Some observations on inflow of foreign funds to Indian Associations - 1
- As per this Rajya Sabha Q&A, out of 41844 NGOs registered with FCRA wing, 16756 NGOs did not submit the FC-6 returns, i.e., the rest of the discussion presented here depends on returns filed by approximately 60% of NGOs only.
- How much do the Indian Associations receive from abroad? Given below is that chart (Data for 2011 is provisional; Annual Report for 2012-13 not released by MHA yet):
- Year mentioned in the graph is the starting year; i.e., the data pertaining to 2004-2005 is slotted under 2004 in the graph above.
- There appears to be a change in the slope of the curve around 2001. It is flat for a couple of years (2002, 2003).
- However, there is precipitous change in slope in 2004 which is sustained until 2006. As if it rode a wave there. May be it was the Tsunami that hit the coasts of Tamil Nadu, Andhra Pradesh and parts of Kerala late that year.
- Over the last several years, the total amount is more than Rs. 10,000 Crore per annum
- A sum of more than Rs. 100,000 Crore has been received through this route over the last 16 years. It may appear small when compared to budgets (or budget deficits) of Government(s). However,
- given the low overheads of the receiving organizations (due to the commitment towards their respective causes), this sum can be taken as nearly the total amount that was spent on the actual activities
- as mentioned above, 40% of recipients do not file returns. hence the actual total amount coming into Indian Associations could be larger.
- Where is the money going? The following graph shows money received by Associations registered in the following five states: Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, and West Bengal:
- In the above figure, data for 2003-2004 for Kerala and West Bengal were not available and hence were interpolated.
- Although an Association may be registered in a particular State, one should not assume that all the money it receives is being spent in the same State. For instance, see here. The recipient in this case is Jeypore Evangelical Lutheran Church (JELC), Koraput, Orissa. However, one of its donor is Compassion East India (CEI), Salt Lake City, Kolkata. i.e., CEI has received foreign donation and it likely sent a part of it to JELC.
- The spike in 2005 observed in the All-India receipts is also seen in receipts of various states (although that for TN is the highest).
- In my studies, I have not come across any of the Associations receiving foreign funds to be either registered or to be receiving money that the Indian Government grants to NGOs. Why would Indian NGOs not ask the Indian Government for grants if they are interested in social service. Something to ponder about...
- What is the nature of Associations which receive FC? We shall see that in the next Post.
UPDATE [March 20, 2014]: One more example of how an organization in one State receives money and sends it to another NGO in another State is here. In this case, the mega-entity, Caruna Bal Vikas, based in Chennai sent money to Harvest Mission For Christ in India, Nagpur.
Postscript 2 (on June 01, 2014): The 2012-2013 FCRA data continues to be actively updated on the MHA website. Hence the value for 2012-13 above can be taken as a lower bound. The 2011-2012 data too continues to be updated, but at a much slower rate and hence can be taken to be a "converged" value.