The recently drafted Hindu Charter had one of these as a demand:

Repeal FCRA Act completely and ban all foreign money inflow through FCRA, except for the funds from OCIs and end interference of foreign governments in our Judiciary, Law & Policy making.

Reservations were expressed about the blanket nature of this demand, since it was felt that it would hamper operations of genuine organizations that are genuinely working in the interests of the poor and downtrodden of the country.

These apprehensions can be allayed by the following simple facts:

  1. Of the total of Rs 18,065 Crores, it is estimated that less than 2% is actually routed to organizations working to preserve ancient Indic learning.
  2. Additionally, our analysis has discovered that many of the organizations that are genuine are funded most often by private donations from OCI/PIO/NRI individuals. It is, of course, part of the charter that this kind of individual contribution not be banned.

Solutions

  1. Many organizations that fund Indian NGOs are actually foreign incorporated extensions of the Indian parent. This can be easily managed by setting up mechanisms to enable easy remittance of funds directly into an Indian bank account.
  2. Additionally, currently, the Indian CSR spend has increased to Rs 11,700 Crores in 2015-2016 from Rs 5000 Crores in 2011-2012 and is growing at 20% annually.
  3. The Government in partnership with consultants can set up a nodal agency to help small NGOs prepare project plans, lobby for funds, build status reports and gain access to legal, accounting, systems and domain expertise.
  4. Such an agency would be useful for such NGOs to access the funding pushed into the India non-profit sector.

Figure: CSR Spend in India is fast catching up to foreign remittances

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