Mercy vs Merit – options to consider before donating to an NGO

As we approach to the end of the financial year (31^st March), many non-profits would like to lure the donors showing their 80G exemption certificate and telling them about the tax benefits to contribute to their respective organizations.

It is said that there are more than two million functioning NGO’s (non-profits) in India and my guess is that almost all of them have 80G certificates and everyone of them are doing commendable work among the deserving and the most disadvantaged people.  So then, for a donor, what’s the differentiator to give their hard earned money?

One has to look beyond the lure of the tax benefits of 80G.  What I would like to suggest is to look for the merits of the organization.  What I mean to suggest is to look for their governance, accountability and uniqueness.  One would be surprised to find that majority of NGO’s don’t meet the desirable standards of governance and accountability while many simply reinvent the wheel.   

Many people do not have the time or the inclination to go around searching for the right organizations that meets the desirable standards for governance and accountability.  This is where I would like to suggest that there are organizations that are doing such work to help you identify the organizations that meets such standards.  

‘GiveIndia’ (http://www.giveindia.org) itself a registered non-profit recognized for its uniqueness in helping NGO’s to raise funds and ‘Credibility Alliance’ (http://www.credibilityalliance.org) - a consortium of NGO’s that is promoting accountability and governance among the non-profits through accreditation.  Both these organizations have identical standards yet different objectives and delivery mechanisms.  

GiveIndia has become the darling of corporate world for them to have a platform to give for good causes without dirtying their hands while if media is to be believed, planning commission has found a friend in Credibility Alliance to mandate accreditation of NGO’s.  GiveIndia listing and continuously complying with their feedback reporting is so arduous that only 180 plus number of NGO’s are listed out of 2 million functioning NGO’s in India today. 

If any NGO has both (GiveIndia listing and Credibility Alliance accreditation), you can be sure that an NGO stands above the pack.  When you want to donate to an NGO next time, apart from your heart’s impulse (mercy), try to give your mind an exercise (merit) to help you identify the right organization 

If you're looking for any such organizations that enjoys both, consider ‘The Hope House’ (http://www.indiahopehouse.org) in Vellore, Tamilnadu.  It has been enjoying GiveIndia listing since 2012 and Credibility Alliance accreditation since 2013.  

Check it out.