The Importance of Detailed Verification
As far as history goes, NGOs have been at the forefront of India’s battle against various issues. Today, it is estimated that at least 33 lakh NGOs are operating all across the county, focused on tackling issues of poverty, gender equality, climate change, and more.
While one cannot deny the good these organizations have done, it would also be foolish to ignore the recent hit their reputation has taken in the wake of numerous NGO scams.
Nearly a decade ago, the Delhi Court headed by Justice Pradeep Nandrajog said, “Most privately run so-called philanthropic organizations do not understand their social responsibilities. 99% of existing NGOs are fraud and simply moneymaking devices.”
While that 99% number can be dismissed as an exaggeration, the fact of the matter is that our NGO landscape has become a fertile ground for hucksters and fraudsters to thrive.
As a reputed fundraising platform in India, here at Let It Count we work with several reputable NGOs across the country. It frustrates us to see these legitimate organizations suffer because of the actions of a few bad apples.
That said, there is a way to ensure that legitimate NGOs can nurture trust among their donors and it is through detailed verification.
In this article, we will explain why donors have soured on NGOs lately and what we are doing to make people more confident in showcasing their generosity to such organizations.
The Rise of NGO Scams and the Growing Cynicism Towards Them
Since independence, NGOs have played an instrumental role in alleviating problems plaguing our country’s downtrodden. They’ve stepped up in areas where even the government has fallen short. Despite the good they’ve yielded, their perception has been mixed among Indian donors.
Such a polarized reaction can be attributed to the number of NGO scams exposed over the years. Take the example of the Siksha Sansthan Scam that happened early last year. This NGO, based in Kolkata, was accused of having siphoned over INR 20 Cr. in funds that were supposed to be invested in improving educational facilities and offering scholarships.
This isn’t the only education-based NGO scam that came to light. An NGO in Uttar Pradesh claiming to work for child welfare was found to have siphoned off more than INR 15 Cr. These funds were, again, supposed to go for the education and healthcare of underprivileged children.
In another large-scale investigation conducted by the Ministry of Home Affairs, it was found that many NGOs weren’t complying with the guidelines dictated in the Foreign Contribution Regulation Act.
With so many scams popping up, it is no wonder your average donor in India is hesitant to contribute. These donors are met with numerous ads by NGOs online, appealing to their humanity. The donors have no way of knowing which NGOs are real or fake.
The Challenges Donors Are Facing When Donating to NGOs.
There is no shortage of generous folks in our country who would like to see their hard-earned money being put to a noble cause. Unfortunately, finding a legitimate NGO can be daunting for an average donor in India.
After talking to a few donors, we identified a few pain points that explain why they have such a skeptical attitude toward NGOs today.
1. Absence of Transparency
Most NGOs in India that make contributions do not provide their donors with information on how their money is being used. Donors seldom receive project reports or financial statements. Even if they do receive it, the documents are usually hard to understand.
2. Finding Credible Information on the NGO
Donors don’t have the time or resources necessary to do detailed research on each NGO they encounter. Most donors struggle to get any legitimate information on the NGO they are working with and are left with no means to verify their credibility.
3. Impact Measurement
As a donor, you would like to know the impact your contributions have had on a particular cause. However, most NGOs do not provide donors with proper metrics or evidence to measure this impact.
4. The Administrative Costs
Donors have absolutely no way of knowing what percentage of their donations is going to the cause and how much is being used by the NGO to cover their administrative costs.
These are just some of the concerns that have turned the donors in India against NGOs.
The Obvious Solution: Let It Count’s Struggle to Restore Faith in NGOs.
When you look at the pain points mentioned above, the solution becomes quite obvious. Donors will have no problem contributing to an NGO that’s transparent in its workings and provides donors with the data they need to rest assured their donations are being used for their intended purpose.
At Let It Count, we make this happen. We’ve created a platform that not only serves as a bridge between donors and NGOs but also fosters accountability and trust between these parties.
Each NGO that we decide to cast a spotlight on goes through a detailed and rigorous vetting process, which includes the following steps.
1. Identification
We begin by sifting through 800+ registered NGOs per state to identify the top 5-6 NGOs that stand out because of their work and the results they’ve produced.
2. Verification
Before we choose to promote them, these NGOs are put through a rigorous and time-consuming vetting process that extends beyond the basic 12A, 80G, and registration checks.
3. Site-Visit
No matter where the project or NGO is located in the country… no matter how remote, we will send down a team for a physical site visit. The team will evaluate the site with their own eyes before making a decision.
4. Due Diligence
After the site visit is complete, the shortlisted NGOs are scored on the progress made, the work they’ve done, and other factors.
5. The Final Pitch
Once that stand out are then taken on board our platform where they’ll have a chance to connect with interested donors willing to contribute to their cause.
Conclusion
India is replete with privileged folks who want to use their money to uplift those who have been underserved in the country. However, they face challenges, especially in finding an NGO that can be deemed trustworthy. This is a challenge that we at Let It Count, address with our platform.
We try to give the spotlight to NGOs only after they’ve gone through our rigorous vetting process. We’ve succeeded in creating a charitable landscape that’s transparent and benefits both the donor and the NGO.
With the verification part taken care of, donors can donate more confidently and generously to the causes dear to them. On the other hand, we’ve helped NGOs build the credibility they need to attract more support.
Verification isn’t just about ensuring that donations are being used appropriately. It is about nurturing a culture of giving that’s embellished with trust and accountability.
That is what we’ve been able to accomplish here at Let it Count.