Need for rating system for NGOs

Primary education as a fundamental right yet to be enforced

A rating system for providers of social services is one of the key items on the social sector wish list of the Economic Survey, which notes the money spent on this head has gone up several times from what it was previously.

It says providers of social services, including those in education, health and social welfare sectors, should be rated whether they’re state-run, non-profit NGOs or in the private sector.

The NGO policy drafted by the Planning Commission under the previous UPA Government had also suggested a rating system for NGOs and other charities, but nothing has come into existence so far.

Says Amita Joseph of Business Community Foundation: “We are always for such a rating system and, in fact, feel it should be across the board, covering media, advertising, and businesses.” BCF is already covered by Credibility Alliance which has set standards for transparency and accountability and has many NGOs members.

It does not do any rating, but at least ensures that members are transparent in their financial dealings, says Joseph.

Pooran Pandey who heads Times Foundation’s CSR initiatives says the suggestion is an expression of intent of the government and would do much good to the cause.

Earlier, a sub-committee of the Planning Commission for the Eleventh Five Year Plan had focussed on creation of a rating system for non-profits, but there was no follow-up to that. The committee headed by Mathew Cherian had suggested ways and means of going about creating a rating system.

Pandey says that there are many issuesto be sorted, beginning with who will do the rating. He notes hotels are rated by the tourism ministry and it would not be a bad idea to have either a separate wing in the finance ministry or some other part of the government doing it . An independent agency created by the government with representation from all sectors would also be a good option, he says. The survey says expenditure on social services as a proportion of total expenditure increased from 19.3 per cent in 2003-04, to 21.6 per cent in 2006-07 and further to 22.4 per cent in 2007-08 and 24.1 per cent in 2008-09.