IAS officers endorse nonprofits; distrust the private sector

Collaboration: Most bureaucrats serving in less resourced states considered nonprofits as critical partners in the fight against COVID-19 as opposed to their peers in developed states, according to a survey conducted by Centre for Policy Research.

Held between August and September last year, the survey involved over 500 officers of the Indian Administrative Service (IAS). They were asked about their views on the role of civil society and the private sector during the pandemic.

Three of every five officers surveyed considered nonprofits and civil society organisations (CSOs) as ‘critical partners’ in their COVID-19 response. Another 14 percent acknowledged their positive contributions. Only 13 percent of the bureaucrats said that the CSOs had largely focussed on increasing their own presence and visibility.

Approximately 24 percent of the officers in the more developed states expressed concern about nonprofits adding to the state’s regulatory burden, against 10 percent in ‘aspirant states’. This classification of states is based on tiers devised by the NITI Aayog.

Analysis of the data collected showed that bureaucrats in most resourced states were the least likely to consider nonprofits and civil society as critical partners, possibly due to their low dependence on them for meeting gaps in state capacity. On the contrary, bureaucrats in less developed states were the most likely to hold a positive view about CSOs, possibly reflecting high dependence on them.

On the role of international organisations, about 60 percent of IAS officers responded positively, with 32 percent suggesting that the expertise of such organisations was invaluable, and 28 percent saying they enabled global coordination. However, 40 percent did not believe that such organisations had added any value in the pandemic response. Here, too, officers from the least resourced states showed much greater support for the expertise and resources made available by international organisations.

In case of the private sector, a majority of officers held a negative view. Nearly 55 percent said the sector had made no significant impact at all, or that it had capitalised on the crisis to further its own interests. Only 11 percent of officers agreed that the private sector had gone out of its way to supply essential services.

Bureaucrats in more developed states were most positive about the private sector, with over 58 percent acknowledging its positive contribution.

While the positive response of officers from less resourced states may reflect a healthy environment of collaboration between the state and civil society during times of crisis, it also shows gaps in a state’s capacity to deliver services.

Read this article exploring a different approach to working with the government.

Fundraising & Communications: The Ministry of Home Affairs (MHA) has issued a circular extending the validity of FCRA registration certificates to September 30th, 2021. This applies to all FCRA licences that have expired or will expire between September 29th, 2020 and May 31st, 2021. The decision to extend the deadline has been driven by the exigencies arising from the COVID-19 situation.

FCRA refers to the Foreign Contribution (Regulation) Act 2010, which permits charitable organisations based in India to raise funds from foreign sources.

The order also clarified that nonprofits that have already opened an account and have the requisite permission to receive foreign aid, can henceforth receive it only in these newly-opened accounts.

The FCRA law was amended in September 2020 to include a clause that mandated that all nonprofits receiving foreign aid must necessarily open an account in State Bank of India’s New Delhi Main Branch. The government had initially set the deadline for this account opening as March 31st, 2021; it later extended it to June 30th, 2021 after several nonprofits argued in court that there had been delays because necessary approvals from MHA had not been received.

Several organisations have not been able to receive foreign funds during the crisis caused by the second wave, and this has impacted their COVID-19 relief efforts. Relaxing the foreign funding rules could significantly help organisations ramp up their operations to help individuals, supply critical healthcare equipment, and respond to communities in rural areas.

Read this article to know how amending the FCRA can have unforeseen implications.

Philanthropy & CSR: The Ministry of Corporate Affairs (MCA) has issued a circular that allows corporate spending on health infrastructure for COVID-19 care to qualify as corporate social responsibility (CSR) expenditure.

This includes setting up medical oxygen generation and storage plants, manufacturing and supply of oxygen concentrators, ventilators, cylinders, and other medical equipment to counter COVID-19.  

The announcement comes at a time when all efforts are being directed towards expediting efforts to support the country’s healthcare infrastructure.

According to the circular, companies can now undertake projects and activities in collaboration with other companies using CSR funds. Additionally, they can contribute to specified research and development projects, as well as publicly funded universities and certain organisations that conduct research in science, technology, engineering, and medicine.

The government had earlier clarified that setting up makeshift hospitals and temporary COVID-19 care facilities would also be considered a CSR activity. Rajesh Verma, the Corporate Affairs Secretary, has requested businesses to consider converting vacant office buildings into COVID-19 facilities to cater to the rapidly increasing caseload.

Read this article to understand why media attention on COVID-19 deaths due to lack of oxygen in big cities has skewed donor priorities.