapter “Origin and growth of NGOs” we have discussed the Origin of
NGOs, Concept, Nature & Characteristics of NGOs, Classification of NGOs in India,
Definition of NGO, Major sector of activities of NGOs, History of NGOs activity in India,
History of international NGO. A brief detail of NGOs in India, NGOs today, formation and
registration of NGOs and also the growth of NGOs sector in India were also discussed. It is
now proposed to analyze the role of Government in development of NGOs.

Introduction

The Indian Government has embarked on a number of projects to encourage Voluntary Work.
Acknowledging its inability and limitations, the government began NGOs to involve them in
its developmental activities in a significant way. The approach of the government toward
NGOs has been evident since the First Five Year Plan. There were deliberate attempts to
involve Voluntary agencies in the Process of development.1 Most of the developing countries
in the world are striving for rapid development.

The government attempts to rope NGOs into developmental activity, channelize funds
through them, and set up the norms to regulate the utilization of these funds opened up yet
another fundamental issue. The government perceived development primarily as an economic
process. Its view was that NGOs which take up developmental activities should be oriented to
the tasks of upliftment and welfare without being political.2 Development means
development of men as an individual and as a social being aiming at his liberation and at his
upliftment.

The NGO has a significant presence in almost all regions of the country and its role as an
important partner of the Government in development is being increasingly recognized. In
these Spirit, the Approach paper to the Eleventh Plan has stated: The Central Government
will shortly announce a policy for the NGO, which will recognize the enormous positive
contribution which the sector can make in the development process.3 Development broadly

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means changes in social, economic and political aspects of society resulting in qualitative
improvement in human life.

Increased NGO-Government Cooperation is another area which is meant to improve the

outcome of NGO activities. They are encouraged to work such cooperation into their
proposals. The government has created extensive mechanisms through which NGOs are
invited to participate in development programmes from planning through implementation,
and expects these channels to be utilized more fully by NGOs.4 Development is not merely
the provision of opportunities but also their actual utilization by the people for whom they are
intended and involves the creation of facilities necessary for such utilization.

Human society has recognized the value and importance of NGOs. Several events of
history indicates that voluntary organization have played significant role in social, religious
and political movements and contributed in the implementation of welfare and development
programmes at different levels and times from the ground to global levels. Various NGOs
came into existence after industrialization and modernization,their role in promoting various
redevelopment programmes.

Efforts of public & private and government &non - government partnerships became very
popular in the field of global development and welfare programmes in all spheres of human
life at different stages. The government, private and voluntary sectors alone cannot work
effectively and achieved development goals. The collective, cooperative and supportive
efforts at the international and national levels can give better results as discussed in many
conferences and meetings. 5 The government has made efforts to improve the specific areas
or group or sectors through people’s participation.

Changing Roles in Development

Development - comprehensively taken to encompass economics, technology, social

processes, health, agriculture, infrastructure, education, etc. has been a constant striving for
all societies and nations. From a managerial perspective, there are many questions that can be
asked with respect to development:

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  Who is responsible for development?
 Who should benefit from development?
 Who should decide about resource allocation?
 Who should 'pay' for development?

Collectively taken together, one could ask a simpler question - "who should play what role in
the development process."?

An attempt is being made below to answer this question in a dynamic temporal framework;
particularly in the context of some major players (some of them have been identified and
analyzed earlier and some are being introduced as additional entities) who could and are
expected to play different and important roles –

1. Government - This term combines the Legislature and Executive arms. At a stretch
even the Judiciary could be included here.
2. Non - Governmental Organizations (NGOs)
3. Corporate (or business enterprises)

Government

Government, in the modern sense and as opposed to the myriad kingdoms and feudal
states that dotted the Indian countryside in the past, emerged in our country during the days
of the British rule. In that era, the connotation, meaning and objectives of development were
quite different. Foreigners were ruling the country. Their main interest was in their own well-
being and therefore related type of administration - maintaining law and order, collecting
taxes, etc.6 Several developmental policies are devised to tackle the problems of poverty.

No doubt, lot of development took place, particularly in infrastructure (railways,

postal system, etc.). But the main objective of the then-Governance was to facilitate the
ruling of the country - the continued welfare of the rulers was the aim of development. In the
process, if the people of the country benefited, it was just by the way.7 In India public
policies, to alleviate poverty and to reduce inequalities among the various classes and
regions.

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 Once the country became independent and we had a government, "by the people, of
the people, and for the people", government became a central, and in many ways, the only
player in the development field. Ideologically, just after independence and for a long time
thereafter, the government believed in a socialist model of development, inter alia, depending
upon central planning and control on all economic and social processes. The paradigm of
development related to models and activities like: the five-year plans; setting up of public
sector undertaking to command the heights of the economy; licenses and permits to control
investments and resources allocations; etc.8 Further the government programmes are time
bound and target oriented, the government functionaries are unable to establish adequate
rapport with the poorer sections of society.

Over the last two decades or so, the paradigm of governance has changed - first
gradually and then at an accelerated rate. Under the influence of national and international
forces, the economy is moving towards more and more liberalization, privatization, and
globalization. Government wants to become a facilitator and regulator rather than an active
player in development. The process has just started and is being implemented cautiously
under a close watch and rigorous monitoring, so that there is net social gain and also that
vulnerable sections of the society are not unduly hurt.

It would not be correct to say that in some ways government is withdrawing from
certain fields of development, and that is leaving to vacuum. To a certain extent, this has been
necessitated by severe constraint on (democratically) resources and the need to allocate these
to relatively higher priority areas, as perceived by the powers.9 But we can say that the
efforts of government in the direction of protecting the poor people’s is growing more.

Non-Governmental Organizations

Non-governmental Organizations more or less did not exist during the British Raj.
The then paradigm of governance did not allow for that (other than as anti-rule forces!!) After
independence also, it took a while for NGOs to emerge. It could possibly be said that
immediately post-independence, individuals who comprised the government were themselves
of the NGO mindset at least in terms of their proximity to the 'common man' and a sense of
selflessness. And therefore, there was no felt need for any intermediary for articulating
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collective desires of the people relating to different aspects of development and then
responding to those in terms of related programmes and projects.10 Poverty has become one
of the biggest challenges of the world. It exists in one form or the other all over the world.

In due course, the primary functionaries of government - namely politicians

(Legislature) and bureaucrats (Executive) - became rather distant from the people. In that
context, the NGOs emerged as a link - both for expressing people's point of view and for
providing a channel for resources delivery meant for development activities.11 NGOs also
felt the urgent need of building development consciousness among all sections of the society.

Government also realized that there were lot of advantages in enrolling NGOs in the
development process, NGOs are motivated and enthusiastic; they have flexibility in
operations; they are close to the people; they provide additional manpower to conduct
developmental activities.12 In many areas such as education, health, eradication of poverty,
women empowerment, training etc.

In today's context, NGOs have become an integral part of the process of development
and are shouldering more and more responsibilities in diverse fields. In recent years, the
number of NGOs, their geographic extent, their diversity (in domain areas), their resources
channelization and, in the ultimate analysis, their impact have all increased.13 A considerable
number of NGOs are receiving money from donor agencies, particularly from foreign.

Corporates

In the early 20th century - to continue the time parity - the business world was more or
less insulated from the concept of development (though business did participate in the
economic processes). Around the time of Independence, Mahatma Gandhi proposed the
concept of trusteeship, allocating a larger role to business in managing social resources for
social development (and not only for business per se). And this responsibility was ably taken
up by many business houses like the Tata’s, the Bajaj’s, etc., who began to allocate funds and
other resources to development.14 The NGOs also initiated steps to organize training
programme for income generation and capacity building activities for the grassroots workers
and target groups.

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Government-NGO Relations

NGOs have responded to the government socio- economic development agenda over the
years. Thus, when the Government changed emphasis from capital-oriented growth to anti-
poverty programmess, NGOs made a distinct shift from welfare and service delivery
interventions to a direct attack on poverty. Subsequently, in the 1990s, when the State moved
on to macro economic and structural reforms, NGOs began to focus on scaling up their
activities. This led to their working with the state to develop innovative methods and ensure
commensurate changes in policy. They also encouraged giving support to a cause and also
trying to influence the people, increased networking, expanded their range of operations, and
targeted marginalized groups.15 Apart from the government the NGOs are also making their
efforts to involve the people in the development processes.

The 1990s also saw the establishment of several forums to promote dialogue between the
government and NGOs. The Planning Commission initiated an NGO-Government interface
through a series of conferences and in 2000, was appointed the Nodal Agency for NGO-state
interactions. In the second half of the 1990s, the Council for Advancement of Peoples Action
and Rural Technology (CAPART) was decentralized so that envisaged benefits from NGO
activities could also spread to the less explored and extremely poor areas of the country.
(CAPART was created in 1986 to promote and assist voluntary efforts in implementing rural
development programmes).16 The government provides funds, contracts and training
opportunities to give special encouragement to NGO activities.

Goals of the state and NGOs have common aim, particularly in the areas of empowering
communities, encouraging participation, strengthening democratic institutions and improving
access to basic services like health and education. They differ in the uniform procedures
adopted by the state, comparing with the NGOs more flexible response to local needs.The
government has set up several institutions to promote funding of NGOs (e.g., Khadi and
Village Industries Cooperatives, Central Social Welfare Board, National Wasteland
Development Board, CAPART). This has led to the beneficiaries dependence on the state.

NGOs reliance on such funding has also introduced the risk that they will lose their
autonomy and become mere implementers of Public Sector Projects. NGOs approaches to
government now range from strongly oppositional to closely collaborative, with the majority
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of NGOs keeping an uneasy, sometimes un-willing but relating and often complex
partnership with the state in its various forms. 17 Government encourages improved attention
to management skills, planning and sharing of experience with in the sector.

NGO Coordinating and Support Bodies

Following are three of the leading apex organizations in India:

1. Association for Voluntary Agencies for Rural Development (AVARD)

AVARD is an association of more than 650 NGO’s engaged in rural development in India.
Since 1958, it has promoted voluntary action, planned rural reconstruction with local
participation and Panchayat raj (a decentralized form of government where each village is
responsible for its own affairs, as the foundation of India's political system), thereby
addressing issues of poverty reduction, food security, rural technology, and environmental
sustainability. Excellent micro planning and strong networking are its strengths.

AVARD has worked as a consultant for projects financed by the Asian Development
Bank (ADB) and the Food and Agriculture Organization. It has established links with most
national organizations connected with voluntary action and rural development in India. It is a
member of the Asian NGO Coalition for Agrarian Reform and Rural Development.”18 Giving
a new thrust to the development, the world conference on agrarian reforms and rural
development put it. We believe that development must be the expansion of people
consciousness and therefore of power over themselves, environment and society.

2. Council for Advancement of People's Action and Rural Technology (CAPART)

CAPART was formed by mandate of the 7th Five-Year Plan in 1986 as a nodal agency for
catalyzing and coordinating the emerging partnership between voluntary organizations and
the government for sustainable development of rural areas.

CAPART was formed by the amalgamation of two agencies, the Council for
Advancement of Rural Technology and People's Action for Development India. CAPART is
an autonomous body registered under the Societies Registration Act 1860, and functions
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under the Ministry of Rural Development. Today, this agency is a major promoter of rural
development in India, assisting more than 12,000 volunteer organizations across the country
in implementing a wide range of development initiatives.19 With a view of equality as the
central issue in the developmental problems of underdeveloped countries.

3. Voluntary Action Network India (VANI)

Voluntary Action Network India (VANI) is a national apex body of NGOs in India. It is a
network that comprises:

 237 organizations
 2,500 NGOs (in 25 states)
 19 network federations
 42 individuals
VANI is a platform for national advocacy on issues and policies confronting the
development sector, and for coordination and action to promote and support volunteer
involvement. VANI has been working as a catalyst between central and state governments,
on one hand, and NGOs in India, on the other. It represents NGO concerns through advocacy,
networking, and sensitization of the government and other stakeholders.20 VANI also
collectively organized and continued efforts by the people themselves in setting goals,
pooling resources together or taking actions which aim at improving their living conditions.

Andhra Pradesh Policy on the Voluntary Sector (2009)

I Preamble (An introductory part to a constitution)

1.1 The Andhra Pradesh Policy on the Voluntary Sector is a commitment to

create an enabling environment where voluntary sector functions effectively, creatively,
independently and or in collaboration with government agencies towards socio-economic-
cultural empowerment of the communities in the state of Andhra Pradesh.

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1.2 Voluntary Organizations have been contributing significantly to find
innovative solutions to poverty alleviation and deprivation, eliminating discrimination and
exclusion through raising awareness, organizing and mobilizing people, providing services,
creating community infrastructure, trainings, research and advocacy.

1.3 Voluntary organizations have been playing an effective coordination role in

building non-political linkages between the communities and the government as facilitators
and social animators. This policy recognizes the indispensable role being played by the
voluntary sector in development process and advocating for social justice, rights and
entitlements of the poor and marginalized communities.

1.4 The relationship between the state government and voluntary organizations is
collaborative, supportive and interdependent. Voluntary organizations provide key human
services. They also build essential community infrastructure, which helps to deliver and
support government funded programmes and services.

1.5 The policy recognizes the need to creating an enabling environment in the
state of Andhra Pradesh to further improve the functioning and effectives of the Voluntary
Organizations.

1.6 This policy affirms the need to take steps to improve the existing understanding and
collaboration between the voluntary sector and all the government departments at all levels
to ultimately contribute to the people's empowerment processes of both government and
voluntary sector.

1.7 The policy believes that there is need for mutual efforts from both government
and voluntary sector for evolving systems for transparency and accountability in the
functioning.

1.8 This policy believes that the professional and managerial capabilities of voluntary
organizations can be built and used in a systematic manner to ensure people's participation
in their own empowerment.

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1.9. The policy recognized the need for synergy between government and
voluntary organizations and people to create an enabling environment for their
empowerment.
1.10. This policy will provide framework for the government's role, contribution,
collaboration with the voluntary sector in planning, implementation and. monitoring
of government development programmes.
1.11. This policy has been drafted in line with the spirit behind the "National Policy
on the Voluntary Sector which was drafted by Voluntary Action Cell, Planning
Commission Government of India in and approved by the Union Cabinet,
Government of India.

II. Policy Scope

1. Definition of Voluntary Sector

 Voluntary Organizations, as per this policy, include organizations engaged in public

service based on ethical, cultural, social, economic, political, religious, spiritual, scientific
& technological considerations.
 Voluntary Organizations include formal as well as informal groups such as community-
based organizations (CBOs), people's organizations, non-governmental development
organizations (NGDOs), charitable organizations, support organizations, networks or
federations of such organizations, as well as professional membership associations.

III. Characteristics: Voluntary Organizations with the following characteristics will be

covered under this policy:
1. Registered organizations, groups, bodies formed voluntarily with service to the people
particularly the poorest of the poor as broad aim and objective.
2. Do not work to earn profit from any of their activities either for the organizations or for
its members or for its donors.
3. Receive/accept/seek donations, contributions, grants for specific programmes, activities,
events etc., for fulfilling its aims and objectives.

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4. Have independent governing structures such as General Body, Governing
Body/Executive Body whose members are democratically elected and not controlled by
any government department or personnel.
5. Have paid employees on part-time or full-time basis and volunteers for implementing its
programmes with spirit of voluntarism and social commitment.
6. Have clear, enabling and equal opportunity and non-discriminatory employment policies.
7. Have transparent, standard financial management and practices which reflects its integrity
and transparency.
8. Working under the purview of the Constitution of India and the laws of the
land existing for upholding the sovereignty of the state and for maintaining peace and
harmony in the society.
9. Fulfilling the statutory legal obligations of the government and to the people which are
meant to establish transparency, accountability and responsibility.

IV. Objectives of the Policy

The main objective of the Andhra Pradesh Policy on the Voluntary Sector is to create an
enabling and effective environment in the state of Andhra Pradesh where the Voluntary
Sector and all the Government Departments work for the empowerment of the poorest of the
poor communities independently or jointly.

To achieve this broad objective the following specific objectives are set:

1. To create an enabling environment for Voluntary Organizations that

provides opportunities for innovative ideas, strategies, programmes, methodologies and
safeguard their autonomy.
2. To enable Voluntary Organizations to legitimately mobilize necessary
financial, human and material resources from within the country and abroad.
3. To identify systems by which the Government may work together with
Voluntary Organizations on the basis of principles of mutual trust,
cooperation, collaboration and respect.
4. To encourage Voluntary Organizations to adopt transparent and accountable
systems of governance and management.

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 5. To improve the present development and empowerment programmes implemented by
both government and voluntary organizations qualitatively and quantitatively.
6. To develop new innovative development and empowerment programmes to
be implemented by both voluntary organizations and government.
7. To suggest redressal mechanisms, systems and structures for addressing any
existing or expected problems between government agencies and voluntary organizations.

V. Creating an Enabling Environment for the voluntary sector

a. The independence of Voluntary Organizations allows them to explore alternative
system of development to challenge social, economic and political forces that may
work against people's interest and to find new ways to combat poverty, deprivation
and other socio-economic-political problems. It is therefore crucial that all laws,
policies, rules and regulations relating to Voluntary Organizations categorically
safeguard their autonomy while simultaneously ensuring their accountability and
transparency.
b. Voluntary Organizations may be registered as societies, charitable trusts, and non-
profit companies under laws of the state government or central government. Over
time, many of these laws and their corresponding rules and regulations have become
complex and restrictive leading to corruption and harassment. Government will
consider reviewing these laws and rules and simplify them by liberalizing and
rationalizing them as far as possible.
c. The government will encourage the evolution of subsequently accord recognition to
an independent, state level, self-regulatory agency for the voluntary sector.
d. The government will encourage state level agency (GO-NGO Collaboration
Committee) to introduce norms for filing basic documents in respect of voluntary
organizations which have been receiving funds from government agencies and placing
them in the public domain (with easy access through internet) in order to inculcate a
spirit of public approval.
e. The government will encourage all state government agencies to introduce
pre-service training modules on constructive relations with voluntary sector. Such
agencies should introduce time-bound procedures for dealing with voluntary
organizations covering registration, filing periodical reports/ returns, financial
assistance etc., There would be formal systems for registering complaints and for
redressing grievances of voluntary organizations.
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 f. The government will recognize voluntary organizations that are working with
most vulnerable communities like SCs, STs, backward communities, artisans, women
and minorities. The government will give priority in collaborating with such voluntary
organizations.
g. The government will also recognize voluntary organizations that are started,
managed by individuals and groups of SCs, STs, most-backward communities,
artisans, women and minorities. The government will give priority in collaborating
with such voluntary organizations in all its development interventions.

VI. Partnership in Development

1. Scope of partnership
Voluntary organizations can play an important role in the development process,
particularly through community participation and empowerment process. They can provide
alternative perspectives, expertise based on experience and experimentation, understanding of
the local communities and constraints and the capacity to conduct meaningful dialogue with
the communities, particularly with the most disadvantaged and marginalized. Hence, the
government and voluntary organizations should work together and develop partnership with
panchayat raj institutions, municipalities, academic institutions and private sector
organizations.

2. Shared values

This policy seeks to define shared values of partnership, partnership will be based on the
following shared values:
 Principles of justice, equity, participation, cooperation, collaboration and access.
 Respects rights and entitlements of the people.
 Promoting and sustaining an independent, strong and diverse voluntary sector.
 Transparency and community participation in decision making.
 High standards of honesty and integrity.
 Trust and respect in relationships.
 Delivery of high quality services and the practice of effective community development
and empowerment.

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3. Common goals of partnership

Partnership between government and voluntary organizations implies goals and

defining complementary roles. The partnership should be based on the basic principles of
mutual trust and respect with shared responsibility and authority. These principles must
explicit in terms and conditions of the partnership. They must also be evident in the formal
and informal systems of collaboration.
The partnership will be based on the following common goals which are centered on
people's participation:
 People are able to participate in economic and social life.
 Decisions about the distribution of services and resources are based on need and equity
 People have opportunities for genuine participation in decisions that affect their lives
interests are respected and promoted, regardless of age, race, disability, gender, sexuality
or religion.
 Planning and delivery of human services is approached in a coordinated and collaborative
manner within government and the voluntary sector.
 Communities are strengthened through building local capacities.

4. Partnership instruments

This policy recognized following three instruments of partnership:

1. Consultation through a formal process of interaction at the state, district and mandal level.
2. Strategic collaboration to tackle complex interventions where sustained social mobilization
is critical in the long-term.
3. Project funding through standard scheme.
The government will ensure that these three instruments of partnership are given due
attention in annual plans and budgets of all government departments.

5. Operationalization of partnership

The government will take the following steps to operationalize the partnership:

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a. Forming structures/systems: The government will encourage setting up of Joint-
Consultative Groups/Forums of government and voluntary organization’srepresentatives
by relevant government departments. It will also encouragedistrict administration, district
planning bodies, district rural development agencies, zilla parishads and local
governments to do so. These groups willbe permanent forums with the explicit mandate
to share ideas, views andinformation and to identify opportunities and mechanisms of
working together.The government will introduce suitable mechanisms for involving a
widecross-section of the voluntary sector in these groups/forums.

b. Utilizing expertise of VOs : The expertise of the voluntary sector will beutilized by
including experts from VOs in the committees, task forces and advisory bodies/panels
constituted by the government from time to time.

c. Developing programmes: There is need to develop multi-sectoral approaches

and programmes to address the complex problems in the country such as poverty,
illiteracy, lack of skills, gender discrimination, sickness, HIV/AIDS, environmental
degradation and others. To address these, there is need to develop short-term and long-
term collaboration programmes with multiple strategies and methodologies. The
government will identify collaborative programmes to be implemented in partnership
with the voluntary organizations.

i. The government will work out criteria for selection of VOs for partnership in consultation
with voluntary sector representatives.
ii. The government will ensure that due importance is given in its plan documents to the
GO-VO collaboration programmes.

d. Project funding: Number of government departments have schemes for

financial assistance to VOs. These schemes usually support activities such as surveys,
research, workshops, trainings, documentation, awareness raising, creation and managing
public welfare facilities etc., Project grants are useful means for the government to
promote its activities without its direct involvement. They are also valuable sources of
support to small and medium VOs. The government will have consultations with the VOs
on the present programmes/schemes to improve them and on developing new
programmes/schemes. Also, government will have consultations with VOs on developing
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 systems for proper and effective implementation, monitoring and reporting to ensure
transparency, accountability among VOs.

e. Databank and accreditation of VOs: There are wide range of voluntary organizations
starting from organizations registered under societies registration act, cooperatives act,
companies act, labour unions act etc., Besides, there are mandatory registration under
Income Tax Act and FCRA Act. There are also networks, federations, platforms and
collectives of these organizations. There is need to have a databank on all these
organizations and categorization of the VOs so that the involvement of right VOs is
possible scientifically. Such databank will also help the government and VOs in times of
emergencies.

VII. Broad areas of cooperation

Development has been recognized as a right by the Universal Declaration of
Human Rights that was adopted by all the nations which are members of United Nations
Organizations. During the last six decades several organizations were formed, strategies and
programmes were evolved for addressing the development issues across the world.
Millennium Development Goals were evolved by the UNO and accepted by all members as
goals for development and provide countries around the world with a framework for
development and time-bound targets and indicators.

This Policy considers the following Millennium Development Goals as prime

areas of action and cooperation between the government and voluntary organizations.

1. Eradicating extreme poverty and hunger

Poverty and hunger which affect poor communities in multiple ways need to be primarily
addressed by the government. Creating livelihoods, enhancing skills to earn livelihood,
increasing access to resources like land, water, forests, capital and other inputs should be the
prime areas of collaboration and cooperation between government and voluntary
organizations.
The government should involve voluntary organizations in planning, budget
allocation, implementation, monitoring and other process of all the poverty eradication
programmes.
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 Land and water conservation, development and allocation which play a critical role in
providing livelihood, basic amenities to the poor in both rural and urban areas should be
primary areas of collaboration between government and voluntary organizations.

There are already some programmes like watersheds, Vana Samrakshana Samithis,
TRYSEM, etc., where government-voluntary organizations collaboration is established. The
government will further strengthen and expand the existing collaboration in all such
programmes and in new programmes like Comprehensive Land Development Programme,
National Rural Employment Guarantee Scheme in consultation with voluntary organizations.

There have been efforts by government to define poverty and poverty levels, people
below poverty line through various methods. The government will involve in all such efforts
of poverty assessment and evolving poverty eradication programmes.

1. Achieving universal primary education

Continuing drop-out rates, access to quality primary education, lack of motivation and
understanding on education among parents and children continue to affect the education to
the poor in both rural and semi-urban areas. Voluntary organizations have played pivotal role
in accessing primary education to rural poor so far with innovative schemes, using hands-on,
approach. The government will involve voluntary organizations in accessing primary
education to the rural poor by involving them in policy making, programme designing,
budget allocation, implementation and monitoring.
Besides primary education, adult education need to be revived as the gap in primary
education has resulted in continuation of adult illiteracy. Programmes like non-formal
education, adult literacy centers, and child labour schools will be areas of collaboration
between government and voluntary organizations.

3. Promoting Gender Equality and Empower Women

Large number of Self-Help Groups and their role in accessing savings and capital to women
in the state are landmarks of on going women empowerment and gender equality
programmes in the state. The role of voluntary organizations in organizing women and
forming SHGS has been recognized. They also played a prominent role in highlighting the
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cause of social evils like dowry, female infanticide, domestic violence etc., The government
will further strengthen the role of voluntary organizations in women empowerment. The
government will involve voluntary organizations in preparing a policy and programmes on
women empowerment in the state. The successful experiments of voluntary organizations on
women empowerment will be documented and replicated by the government.

The government will work in collaboration with voluntary organizations to eliminate

gender disparities at all levels of education; strengthen post-primary education and training
opportunities for women and girls; increase access to primary health care including sexual
reproductive health services and HIV/AIDS prevention, treatment and care for women, girls
and youth.

The government will work in collaboration with voluntary organizations to enhance

leadership, participation and representation of women at all levels of decision-making; and
enable poor women and girls to achieve secure, sustainable livelihood.

The government will work in collaboration with voluntary organizations to reduce all
forms of gender based violence, particularly against women and girls; and address the
differential impact on and particular needs of women and girls in conflict and post conflict
settings.

The government will utilize the services of voluntary organizations in creating awareness on
laws related to women equality and empowerment such as Dowry Prohibition Act, Domestic
Violence Act, A.P. Devadas is (Prohibition of dedication) Act, Immoral Traffic (Prevention)
Act (ITPA), 73rd and 74th Amendment and other laws, policies which are meant to protect
women rights and promote gender equality and women empowerment.

4. Reducing Child Mortality

Voluntary organizations have been playing key role in mother and child care. Mass
awareness was created by voluntary organizations on immunization and child health
programmes using innovative methods and cultural media. The government will involve
voluntary organizations in planning, implementing and health awareness. Voluntary

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organizations will be encouraged to take up child health and care programmes like Balwadis,
Anganwadis, immunization programme etc.

5. Improving maternal health

The basic issue in maternal health is access to maternal health facilities to the rural poor
women. Voluntary organizations have been playing role in increasing access to maternal
health to most vulnerable communities in rural areas through creating maternal health
awareness and organizing maternal health camps, training local women as birth-attendants.
The government will involve voluntary organizations to create awareness on maternal health,
increase access to maternal health in the rural areas.

6. Combating HIV/AIDS, malaria and other diseases

HIV/AIDS which was noticed in the 1980s is found to be having a devastating impact on the
poor in Andhra Pradesh. Voluntary organizations and the government have been working
together in addressing the spread of HIV/AIDS and to care of the HIV/AIDS affected and
infected. Setting up APSACS and its existing collaboration with large number of voluntary
organizations is the only beginning in combating HIV/AIDS; the government will make all
efforts to further strengthen the GO-VO collaboration to combat HIV/AIDS.

Similarly, lack of access to nutrition food and curative medicines is once again
leading to high incidence of diseases like anemia, diarrhea, night-blindness. The government
will collaborate with voluntary organizations to create health awareness programmes and
increase access to nutrition food, curative medicines for diseases.

7. Ensuring Environmental sustainability

Voluntary organizations have played pioneering role in creating awareness on environment,

stimulating civil society response, advocacy with government and initiating environment
protection and promotion programmes like watersheds, rainwater harvesting, tree-plantation.
The government will further expand/ increase its collaborate with voluntary organizations to
ensure environmental sustainability in the state.
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 The government will encourage development of skills, expertise to enhance the local
traditional land and water management systems and practices by training voluntary
organizations staff and through them local communities.

8. Developing a global partnership for development

Andhra Pradesh is being considered as suitable for poverty alleviation and development
investment by international organizations like Asian Development Bank, World Bank and
others. Number of bilateral programmes are being implemented by the state government
directly and in collaboration with voluntary organizations.
The government will review its policies of development cooperation with the bilateral
agencies and with voluntary organizations to increase the role of voluntary organizations in
accessing international development cooperation.
This policy affirms that the above eight goals will be the broad areas of collaboration
and cooperation between the Government of Andhra Pradesh and Voluntary Organizations
working Andhra Pradesh.
Besides the MDG, the government will extend its cooperation to voluntary
organizations in taking up relief and rehabilitation programmes in connection with disasters
like cyclones, earthquakes and droughts.

VIII. Strengthening Voluntary Sector

The Government of Andhra Pradesh is committed and will make all endeavors
to strengthen voluntary organizations and promote voluntarism in the state.
i. Promoting goodwill the Government of Andhra Pradesh will support existing as well as
new independent goodwill institutions and private foundations to provide financial
assistance to deserving and eligible voluntary organizations.
ii. Evolving systems for fund raising: It will promote dialogue and interaction between
public and private grant-makers and voluntary organizations so that best practices in
fund-raising, grant-making strategies, systems are evolved.
iii. Promoting best practices the government will encourage support organizations and
voluntary organizations networks/federations to facilitate discussions and consensus
building on best practices of accountability, transparency and governance and will try to

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 uniform them. It will recognize and encourage voluntary organizations which adopt best
practices of governance, accountability and transparency.
iv. Human resource development: The government will support and encourage voluntary
organizations that train, youth to take up voluntary work and will provide all facilities
available in its training institutions such as APARD and others.
v. Increasing access to government information: The government will make all efforts to
increase the access to its development policies, programmes/ schemes, budgets and any
other relevant information to the voluntary organizations in a simple and understandable
format and mode.

IX. Role’s and responsibilities

Role of Government
Within the context of this policy, the role of government includes:
 Being accountable to all citizens in Andhra Pradesh and acting in their collective best
interest.
 Identifying social needs and services, projects and programs to address these needs.
 Selecting the most appropriate avenues to address the identified need including
providing services directly or via voluntary organizations.
 Providing resources to maintain community infrastructure and build the capacity of
voluntary organizations.
 Providing frameworks for consultation and negotiation with the voluntary sector and
service users in relation to social policy, service delivery and expenditure.
 Determining the best funding arrangements to ensure sustainable outcomes in line
with planning and results.
 Negotiating performance management arrangements for services and initiatives
funded by government.

Role of VOs
 Within the context of this policy, the role of non-government organizations includes:
 Partnering with Government in its planning and service delivery role by identifying
social needs and services, projects and programmes to address these needs.
 Advocating in the interests of disadvantaged people and communities across the state.

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  Facilitating the participation of people and communities in policy and decision-
making processes.
 Contributing resources, including unpaid human resources, to community
development and the provision of programmes and services.
 Identifying, developing and managing innovative programmes and services which
effectively meet community needs and build community infrastructure.
 Ensuring that services are developed and provided in a non-discriminatory manner.

To perform the above roles government and voluntary organizations will perform the
following responsibilities:

The Government will:

In order to promote stronger relationships between the government and non-government
organizations, in the interests of disadvantaged people and communities, the government, at a
state, regional and local level, will:
 Ensure that the views of voluntary organizations are sought and fully considered in
social policy priorities and changes to human service programmes
 Wherever possible, consult voluntary organizations on issues that are likely to affect
them in a manner that allows a reasonable time for response
 Establish appropriate opportunities for voluntary organizations to fully participate in
human services planning and evaluation process.
 Implement and upgrade its funding policies and practices in a manner which builds
constructive relationships with the voluntary human services sector
 Make available, in a timely manner, appropriate and adequate information and data to
voluntary organizations
 Recognize the interest of voluntary organizations to pursue their own organizational
goals, but expect that the objectives of any government funding received will be fully
met by the organization
 In setting broad policy direction, recognize the impact of overall government policy
on communities including those that are disadvantaged
 Take account of the challenges facing particular types of voluntary organizations,
particularly smaller organizations and organizations representing or working within
disadvantaged communities

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  Enhance the capacities of voluntary organizations, by introducing an appropriate
funding practices.

Voluntary Organizations will:

 Promote the participation of disadvantaged people and communities in the planning
and management of services
 Provide disadvantaged people and communities with opportunities to participate in
the formation of policy positions and responses to government consultations
 Deliver services and initiatives funded by government in a transparent, accountable
and professional manner and in accordance with agreements negotiated for these
purposes
 Pursue policy development, programmes design and advocacy through various means
including consultation and collaboration with government agencies
 Respect and maintain the confidentiality of government information, when access to
information is provided on that basis
 Participate in broad policy development make available appropriate and adequate
information and data to government funding agencies
 Work towards delivering long term consistent service delivery and community
development programs with a focus on continuous improvement.

X. Policy implementation and review

The government of Andhra Pradesh and the GO-NGO Collaboration Committee of Andhra
Pradesh will establish a joint reference group to monitor the implementation of this policy
and to provide assistance to both government agencies and voluntary organization in the
application of this policy.
Both government agencies and VOs will use their best endeavors to apply the
contents of this policy to their cross government, cross sector and individual agency
relationships with each other. This will include building appropriate organizational structures
to support open communication, community participation and collaboration between
government and voluntary organization in planning, policy development, programme design
and service delivery and review

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 The GO-NGO Collaboration Committee of Andhra Pradesh will work with the
government of Andhra Pradesh to develop an appropriate communication strategy to
disseminate this policy to all government agencies and VOs in the state.21

Functions of the State Level GO-NGO Coordination Committee

1. To serve as a platform for experience sharing and to function as a think tank for a
meaningful and continuous dialogue, thematic discussions, sharing information and to
devise innovative strategies to enhance effectiveness of on-going programmes.
2. To review existing policy regimes and guidelines related to Government NGO
partnerships and to suggest modifications, where ever required.
3. To conduct periodical review of existing partnerships at various levels cutting across all
development programmes, directly or through the working groups or sub-committies, to
identify any obstruction or emerging issues for appropriate action.
4. To organize/facilitate the state and district level workshops on partnerships/collaboration.
5. To develop minimum standard for identification of NGOs/Networks/CBOs for effective
and sustained partnership.
6. To maintain NGO database and the documentation on various partnerships and spread the
relevant information.
7. To institutionalize the mechanism for discussion of NGOs at the district level for various
programmes and schemes for the government to establish partnerships.
8. To facilitate the capacity building of the NGOs on essential topics.
9. To conduct studies and review of various government programmes being implemented
through GO-NGO partnership both in rural and urban areas of AP to assess effectiveness
of the partnership.
10. To establish effective conflict resolution mechanism both atstate and district level in GO-
NGO Partnership for timely action to minimize the hardships for the poor.”22

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Functions of the Districts Level GO-NGO Coordination Committee

1. To serve as a platform address the issues related to GO-NGO Collaboration at district

mandal and grampanchayat level for strengthening the partnerships between NGOs and
Government among NGOs etc.,
2. To provide the required information to the State Level Coordination Committee for policy
review and development.
3. To facilitate developing self regulations for assessment of performance of NGOs, GO-
NGO collaboration, etc.
4. To maintain up to date documentation on:
a. Data base of all NGOs of entire district with clear classification.
b. Partnership mechanisms in various poverty alleviation and
development programs
c. MOUs of different partnerships
d. Selection process and the list of NGOs under each partnership programme.
e. Effectiveness of different partnerships.
f. Minutes/proceedings of various meetings and workshop related to GO-NGO
collaboration.
5. To select the NGOs to various Government programmes based on the guidelines and
instructions from State Level Coordination Committee.
vi. To conduct periodical reviews and assessments on partnership effectiveness in various
programmes in coordination with the state coordination.23

GOVERNMENT INITIATIVES FOR GROWTH OF NGOs DURING VARIOUS FIVE

YEAR PLANS.

1952 - Community Development Programme

1953 - National Extension Service
1957 - Khadi& Village Industries Programme
1957 - Village Housing Project Scheme
1959 - Multipurpose Tribal Development
1960 - Freedom from Hunger Programme – culminating in formation of voluntary
agency, People’s Action for Development India (PADI). Modest beginning for
involving NGOs in rural development programmes
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1960 - Package Programme
1960 - Intensive Agricultural District Programme
1962 - Applied Nutrition Programme (ANP)
1962 - Rural Industries Projects
1964 - Intensive Agricultural Area Programme (IAAP)
1964-65- Intensive Cattle Development Programme
1965 - National Demonstration Programme
1966 - High Yielding Varieties Programme (HYVP)
1966 - Farmers Training and Education Programme
1966 - Well Construction Programme
1967 - Rural Works Programme
1967 - Multiple Croping Programme (MCP)
1968 - Tribal Development Blocks
1968-69- Small and Marginal Farmers and Agricultural Labourers development
Agency
1969 - Marginal Farmers and Agricultural Labourers Development Agency
1969 - Rural Manpower Programme

1969 - Composite Programme for women and Pre-School Children

1970 - Drought Prone Area Programme (DPAP)
1970-71- Pilot Projects for Integrated Development of Dry Land Agriculture
(PPIDDA)
1971 - Crash scheme for Rural Employment
1971-72- Tribal Area Development Programme (TADP)
1972 - Minimum Needs Programme
1972-1973- Land Reforms
1974 - Comman Area Development Programme
1975 - Hill Area Development Programme
1975 - Rural Regional Banks
1977 - Food for work Programme
1977 - Desert Development Programme
1977 - Planning Commission constituted a committee under the chairman ship
ofMr.B. Sivaraman to evolve a strategy for active and meaningful

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 participation of voluntary agencies in rural development. It submitted a report
of recommendations in 1978.
1978 - Amendment to/provision in Income Tax Act Section 35 CCC (1977)
Central Income Tax Act. National Adult Education Programme (NAEP).
1978 - Antyodayaprogrammes
1978-79- Integrated Rural Development Programme (IRDP), Training of rural youth
for self-employment (TRYSEM)
1979 - Village Development Programme
1979 - Training Rural Youth for self employment (TRYSEM)
1979 - Integrated Rural Development (IRD)
1980 - National Rural Employment Programme (NREP)
1980 - Prime Minister New 20- Point Programme
1983 - Rural Landless Employment Guarantee Programme (RLEGP)
1983 - Development of Women and Children in Rural Areas (DWCRA)
1985 - Integrated Rural Energy Planning Programme
1981-82 - NGOs involved in selection and training of honorary rural organizations.
1982 - Consultative groups of NGOs forimplementation of schemes
under 20-point programme.
1982-83 - Development of Women & Children in Rural Areas (DWCRA).
1983 - NGOs involved in identification, release and rehabilitation of bonded
labour.
1984 - Mr. Bunker Roy appointed as consultant to Planning Commission on
voluntary agencies.
1985 - Seventh Five Year Plan - a section on voluntary agencies was included.
Government proposed a code of conduct for agencies seeking
government funds. Rs.150crore allocations made for distribution to NGOs
through CAPART.
1986 - CAPART formed by merging PADI & CART, the main objective being,
to promote and assist voluntary action in the implementation of rural
projects.
CAPART encouraged voluntary efforts on injecting new techniques.
1986 - Special Livestock Breeding Programme (SLBP)
1989 - JawaharRozgarYojana (JRY)
1993 - Prime Ministers RozgarYojana (PMRY)
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1993 - Employment Assurance Scheme (EAS)
1995 - Rural Employment Generation Programme (REGP)
1999 - SwarnajayanthiGram SwarojgarYojana (SGSY)
1999- 2000 - Rural Housing Indira AwasYojana
2000 - Antyodaya Anna Yojana (AAY)
2000 - PradhanaMantri Gram Sadakyojana (PMGSY)
2001 - SampoornaGrameeenRozgaryojana (SGRY)
2000-2001 - PradhanaMantriGramodayaYojana (PMGY)
2001 - ValmikiAmbedkarAwasYojana (VAMBAY)
2004 - National Food for Work Programme (NFWP)
2005 - National Rural Employment Guarantee Scheme (NREGS).24

CENTRAL SCHEMES

1. DWCRA (Development of women and child in rural areas) -For promotion of groups
by NGOs.

2. IRDP (Integrated rural development programme) - For promotion of groups of

beneficiaries by NGOs.

3. ART(Advancement of Rural Technology)– funding research, training and

technological information.

4. RWSP -Rural Water Supply Programme Schemes for rural drinking water supply.

5. CRSP- Central Rural Sanitation Programme.

6.RLEGP -Rural Landless Employment Guarantee Programme.

7. OBAP-Organization of Beneficiaries of Antipoverty Programme to create

awareness.25
In all the above programmes the government has made efforts to improve the specific areas
or groups or sectors through people’s participation.

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Requirement of Funds During the XI Plan for Women Empowerment

Requirement of funds for the XI Plan is estimated as Rs.9600.00 crores for the various
activities detailed above. Scheme-wise break-up of the requirement is given in the table
below:

Table No. 3.1

Funds required during XI plan for Women Empowerment
Name of the Scheme Amount (Rs. in crores)
Swayamsidh including IFAD Project 3,000.00
Swadhar 1,000.00
Working Women’s Hostel 500.00
STEP 240.00
Setting up GB Cell, Statistical Division and Media Unit 10.00
Preparation of Training Manuals for Gender Budgeting 50.00
Research and Evaluation 15.00
Pilot project for Women in Difficult Circumstances 2,000.00
Implementation of Domestic Violence and other Acts 600.00
Relief and Rehabilitation for Rape Victims 250.00
Media 500.00
Rashtriya Mahila Kosh 500.00
Central Social Welfare Board 900.00
National Commission for Women 35.00
Total requirement 9,600.00
26

Sources: Planning commission Govt. of India, Eleventh Five Year Plan, Annual Plan
Report, 2007-2012, Pg. No. 141-142.

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Tax relief for voluntary organizations under the Income Tax Act.

1.
Section 80G allows voluntary organizations working in specified areas deemed to be
charitable to register with the income tax authority. This enables donors (individuals and
companies) to claim tax relief on 50% of the amount donated, up to 10% of the donor's
income. The beneficiary organizations are required to issue a receipt or certificate in a
prescribed format to the donor to enable the donor to claim tax deduction. This is the
most widely used tax benefit for charitable giving.27

2.
Section 35AC allows contributions to be 100% deductible. However its application is
specific to projects, generally research projects, rather than to organizations. To benefit
under this section, the recipient organization must typically be implementing the project
itself. Approval must be sought from the National Committee for Promotion of Social and
Economic Welfare based in New Delhi. Donations to government development agencies,
such as the Integrated Rural Development Program are 100% deductible under this
section.28

3. Section 35 (I to III) provides for a similar 100% exemption for donations to approved
scientific research associations such as universities, colleges, or other institutions for
scientific research, research in social science, or statistical research. Section 25 businesses
are exempt from paying income tax on profits "incidental to the attainment of the objects
of the non profit organization," as long as separate books of account are maintained.
Bilateral development assistance to NGO’s continues to be governed by the Foreign
Contribution (Regulation) Act, 1976. Only organizations registered under the act-nearly
30,000 at present-are permitted to receive bilateral assistance.29

FUNDING OF NGO OPERATIONS (form Indian and foreign sources)

“All NGOs start with a mission to serve humanity in one or the other form. In order to
achieve their mission, they set out their objectives for a defined target population, be it small
or large population. With a view to achieve their objectives, a set of strategies are evolved.
Creation of infrastructure including manpower planning and other requirements are
enumerated. But no goal achievement is possible without sufficient financial resources which
93
are essential to fulfill the objectives set forth by a particular NGO. Thus in the absence of
funds, no principles of management like planning, organizing, control, budgeting etc. would
help either the NGO or their targeted beneficiaries. Therefore, the main question remains as
to how to raise funds.”30 Therefore the government provide funds, contractors and training
opportunities to give special encouragement to NGO activities in priority areas without
undermining NGOs autonomy and independence.

Their can be a number of sources of funds in both organized and unorganized sectors. An
NGO may draw its funds from internal as well as external sources.

(A) “Internal Sources

 Membership Contribution
 Sponsorship Fees
 Sales(such as sales of greeting cards, candles, handicraft items, homemade foods
items books, etc.)
 Interests
 Community Institutions (patron member, life member, etc.) and
 Individual Donations
 Besides, an organization can save resources by using services of volunteers rather
than paid staff.”31 For individual NGOs the most favorable policy setting is when
legal restrictions are minimized, when they have complete freedom to receive funds
from whom so ever they choose.

(B) External Sources (Within India)

a) Grant in aid (from Central or State Government)
b) Donations in kind, such as, medicines, books, food items, etc
c) Private Institutional support or grants from-
 Parent NGOs
 Corporate Bodies
 Industrial houses
 Family foundations
 Sponsorship for and ticket collections from fund raising events such as charity shows,
musical programmes, sport events, etc.

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 Advertisements
 Souvenirs
 Community foundations
 Other trusts/organizations
 Individuals
 Box Collections
 Tourists/Visitors

Outside India (Foreign Sources)

a) Bilateral funding;
b) Multilateral funding
c) Private institutional funding;
d) Overseas non-resident communities.
e) International donors/foundations/organizations like UNICEF etc.”32
NGO have the advantage of selecting particular places for innovative projects and specify
in advance the length of time which they will be supporting the project, overcoming some
of the short comings that government faces in this respect.

Fund Raising Strategies

The strategies of fund raising by NGOs have to be planned and implemented through suitable
marketing techniques. This has to be further supplemented by properly tailored public
relations on the part of NGOs keeping in mind their mission, their programmes, their
strengths and their limitations. While doing so, it is important for them to keep their
credibility high so that more goals can be achieved in future through more funding. 33 It
includes NGOs with activities directed towards meeting the needs of the poor distribution of
food, clothing or medicine, provision of housing, transport, schools etc.

Donations from public

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Sources of funds through individual donations has the advantage of broad base for present as
well as for the on going project. This is in contrast to the internal sources of NGOs which are
generally limited.34 Funding is made available to NGOs through programmes in a wide range
of areas.

Funding from Foundations of industries /Business Houses

India’s prominent industries/business houses have created a number of philanthropic

foundations which are good source of funds for NGOs Dhirubhai Ambani Foundation, Azim
Premji Foundation, Dr. Reddy’s Foundation, Tata Memorial social center etc., are few such
industry-backed funding agencies.”35 This particularly reflects recognition of the role of
NGOs as a fundamental building block in developing and strengthening.

Grant-in-Aid from Government of India/State Governments

Main source of funding continues to be grant-in-aid from Govt. of India/state Governments.

Various Ministries/Departments of Central Government have initiated a large number of
schemes/programmers through which NGOs receive grant-in-aid, to achieve their objectives
of socio-economic and psychological upliftment of millions of underprivileged people living
in miserable conditions, in a liberal manner. Consequently, thousands of NGOs have become
instrumental in social re-structuring in the fields of health, education, rural development,
social justice and so on.36 The efforts and attitudes of government towards NGOs also
encouraged their growth in number and activities.

Funds from International Organizations

There are a number of international organizations/foundations which are rich in source of

funding for NGOs. These organizations are prepared to donate funds for the cause of welfare
of humanity to alleviate human misery caused by hunger, diseases, natural disasters, poverty,
illiteracy etc.
It is thus clear that fund raising is not a difficult task. While there are thousands of NGOs
seeking funds to achieve their defined objectives, there are also thousands of sources of funds
for all types of constructive social work to make the Indian society worth living with.
96
 However to obtain this equation is not so simple. The NGOs are expected to perform their
duties well, ethically and with sound management for raising the desired funds and ensure
their utilization towards a sound cause to which they owe their birth.37 The encouragement of
NGOs sector was also carried out in various plan and extended greater assistance in various
social welfare programme.

Steps for fund Raising

Funding by way of Donations:

NGOs may adopt a number of ways to reach the donors. It could be by way of
advertisements, sending planned mails to prospective donors with a suitable follow up
strategy. NGOs can mobilize support of volunteers from public, who have similar mission
and goals to serve the cause set forth by them. Such volunteers can reach prospective donors
with suitable literature containing background of NGOs and the objectives they stand for etc.
In addition, NGOs can take help of persons who have already benefitted from the earlier
efforts done by these NGOs through past projects. Support can also be taken from the retired
people who can devote time for social work and are willing to further the cause of human
welfare.

a. In every locality there are rich people with golden hearts. They can also be
requested for systematic and periodic donations. While approaching individuals for
donations, the NGOs can issue receipts and donors can be informed about the tax concessions
on such donations. A suitable tax concession form can also be enclosed with the letter of
canvasing for funds. While approaching donors, full decency should be adhered lest they feel
their privacy has been encroached upon. Careful selection of donors to be approached as well
as method of approach may bring desired funds. Once the funds are received, due recognition
given to the donors may encourage them to send donations in future as well as getting other
donors through them. This can be achieved by adopting wholesome approach on the part of
NGOs, who have long term goals and wish to have long term survival.

Another useful method for raising funds is through the help of sponsors of social activities
such as game shows, cine-nights, sport shows by inviting celebrities for a social cause.
During such shows donations can be collected in boxes and sale of souvenirs by involving
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volunteers from educational institutions.38 These NGOs have been long working in their own
humble way.

b. Fund Raising from Funding Agencies:

Normally there are no prescribed or set pattern of application to such agencies. In such a case
NGOs have to be innovative in presenting their project proposal while requesting for funds. It
is important that the NGOs carefully draft their proposals which may include inter alia a brief
introduction of their organization, the objectives and mission they stand for, their past
experience and successes, their organization structure, their command area, their expertise
etc. it is very useful to indicate full facts to establish the credibility of the NGOs and the
important functionaries behind the NGO. Proper drafting of the proposal in a concise manner
may elicit more favorable response.39 They are also considered as an alternative to the
government agencies in rural development.

c. Grant-in-aid from the Government:

Various departments and ministers of the Government have prescribed for

submission of proposals as well as for additional information for implementation of their
schemes. It is important that entire information in truthful manner along with supporting
enclosures is given in one to avoid any chance for further queries. This would not only save
avoidable delays, it would also establish the credibility of the NGOs. The terms and
conditions prescribed by the Government should be thoroughly studied for proper and timely
fulfillment.

The schemes of the Government very clearly mention the eligibility, objectives,
components, funding pattern etc. it is in the interest of NGO as well as beneficiaries under the
schemes that all requirements are adhered to while dealing with the Government
Departments. The proper utilization of funds as prescribed under the schemes keep the doors
open for future funding from the government functionaries. Any default on the part of NGO
can terminate all chances of future grants.

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 NGOs would realize that even if it is not very difficult to raise funds for viable
schemes/programmes, financial resources would always remain limited. It is therefore,
important that all these funds, raised from whatever sources, should be.optimally used for
maximum benefit of existing as well as forthcoming projects.40
The Government also launched several programmes, in rural and backward areas to improve
the socio-economic conditions of the poor.

National Policy on the Voluntary Sector (2007)

1. Preamble (An introductory part to a constitution)

 This Policy is a commitment to encourage, enable and empower an independent, creative
and effective voluntary sector, with diversity in form and function, so that it can
contribute to the social, cultural and economic advancement of the people in India.
 The voluntary sector has contributed significantly in finding innovative
solutions to poverty, deprivation, discrimination and exclusion, through means such as
awareness raising, social mobilization, service delivery, training, research, and advocacy.
The voluntary sector has been serving as an effective non-political link between the
people and the government. This policy recognizes the important role that the voluntary
sector has to play in various areas and confirm the growing need for collaboration with
the voluntary sector by the government, as well as by the private sector, at the local,
provincial and national levels.

2. Scope of the Policy

 In the Policy, voluntary organizations (VOs) mean to include organizations
engaged in public service, based on ethical, cultural, social, economic, political, religious,
spiritual, scientific & technological considerations. VOs include formal as well as
informal groups, such as: community-based organizations (CBOs); non-governmental
development organizations (NGDOs); charitable organizations; support organizations;
networks or federations of such organizations; as well as professional membership
associations.
 To be covered under the Policy, VOs should broadly have the following characteristics:
a. They are private, i.e. separate from Government

99
b. They do not return profits generated to their owners or directors
c. They are self-governing, i.e.,not controlled by Government
d. They are registered organizations or informal groups, with defined aimsand objectives.

3. Objectives of the Policy

 The specific objectives of the policy are listed below:
 To create an enabling environment for VOs that stimulates their enterprise and
effectiveness, and safeguards their autonomy;
 To enable VOs to legitimately mobilize necessary financial resources from India and
abroad;
 To identify systems by which the government may work together with VOs,
on the basis of the principles of mutual trust and respect, and with shared responsibility;
and,
 To encourage VOs to adopt transparent and accountable systems of governance and
management.

4. Establishing an Enabling Environment for the Voluntary Sector

 The independence of VOs allows them to explore alternative paradigms of
development to challenge social, economic and political forces that may work against
public interest and to find new ways to combat poverty, deprivation and other social
problems. It is therefore crucial that all laws, policies, rules and regulations relating to
VOs categorically safeguard their autonomy, while simultaneously ensuring their
accountability.
 Voluntary organizations may be registered as societies, as charitable trusts,
or as non-profit companies under Central or State laws. Some States have adopted the
Societies Registration Act (1860), with amendments, while others have independent laws.
Similarly, laws relating to charitable trusts vary across states. Over time, many of these
laws and their corresponding rules have become complex and restrictive, thus leading to
delays, harassment and corruption. As the nodal agency for interface between the
Government and the Voluntary Sector, the Planning Commission will encourage state
Governments to review prevailing laws & rules and simplify, liberalize and rationalize
them as far as possible. In order to facilitate registration of non-profit companies, the
Government will examine measures to simplify procedures under section 25 of the

100
 Companies Act (1956), including those for license, registration, and remuneration to
member-employees.
 The government will also examine the feasibility of enacting a simple and
liberal central law that will serve as an alternative all-India statute for registering VOs,
particularly those that wish to operate in different parts of the country and even abroad.
Such a law would coexist with prevailing central and state laws, allowing a VO the option
of registering under one or more laws, depending on the nature and sphere of its
activities.
 There has been much public debate on the voluntary sector, particularly its
governance, accountability, and transparency. It is widely believed that the voluntary
sector must address these issues through suitable self-regulation. The Government will
encourage the evolution of, and subsequently accord recognition to, an independent,
national level, self-regulatory agency for the voluntary sector.
 At the same time, there is need to support public confidence in the voluntary
sector by opening it up to greater public scrutiny. The Government will encourage Central
and State level agencies to introduce norms for filing basic documents in respect of VOs,
which have been receiving funding by Government agencies and placing them in the
public domain (with easy access through the internet) in order to inculcate a spirit of
public oversight.
 Public donation is an important source of funds for the voluntary sector and
one that can and must increase substantially. Tax incentives play a positive role in this
process. Stocks and shares have become a significant form of wealth in the country today.
In order to encourage transfer of shares and stock options to VOs, the Government will
consider suitable tax rebates for this form of donation. The Government will also simplify
and streamline the system for granting income tax exemption status to charitable projects
under the Income Tax Act at the same time, the Government will consider tightening
administrative and penal procedures to ensure that these incentives are not misused by
paper charities for private financial gain.
 International funding of voluntary organizations plays a small, but significant
part in supporting such organizations and their work in the country. An organization
seeking foreign funding must be registered under the Foreign Contribution (Regulation)
Act This law prescribes stringent screening norms that often restrict the ability of VOs to
avail foreign funds. When approved, there are problems like funds must be held in a

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 single bank account, thus presenting enormous difficulties to VOs working at different
locations. The Government will review the FCRA and simplify its provisions that apply
to VOs, from time to time, in consultation with the joint consultative group to be set up
by the concerned Ministry.
 The Central Government has framed guidelines for involving agencies to give
direct assistance to voluntary organizations for projects of social and economic
importance. It controls access to such funds and their utilization, both through the FCRA
and through regulation by the Department of Economic Affairs. This system needs to be
simplified in consultation with the joint consultative group to be set up by the concerned
Ministry.
 The Government will encourage all relevant Central and State Government
agencies to introduce pre-service and in-service training modules on constructive
relations with the voluntary sector. Such agencies should introduce time bound
procedures for dealing with the VOs. These would cover registration, income tax
clearances, financial assistance, etc. There would be formal systems for registering
complaints and for redressing grievances of VOs.

5. Partnership in Development

 The voluntary sector can play an important role in the development process,
particularly through community participation. VOs can offer alternative perspectives;
committed expertise; an understanding of the local opportunities and constraints; and
perhaps most importantly, the capacity to conduct a meaningful dialogue with
communities, particularly those that are disadvantaged. It is therefore essential that the
Government and the Voluntary Sector work together. Where feasible, such partnership
may also include other entities such as panchayatraj institutions, municipalities, academic
institutions, and private sector organizations.
 Partnership between Government and VOs implies identifying shared goals
and defining complementary roles. It must be based on the basic principles of mutual trust
and respect, with shared responsibility and authority. These principles must be explicit in
the terms and conditions of the partnership. They must also be evident in the formal and
informal systems of collaboration.

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 This Policy recognizes three instruments of partnership, viz., (i) consultation,
through a formal process of interaction at the Centre, State and District level; (ii) strategic
collaboration to tackle complex interventions where sustained social mobilization is
critical over the long term; and (iii) project funding through standard schemes. The
Government will ensure that these three instruments of partnership are given due attention
in Annual Plans prepared by Ministries and States. The action that will be taken in respect
of each of the three instruments is discussed in the following paragraphs.
 The Government will encourage setting up of Joint Consultative Groups /
Forums or Joint Machineries of government and voluntary sector representatives, by
relevant Central Departments and State Governments. It will also encourage district
administrations, district planning bodies, district rural development agencies,
zillaparishads and local governments to do so. These groups will be permanent forums
with the explicit mandate to share ideas, views and information and to identify
opportunities and mechanisms of working together. The Government "will introduce
suitable mechanisms for involving a wide cross-section of the voluntary sector in these
Groups / Forums.
 The expertise of the voluntary sector will also be utilized, by including experts
from VOs in the committees, task forces, and advisory panels constituted by
the Government from time to time to help address important issues.
 The country faces a number of complex problems that require adaptive, multi-
sectoral solutions where sustained social mobilization is particularly important. These
include poverty alleviation, skill promotion, entrepreneurship development/empowerment
of women, population stabilization, combating HIV/AIDS, managing water resources,
elementary education and forest management, to name few. Such areas urgently require
strategic collaboration between the Government and VOs, through national level
programmes that are long-term in
duration, and utilize multiple strategies, methodologies and activities to achieve their
objectives. The Government will identify national collaborative programmes to be
implemented in partnership with VOs. Each national collaborative programme will
involve a finite set of reputed, medium or large VOs with a proven track record, and the
ability to work on a reasonably large scale. The Government will ensure that such
national collaborative programmes are given due importance in Plan documents.

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 The third instrument of partnership between the Government and the
voluntary sector is project funding. A large number of Government agencies operate
schemes for financial assistance to VOs. These schemes usually deal with activities such
as surveys, research, workshops, documentation, awareness raising, training, creation and
running of public welfare facilities, and so on. Project grants are useful means for the
Government to promote its activities without its direct involvement. They are also a
valuable source of support to small and medium VOs. Nevertheless, there are legitimate
concerns regarding the effectiveness of grant-in-aid schemes. Out-dated design of funding
schemes, arbitrary procedures, selection of unsuitable VOs, poor quality of
implementation, and misuse of funds are some of the reasons for the possible defeat of the
objectives of such funding. Concerned Government agencies would be encouraged to
ensure proper accountability and monitoring of public funds distributed to VOs.
 Some Central agencies have achieved good results by decentralizing the
process of project funding. Rather than administering various schemes directly, they
appoint regional or State level intermediary organizations to do so on their behalf. This
allows for closer interaction for better selection and monitoring of VOs. Intermediaries
could include umbrella VOs, professional or academic institutes, State Government
agencies, or multi-shareholder standing committees. The Government will review the
experience of such decentralized funding and make suitable recommendations to Central
agencies.
 There is reason to believe that accreditation of VOs will lead to better funding
decisions and make the funding processes more transparent further, accreditation may
provide incentives for better governance, management and performance of VOs. No
reliable accreditation system is in place at present the Government will encourage various
agencies, including those in the voluntary sector, to develop alternative
accreditation methodologies. It will allow time for such methodologies to be debated and
gain acceptability in the voluntary sector, before considering their application to
Government funding of VOs.

6. Strengthening the Voluntary Sector

 The Indian society has a well-established tradition of goodwill. While a
regime of tax concessions facilitates donations to charitable organizations, there is
considerable untapped potential to channelize private wealth for public service. The

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 Government will support and encourage existing, as well as new, independent institutions
and private foundations to provide financial assistance to deserving VOs. It will also
promote a dialogue among public and private grant makers so that they may take
advantage of the best practices in grant making and fund-raising strategies.
 Accountability to all shareholders and transparency in functioning are key issues in good
governance. The voluntary sector is expected to set its own benchmarks in these areas.
Since VOs vary in their objectives and activities, it would be impractical to expect
uniform norms for accountability and transparency. The Government will encourage
support organizations, and VO networks & federations to facilitate discussion and
consensus building on these issues. It will also encourage such agencies to advise and
assist VOs to adopt norms that they find acceptable and useful. The Government will
recognize excellence in governance among VOs by publicizing best practices.
 Training is a crucial requirement for people working in the voluntary sector.
However, this is often neglected on account of limited availability of good quality
training courses that are reasonably priced. The Government will support and encourage
organizations that train aspirants to enter the voluntary sector, as well as those already
working in the sector. It will make available physical facilities currently available with its
training institutes as a measure of such support.
 Innovation in institutional, technical and social approaches to development
problems is an essential ingredient of voluntary action. The Government will encourage
and recognize innovative & pioneering work.

 Databases of VOs working in different fields and at different levels are useful
for communication, within the voluntary sector, as well as between the voluntary sector
and the public & private sector. The Government will commission suitable agencies to
prepare and update such databases.
 Information on Government policies and programmes is often difficult for VOs
to access. The websites of various Government agencies will be re-designed to provide
links to key documents and databases, including those related to project funding schemes.
 The Government will encourage involvement of volunteers in public services, such as, a
family welfare centers, primary health centers, hospitals, schools, vocational training
centers, sanitation campaigns, etc.

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 This National Policy on the Voluntary Sector is the beginning of a process to evolve a
new working relationship between the Government and the Voluntary Sector, without
affecting the autonomy and identity of Voluntary organisations.41

Findings:
1. The government attempts to rope NGOs into developmental activity, channelize funds
through them, and set up the norms to regulate the utilization of these funds opened up yet
another fundamental issue.

2. Increased NGO-Government Cooperation is another area which is meant to improve the

outcome of NGO activities. They are encouraged to work such cooperation into their
proposals.

3. Human society has recognized the value and importance of NGOs. Several events of
history indicates that voluntary organization have played significant role in social, religious
and political movements and contributed in the implementation of welfare and development
programmes at different levels and times from the ground to global levels.

4. The government, private and voluntary sectors alone cannot work effectively and achieved
development goals. The collective, cooperative and supportive efforts at the international and
national levels can give better results as discussed in many conferences and meetings.

5. Government also realized that there are lot of advantages in enrolling NGOs in the
development process.

6. In today's context, NGOs have become an integral part of the process of development and
are shouldering more and more responsibilities in diverse fields.

7. Government wants to become a facilitator and regulator rather than an active player in
development.

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8. Development is a highly contested concept, with both economic and broader dimensions
and can be usefully separated out into two main meanings i.e deliberate attempts at progress
and the outcomes of unfolding capitalist change.

9. NGOs have become most closely linked to development theory, which relates to issues
such as empowerment, participation, gender and social capital.

10. Some types of development have largely ignored NGOs, while others have attributed
significant roles to them, and there by a key area of development to which NGOs have
contributed is that of people centered development, reflecting recent shifts away from heavily
theoretical ideas about development to more practical.

11. Around the time of Independence, Mahatma Gandhi proposed the concept of trusteeship,
allocating a larger role to business in managing social resources for social development.

12. NGOs made a distinct shift from welfare and service delivery interventions to a direct
attack on poverty.

13. The 1990s also saw the establishment of several forums to promote dialogue between the
government and NGOs. The Planning Commission initiated an NGO-Government interface
through a series of conferences and in 2000, was appointed the Nodal Agency for NGO-state
interactions.

14. In the second half of the 1990s, the Council for Advancement of Peoples Action and
Rural Technology (CAPART) was decentralized so that envisaged benefits from NGO
activities could also spread to the less explored and extremely poor areas of the country.

15. CAPART was created in 1986 to promote and assist voluntary efforts in implementing
rural development programmes.

16. AVARD is an association of more than 650 NGO’s engaged in rural development in
India.
Since 1958, it has promoted voluntary action, planned rural reconstruction with local
participation and panchayati raj.
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17. VANI has been working as a catalyst between central and state governments, on one
hand, and NGOs in India, on the other. It represents NGO concerns through advocacy,
networking, and sensitization of the government and other stakeholders.

18. The Government Policy on the Voluntary Sector is a commitment to

create an enabling environment where voluntary sector functions effectively, creatively,
independently and or in collaboration with government agencies towards socio-economic-
cultural empowerment of the communities in the state.

19. Voluntary organizations have been playing an effective coordination role in

building non-political linkages between the communities and the government as facilitators
and social animators.

20. Partnership between government and voluntary organizations implies goals and
defining complementary roles.

21. Development has been recognized as a right by the Universal Declaration of

Human Rights that was adopted by all the nations which are members of United Nations
Organizations. During the last six decades several organizations were formed, strategies and
programmes were evolved for addressing the development issues across the world.

22. Large number of Self-Help Groups and their role in accessing savings and capital to
women in the state are landmarks of on going women empowerment and gender equality
programmes in the state.

23. The government will utilize the services of voluntary organizations in creating
awareness on laws related to women equality and empowerment such as Dowry Prohibition
Act, Domestic Violence Act.

24. Tax relief for voluntary organizations under the Income Tax Act, under section 80G,
section 35AC, and section 35 I & II are provided for registered NGOs.

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 25. The strategies of fund raising by NGOs have to be planned and implemented through
suitable marketing techniques. This has to be further supplemented by properly tailored
public relations on the part of NGOs.

26. Sources of funds through individual donations has the advantage of broad base for present
as well as for the on going project. This is in contrast to the internal sources of NGOs which
are generally limited.

27. India’s prominent industries/business houses have created a number of philanthropic

foundations which are good source of funds for NGOs Dhirubhai Ambani Foundation, Azim
Premji Foundation, Dr. Reddy’s Foundation, Tata Memorial social center etc., are few such
industry-backed funding agencies.”35 This particularly reflects a recognition of the role of
NGOs as a fundamental building block in developing and strengthening.

28. There are a number of international organizations/foundations which are rich in source of
funding for NGOs. These organizations are prepared to donate funds for the cause of welfare
of humanity to alleviate human misery caused by hunger, diseases, natural disasters, poverty,
illiteracy etc.

29. NGOs may adopt a number of ways to reach the donors. It could be by way of
advertisements, sending planned mails to prospective donors with a suitable follow up
strategy.

CONCLUSION

To sum up, it can be said that the relationship between Government and NGOs have been
mixed and is likely to continue to do so in the prevailing socio-economic and political
environment. There are areas of agreement and disagreement of co-operation. Earlier the
relationship tended to be one of the sponsors, the state as the grant-giver drawing the
parameters not only for performance requirements, but also for the structural and spending
patterns to achieve these ends, there by we can say that there is need for further improvement
in the policy environment for the functioning of NGOs.

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 While NGOs are doing a good job, it would perhaps, be too much to expect that the
NGOs could make all rural women empowered.

The government should help NGOs to grow faster but at the same time, the
government it self should continue to carry out its poverty alleviation & women
empowerment programmes. Despite the urge of NGOs activities in recent years, they still
tend to embrace only a negligible portion of the needy.

The government has to have a large network of credit programme for the rural poor
women to increase their economic solvency and enhance their empowerment. Only
emancipation of the women from the clutches of the age-old bondage could free the society
from the roots that it faces in the journey towards progress. The complementary role of NGOs
and government can take care of the problem.

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