MSW Notes > NGO Management
3. Problems and Challenges of NGOs in India
Funding
Issues:
- Heavy dependence on foreign aid
and government grants.
- Delayed fund disbursement and
complicated procedures.
Accountability
and Transparency:
- Many NGOs face criticism for
poor financial record-keeping.
- Cases of misuse of funds reduce
public trust.
Government
Regulations:
- Stringent laws like FCRA
(Foreign Contribution Regulation Act) restrict funding sources.
- NGOs must comply with multiple
legal requirements (income tax, society registration, etc.).
Operational
Challenges:
- Lack of trained manpower and
professionalism.
- Difficulty in mobilizing
volunteers consistently.
- Competition among NGOs for
limited funds.
Example:
Many small rural NGOs shut down after stricter FCRA rules in 2020, as they
couldn’t access foreign funding.
Conclusion:
Despite challenges, NGOs remain crucial in bridging gaps left by the state and
private sectors, especially in child rights, women empowerment, and
environment.
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