CHENNAI: The Centre's crackdown on US-based Ford Foundation and Greenpeace International has many Indian NGOs worried about their programmes as it is from countries like the US that huge funds are sourced every year.

The crackdown on some foreign funding agencies has come at a time when NGOs in the south claim to be hit by dwindling financial support in the last two years. Foreign donors have laid down conditions that they would release funds only for states like UP and Bihar where the living conditions of the poor are more appalling than that in states like Tamil Nadu.

The problems faced by the voluntary sector as identified by representatives include the deteriorating relationship with the government due to introduction of hard provisions in the Foreign Contribution Regulation Act (FCRA) and income tax. Furthermore, donations have slowed down and there is increasing suspicion about NGOs.

Union home ministry data for 2011-12 shows Rs 3,838.23 crore came from donor agencies in the US and was distributed among various NGOs in the country. Compared to 2010-11, the donation from the US has gone up by 18%.

NGOs in Chennai received the maximum funding in 2011-12 when compared to those based in other cities. Chennai received Rs 889.99 crore. Of the 15 major donor agencies across the world, nine are based in the US and they donated Rs 555.25 crore. On Wednesday, US ambassador to India Richard Verma had expressed concern about the Indian government's attempts to regulate agencies like Ford Foundation and Greenpeace and their possible 'chilling effect' on civil society.

US-based Compassion International donated the maximum funds to various NGOs in the country. In 2011-12, Compassion International donated Rs 183.83 crore and it was followed by another donor based in the US, The Church of Jesus Christ of Latter Day Saints, which donated Rs 130.77 crore.

"We will support the government action if Ford Foundation or Greenpeace or any other NGO has not followed our laws and this will not stop our donors from sending funds to various NGOs. But, if the crackdown is based on information which is wrong, then it will affect our revenue from donations as donors would think twice about supporting us," said K Shivakumar, a chartered accountant with the voluntary sector.

"While big companies are able to invest foreign money within India without any problem, it is only the NGOs which face crackdown through FCRA," said a NGO chief seeking anonymity. Besides Greenpeace and Ford Foundation, Bill and Melinda Gates Foundation is also under the Centre's scanner. Gates Foundation donated Rs 34.44 crore in 2011-12 and it is ranked 9 among big donors.

District Donation (in Rs crore)

Chennai 889.99

Mumbai 825.40

Bangalore 812.48

Kolkata 455.04

Pathanamthitta 433.19

Source: Union home ministry