acknowledgementccss.jhu.edu/wp-content/uploads/downloads/2011/09/...organizations remain...

Acknowledgement

This study has been carried out in collaboration with the Institute for Policy Studies, Johns HopkinsUniversity, USA as a part of the comparative global study.

Dr. S.S. Srivastava in PRIA acted as the Principal Researcher and provided overall leadership andguidance to the study. Several experts provided advice and technical guidance to the study.

The study was made possible through resources provided by JHU, Ford Foundation (Delhi),Aga Khan Foundation, Action Aid and CORDAID. This publication has been supported bySir RatanTata Trust.

Dr. Rajesh Tandon and Dr. S.S. Srivastava of PRIA prepared the text of this report.

Detailed reports on Definition, Legal Framework, History, Methodology and state level data areseparately available in PRIA as working papers.

December, 2002

The above recent newspaper headlines adequately reflect the prevalent (mis)understandingof the non-profit activities and organizations in the country today. A plethora of concepts and

definitions have gained currency in recent years :

Voluntary organization : generally implies volunteering

Community based organization : local association of the community itself

Non-governmental organization : intermediary development organization

Civil society organization : recent concept of defining non-state, non-market sector

Do these terms provide a clear picture of the spread or scope of the totality of private initiativesfor promotion of public good ? No, certainly not!

In the absence of any authentic data-base, most descriptions of the work of these types oforganizations remain personalized and anecdotal.

This report presents the preliminary findings of a nation-wide study. For the first time inthe country, a detailed, reliable and authentic picture of the non-profit sector emerges in thefollowing pages.

Introduction

Most readers would be astonished to learn that there are more than 50,000 NGOs currentlyworking in the developing world, which receive over $10 billion in funding from global financialinstitutions and American, Japanese and European governmental agencies.October 22, 2002, The Hindu Business Line

No figures are available on how much Indian NGOs raise domesticaly but the feeling among theNGOs is that they mainly depend on funds from abroad for their work.December 9, 2002, Business Standard

Those who think modern-day social workers are sitting pretty on massive cushions provided bydonors don’t know half the picutre. The latest trend is to ask country directors or their equivalentsto raise funds locally and make their units independent financially.December 13, 2002, Delhi Mid-Day

NON-PROFIT ORGANIZATION IN THE STUDY

ORGANIZED :legally registered or not, it has some ongoing institutional identity

PRIVATE :institutionally separate from government and non-exercise of anygovernmental authority

NON-PROFIT DISTRIBUTING :even if surplus is generated, it is ploughed back to the work of theorganization

SELF GOVERNING :autonomous functioning, independent of government and privatebusiness control

VOLUNTARY :voluntary participation of people contributing time and effort without fullcompensation

WHO IS EXCLUDED ?

Self-help groups, cooperatives, political parties, only religious worshipestablishments. . . . . .

WHO IS INCLUDED ?

School, clinic, orphanage, sports club, cultural organization, social serviceproviders, research and training institutes, development organizations. . . . . .

2

Methodology

The study began in 1998 by examining available secondary sources to estimate the size andscale of the non-profit sector in India. Most existing directories and lists of NPOs were not

comprehensive. The Central Statistical Organization (CSO) of Government of India also didnot maintain any separate data on NPOs. The Census of Enterprises and Establishments, 1990gave a listing of all non-agricultural enterprises and establishments by ownership: govt., cooperativeand private. It was in the private ownership category that NPOs were hidden. Based on someestimates of employment in NPOs, top four states from the four regions (East, West, North, South)of the country were identified for in-depth survey : West Bengal, Maharashtra, Delhi, TamilNadu. Meghalaya was included as a special case of smaller North-Eastern states.

A pilot organizational survey was launched in U.P. and Tamil Nadu in 2000. Instruments andmethods of survey were improved on the basis of pilot experience. U.P. was dropped for in-depth survey as the state had been bifurcated by November 2000. By this time, preliminary estimatesof employment in enterprises identified as non-profit by ownership were made available by theCSO in the Census of Enterprises and Establishments, 1998. These data were used to plan theorganizational surveys in the five states. The three-stage design began by selecting one district ineach NSS defined region of the state. The sample size of the survey was pre-fixed at 1% of allvillages and 1% of all urban frame blocks in the selected districts. Tehsils in second stage andvillages/urban frame blocks in the third stage were sampled for 100% listing and survey of allexisting and operating NPOs.

Survey on giving was integrated in the same. All households in sampled villages and urban frameblocks were listed and 10 giver households randomly selected for in-depth coverage in each locationidentified. More than one lakh households were covered in this survey. Most field data-collectionwas carried out during late 2000 to mid 2001.

National estimates were drawn from these survey results to project the overall picture in the country.

3

Size

How large is the non-profit sector in India ?How many non-profit organizations (NPOs) are existing in India today ?

A total of nearly 1.2 million NPOs in India today

And where are they based ? in cities ??

The non-profit sector inIndia is predominantlyrural based. Chart I showsthe spread across thesurveyed states. More thanhalf the NPOs in thecountry are based in ruralareas. The number is nearlytwo-thirds in West Bengal.Of course, several NPOsbased in urban area serverural communities.

Nearly Half the NPOs Are Unregistered

The data across the states isshown in Chart II. Thepercentage of registered NPOsis highest in Maharashtra (74%)and lowest in Tamil Nadu(47%). An overwhelmingmajority of these registeredNPOs are registered underSociety Registration Acts.

Most of the unregistered NPOsare in rural areas. But even inurban Delhi, nearly 30% ofNPOs are not legallyincorporated. Informal andorganized characteristics of theNPOs are the most challengingrealities today.

Chart - I

Chart - II

4

How does the size vary?

Indian NPOs are essentially small : nearly three-fourth of all NPOs have only volunteers or at mostone paid staff. Only one in 12 NPOs (8.5%) employs more then 10 paid staff (Chart III)

So, the sector of Indian NPOs is characterized by:

Nearly 12 lakh organizations

Mostly rural

Typically very small

Half unregistered

Chart - III

5

Variation on Size of NPOs nationwide

8.54.8

13.373.4

one or less paid staff between 2-5between 6-10 above 10 paid staff

Chart - IV

Activities

What kinds of activities these NPOs engage in?In other words, what is the nature of their charitable enterprise?

Five dominant activities at all India level :Religious (engaged in social development 26.5% every fourth NPO though primary identity is a religious institution)Community/Social Service 21.3% every fifth NPOEducation 20.4% every fifth NPOSports/Culture 18.0% every sixth NPOHealth 6.6% every fifteenth NPO

The variations across states are shown in Chart IV

More than half the NPOs in Delhi have primary activity as religious affiliation services –highest in the countryIn Meghalaya, nearly half the NPOs are engaged in educationIn West Bengal, more than a third NPOs have primary activity as sports and cultureIn Tamil Nadu, community/social services and education account for nearly one thirdNPOs eachIn Maharashtra, nearly one third NPOs have religious affiliation services as primary activity

6Activities of NPOs in India

Employment

How many persons work in NPOs in India ?

Nearly 20 million persons work on a paid or volunteer basis in NPOs. This is 3.4% of totaladult population

In Delhi, one out of very eight adult person is working in NPO

In West Bengal, 90% of all the persons working in NPOs are volunteers

Overall, volunteers are nearly five and a half times more than paid staff in NPOs nationwide

Chart - V

Employment in NPOs in India

DELHI MEGHALAYA WEST BENGAL TAMIL NADU MAHARASHTRA INDIA

1.03

0.12

1.491.52

0.77

19.40

Paid employees

Volunteers

No. o

f Per

sons

Wor

king

in N

PO

s(in

milli

ons)

80%

20%17%

83%

90%

10%

72%

28%

89%

11%

85%

15%


1.03

0.12

1.491.52

0.77

19.40

Paid employees

Volunteers

No. o

f Per

sons

Wor

king

in N

PO

s(in

milli

ons)

80%

20%17%

83%

90%

10%

72%

28%

89%

11%

85%

15%

7

Variation across states in employment (both paid and volunteer) in NPOs as a percentage oftotal non-agriculture workforce and total adult population are shown in Chart VI.

Chart - VI

Some of the highlights of the findings from Chart VII

Every eighth adult person in Delhi is working with NPOs

In Meghalaya, more than a third of its non-agricultural workforce is working in NPOs

In West Bengal and Tamil Nadu, every tenth person in the non-agricultural workforce(industry and services taken together) is engaged in NPOs

Nationwide, every eighth person in non-agricultural workforce is engaged in NPOs

8

Percentage of Non-profit Employment


3.45

0.43

6.41

3.51

2.43

60.35

P aid em ployees

V olunteers

No.

of F

ull t

ime

Equi

vale

nt P

erso

ns W

orki

ng in

N

PO

s(in

lakh

s)

50%

45%

55%

62%

38%

42.5%

57.5%71.3

28.7%

56%

44%

50%


3.45

0.43

6.41

3.51

2.43

60.35

P aid em ployees

V olunteers

No.

of F

ull t

ime

Equi

vale

nt P

erso

ns W

orki

ng in

N

PO

s(in

lakh

s)

50%

45%

55%

62%

38%

42.5%

57.5%71.3

28.7%

56%

44%

50%

However, the nature of NPO activity in India is such that a wide variety of employment patternsexist. Paid employment is both full and part time. Volunteers also work in NPOs both full timeand part time. Further pattern of employment emerges when these are converted into ‘full-timeequivalent’ persons working in NPOs in India.

This picture is shown graphically in Chart VII

Nationwide, NPOs have nearly 27 lakh (2.7 million) full-time equivalent paid employees.

NPO paid employees (full-time equivalent) are nearly:Four-fifth (82%) of all central government employeesOne quarter (25%) of all central and state government employees taken togetherOne seventh (14%) of all public sector employeesOne third (31%) of all employees in the organized private sectorOne twelfth of all employees in community, social and personal services (which means thatevery twelfth employee in services like health, education, welfare, community developmentetc. taken together is working in a NPO)

In the surveyed states, NPO paid employees (full-time equivalent) constitute nearly:a quarter of all state government employees in Delhi (27.5%), Meghalaya (27.3%) andTamil Nadu (22.5%) respectivelya twelfth of the state government employees in West Bengal

Total paid employment (full-time equivalent) in NPOs in India is 1.6% of total non-agricultural workforce; the average for 22 countries (developed and Latin American) is4.8% (Salamon, et.al.,1999)

Chart - VII

9

71.9%

51.3%

29%

0.5%

0.1%

17.5%

0.6%

7.1%22%

11%

23.4%

68.5%

51%

14.7% 12.9%7.8%17%

41.4%

36.1%

16.4%

DELHI MEGHALAYA WEST BENGAL TAMIL NADU INDIA

Dis

tribu

tion

of N

PO re

ceip

ts (R

s. c

rore

sin

199

9-20

00)

1,223

131

1,336

2,056

17,922

DonationsGrants

LoansSelf Generated

71.9%

51.3%

29%

0.5%

0.1%

17.5%

0.6%

7.1%22%

11%

23.4%

68.5%

51%

14.7% 12.9%7.8%17%

41.4%

36.1%

16.4%

DELHI MEGHALAYA WEST BENGAL TAMIL NADU INDIA

Dis

tribu

tion

of N

PO re

ceip

ts (R

s. c

rore

sin

199

9-20

00)

1,223

131

1,336

2,056

17,922

DonationsGrants

LoansSelf Generated

Revenue

How much resource does the sector of non-profits mobilize?

All India estimates of total receipts of NPOs for 1999-2000 were Rs. 17,922 crores*

What was the source of this revenue ?

Four main sources of receipts for NPOs in India are :

Self-generated Loans Grants Donations(grants are funds received from government and international sources; donations can be from both Indianand foreign sources, mainly individuals and corporations)

The pattern of distribution of receipts on the basis of above sources is shown in Chart VIII.The patterns illustrate that :

More than half of all receipts of NPOs in India are self generated (through fees, charges forservices, etc.)

NPOs in West Bengal have slightly more than a sixth (17.5%) of their receipts from loans

For Tamil Nadu, the percentage of self-generated resources is nearly two-thirds of the total

Grants and donations taken together constitute two-fifth (41.9%) of total NPO receipts inIndia

* A crore is equivalent to 10 million

Chart - VIII

10

7.4

13.2

1.8

9.1

13.5

0 2 4 6 8 10 12 14

INDIA

TAMIL NADU

WEST BENGAL

MEGHALAYA

DELHI

How does it compare internationally?

Salamon et.al., (1999) report that average for 22 countries (developed and Latin American) takentogether shows the following patterns :

Chart - IX

The above shows a comparable picture for India vis-à-vis other countries. Relatively speaking,government funds are less than a third for Indian NPOs while such funds are two-fifth for othercountries. Private funds in India include private Indian and foreign contribution.

Do foreign funds matter for Indian NPOs?

Chart IX shows percentage of foreign funds in total receipts of NPOs during 1999-2000

Nationwide, only 7.4% of total receipts of NPOs are foreign funds

Foreign funds constitute nearly one eighth of total receipts for Tamil Nadu and Delhi

Foreign funds as share of total receipts of NPOs in West Bengal are insignificant

11

Foreign funds as percentage of total receipts on NPOs (1999-2000)

International IndiaFigure in %

4049

11

Self Generated Government FundsPrivate Funds

32.451

16.6

For NPOs included in the survey, nationwide estimates show foreign receipts of Rs. 1326 crores(which is nearly one-third of Rs. 3925 crores reported as receipt by Ministry of Home Affairs,Government of India 1999-2000)

What is the relative significance of total receipts by the sector of non-profitorganizations in India today?

Nationwide, total revenue of NPOs is 7.7% of the total central government expenditure(plan and non-plan) on social services for 1999-2000

Nearly one in every 25 rupees (3.9%) is self-generated by NPOs as a share of totalgovernment expenditure (plan and non-plan) on social services for 1999-2000

NPOs in India contribute to Indian economy in significant ways. Chart X providessome interesting patterns

Nationwide, share of NPO contribution (based on paid employment only) to thegross product (other services – community, social and personal services-sector) atcurrent prices stands at 14.8% - one sixth

This share of NPO contribution to Gross Product (other services) is one-third in Delhi,one-fourth in Tamil Nadu, one-ninth in Maharashtra and two-fifth in Meghalaya

When total employment in NPOs (paid and voluntary) is taken into account, thiscontribution nearly doubles; nationwide, share of NPOs contribution to Gross Product(other services) at current prices is nearly one-third

Chart - X

12

33.6

39.4

40.9

19.5

95.3

68.5

14.8

11.3

23.5

7.5

42.6

34.2

0 20 40 60 80 100 120

INDIA

MAHARASHTRA

TAMIL NADU

WEST BENGAL

MEGHALAYA

DELHI

Share of NPO Gross Product based on total Employment as percentage of total Gross Product (other services) at current prices

Share of NPO Gross Product based on paid employ ment as percentage of total Gross Product (other services) at current prices

33.6

39.4

40.9

19.5

95.3

68.5

14.8

11.3

23.5

7.5

42.6

34.2

0 20 40 60 80 100 120

INDIA

MAHARASHTRA

TAMIL NADU

WEST BENGAL

MEGHALAYA

DELHI





Givers

Do people give money to NPOs in India? Who are these people who contribute to philanthropiccauses?

Households give in India, not individuals

Chart XI shows relative size of giving population (as percentage of total households)

Nationwide, more than 75 million households give for charitable causes - nearly two-fifth(40.7%) of all households in India

Two-thirds (68%) of all givers live in rural areas

Nearly two million households give in Delhi – more than four-fifth (80.7%) of all householdsin Delhi

The pattern for Meghalaya and West Bengal shows that more than two-thirds of all householdsare givers (72.5% in Meghalaya and 66.6% in West Bengal)

Nearly a quarter of all households in Maharashtra give for charitable causes

In Tamil Nadu, the giver households account for one-tenth of all households

Chart - XI

13

Educational profile of givers in India presents interesting trends(Chart XII)

Chart - XII

Givers come from all educational categories

Two-fifth of all givers have education at primary (or below) level only; in comparison, only aquarter of the givers are graduates (and above)

In West Bengal, nearly two-thirds of all givers have educational levels primary or below

In Maharashtra, nearly a third of all givers have eductional levels primary or below

In Tamil Nadu, nearly half of all givers are graduates and above

14

23.236.6

19.8

112.1 13

26.2

19.843.4

13

19.729.7

32.924.8

25.6

38

47.8 31.1

17.7 18.811.2

48

20.4 26.2

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Below Primary Primary Secondary Graduate & above

Dis

tribu

tion

of G

iver

s by

Edu

catio

n

Economic profile of all givers presents an interesting picture (Chart XIII)

Nationwide, two-fifth of all givers are poor households (annual income below Rs. 25,000)

Only a small percentage of givers are from households whose annual income is above incometax paying level (Rs. 1 lakh per annum)

A majority of givers in Delhi and West Bengal are from poor households; nearly a third of allgivers in Maharashtra are from poor households.

And how much do Indians give to NPOs?

Average amounts per giver vary significantly across states and income categories:

Poor in Delhi and Tamil Nadu (at Rs. 553 and Rs. 2333 per annum per household) give morethan the middle income group (at Rs. 470 and Rs. 1039 respectively)

In West Bengal, Maharashtra and Meghalaya, middle income giver gives substantially moreper annum than the poor household (Rs. 445 vs Rs. 200 in West Bengal, Rs. 849 vs. Rs. 245in Maharashtra and Rs. 758 vs Rs. 272 in Meghalaya)

The richer households give substantially more in the all states:Delhi : Rs. 1402 Meghalaya : Rs. 3770 Tamil Nadu : Rs. 7515West Bengal : Rs. 1077 Maharashtra : Rs. 1122

Overall Indians give Rs. 4214 crores per year; nearly 55% of these resources go to individuals,balance to organizations

Chart - XIII

15

57.7

21.5

55.4

2235.1

42

38.9

75.7

42.5

7270.1

54.3

3.4 2.8 2.1 6 4.8 3.7

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

DELHI MEGHA LAYA WEST BENGA L TA MIL NADU MAHARASHTRA INDIA

Less than Rs. 25,000 Between Rs. 25,000 - 1 lakh Above Rs. 1 lakh

Perc

enta

ge D

istri

butio

n of

Giv

ers

by A

nnua

l Inc

ome

And why do Indians give?

The survey results show that :

78% want to give something back to society

81% feel moral obligation to give

66% feel giving upholds their religious belief

More than half believe that if government were more responsible there will be less needfor giving

Half are not tired of giving (willing to give more)

Indians Give as well as Volunteer

Besides giving in cash and kind, Indians also contribute their time, energy and capacities tocharitable causes in society. Volunteering is ‘alive and well’ in India today. Nearly ten millionhouseholds reported volunteering regularly in recent months.

Volunteers come from all educational backgrounds – a quarter from primary andbelow level

Volunteers are from all income groups – nearly one-third from poor households

Two-thirds of all volunteers are in rural areas

88% of all volunteers believe they offer value addition through volunteering

87% believe every one has a moral obligation to volunteer

Three-quarter would volunteer more, if asked

For 82% of all volunteers, it is an experience that broadens their life

For two-third of volunteers, it helps to advance their career

16

What does it all mean?

The survey findings challenge several myths and raise many new questions. Explanations of thesecomplex patterns are also important. Some preliminary implications of these patterns are :

The identity of NPOs in India remains largely invisible; while there is a wide diversity ofNPOs, there are also interesting patterns. Associations and supporters of NPOs need toaddress this challenge of building and sustaining a coherent identity of the non-profit sectorin India.

Despite being invisible, the sector of NPOs in India is widespread. Its scale is huge andsignificant on several accounts: employment, revenue and types of activities. This scale ofNPOs demands serious attention and strong support from policy-makers, government officialsand political leaders.

Greater effort in promoting, and effectively utilizing, giving and volunteering is feasible inthe country today.

Further research into the size, scope and dynamics of NPOs in India needs to be carried outand supported. For example, such indepth surveys should be conducted for all states in thecountry.

The data, and system of data-collection, about NPOs should be organically integrated intothe work of Central Statistical Organization of the Government of India. Such data shouldemerge automatically and organically along with other statistics in the country.

Finally, the entire system of registration, reporting and record-keeping in various departmentsand agencies of central and state governments should be streamlined, modernized,

computerised and made more transparent to NPOs and the public.

17

PRIA

PRIA is a civil society organisation, undertaking development initiatives to positively impact thelives of poor, weak, marginalised and excluded sections of the society, by encouraging and enablingtheir participation in the processes of their governance. It strives for achievement of equity andjustice, through a people-centered approach, focusing on ‘Citizens’ - ‘their participation andinclusion’, ‘awareness and empowerment’ and ‘their democratic rights’.

It recognises the value of people’s knowledge, challenges traditional myths and concepts, raisesawareness of people’s rights and promotes experiential learning. PRIA applies a multi-dimensionalstrategic approach of creating knowledge, training and capacity building of stakeholders, publiceducation and policy advocacy and intervenes at various levels of the demand and the supplysegments, to reach out locally, nationally and globally.

It engages itself in strengthening of panchayati-raj institutions and municipalities, promotingenvironmental and occupational health, facilitating a network of strong civil society organizations,promoting citizen leadership, monitoring policies and programmes of bilateral, multilateral andgovernment agencies, to achieve an agenda of ‘Governance where People Matter.’

PRIA proactively involves and engages a range of stakeholders including civil society organizations,trade unions, academia, media, donors, including bi-lateral and multi-lateral agencies, industry,corporate and government institutes in its efforts and provides a platform for a multi-stakeholderdevelopment approach. Ongoing grass-root level research, studies and analysis provide inputsand directions to its interventions.

PRIA is an International Centre for learning and promotion of participation and democraticgovernance.

acknowledgementccss.jhu.edu/wp-content/uploads/downloads/2011/09/...organizations remain...

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