Approximately half of the aid money received by non-governmental organizations in India is misused, mostly to cover high administrative costs, according to local NGO watchdogs.
Credibility Alliance, a network of voluntary organizations that seek to improve accountability and transparency of India’s nonprofit sector, said the issue of accountability is particularly problematic among NGOs that receive foreign donations, Time magazine reports.
“There are many NGOs who won’t even show you their accounts,” Credibility Alliance Chairperson Mathew Cherian said, as quoted by the magazine.
Time adds that the apparent lack of accountability in India’s nonprofit sector is compounded by the industry’s unorganized nature.
In India, “organizations are often required to register under multiple laws without any uniform accounting policy or reporting framework,” according to the magazine. “It’s a problem driven both at the organizational and the donor levels.”