Enabling Environment of the Voluntary Sector in India A STUDY REPORT Voluntary Action Network India (VANI) Enabling Environment of the Voluntary Sector in India: A Study Report Author: Voluntary Action Network India (VANI) June 2014 Copyright (c) Voluntary Action Network India The content of this book can be reproduced in whole or in parts with due acknolwedgement to the publisher The Enabling Environment National Assessment (EENA) in India is part of the Civic Space Initiative, implemented by CIVICUS in partnership with the International Center for Not-for-Profit Law, ARTICLE19, and the World Movement for Democracy, with support from the Government of Sweden. This report is wholly financed by the Government of Sweden. The Government of Sweden does not necessarily share the opinions here within expressed. The author bears the sole responsibility for the content. Published by: Voluntary Action Network India (VANI) BB-5, 1st Floor, Greater Kailash, Enclave – II, New Delhi 110 048 Phone: 91- 11 – 29228127, 29226632 Fax: 91- 11 – 41435535 E-mail: [email protected] Website: www.vaniindia.org Designed by: Rajkumar Sharma Printing by: Print World # 9810185402 Email: [email protected] Enabling Environment of the Voluntary Sector in India A Study Report Voluntary Action Network India (VANI) BB-5, Ist Floor, Greater Kailash Enclave-II, New Delhi - 110 048 INDIA Phone: 011-29228127, 29226632, Telefax: 011-41435535 E-mail: [email protected] Website: www.vaniindia.org A Study Report on Enabling Environment of the Voluntary Sector in India Preface Voluntary organisations all over the world are going through a crisis as their role and relevance is being questioned. It is mostly the rights based organisations, which advocate for people’s rights and question the government programmes and policies, that are facing the toughest times. Recently, in India an intelligence bureau report to Ministry of Home Affairs was leaked to the media which blamed NGO’s for causing a loss to GDP growth by 2-3%. It specifically targeted those NGO’s that have impeded economic development projects of the government as these projects led to displacement of poor and marginalised. It is evident that the increasing role and influence of and the numbers in the voluntary sector has led to this conflicting situation with the government. In India, the sector has made significant impact in the lives of common citizens especially in improving their quality of life by means of providing services, support, capacity-building and research based advocacy. It is working in almost all the areas concerning the socio- economic development of common people in this country. Yet the sector faces huge challenges in India, which starts with a lack of own independent identity of this sector. A number of entities such as private hospitals, religious associations, foundations, schools, sports club and resident welfare associations are also defined and registered under the same category. Many government run organisations are also registered as non-governmental organisations. It is this loose composition which has led not only to an increase in numbers of non-governmental/voluntary organisations but also an increased lack of transparency and accountability from the sector as a whole. The Acts governing the registration of these voluntary organisations date back to 19th century, after which a number of changes have occurred in the identity and functioning of the sector, which have not yet been incorporated in the legal enactments. The complex situation for the sector has further deteriorated with funding scarcity as international donors move out of the country with India emerging as a middle income nation. Indian government is also tightening the noose around the sector with stricter laws such as the Foreign Contributions Regulations Act, 2010 and the Direct Tax Code Bill, 2010. It is this overall disenabling environment for the voluntary sector which triggered VANI to undertake this study. These complexities have also been discussed at length during numerous discussions with the voluntary sector, which expressed the need for a study on the status and challenges faced by the sector vis- à-vis the legal and policy framework. The Enabling Environment National Assessments methodology, jointly developed by CIVICUS and ICNL, correspond to this assessment need. Though the study seems to be very ambitious and readers may try to find answers to all their concerns, the sector is very diverse and the study was done during a short period of time (six months), it may fail to capture the views of all the stakeholders. We have tried our best to bring out within these six months key issues that affect the voluntary organisations in India today and through numerous consultations, tried to emerge with some concrete recommendations. It is however not an end process, this study will be the basis for an action plan which VANI aims to undertake for advocating towards an enabling environment for the voluntary sector in India. 3 A Study Report on Enabling Environment of the Voluntary Sector in India It will be highly beneficial for the whole sector if you can take some time to read this report and give your valuable inputs which will shape our advocacy and action plans. Here, I would also like to thank VANI team especially Ms. Nishu Kaul for writing this report and Dr. Jyotsna Mohan Singh for coordinating the study. I would also like to thank my other programme team members Ms. Ratna Manjari, Ms. Pavneet Kaur and Ms. Tarushikha Yadav for reviewing and providing their inputs in the study. A special thanks to Mr. Arjun Phillips and Mr. Raj Kumar for handling the communication and publication of this study report. This study will not have been possible without the support of CIVICUS and we would like to specially thank Ms. Ine Van Severen for her support and guidance throughout the study. A number of people and organisations have been approached during the course of this study, who have offered immense help and we would like to acknowledge their support. We hope that this report generates collective understanding of the sector on various issues concerning it, which will lead to individual and collective actions towards an enabling environment. Harsh Jaitli Chief Executive Officer 4 A Study Report on Enabling Environment of the Voluntary Sector in India Contents Preface .............................................................................................................................................. 03 List of Abbreviations ......................................................................................................................... 06 CHAPTER 1 .................................................................................................................................... 07 INTRODUCTION ........................................................................................................................... 07 CHAPTER 2 .................................................................................................................................... 11 METHODOLOGY OF THE STUDY............................................................................................... 11 CHAPTER 3 .................................................................................................................................... 15 MANDATORY DIMENSIONS......................................................................................................... 15 Section I – Formation of Voluntary Organisations............................................................................ 15 Section II – Operation....................................................................................................................... 33 Section III – Access to Resources .................................................................................................... 34 Section IV – Expression ................................................................................................................... 47 Section V – Peaceful Assembly ........................................................................................................ 48 CHAPTER 4 .................................................................................................................................... 50 OPTIONAL DIMENSIONS ............................................................................................................. 50 Section I – Taxation ......................................................................................................................... 50 Section II – Government - Voluntary Sector Relations.................................................................... 59 Section III – VO coalition and cooperation ..................................................................................... 61 CHAPTER 5 .................................................................................................................................... 63 CONCLUSION AND RECOMMENDATIONS............................................................................... 63 Bibliography .................................................................................................................................... 66 Annexures......................................................................................................................................... 68 5 A Study Report on Enabling Environment of the Voluntary Sector in India List of Abbreviations ADM Additional Divisional Magistrate AGNA Affinity