NGO

Key Factors to Consider Before Making Donation to NGOs

calendar30 Jun, 2021
timeReading Time: 3 Minutes
Key Factors to Consider Before Making Donation to NGOs

NGOs generally refer to a group of enthusiasts that work in synergy for the betterment of society without expecting anything in return. One can find them serving different areas such as child education, women empowerment, spreading awareness, or providing health facilities. Lately, people from all walks of life have shown great admiration for these institutions and their nature of work. This encourages them to make donations to NGOs now and then. However, there are some people out there who do not trust these avenues. At times, they are not sure whether they are legit or not. Keeping the legality in mind, it’s important for everyone to examine credibility before making donation to NGOs. If you are not sure which NGOs to trust the keep reading this blog.

What is NGO and Why it is important for society?

A Non-Governmental Organisation (aka NGO) is an association of people which aims helping needy one and leverage fiscal aid to battles certain loophole in the society. At present, our country has millions of NGOs working on different levels and serving different causes. NGOs in India are free to work under different heads such as be cultural, religious, social[1], or educational.

Key features of NGOs reflecting why it is important for society

  • NGOs battles for a certain cause and constantly work for society’s betterment.
  • NGOs are generally operated by a group of people whose sole aim is to cater to one certain problem in society.
  • Since these entities are non-profit avenues, no government interference exists in their work.
  • NGOs outline and leverage independent rules, obligations, and policies.
  • They usually procure funds by reaching various sources through different mediums,

Truth be told, not all organizations are legit as they seem. Since the majority of NGOs lack transparency and legal authenticity, it makes sense to examine their credibility before making any contribution.

Below are some effective tactics that help you conduct pre-funding scrutiny for a particular NGO.

Read our article:Important Sources and Government Funding For NGOs: A Complete Outlook

Look out for Registration

Checking for legality should be your foremost step before making a donation to NGOs. At least it will assure you that the entity in question is conducting in their operation given provisions listed under the registration. In India, NGOs and other philanthropic groups usually legalized under the following Act

If any NGO has one of these registrations then you can blindly trust them since they are under obligations to operate legally.

Another thing that makes registered NGOs more credible is the presence of transparency within their operation. This makes them less prone to suspicion and helps them garner trust among the people.

Make sure that NGOs which claim to operate on a global scale should possess registration issued by FCRA (Foreign Contribution Registration Act). This particular Act regulates the funding of NGOs coming from overseas locations. The entity having this registration is bound to operate in a certain legal manner to manage their funds coming from other nations.

Check the Available Payment Methods

NGOs that seek donation in cash are probably not legit because such mode of a transaction goes untraceable, plus, there will be no surety that such funds will serve the right cause. While making contributions, make sure to prefer other legitimate options such as online payments and cheques. Do not donate to NGOs social avenues that are reluctant to provide multifarious payment modes.

Check whether the institution fosters transparency and accountability

For years, our country has been undermined by poverty and other critical issues. But, thanks to the growing number of NGOs which has played a vital role in countering such adversities. However, the growing numbers do not necessarily ensure that everything is on par and legit. At present, our nation has more than tens of millions of NGOs, including those that serve malicious intentions. And since most donors cannot detect genuineness, some NGOs leverage this as a tool to procure funds illegally.

The only thing that keeps such threats at the bay is the comprehensive scrutiny of their history. To do so, one can leverage different mediums such as official website, social medium presence, financial details, and tax status. Keep in mind that a trustworthy and a registered NGO arealways open to any type of public scrutiny.

Conclusion

Funding for a noble cause is a good thing, but one has to make sure that their funds are allocated for a good cause rather than anything else. It’s because the last thing you do not want that your fund is utilized for any illicit purpose.  It is a good idea to conduct pre-funding scrutiny for making a donation to NGOs. The factors above can help you do so with ease.

Read our article:Types of NGOs in India: A Brief Outlook

Pankaj Tyagi

Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.

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