Non-government organisations (NGOs) are struggling to raise funds for causes other than COVID-19 as individuals and companies donate more towards relief measures.
In FY21 so far, funding for non-government organisations (NGOs) has lowered 43 percent from FY20, according to a report by The Economic Times.
During the same period in FY21, funding not directed towards a specific initiative has plunged 63 percent, the report said.
The change in the funding pattern has hurt NGOs' long-term projects by causing a shortage of capital, The Economic Times reported.
"We could not do a single cataract surgery for senior citizens from the end of March to June as no one was donating towards this cause. The elderly are at risk. If we don’t provide medical intervention, they may die of other diseases, not COVID-19," Mathew Cherian, who was CEO of HelpAge India till June-end, told the paper.
Fundraising by PM Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund has hurt donations of corporate social responsibility (CSR) donations towards NGOs, the report said.
Donations made to the PM CARES Fund as CSR are eligible for 100 percent tax exemption.
Companies with a net worth of over Rs 500 crore or a turnover of over Rs 1,000 crore, or a net profit of Rs 5 crore, spent 2 percent of their average net profits over the past three years on CSR.
CSR contributions usually make up 30-50 percent of the total funding of NGOs.
"In the current business environment, with profits under pressure, CSR budgets will be hit in the next two years," philanthropist Amit Chandra, chairman of Bain Capital Private Equity India told the publication.
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