FCRA or Foreign Currency Regulation Act is something NGOs aspire to as it allows them to get funds from foreign countries. Today FCRA is out of the closet. The government wants to amend it and the opposition is up in arms.
Wonder why?
Till date the FCRA did not have stringent rules and many were misusing the money. You had 50% available for administrative cost which could mean anything: the spa cost of the top person, entertaining friends and so on. Some time back, the government amended it to 20%.
Working areas were defined loosely and could be interpreted to suit any situation. Rigorous reporting was not mandatory and it was a free for all. When you said you ran an NGO people looked at you in a strange way. And many thought all NGOs were dishonest.
A guest in a TV programme, an eminent one at that, stated that NGOs should not get money from abroad and raise their needs from within the country. Well my dear Sir this is what we have wanted for decades but were never able to do. At best we raise 10 to 15% from India and that too painfully.
Some may wonder why do we need NGOs at all. Good question. I can only talk about education and women’s empowerment as that is the field we work in. When we started over a quarter century ago, schools were in a poor state and drop out rates alarming. Sadly they still are. Over 1 lac schools in India run with ONE teacher.
We arrested drop out rates, pushed children back in school and ensured that they complete their schooling with honourable marks. Today we are busy redesigning our approach to meet XXI century skills in a job market hijacked by AI.
Were we successful? I leave it to you to decide: 4 of our alumni made it to the IIT, we have chartered accountants, journalist, lawyers, engineers, dental assistants, army officers and more. In my humble opinion NGOs are still needed in the field of education.
Over the years we have grown as Project Why is not a static but a dynamic organisation ready to answer any WHY that comes its way. Our needs have also grown and no matter how we packaged ourselves funds from India were not forthcoming. We have survived thanks to the generosity of Indians living abroad and whose heart still beats for India.
However we have ALWAYS complied with all government. regulations, and always used all the money we received for the stated purpose. I am quite flummoxed when I hear on debates that some NGOs do not use even 10% of what they get!
When I look at the new FCRA bill that is to be tabled in Parliament. I feel no panic at all. We have met most of what is asked barring maybe not shared our social media handles:)
That NGOs should be up in arms because they are asked to use the money for the purpose stated and give detailed account of how it was used to me it is a no brainer. Frankly, if you are doing good and honest work there should be no problem so why the hue and cry.
I am at a loss