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Friday, Apr 22, 2005

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Accountability in NGOs

This refers to the article "NGOs: To whom are they accountable?" (Business Line, April 21). There are a number of NGOs registered under Section 11 of the Income-Tax Act (1966) that extend philanthropic support to many other organisations — orphanages, hospitals, schools, destitute homes, etc. — besides providing merit-cum-means support to meritorious students.

Organised philanthropic support is extended only after studying the aspects such as activities, financials and so on of the beneficiary organisations. However, when reports are required on utilisation of funds, a proper reply is seldom received. Many of the NGOs are run as personal properties of the trustees who have vested interests in controlling them. Funds are misused for personal uses. Many of the NGOs do not have audited accounts. It is high time they come under scrutiny.

Ravi Natarajan

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