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Good To Know : How To Make Sure That Your Are Donating To A Genuine NGO ?

Pavan Manikanta Kumar

August 30th, 2016

SHARES

Non-governmental organizations or NGOs as we acronymically call them are basically formed by a bunch of motivated people working together towards a specific cause. Mostly consisting of volunteer members, these organizations campaign endlessly to raise awareness and collect funds towards their cause which would lead to the betterment of the society as we know it. As the name itself suggests, these organizations don’t work to make a profit and are independent of the organizations of the state and the national government.

These organizations are usually charitable and receive an exemption from paying taxes once they are registered. The people donating money to these organizations can also receive income tax rebate up to 50% of their taxable income which makes the act of donation a bit more easy and lucrative. Many of us think that they have done their bit of goodwill and are least bothered whether the money is used for constructive purposes or not. It is better to be informed and donate money to genuine NGO’s.

However, there are some organizations forever looking to dupe people of their money by posing as NGOs, and looting generous people. Because of these fraud NGO’s ,people are losing confidence in NGO’s and are shying away from donating to NGO’s.

 Also Read : How To Register An NGO/VO With NITI Aayog NGO- DARPAN portal ?

PART 1

Ways of checking whether the NGO you’re donating to is genuine or not.

1The NGO’s which receive grants from the government comes under the purview of RTI act. If the NGO says that it receives funding from the government ask the head of the NGO for details of the funds they got and how did they utilize the funds. Generally, NGO’s which are good/genuine publish their funds collected and funds utilized with detailed reports on their website.


2The Council for Advancement of People’s Action and Rural Technology (CAPART) regularly releases names of blacklisted NGOs – check before you donate. Or approach an NGO through Charities Aid Foundation (CAF) India, which certifies the credibility of charitable institutions. Though the certification is not compulsory, genuine NGOs prefer to register themselves with CAF to obtain credibility.


3You may verify the NGO’s registration, their Tax Exemption Certificate and the cause they claim to support. Better still visit the organization to get a fair idea about their operations.


4You can just go ahead and ask the NGO for their annual reports and a genuine NGO will be happy to provide them to you. Studying annual reports of the NGO will also help you understand the working and spending patterns of the organization, and it’s rather not that easy to fake multiple annual reports.


5Genuine NGOs usually provide reports or updates on causes they work for so keep in touch with the NGO even after you have donated money – following up with them will ensure that the money you donated is being used for the right purpose.


6If you cannot decide which NGO to donate to or for what cause, you can approach organizations like ICICI Communities, GiveIndia, CAF or CRY who work for multiple causes and will utilize your money wisely and effectively.


7There is also help at hand by an organization called “Credibility Alliance”, which is itself an NGO made to keep a check on other NGOs. The donor needs to simply check if a particular NGO is in the list of Credibility Alliance’s website or not. In case the NGO is not in Credibility Alliance’s list, there is another organization acting as a checkpoint called Give India. Give India’s website, has an alphabetical list of NGOs that are eligible to receive donations through GiveIndia

Note: Not all NGO’s list themselves with Credibility Alliance or Give India.


8Genrally good NGO’s do not take cash donations.The prefer donation through cheque or online payment.The best and the most cost-effective way is to pay directly to the NGO either by sending a cheque or online. Do not go by paying to agents of the NGO commonly known as direct selling agents (DSA), who get the commission on the collections. It is often heard that the DSAs work on high commissions amounting to about 40-50%, so in a way the capital which was meant to be used for noble causes is getting halved by the DSAs.


9Nonetheless, even after having numerous ways to check an NGO, few people have changed the form of donations to the items needed like donating books to slum school through an NGO and devoting their time instead of cash towards the cause which is no less than donating money.


10List of Black Listed NGO by various ministries.

So donate as you want to but make sure to keep donating for it was Winston Churchill who said, “We make a living by what we get. We make a life by what we give”.


Disclaimer : *This information is subject to periodic change. Kindly contact the concerned department to cross check for recent updates, if any.

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