THE BACKGROUND
1. The Ministry is charged with the promotion of welfare, ensuring social
justice for and empowerment of disadvantaged and marginalized sections of
society. It is the responsibility of the Ministry to reach the target group
which includes the Scheduled Castes, Minorities, Backward Classes, Disabled,
Aged Persons, Street children and victims of Drug Abuse. The objective is to
bring them into the mainstream of development by assisting them to overcome
their social, physical and educational handicaps. In this manner, their progress
through capacity building can be ensured. This would equip them to employ their
capabilities to their fullest potential reducing their reliance/dependence on
others and achieving independence to the maximum extent possible - the ultimate
goal of such assistance extended by the Govt.
2. The financial resources available with the Central and State Governments
are limited and therefore it is necessary to ensure that the resources of the
State are optimally utilized to bring maximum benefit to maximum number.It has
been recognized that along side the efforts of the state, the services of the
voluntary organization in assisting the target groups are indispensable. They
supplement the efforts of the state in ensuring that the benefits reach the
maximum number. In certain cases, it is the voluntary organizations that are in
a better position to implement the schemes of the Govt. in a more efficient
manner than Govt. itself. This is primarily attributable to the highly committed
and dedicated human resources that are available with the voluntary
organizations. Further, they often have better expertise and are more
knowledgeable about the local conditions that make them a better delivery system
than what the Govt. can put together. Therefore increasing participation of the
voluntary organizations in nation and society building is not only desirable but
also crucial.
3. The presence of Voluntary organizations is not uniform throughout the
nation. Similarly, there are certain spheres of activities that attract more
voluntary organizations just as their concentration in some regions. This twin
situation often results in disparate development of regions as well as of
sectors. It is the intention of the Ministry to encourage the horizontal spread
of development alongside sectoral growth in spheres that have received
comparatively less attention or may need more attention.
4. It is also the experience of the Ministry that some voluntary
organizations are better equipped to avail of the financial assistance from the
Ministry than others. Ideally, the scarce resource should be available to
voluntary organizations according to the regions and sectors that require
intervention according to the problems the society may be confronted with and
the priorities identified by the Govt.
5. Some Voluntary organizations also thrive exclusively on aid from Govt.
This is a situation that needs to be reversed. Voluntary organizations should be
able to build on the support from the Govt. and establish other support systems
that would gradually reduce their dependence on Govt. Such a policy would enable
the growth of more voluntary organizations that can work in more sectors. The
objective of the Govt. is not the support of existing voluntary organizations
alone, but to encourage growth of new ones as well.
6. It should be the intention of the voluntary organizations to obtain
support of other sources for their operation. This could be achieved after they
are able to establish themselves with the support of the Govt. and prove their
usefulness to the society at large. With the credibility that they may be able
to earn, they would be able to enlist the support of corporate houses and even
the community. Contributions both in kind and finances would become easily
available once credentials are firmly recognized. Additional resources could be
mobilized in this manner.
7. Enlisting of the support of the community at large is a time-tested method
of harnessing resources for the functioning of voluntary organizations.
Organizations in developed nations mainly rely on this strategy to make their
functioning more effective. Appeals to the community receive committed responses
from socially minded individuals and organizations. There are several of them
who would contribute willingly to development in areas that may hold their
concern but may not be aware of the method of involving themselves in such
activities. Harnessing the vast reservoir of goodwill is something that should
receive increasing attention of the voluntary organizations.
8. Voluntary organizations should also accord increasing priority to the
involvement of the community in the social activity that the organization may be
undertaking. Community involvement in projects has several apparent and
consequential or spin-off benefits. It helps in improving the efficacy of the
programme, effecting attitudinal changes towards the beneficiaries,
identification of those acutely in need of the assistance and change in the
psyche (feeling of acceptance or recognition by society can lead to increased
motivation) of those affected and the like.
9. Voluntary organizations be encouraged through a system of matching grants
to raise resources from the public, business houses, national and international
organizations.
II. ADVANCE ACTION TO BE TAKEN BY MINISTRY
1. The Ministry could in the beginning of every two years take out
advertisements in all the states through newspapers inviting voluntary
organizations to register with the Ministry. This would enable the Ministry to
have a database about the voluntary organizations spread through out the nation.
This is important because it would provide a wealth of information about the
various organizations such as their organizational strength, human resources
capacity, expertise, reach/presence etc. At times of need the Ministry could
intervene socially in regions and areas that may require special attention by
assisting such organizations according to the exigencies of time.
2. Evolve annual action plans according to the priorities that the Govt. of
the day may have to intervene in regions and sectors to beget the desired
changes.
3. Assistance to agencies could be based on such priorities rather than
waiting for voluntary agencies to approach the Govt. for assistance. In this
manner there can be a concerted attack on social evils/problems or areas to
engender change with the Govt. sponsoring such metamorphosis. This would be a
potent instrument in Govt. hands. Used wisely it could be an instrument of
positive change.
4. According to the data collected, organizations may be grouped according to
their expertise and geographical regions of operation and the manpower at their
command.
5. The exercise for the identification should be undertaken in the month of
December so that the plan could be launched as soon as the financial year
begins.
6. An amount of around 10% of the funds earmarked by the Ministry for
assistance to voluntary organizations will be reserved for utilization in areas
where the Ministry sees a need for special intervention on account of social
problems that may have arisen on account of natural and other calamities or
other unforeseen developments.
III. PRIORITIES TO BE ACCORDED BY GOVERNMENT
1. A transparent system be developed in the Ministry for processing release
of grants to Voluntary Organizations.
2. As far as possible, new projects shall be approved in respect of those
voluntary organizations which locate these in rural areas which are not
benefitting from voluntary action at present. However, this would not apply in
the case of schemes which are specifically aimed at tackling problems relating
to urban areas.
3. Since the funds available for assisting the efforts of the voluntary
sector in the field of social welfare are limited, assistance from the Govt.
shall be limited to duration of 10 years in case of new project. Those on-going
projects that have been receiving assistance for the last 5 years and above will
be given a phase out period of 5 years and in respect of those assisted for a
lesser period the phase out period shall be 10 years. Where the phase out period
is 5 years grants shall be reduced by an amount of 20% every year. In case of a
phase out period of 10 years the reduction in grant shall be 10% every year.
4. Voluntary organizations shall recover some proportion of the expenses
incurred on the beneficiaries through user charges from families of
beneficiaries or beneficiaries themselves for the services rendered. The user
charges may be fixed by the NGO keeping in view the income strata of the
population benefiting by voluntary action. The scale of charges shall be
displayed prominently through a board put up in public view. The user charges
recovered shall be fully accounted for in the annual audited accounts of the
NGO.
5. Monitoring of utilization of funds released by the Ministry be ensured
through periodical reports from the assisted organization and field inspections
by representatives of independent organizations/State Government/Others.
6. Voluntary organizations may be required to display boards which should be
erected at each service centre clearly indicating that the organization is
running under the aegis of the Ministry of Social Justice and Empowerment.
7. Public should be able to register their suggestions for the improvement of
the functioning of the organizations and a suggestion box may be provided at all
such service centres. Inspection agencies and the Ministry officials may have
access to them. Making suitable changes according to the suggestions received
may help in making the organizations more responsive to local problems/needs.
8. Releases should be time bound and progress determined. The voluntary
organization should be able to in advance project their requirements and the
achievements they would be able to register. Releases thereafter should not be
time-consuming and should be made time-bound. Once there is evidence of
progress, advances should be released.
9. Professionalism in voluntary organizations and involvement of qualified
persons should be promoted.
10. The releases of funds made by the Ministry to voluntary organizations
should be adequately publicised so that the general public is aware of the
activities of the Voluntary Organizations in the area and periodic feedback is
available to the Ministry through public representatives, local bodies and the
press on the performance of these organizations.
11. At least one branch of a Voluntary Organization should be inspected once
a year. Schedule for inspection may be prepared by March itself and a format
should be prepared to make the assessment of the performance.
12. Each Voluntary Organization shall submit an Annual Report to the
Ministry. They will include the per capita expenditure incurred on the
beneficiaries. This would be one of the key instruments to measure the
efficiency of the organizations and would provide a comparison between
organizations and regions.
IV. PRIORITIZATION GUIDELINES FOR FUNDING PROJECTS RUN BY VOLUNTARY
ORGANIZATIONS:
1. New projects will be favoured in rural areas, urban areas in cases of
extreme need and in States where voluntary action has so far not been
significant.
2. In order to be eligible for assistance, a Voluntary Organization should
have been registered for a period of at least two years and should have been
actively working in its sector for a period of two years. Such projects will not
be taken up for assistance where the activities are proposed to commence after
the project is sanctioned and funds released by the Ministry. Besides, the NGO
would be required to maintain its level of contribution at least at the level of
expenses that were being incurred by it before assistance from the Ministry
commenced. An undertaking in this regard would be required from the Voluntary
Organization at the time of submission of the initial application for grant.
3. Such projects will be favoured for sanction where the Voluntary
Organization is locally based and its operations reflect involvement with the
community.
4. Projects proposed for implementation by established Voluntary Organization
in green field areas by setting up their local chapters, will be favoured.
5. A Project proposal complete in all respects ( as per guidelines issued by
the Ministry) will be funded initially for a period of one year at a time for
five years.
6. No grants will be released for acquisition of immoveable assets or the
construction of buildings during the initial five year period of assistance by
the Ministry to any NGO.
7. Release of further grants will be conditional on satisfactory operation of
the activities of the organization as established through monitoring reports and
periodical inspections.
8. Voluntary Organizations would be expected to raise resources through
donations from general public, business houses etc. beyond initial requirement
of 10% to be contributed by the Voluntary Organization itself so that the
activities of the project become self sustainable and grants from the Ministry
can be tapered off through a cut of around 15% every year after the first five
years.
9. Voluntary Organization would be expected to progressively professionalise
their management and increase proportion of qualified staff.
10. The Ministry would release grant in aid for a project at a particular
location for a maximum period of 10 years.
11. In case of Voluntary Organizations seeking grant for a new project it
would be required to furnish complete information about all sources of funding
and a list of projects financed/supported through such funding.
V. PROCEDURE FOR PROCESSING GRANT IN AID CASES IN RESPECT OF VOLUNTARY
ORGANIZATIONS:
(A) Application:
a. Format for making application for release of grant in aid are part of the
prescribed schemes (which would be consolidated into a reference compendium for
the use of the Voluntary Organizations).
b. Cases for sanction of new projects should be received latest by 30th Sept.
of the financial year in question.
c. In respect of continuing projects, cases for first instalment shall be
forwarded by the implementing Voluntary Organizations by 31st May and for second
instalment by 30th October to the designated agency/State Govt. which shall be
required to complete the inspection and ensure that the cases for release of the
first and second instalments reach the Ministry by 30th June and 30th October,
respectively.
d. In case the inspection is to be carried out by the State Govt., the
District Magistrate (or DWO through DM) can send his/her report directly to the
Ministry which shall await the State Government’s recommendations for a period
of one month and failing its receipt shall proceed on the recommendations made
by the District Magistrate.
(B) Processing of cases:
a. Each Voluntary Organization assisted by the Ministry will be assigned a
registration number which will be used in tracking cases.
b. Application received in the Ministry will be processed within 30 days and
queries, if any, will be referred to the voluntary organization within this
period.
c. Funding by the Ministry is not a matter of right even if the NGO fulfils
all eligibility conditions but the application for assistance will be considered
on merits keeping in view the need for intervention through voluntary action in
the particular sector and area, number of organizations already funded in the
area/state and availability of financial resources with the Ministry. The
Ministry’s decision in this regard will be final.
d. Quantum of assistance would depend on the area of operation of the
voluntary organization. The financial norms indicated in the schemes are only
indicative and the actual funding may be lower keeping in view the local
situation. Special consideration may have to be made in the case of hilly and
difficult areas and the island UTs.
e. If the application is complete in all respects, grant in aid will be
sanctioned within 45 days in eligible cases.
f. Where voluntary organization is connected with e-mail, this facility will
be used for communicating with the voluntary organization and receiving return
responses.
g. After a period of 45 days has elapsed from the receipt of application in
the Ministry, the concerned voluntary organization will be entitled to obtain
the status of the case through e-mail.
h. Procedure will separately be prescribed for accelerated release of
installments in case of established voluntary organizations.
(C ) Disbursement of funds:
a. After sanction order is issued by the Ministry duly filled in bond will be
called from the voluntary organization with pre-receipted bill for the amount
sanctioned to the voluntary organizataions.
b. Undertaking regarding immovable assets created and developed through
assistance from Ministry devolving to local body/State Govt. /body to be
prescribed by Ministry in case of unsatisfactory utilization of the same by
voluntary organization to be furnished before release of funds.
c. Funds will be released through Demand Draft to be issued in favour of the
voluntary organization payable into designated account.
d. The feasibility of direct transfer of funds from the Ministry’s bankers
to the designated bank account of the voluntary organization would be explo
VI. INSPECTION AND MONITORING PROCEDURE:
1. State-wise panels would be prepared by each Bureau/NGO Division. The
application for the new projects would be sanctioned on the recommendation of
the State Panel/State Government.
2. The assisted voluntary organization would be required to submit annual
reports in the prescribed format indicating physical achievements and
utilization progress regarding released funds.
3. In addition, voluntary organizations shall be required to incorporate in
their report the actual number of beneficiaries who may have been rehabilitated
in different callings where the voluntary organizations are involved in such
tasks. Keeping data on this aspect also would help the Ministry to make an
assessment of the impact of its policies on the ultimate beneficiary and also
help in grading voluntary organizations.
4. The Annual Report that would be submitted shall include the details of the
entire gamut of their activities and the financial assistance they may be
receiving from all the sources for all the projects they are undertaking.
Financial assistance received under any head may also be included in the report
with the purpose for which the assistance may have been extended.
5. Periodic interaction on regional basis between voluntary organizations,
beneficiaries, and Ministry’s officials should be arranged.
6. Whenever funds are released, information about it should be sent to the
District authorities, Zila Parishad, the MP and MLA representing the region.
7. In a prescribed format, the voluntary organization should report the
progress achieved on half yearly basis. This shall enable comparison with the
project projections that may have made at the beginning of the year.
8. State-wise panels of designated agencies would be prepared by each
bureau/NGO Division for carrying out periodic physical inspection of the working
of the assisted Voluntary Organization. These agencies could be the National
Institutes, Institues of Social work, Universities etc. in the respective
States.
9. For ongoing projects, inspection would be carried out by teams deputed by
the designated agency for this purpose.
10. Inspection would be carried out by Ministry officials each year in 5% of
the cases.
11. The designated agency would be released an amount of Rs. 3000/- per month
or the amount that may be agreed upon for the maintenance of records and would
perform its role as such for a period of two years.
12. The inspection team from the designated agency shall also be paid
remuneration that would not exceed 1% of the assistance that is being given to
the NGO and which would further be subject to the ceilings prescribed from time
to time by the Ministry.
VII. PENALTIES IN CASE OF MISUTILIZATION OF GRANTS:
1. The members of the executive of the Voluntary Organization would be liable
for recovery of misused grants. The V.O. as well as members of its Managing
Committee would also be blacklisted by the Ministry.
2. All immovable assets created out of the funds from the Govt. shall be in
the name of the Govt. and ownership shall be with the Ministry of Social Justice
and Empowerment. Immovable assets created from the funds of the Ministry, if not
utilized as envisaged in the scheme, would be taken over by the local body/State
Government/body prescribed by Ministry.
VIII. CESSATION OF VOLUNTARY ORGANIZATION ACTIVITIES:
In the case of permanent closure of a project in any area by the Voluntary
Organization, immovable assets created through assistance of the Ministry would
be handed over through the State Govt. to local body/Panchayat.
IX. RELAXATION:
The Ministry of SJ&E shall have the power to relax any part of these
guidelines in favour of a voluntary organization if it is seen that the V.O. is
working in a tribal/SC dominated area or in poor districts where SCs/STs are the
target groups of the programme and where the V.O. may face genuine difficulty in
raising resources to sustain its activities.
Source: Ministry of Social Justice & Empowerment