The last fortnight was very significant period for the voluntary sector in India. Suddenly, the Ministry of Home Affairs took out the FCRA bill from its cold storage (2006) and introduced in Rajya Sabha and Lok Sabha. Both houses passed it within short duration. The future of Civil Society was sealed and verdict was passed.  This was done in spite of many bills of national importance are still pending.  This bill was made in contradiction of “National Policy of the Voluntary Sector” framed by same government in 2007 and also recommendation of 2^nd Administrative Reform Commission (2008). The conclusion of government’s argument was that in current format we are not able to tame the sector, which is working against national interest.  It argued for un-defined term ‘national interest’ which must be inserted in the bill so that officials can get absolute freedom to define it on case to case basis that to with right to conceal the reason.  The second argument was build on the fact that although genuine voluntary organizations submit their returns every year, but we want them to queue in front of our office every five year with fresh applications. After all it is a power relationship, the Ministry has right to make sector crawl. 

Anyhow, now the cards are open in front of us and we need to work within the rules which will be made shortly.  In this news letter, we have given the details of new FCRA and its implications on voluntary sector.  The first and foremost task is to provide information to all the FCRA holding organizations to follow the new instructions and keep their records in order.  Once the final notification is done VANI will print the guidelines for voluntary organizations.  The second task is to demand accountability and transparency from the officials. We must demand explanation of rejection if any, as law of natural justice demands reason for punishment.  We need to educate our members of Parliament about the true state and condition of Voluntary organizations.  The debate reflected on misconceptions about the sector which are formed by the aberrations caused by various types of entities registered in same category.  We appeal all organizations to keep VANI secretariat informed about the issue related to FCRA. VANI will continue its campaign to safeguard Indian voluntary sector. VANI is committed to serve and support all the voluntary Organisations, who are working for the betterment of the marginalized of India within the constitutional framework of India.

THE FCR- Bill, 2010

The Indian Voluntary Sector is passing through a very interesting phase. Not only its relationships with other engines of development like private sector and government are being redefined but inflow and outflow of financial resources  also need a new look.  India along with Brazil, Mexico, China and South Africa has emerged as the major epicenter of economic development.  Globally every one is talking about mergers, acquisitions, and industrial growth of India. Equally true is the rampant poverty and deprivation in India. The analysis of three India have been rightfully put forward by the country strategy paper of DFID.  If today’s Indian growth is not analyzed from holistic perspective it can create confusion and illusion of being an emerging super-power.   VANI has been a  part of decade old debate on the nature and peculiarities of depleting International aid to India whereas no discussion ever takes place about the international aid going out of India. Through this note I have tried to raise issue of three dominating dimensions of development aid.

The first dimension is about changing trend of expenditure by Indian government for the development sector through Voluntary Organizations.  The word ‘Grant’ has been replaced by fees, honorarium, contracts, etc.  The plans and schemes are made and approved by the various government departments, and voluntary organizations are only engaged to perform specific function within that.  The steps like Expression of Interest (EOI), Request for Proposals (RFP), have been introduced. The notices for tenders are published either on the websites or in the newspapers.  Sometimes, the language for tenders for social development assignments is same as that of construction of roads or bridges. The voluntary organizations who have been habitual of soliciting financial support in the form of flexible grants, through proposals or concept notes find it difficult to adapt.  This system which was started to introduce transparency and accountability in financial transactions is supposed to be applicable at every level of government functioning.  There are basically three areas of concern of the voluntary sector. Firstly, this reduces the space for participation in deciding priority and operational details of the assignment. The implementing agency is only seen as the extended hand of the government to deliver the pre-designed task.  Secondly, when the terms like fees, contracts, or tenders are used then they draw the attention of Income Tax Authorities to term them as business activities.  Although, most of the organizations take up only those assignments which are in line with their mission, experience and expertise, but even then they find it difficult to defend their case with IT – assessing officer.  Thirdly, many voluntary agencies find capacity deficit to fit their task in the new pre-designed and rigid framework.  Traditionally, the voluntary organizations are trained to develop proposals on the basis of priorities decided by the local stakeholders and asking for flexible grants, but they find it difficult to prepare a professional document starting from EOI, log frames and reports as desired by the supporting agencies. This deficit has also led to the mushrooming of consultants. No doubt there is need to campaign against this new sub-contracting of development, but also equally important is to equip the small and medium sized organizations with the desired skills to face the challenge.

The second dimension is of resources available for development that has emerged from the departure of bilaterals from India and gradual reduction of development aid to India.  The last decade has witnessed the departure of many bilterals from India and few of those who are left are contributing their substantial portion directly to government run programmes.  Even the multi-laterals which are operating in India contribute their significant budget to the flagship programmes of the Indian government.  The voluntary agencies are then engaged in these programmes by the government on above stated conditions of sub-contractor. This has reduced the space to solicit flexible grant to work on innovations or on questioning status quo. Being considered as an emerging economic power has led to the reduction of flow of foreign aid to India. Even though, the ground realities are contrary to the projection.  Today, we have substantial number of people marginalized and deprived from basic needs of life. The big question today in front of voluntary agencies is to invent methods to raise financial resources for innovations and rights based interventions. Not only there is a need to conduct public awareness campaign within India to mobilize local funds, but also advocate for change in taxation regime to facilitate ‘donations’.  Some of the voluntary agencies like Greenpeace, CRY, SCF and OXFAM have started raising localized funds from within India, but still we need to incorporate some changes in our taxation system to encourage incentivice donations. The gravity of deprivation is increasing day by day whereas the support to the marginalized is depleting; therefore new ways of generating funds within India is very important. In fact, Ministry of Overseas Indian Affairs has registered a trust to solicit funds from Non-Resident Indians for support to Indian voluntary organizations. 

The third but important dimension is the development aid which is given by Indian government to other countries.  Still India does not have any policy document for overseas development aid, where as quite substantial amount is given by India.    There are three concerns which are expressed by the voluntary organizations.  The vast experience which Indian Voluntary Organizations have gained through their diverse engagement in socio-economic development projects in India could be used in such international projects.  Indian voluntary sector has  also contributed in designing many innovative projects in India and also considerable knowledge around participatory approaches.  This body of knowledge and experience could be beneficial for effective Indian aid abroad. Secondly, the provisions of current Indian Income tax Act also restricts Indian voluntary agencies to operate outside India. Many countries of the world want to learn from the flagship projects like NREGS, RTI, SSA, but there is very less scope for Indian voluntary organizations to contribute. Thirdly, there is need to have transparency and accountability in deciding the priorities in least developed countries.  The major critique of Indian support is its unplanned nature. The Indian aid is given on case to case basis without any long term strategy which eventually fails to make any impact on the lives of receiving country.

The Voluntary Organizations world over have been using word ‘Advocacy and lobbying’ interchangeably to define their strategy to influence pro-poor policies of government, donors and other components of ruling elites. For voluntary sector, this task is central to their work where they take learning, observations, and opinions of and from marginalized to change the policies. All these is generated from the intensive work at grass roots levels wherein it is believed that to provide decent and dignified life the change in policies and attitudes is necessary. The most popular mode is dharna and demonstrations. People called it emotion based advocacy and argued for evidence based advocacy. So many voluntary organizations started various types of research within participatory framework to articulate agenda, process and soliciting solutions and suggestions. Based on findings of such research, the activists substantiated their learnings and suggestions from the community. Last few years we witnessed a new trend of celebrity centric advocacy, where film personalities came forward to deliver message in favor of social movement. Some termed it superficial, glorification ornamental display of issues.

The private sector is also very active in their form of advocacy and lobbying and the most effective instrument in this are various federations and chambers. With the increase of their influence and resource their mode is also changing. They not only conduct captive research to prove their points but also organize seminars and conclaves in five star hotels. One of the recent trends is to rate government and even media towards friendliness. Richer the federation more luxurious and influential is the event. Recently, they even started taking up social issues where business interest is involved. For example, education and health, both are being a lucrative and attractive business proposition. Of late, there have been interesting blend of business and government on such issues by calling for ‘inclusive growth’.

Any how things were quite under socio-economic and ethical decency, but recently we have seen new trends wherein professional lobbyists have come to limelight. The recent scandal in telecommunication exposed the existence of lobbyist in our system, which work only for commercial interest. There are whispers within the corridors of power in Delhi that rates are fixed to even arrange appointments with senior government officials and ministers. The facilitation fees vary depending upon the importance of department. These lobbyists include PR (Public Relation) companies, legal forms and even some media barons have been named in that.

The big challenge in front of voluntary sector today is to search for space in this uneven playing field. The private sector is joining hands with government on social agenda, but will go only for non-threatening, financially beneficial and publicity oriented issues. Who will raise contested issues and question status quo which is still heavily tilted towards powerful elites. We need to reflect and design new strategies to search and work with individuals with the system to get the voice of marginalized heard. These sensible and committed people are in every sector. It time to build new bridges to achieve our goals.

Greetings from VANI!

Many years back when my teacher explained me the structure of society by drawing three overlapping circles on the black board. These circles of equal size were that of namely, government, civil society and market. He further explained that over lapping side indicates the collaboration between each other and other areas indicate the independence of functioning. Along with the wave of liberalization the sizes of these circles also started changing. The first phase was when government started shrinking and started offloading its public sector role by selling them to market. The size of market circle increased and government circle became smaller. In one decade India saw many changing in the Companies Act, FERA became FEMA, institutions like CII, FICCI, ASSOCHAM, etc. became stronger. Many economic functions which were dumped by government were grabbed by private sector. But even there it was only profitable ventures which were captured by the private sector. The service to rural sector or small towns remained with government as they were considered “non-viable”, by the market. Consequently, today we have double digit industrial growth, with star performance of Satyam and Enron. However, today if we see the private sector has become important partner and advisor in the policy making functions of the government. It is not only they decide of industrial policy but many social policy issues are influenced by market. The thin line got further blurred by top industrialists entering parliament.

We have now entered into the new phase of redesigning of these circles. After successfully conquering the government arena, the market has started its crusade in civil society circle. First we saw the germination of large hospitals and educational institutions registered and charitable entities. Today, not only we have big foundations and CSR projects taking shape of voluntary orgnaisations, but also adopting language of voluntary sector. Repeating the history of opting only for profitable ventures while taking over the role of government, market is focusing on soft issues, like education, health, green plantations. These issues are selected keeping in mind the supply chain and market of its product as also not to make its old partner (government) unhappy by avoiding contested issues. The government is willfully surrendering its hospitals and schools to such large foundations. The situation is further facilitating for the market as voluntary sector is facing restrictions to operate, fund crunch, and outdated laws. The voluntary sector is forced to abandon its turf for already powerful market and reluctant government.

I wonder after few years teachers will make only one circle that of market and two dots mentioning voluntary sector and government. It is high time for all of us to tight our shoes and rethinks on the strategies we have adopted till date to safe guards our space. We need to not only be aggressive in highlighting our achievements to rest of the society but also pro-actively define our relationship with market and government. We also needs to rethink our operational strategies as market sponsored foundations are well organized, better equipped and well supported.