Compulsory registration of NGOs: Proposed Law

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As there are 3.17 millions of NGOs registered in India as on date 31^st March 2011, and many NGOs are unregistered. The numbers of NGOs are growing day by day, tracking each and every NGO has become tedious process. There are various sources from where money is flowing to these NGOs. I.e. From donations, grants, foreign donations, income from other operations. Many amongst these NGOs carry activities, for which they should be paying taxes, but they avoid this in the name of Non-profit organizations. When such huge money is flowing to these NGOs, the question that arises here is that …..

To whom they are accountable…..?

Therefore the proposed law I.e. Charitable and other voluntary organizations (VO) regulation bill, under which registration of VOs, I.e. Trust and societies working beyond the state limits or outside India has been made compulsory, as under companies act, under section 25 registration is compulsory for non-profit making organizations. This law also states that for all others voluntary organizations migrating to the new law will have to surrender original registration. In order to avoid tapping of public money, there are categorized according to types of organizations. I.e.  Categorizing them into Big and small, privately-funded outfits.

There are certain exemptions which are being granted to Universities, literary, scientific and other such societies. These sections are exempted from compulsory registration.

The proposed law also states that there will be an autonomous body to oversee implementation, address and redress grievances of the people.

Hope this law will bring transparency and accountability, which was lacking in NGOs.