Interacting with non-governmental organisations of Varanasi via video conferencing on July 9, 2020, the Prime Minister praised them for providing relief during the crisis caused by coronavirus. Exactly a month earlier on June 8, 2020, the Supreme Court, while taking suo motu cognizance of the plight of the people stranded on roads due to lockdown, praised the contribution and role played by NGOs. It said that the NGOS deserve all appreciation for coming forward to help them by providing food, water and transport during the ‘difficult time’ of COVID-19 pandemic.

Exactly 77 days after the accolades, the Central Government amended Foreign Contribution (Regulation) Act, 2010, to streamline the provisions of the act by strengthening the compliance mechanism, enhancing transparency and accountability… and facilitating genuine non-governmental organisation or association who are working for the welfare of the society. Having said that this ‘facilitation’ comes through at least three measures:

One, now NGOs receiving foreign fund will be required to work in isolation. The amendment clearly says no person who is registered and granted a certificate or has obtained prior permission under this Act; and receives any foreign contribution, shall transfer such foreign contribution to any other person. Earlier, bright staffers working with good big NGOs were provided support in the shape of fellowship or programme support to experiment in new areas and with new people, leading to birth of some really good NGOs. This effectively puts an end to birth and mentoring of new genuine NGOs.

Two, putting a cap on administrative expenses at 20 per cent from the earlier 50 per cent will hardly be able to draw good talented people to the sector. That also raises related questions. Will honorarium of field workers, community mobilisers, and so one, working for pittance, will be administrative expense or programme expense? Will expenses on travel and food during training, workshops and seminars be booked in programme category or administrative category?

Three, edict to open bank account with designated branch of State Bank of India in New Delhi by all the NGOs of the land to receive foreign funds is beyond comprehension. How an NGO based in distant Tamil Nadu or remote North-East will operate this account? The plight of someone opening a bank account away from his normal place of residence or business can be easily understood. And mind it, the ‘designated branch’ is of none other than State Bank of India.

I personally know a large number of NGOs who have provided relief to the needy from the funds that they would have spent on regular programmes during this period of crisis. They made relief kits, containing flour, pulses, rice, spices, oil, spices, potato, onion, sugar, tea leaves, soap, masks, sanitiser, etc., and delivered them to the needy with due respect. They did not expect them to face corona crisis with 5 kg of wheat, or 5 kg of rice and 1 kg gram.

Mere praises and empty rhetoric do not work. For developmental NGOs, there is old demand from the sector to provide a new legal framework, because at present a host of organisations are registered under the same law. No government from Atal to Modi via Manmohan paid heed to this. All of them made working of NGOs tougher. The latest amendment heralds death knell of NGOs, I fear.